Nixdorf Computer was the largest computer company in Germany (now Siemens Nixdorf) and one of the largest in Europe, where it had made huge inroads into a number of industries, especially retail. Nixdorf computer systems could be found in department stores, hotels, automotive companies, heavy industry, &c.
In the U.S., Nixdorf USA was a Johnny-come-lately, and had to prove itself in direct competition with much larger, older, and well-established competitors, several of which were household names here in the states.
Nixdorf's greatest strength was in retail, here as well as across the pond.
So, it was only natural that after a lot of hard work, it found itself in the final round of competition for the Nordstrom's computer system, including smart terminals at every cash register in every store.
The two other contenders were household names, and outspent Nixdorf USA ten to twenty to one in advertising and public relations.
Now, toe to toe with these giants, the Nixdorf people were confident that they offered by far the best system – hardware, software, communications, and the best service.
They were well aware that customer service was embedded in the DNA of the family-owned Nordstrom's operation. Other department store chains might compete on the basis of price, product, location, or snob appeal. For Nordstrom's, it was service. Customer service had built the company, and a reputation for customer service kept it in business.
A good retail computer system can improve inventory control, reduce shrinkage (a euphemism for theft) put the right items in the right store, and reduce the necessity for markdowns. But perhaps most of all, it can improve and personalize customer service.
The problem is, service, like competence, is notoriously difficult to quantify. Everyone claims it, and everyone provides it. More or less.
The Nixdorf IT department had taken the bidding process to the final level. Now the decision on this multi-million-dollar installation would be made behind closed doors, by members of the Nordstrom family.
There was a condition, and a deal-breaker caveat. Under no circumstances might a vendor approach any member of the family with a sales pitch, under pain of disqualification and forfeiture.
The Nixdorf team had no way of knowing whether one of the competition had an "in" with the family; in fact, it was not deemed unlikely. So matters stood, and the final decision was only a few weeks away.
With an air of resignation, the director of sales asked me if there were anything at all that could be done to stealthily influence the decision of seven people in a closed room.
Well, we could put up an outdoor billboard outside the flagship store (we had done that once before, successfully, in another bidding situation with another company in a different field) but that would be too obvious in this case, and might disqualify us. Direct mail was obviously out of the question.
If we'd had a huge ad budget, we could have blanketed a hundred major markets plus the Wall Street Journal, with advertising, and make a giant splash. But we could only dream of such a budget.
Then, an idea occurred to me. We didn't need to reach 100 major markets. Our decision makers were ensconced in an office in Seattle, Washington. For under ten thousand dollars, we could buy a full page, two color ad in both the Seattle Times and the Seattle Post-Intelligencer on the same day. And blanket our audience of seven.
Handled properly, and with luck, the ad might appear to be part of a nationwide campaign. But what to say? The obvious topic, was, of course, service.
So, a week later, the ad appeared in both papers, under the headline:
NIXDORF SERVICE IS RELENTLESS
EVEN IN THE FACE OF A 7.9 RICHTER EARTHQUAKE.
The ad told the story of how a Nixdorf computer system, which had been installed for the Montgomery Ward chain, had been at the epicenter of a California earthquake, and how the Nixdorf quick-response service team had rushed to the site – even before checking on their own homes – and got the entire system up and running within 48 hours.
When the sales director was invited to the inner sanctum of the Nordstrom corporate offices to be informed that he had won the business, he was gratified to see his ad posted on the conference room wall.
Sufficient time has passed, that there's no harm in telling the story now. But the lesson is clear. Anyone can look like the biggest kid on the block for five minutes. Provided you concentrate your dollars, co-ordinate your efforts, and tell a relevant, powerful story truthfully and straightforwardly.
Sometimes, even the best man can win.
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