Nordstrom Rack
7
min read
Nordstrom Rack and Hautelook operated as separate off-price business units of Nordstrom, both facing a challenge that plagued the retail industry: unsustainable return rates. While some sister-companies like Trunk Club had built returns into their business model, our returns had become excessive, threatening our already tight margins. As executives contemplated charging for returns, our CEO challenged us to find a better solution. Our goal post was to reduce returns by at least 4% within the next 12 months, while increasing purchasing and maintaining engagement.
As led design and research functions on the project, in partnership with team multiple product managers, three engineering teams, a program manager, and data analyst. Our mission wasn't just to reduce returns – it was to fundamentally reimagine how customers could shop confidently in a digital space.
The numbers told a stark story. Returns had climbed above 60%, with some customers returning upwards of 70 items at a time. They'd discovered that free returns offered a way to turn their homes into fitting rooms. While this showed customer ingenuity, it was crushing our margins. Through careful data analysis, we identified a critical insight: fit uncertainty was driving this behavior.
Technical Limitations
Inherited a poorly documented Bazaarvoice platform
Limited customization capabilities [Example: restricted to two star icon options]
Inflexible spacing and margin controls
No ability to upload multiple images in reviews
Resource Constraints
Project not budgeted for intensive research
Tight timeline with little room for iteration
Multiple role responsibilities during leadership transition
Limited engineering resources for customization
Organizational Challenges
Stakeholder Concerns: Some team members and leaders feared showing negative reviews would harm conversion
Brand Transition: Shifting brand guidelines without an established design system
Cross-functional Alignment: Need to balance engineering feasibility with design vision
Role Evolution: Managing my transition to head of design while maintaining project momentum
Decoding Return Behavior
Research Insights
Our research revealed an array of reasons behind returns. The main reason why our customers returned items were:
Just Because
Bad Fit
Mismatched
Single Use
Found Better
Seasonal
On the flip-side, here are some of the reasons why customers kept items:
Liked Style
No Surprises
Liked Comfort
Good Value
Flattery
Enhances Outfit
Closer to a Complete Picture
Research Methodology
We took a comprehensive approach to understanding our customers:
User Studies and Testing:
Surveyed 400 customers
Conducted card sorting to prioritize review attributes
Measured SUPR-Q scores
Implemented split testing for validation
Competitive Analysis Revealed:
Most platforms neglected accessibility
Poor information hierarchy plagued limited screen spaces
Mobile experiences consistently outperformed web
The Digital Confidence Gap
Problem Statement
Shopping on mobile comes with a huge downside - you can't touch, feel, or wear the clothes until you see it in person. This simple truth lay at the heart of our challenge. How could we create presence and confidence in a virtual shopping experience where we are physically absent?
A Stark Difference in App Shopping vs Physical Shopping
Shopping Online
Shopping IRL
Understanding Our Key Audiences
Target Users
Review Contributors
Our community builders
Verified purchasers eager to share experiences
"With so many bullsh*t reviews out there, I always look for the validated purchase badge before I read anything." - Review Reader
Wardrobers
Purchase hoping items complement existing wardrobes
Frequent returns due to styling mismatches
Fit-Focused Shoppers
Fit focused
Purchase multiple sizes to find the right fit
Return due to size uncertainty
General Confidence Seekers
Want to make informed first-time purchases
Actively trying to avoid returns
Learning From a Timid Start
Initial Exploration
Our initial exploration took a conservative approach, incorporating elements from the legacy app to minimize the effort of building new components and changing branding. However, user testing revealed critical issues:
86% completion rate but task duration of 118 seconds - too long for mobile users
Users questioned review legitimacy at first glance
"While customers like the style of the prototype... it lacked harmony with the rest of the app"
This taught us an important lesson: while innovation was necessary, maintaining connection with the broader brand experience was crucial for customer confidence.
Legacy Exploration
3.66
SUPR-Q
3.56
Usability
3.10
Credibility
3.85
Appearance
4.12
Loyalty
86%
Task Completion
1:58
Task Duration
Solution-Finding Via Dispute
Mid-Project Pivot
The inherited Bazaarvoice platform initially seemed like a strict limitation. During a pivotal meeting with our head of iOS engineering, I made the case for aesthetic harmony. [I most likely didn't say it this eloquently, but along the lines of this:]
"Nordstrom Rack isn't just a discount retailer," I explained, "it's a lifestyle brand. Our customers care deeply about the aesthetic harmony of our digital products - it directly impacts their trust in our brand."
I supplemented this argument with a quick study using the VisAWI framework, comparing our customers' perception of our aesthetic against our competitors. It was clear, we did not measure up in some areas, especially the layout.
Aesthetic study done against our competitors - especially around the inventiveness and dynamic of the layout (diversity).
This resonance between design principles and business goals shifted the conversation. Rather than accepting the platform's limitations, our engineering team proposed a creative solution: developing a pseudo-headless implementation that would give us deeper customization control.
Building Trust Through Transparency
UI Explorations
We discovered that establishing trust quickly was crucial for engagement. Our research showed that displaying negative reviews actually built trust rapidly, though we needed to limit them to three initially to avoid adverse effects. We enhanced trust through:
Verified purchase badges with subtle animations
Reviewer profile information
Community recognition for frequent reviewers
Clear transparency in review presentation
Showing bad reviews upfront and drawing attention to badges builds immediate trust for potential purchasers.
Prioritizing Relevancy
UI Explorations
To reduce task duration, we focused on surfacing the most relevant reviews first. Given that sizing, fit, and styling were top priorities, we prioritized reviews from users with similar characteristics. We prominently displayed body metrics that matched with the user, making it easy to identify relevant experiences quickly.
Balancing Speed and Detail
Layout Explorations
Our exploration of review browsing patterns:
We tested a dating app-style swipe interface for quick browsing that:
Proved effective only with large review volumes
Better suited for quick decisions than deep research
Explored separate detailed review pages but deterred from them because they:
Disrupted the conversion funnel
Created navigation friction
Made it challenging to present sufficient information upfront
Crafting Consumable Content
Screens of the Final Prototype
Our final iteration focused on content design principles:
Enhanced scannability through strategic use of icons and logical grouping
Implemented sticky footer with product name and 'Add to Bag' button
Maintained conversion focus while delivering comprehensive information
Created clear visual hierarchy for quick information processing
I appreciated the simplicity of the new design. It was really easy to use. I can see myself use this while on the move.
Review Writer
I got every piece of information I’m looking for to make my decisions. This reviewer actually kinda looks like me.
Review Reader
Measuring the Impact of Design Changes
Outcomes
After implementing our design changes, we conducted a follow-up study that revealed significant improvements across all key metrics:
3.66
SUPR-Q
3.56
Usability
3.10
Credibility
3.85
Appearance
4.12
Loyalty
86%
Task Completion
1:58
Task Duration
4.11
SUPR-Q
3.90
Usability
4.15
Credibility
4.20
Appearance
4.20
Loyalty
100%
Task Completion
0:42
Task Duration
These improvements validated our approach to balancing speed with comprehensive information, and confirmed that our focus on trust-building and content design resonated with users. The dramatic reduction in task duration, combined with increased completion rates, suggested we had successfully streamlined the review discovery process without sacrificing quality of information.
Proving the Power of Transparency
Business Impact
The larger returns initiative (all returns projects combined) helped reduce overall returns from 58% to approximately 40% – translating to an estimated $1.53B in savings. But perhaps more valuable was the transformation in how we approach product development.
One of our most controversial decisions was displaying negative reviews prominently. The data proved our hypothesis - that showing the negative reviews with the positive reviews was integral to our customer experience:
Return Rate Reduced
↓ Return Rate of iOS Purchases
Cost Savings
Annual Cost Savings
Conversion Rate
↑ Conversion Rate
iOS DAU
↑ Daily Active Users (iOS)
Unique Sessions
↑ AVG Frequency Per Day
Session Duration
↑ AVG Session Duration
New Reviews
Post-Launch Month 1
A Win Driven By Transparency & Team Support
Key Learnings
Key insights From Our Team Retrospective:
Aesthetics are fundamental to building user trust
Technical constraints can spark creative solutions when teams align on value
Transparency, even when scary, builds customer confidence
Strong team foundations make organizational change manageable
As one team member reflected, "We didn't just build a better review system – we discovered a better way of working together." This sentiment captures the true legacy of the project: a blueprint for collaborative innovation that continues to influence how we approach challenges at Nordstrom Rack.
Catalyzing Our First Design System
Project Legacy
The project's challenges finally brought engineering, product, and leadership together on the urgency of a design system solution. What started as a point of friction transformed into an opportunity for cross-functional collaboration.
This foundation evolved into Nordstrom Rack's first WCAG AA-compliant design system, bridging the gap between marketing vision and product reality.
