The Customer Service Strategies Behind Zappos’ Success
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The Customer Service Strategies Behind Zappos’ Success

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When you visit Zappos.com, you know the site is quite simple, we can say almost flat. It’s a very functional e-commerce store, boasting popular, brand-name items like Adidas running shoes and Calvin Klein bags.

At a first sight Zappos looks like to be an average e-commerce company, with a look and feel that’s comparable to competitors. However, Zappos reached the huge number of $1 billion in sales in less than 10 years.

Zappos has more than 7 million customers, and more than 3 million of them have made a purchase every year until 2008. Even more impressively, 75% of purchases come from returning customers, and repeat customers order more than 2.5 times every year as average. 

Repeat customers also have higher average order sizes, and year-over-year revenue has gone up by 20%. An impressive 44% of new customers heard about Zappos via word of mouth.

The next stage is very well known story, in 2009 Amazon bought Zappos with an amazing number of 940 million dollars, it seems a huge amount scandalist for that period, but today, in a perspective view and counting with the successful background in the last 10 years, we can say the purchase was almost a gift for Mr Bezos.

In the e-commerce envoronment, where the comodity level is too high, this is the most of companies are selling more or less the same products with a small difference of pricing,  the competitiveness in too hard and the only way  to reach a difference in working strongly in the service and a huge customer care focus, this is terrible key question.

Why Did Amazon Buy Zappos for $940 Million? A Case Study for Entrepreneurs:

These 10 core values are what Zappos follows really strongly in both hiring and performance reviews:

1 – Deliver “WOW” through service.

2 – Embrace and drive change.

3 – Create fun and a little weirdness.

4 – Be adventurous, creative, and open-minded.

5 – Pursue growth and learning.

6 – Build open and honest relationships with communication.

7 – Build a positive team and family spirit.

8 – Do more with less.

9 – Be passionate and determined.

10 – Be humble.

Internally, Zappos reinforces these core values with its operating practices: no call time measurement, which encourages reps to focus on call quality rather than call volume; no sales-based performance goals; inventorying all product, so you never have to worry about delays or stock levels with drop-shippers. 

There are 5 weeks of culture and customer service training for all, which includes a “culture book”, and interviews/performance reviews are 50% based on core values and culture fit.

In fact, Zappos is the only one company we know which has a program that pays new employees $4000 to quit the company during initial training sessions. The policy is designed to make sure new employees are committed to working at the online retailer beyond just a paycheck.

Companies known for their customer service, like Zappos, set a standard in service that other companies have to match now, too. 

If my cousin Jenny buys shoes from Zappos and gets a hand-written note with a package of gummy bears in the mail from the agent she spoke to, she’s going to expect that same level of service when she buys a vacuum cleaner from a different company next week.

Keep Zappos’ success in mind as you set your customer experience strategies. Their billion dollars in sales and thousands of raving fans certainly prove that employee empowerment and a positive culture lead to customer happiness.

#CustomerExperience #CX #digitaltransformation #futureofwork #bigdata #marketing

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