zappos customer service strategy

If you get the culture right, then a lot of really amazing things happen on their own. - Tony Hsieh, CEO @ Zappos. He ditches the all-too-common mentality that the job of a contact center is to operate at the lowest cost, highest efficiency possible. Agents are available to text daily from 5am - 8pm PST. But thats followed by a second interview based purely on cultural fit. The success of online shoe retailer Zappos has been well-documented: It went from a struggling start-up in 2000 to getting acquired by Amazon in a deal valued at $1.2 billion in 2009. Our hope is that this is something fun and interesting that you can read while on your commute or in between heavy lifting at work. At Zappos, we developed our core values using feedback from all of our teammates. This creates a WOW experience, which customers remember for a very long time and tell their friends and family about. - Tony Hsieh, CEO @ Zappos. When your customers experience your customer obsession, they'll talk about it, tweet about it and blog about it. Being focused on customer service requires dedication. Tony Hsieh ended up one by one selling off all of his apartments to fund the growth of Zappos. It is not seen as just another supporting function or an operational department but is viewed as the most important team, which can greatly impact their customers. It takes tons of training and coaching (or untraining, according to Hsieh) to empower employees to make in-the-moment decisions that benefit customers AND the company. Zappos customer service has one, simple goal: to deliver customer happiness. Apples social media strategy is extremely unusual. 50% of the customers shopping from Zappos do return for further purchases. We'll be in your inbox every morning Monday-Saturday with all the days top business news, inspiring stories, best advice and exclusive reporting from Entrepreneur. The first interview is looking for technical ability and relevant experience, etc. Learn more about our vision,mission, and what makes us tick. Its vital you have the technology and text analytics systems capable of analysing customer feedback at scale. Related: 5 Ways to Make Your Customers Say 'WOW'. They also have their warehouse conveniently located just 15 minutes away from the UPS Worldport hub. Succcessful eCommerce case: the history of Zappos - Oleoshop You may opt-out by. Zappos's Customer Loyalty Team is known for its big, customer-delighting gestures. Ill get back to my visit with Tony in a minute, but first follow me upstairs to the call center. How to make Millennials, Boomers and everyone in between fall in love with your business. The easiest way to define this vision is to create a set of statements that act as guiding principles. The 5-Step Guide to Navigating Legal and Regulatory Changes in Business. The pillars of technology that have helped Zappos blitzscale growth are advanced supply chain management, their social media strategy and the use of Chattermills customer insights. The additional shipping costs are expensive for us, but really we view those costs as a marketing expense. - Tony Hsieh, CEO @ Zappos. Generous may be an understatement. Name 3 things that makes Zappos customer service so special. >> Download Now: Build customer experience strategies backed by the data in your contact center. Zappos Marketing Strategy What Is Their Difference Maker? The benefit of customer-centricity is that it creates a flywheel. Business Case Study: Zappos, A Success Story of Customer Service There is no script given or upselling attempt in these calls. Since its founding in 1999, Zappos has leveraged cutting-edge technology, social media presence, and excellent customer service practices to sell its products in a way that follows the ever-changing lifestyles of its consumers. How one step towards digital transformation completely changed the brand perception of Dominos from a pizza delivery company to a technology company? In this narrow sense, Zappos is serious about wanting you to call them; Hsiehs theory on this is that even though a very small percentage (fewer than 5%) of Zappos sales are made on the phone (almost all are made on the website), a much higher percentage of Zappos customers will call the company at some point in their life as customer. One of the primary lessons in our new hire training is the importance of personal emotional connections (PEC) with customers. You must do something thats above and beyond whats expected. 11 Great Customer Service Examples (2022) - Qualtrics Yes, they are the eCommerce identified as the one with the best customer service in the world. Zappos agents love their jobs because theyre empowered to get creative to make customers happy. Utopian, one might wonder. PDF Zappos - Deloitte Arjun loves solving puzzles, traveling, sports, Improv/acting, cooking different cuisines, and learning new things. You have the customers undivided attention for five to ten minutes, and if you get the interaction right, what weve found is that the customer remembers the experience for a very long time and tells his or her friends about it. Whatever friends would talk about. But, not to flog a dead phone line, but they werent friendsthis was a call between a contact center employee and a Zappos customer. In the context of Zappos, a company whose stated purpose is "To Live and Deliver WOW," "wow" is typically delivered over the phone, the humble vessel that Zappos considers to be its most. Its known for being a little bit weird and they are always looking for ways to improve company culture, no matter how unconventional or counterintuitive the approach may be. >> Learn More: Use Sharpen Insights to improve your interactions (not just your metrics). Refund a customer for a defective product, and then send a replacement for free. Because to understand Zappos, and in particular Zappos celebrated customer service methodology, Tony isnt the only place you can start. Then in the contact center, you have to coach your agents towards those values. And those agents thrive in a culture built on empowerment where theyre encouraged to make incredible connections with the people who reach out to them each day. This vision led Zappos to deliver happiness through the four C's: Commerce, Customer Service, Company Culture, Community. In the early stages of the company's history, as Zappos was growing, it was haemorrhaging money. Customer Service In The Time Of COVID: 7 Strategies From - Forbes 600E Contact Information | Zappos.com In a time with an ever-changing landscape of regulations, staying ahead of legal and regulatory changes is critical to safeguarding your business's success. ", Related: The 4 Top Customer Service Screw-Ups You Must Avoid. Zappos: Best in Class Customer Service - Technology and Operations (Agent occupancy is the percentage of time that agents spendor are predicted to spendactually handling calls, as a percentage of the time they are on the clock.). Kelli is a perky agent who works the late shift. All Zapponians know that delivering amazing customer service is what's at the heart of our organization. The last thing anyone wanted to do was to invest in an online shoe company. One of the highlights of Zappos Customer Service Strategy is their 365 days Return Policy. Both have been highly effective, and it's become clear that there isn't a singular way to achieve customer satisfaction. It's an offering we state loud and clear to this day. >> Read Next: Learn to build a culture rooted in purpose and rally your agents around that shared purpose. (Remember, customer service is more than the people that talk to customers on the phone. A full tour of the campus? If its something that creates a great customer experience, choose to do it, because we believe that in the long run, little things keep the customer in mind will end up paying short dividends - Tony Hsieh - CEO @ Zappos. What differentiates Zappos from traditional brick-and-mortar business, and even most of its online competitors, is the technological innovation culture that Zappos fosters internally. Back when Zappos was still in its infancy, a lot of people said, "No way will people buy shoes online without even trying them on." Since its founding in 1999, Zappos has leveraged cutting-edge technology, social media presence, and excellent customer service practices to sell its products in a way that follows the ever-changing lifestyles of its consumers. We welcome your comments on the format at hello@chattermill.com or message us on LinkedIn. Its the key to how we build customers for life., Half an hour later, Tony himself points to the telephone as the differentiator of the Zappos customer experience. Simply that your coworker went above and beyond for you. The company exemplifies what it means to make employees happy, so they can make customers happy. Zappos is a trailblazer. You have to hire people who have the same philosophy about customer service as you do. The company is known and routinely recognized for its excellent customer service. Thats how Zappos sustains and widens their competitive advantages. Meet Zappos. Keeping very much in tune with the belief that customer service shouldnt just be about the department, it should be the entire company. It may be hard to believe that an upstart company purchasing shoes from brick and mortar stores, and then turning around to sell them online, has become a mainstay in online retail. With the shops not yet open, one could still buy the shoes online but it is a tougher challenge than waking up for a jogging session! Broadly speaking, the telephone at Zappos represents human contact, and extending rather than contracting the amount of time and resources that the company wants to spend in human-on-human connect with customers, whether it is telephone to telephone, terminal to terminal, or even asymmetrically, like when the wildly engaging employees at Zappos create their signature video demos for any and all products they have for sale on their site. Strategy & Insights Design products people love, increase market share, and build enduring brands that accelerate growth. Use data you already have to build actionable strategies for a better customer experience. A lot of customers will order five different pairs of shoes, try them on with five different outfits in the comfort of their living rooms, and then send back the ones that dont fit or they simply dont like - free of charge. A company has to utilize its marketing budget judiciously to move a customer from awareness to the purchase phase. 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, shes going to expect that same level of service when she buys a vacuum cleaner from a different company next week. So if you are hired by Zappos, you can expect to spend the first four weeks in your new job manning phones in their call center and learning how to respond to customer needs. How? Hear a dog bark, connect over pets. Ultimately, the customer regained hope that the upcoming wedding would be other than a torture-fest, at which point, browsing together while still on the call, Madison and the customer managed to find a new, likely candidate for pain-free but dressy footwear. Two battle-tested approaches to customer service are the Amazon and Zappos methods. I'm a customer experience consultant and customer service trainer. By 2002, Zappos was running out of runway. Do reach out to Arjun for discussing conversion of ideas to business, cross-mentoring, IoT topics, or random chats about anything and everything. Tony looks at me sourly, or as sourly as his essentially affectless demeanor would allow. In the business universe, at a micro-level customer is like the nucleus of an atom, and at a macro level, the customer is like the center of the solar system. Contrary to most brands, it wasnt all talk. They display the customer care numbers easily visible on every page instead of burying several layers (or clicks) below the surface. Great customer service is essential in 2022 Learn why consumers are willing to spend 17% more with companies that deliver superior customer experiences. Knowing these companies, one could say that between them Amazon and Zappos represent the A to Z of customer service! Then what is Teslas marketing strategy? So, we listened to our customers and came up with a solution: We would allow customers to order the same shoe in multiple sizes to try them on in the comfort of their homes, with free shipping and free returns. BlackRock, the story of the worlds largest shadow bank. This team works 365 days and 247 to make the entire journey special. He did his MBA from HEC Paris with Strategy specialization and Leadership & Digital Transformation certificates. Thirty-seven beliefs were refined, and on February 14, 2006, Zappos 10 core values were born. Yahoos story or case study is full of strategic mistakes. Zappos agents pride themselves on delivering true happiness. If only one could order a dozen shoes, try them out, keep the best, and return the rest of course with no extra cost! Getting upper management invested in providing service directly to customers - by spending 6 weeks at Zappos's call center! But Zappos is different. Its in how we build a personal connection, primarily on the phone. Related: I'm Buying Your Customer Experience, Not Your Product. ZAPPOS' Social Media Customer Service Performance - Juphy Consider how attractive it will look to a bean-counting leader to tighten up a generous occupancy rate in the contact center, or loosen up hiring requirements, or shorten the training period before your newly-hired purveyors of wow encounter a live customer. If the employee doesnt take the payout after two weeks, Zappos leaders introduce them to an entirely human way of work. A clear manifestation of the companys vision is its philosophy around technology. Case Study: How Zappos Created a Customer-Centric Approach to Digital Breathing space is an essential element leading up to that moment as well, the moment when the agent encounters and strives to wow a live customer on the line. With online shopping growing by the day, Zappos is well-positioned as it begins its third decade. 6. Back in 1999, Tony Hsieh and a small team of internet entrepreneurs had the vision to deliver happiness to customers and provide the very best customer service. Set clear expectations for new hires surrounding it, trust your employees to deliver it, celebrate it and innovate on your customers' behalf to nail it. 2. Improve Customer Support. Compared to that, winning and retaining customers through wow is one of the only true bargains around. Imagine all the efforts required for a mango tree to grow from the beginning. Weve actually said no to a lot of very talented people that we know can make an immediate impact on our top or bottom line. Don't force your customer service representatives to jump through multiple hoops before they can get approval to give their customers what they need -- give your employees the power to make executive decisions and watch your customers smile. Zappos.com (Zappos), the top online shoe retailer,1 is ranked 31 on Fortune magazine's 2013 "Best compa-nies to work for" list,2 on which it has been for five years. Having the candidate's favorite drink ready for them when the interview starts? Always providing 110% service; even when it wasn't expected of them. Depending on where you live, your monthly mortgage payment can be as low as $1,700 or as high as $3,600. Our goal for emails is to respond in an hour.. Opinions expressed by Forbes Contributors are their own. (Agent occupancy is the percentage of time that call center agents. The customer service strategies behind Zappos' success that you can implement today. Here are our nine points to consider if you want your company to be customer-obsessed: If yes, is customer focus, service or obsession one of them? It was later decided that the Zappos brand should be about the very best customer service. This differentiation strategy allowed Zappos to stand out in a crowded marketplace and to continue to grow despite the 2008 economic downturn. 2. Jeff Bezos and Amazon were such big admirers of their culture, operating model and dedication to customer experience, they acquired the business for $1.2bn. 5 keys to extraordinary success at Zappos - The Business Journals Whats even more unique is that Amazon let Zappos operate under their own brand, keep the same management team, and retain its staff. 1. Further, we don't promote work-life balance in the traditional sense. A lot of websites bury customer service numbers five links deep, and even when you find it, its a form or e-mail address that you can only contact once. And, that often means connecting with customers outside of their short customer service interactions. Related: Want to Drive Growth? How much does the average organization spend on marketing and sales? Id argue, in fact, that the best way to understand Zappos and its approach to customer service is by studying the chalkboard on the wall of Zappos onsite contact center. To assure both current and potential customers you have their . Tony is succeeded by Kedar Deshpande as the CEO of Zappos. Save my name, email, and website in this browser for the next time I comment. 75% of the total revenues are through repeat customers. With a loyal and dedicated team, Zappos can deliver on its promise of 'Wow' customer service. We have specially trained recruiters who conduct cultural alignment interviews, and if they sense a red flag -- if they sense the candidate doesn't care about customer service the way we do -- we will not move forward with said candidate. Zappos and the Connection Between Structure and Strategy This whole transaction set precedent of what a smart acquisition is for the rest of the market. . Some agents would be dismissive and rush through an interaction that early in the morning, but not Kelli. Moving to Vegas was also dictated by the fact that it is a 247 city, and the city never sleeps. It not only builds engagement but reaffirms your focus on delivering customer satisfaction. Zappos has built a brand powered by customer experience. And they staff their contact centre 24/7. Bean, Lowe's, and Alex and Ani. Vegas is a place that attracts many tourists, and hence the culture of the city itself is that of service and hospitality. They dont use scripts because they trust employees to use their best judgement when dealing with each and every customer. But cmon! Zappos, who until then operated in San Francisco, decided to move their Customer Loyalty Team to Las Vegas. WillZara's new paid returns policy leave them counting the cost? Arjun Vasudev is passionate about BITS (Business Innovation Technology Strategy & Products). By launching a gated offer program, Zappos joins a host of other leading brands committed to deeper relationships with their customers. Sharpen Technologies Inc. Touted as the most valuable car company in the world, Tesla firmly sticks to its zero dollar marketing. Zappos, which was truly customer-centric, wanted the employees to be a part of that culture and wanted service-mindedness to rub off on them. So how did they become the most customer-obsessed brand in the world? These insights can be used by the entire team to allocate resources more efficiently and hone in on the priorities behind logistical, product, and marketing strategies which drive the companys value generation. Here are the four KPIs they use to monitor, track and improve performance: Measuring Call Quantities Zappos's longest call on record lasted more than eight hours, and guess what? Remember, they are not competing on having the lowest price, but 75% of customers are repeat customers - there is strong loyalty, based on customer . In a world where most consumer products spend most of their marketing on paid advertising, Zappos does the complete opposite. They dont follow conventional thinking when it comes to building a business. As customer service standards continue to dip, delivering outstanding customer care is a truly fantastic way to differentiate your company from the rest of the herd. All this was happening at a bad time. Amazon supports us in continuing to grow our vision as an independent entity, under the Zappos brand and with our unique culture. When evaluating Zappos' social media customer service strategy from this view, you may have noticed that it has a lot of visibility on social media. They found a true, congruent partner that would not only safeguard the business, but exponentially increase its value. Zappos had to worry about short profitability and long term growth. In fact, Zappos has a dedicated space on their website where agents can share their customer stories. Chattermills technology ensures that no piece of feedback remains unseen and unheard. And did they get bathroom breaks?. Which means they can get orders out to customers in super quick time. I and the rest of the Zappos recruiting team are constantly thinking of ways to wow new candidates while they're still in the hiring process. . Tony Hsieh was the CEO of the company for 20+ years, and he stepped down in August 2020 to pursue philanthropic activities but unfortunately died in a fire accident in November 2020. In this piece, we connect Apples unique and successful take on social media to its core values. Instead, they have everything to do with how satisfied a customer is at the end of a service interaction. Here's Where Average Monthly Mortgage Payments Are The Lowest in The U.S. Most call centers are set up by policies and so the actual person thats answering the phone doesnt really have the ability to do anything. Starbucks prices products on value not cost. 3. The power behind the Zappos brand is the team of agents who deliver spectacular service to customers. Four Lessons on Culture and Customer Service from Zappos CEO, Tony Hsieh As discussed in the previous section, the call center or the Customer Loyalty Team at Zappos is at the core of their business. Thats because other companies hide their phone number. To conclude, when Amazon and Zappos union happened in 2009, some people thought it is a natural thing given the customer obsession of both these companies. To maintain focus on the customer, they laid a few initiatives to ensure customer service was central to what they did as they scaled. Speakers from Amazon, Wise, and H&M provide critical CX insights. 1. They try to maximise for customer experience, which means getting orders out to their customers as quickly as possible. 24/7 operating warehouses, equipped with the most advanced systems and robotics infrastructure ensure speed, organization and overall efficiency. The flowers arent what mattered here most. At Zappos Insights, Foley inspires other companies to make their work environments better and more fulfilling. Zappos has taken numerous actions to ensure the best customer service, a couple of interesting ones are listed here. Keeping the Customer Loyalty Teams importance in mind, Zappos came up with a clever customer service strategy in its early days. Be adventurous, creative, and open-minded. How to Create a Great Customer Experience Strategy - SuperOffice Christa Foley is a culture champion and adviser at Zappos. Learn to build a culture rooted in purpose and rally your agents around that shared purpose, Use Sharpen Insights to improve your interactions (not just your metrics), 4 Ways Banks Can Hyperpersonalize Customer Experiences at Scale, How to Use Data (And Your Instincts) to Evaluate Your Next AI Project, 5 Ways to Prepare Your Contact Center for a Recession. This encourages people to leverage the advantages of online shopping and simultaneously removes the drawbacks. We are not an average company, our service is not average, and we don't want our people to be average. The original idea for the book was simple. Especially a company that has proved the quality of its customer service has to be accessible. So investing in good customer service increases customer experience which in turn increases customer loyalty and CLTV, resulting in better topline and bottom line.
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