Customer excellence : #1 marketing tactic

Why focusing on customer experience is probably the best ever viral strategy Z a p p o s B us i ne s s Ca s e mardi, 4 août 2009

Tony Hsieh, 34 years old (pronounce shay) mardi, 4 août 2009

Zappos birth Tony hsieh almost deleted the mail he received from the founder of this shoe internet startup who asked him to fund his company; because selling shoes online sounded silly... Until he noticed that «catalog sales» represented around 4% of a total market of 40 billion dollars He invested 500‘000$ in the company and because of the challenge this company represented and the good results they were making, started to jump on board mardi, 4 août 2009

Zappos brand The company had started in 1999. He joined in 2000 when the turnover was 1.6$ million. In 2008, they hit 850$million with a unique culture Tony created a company in which he would be proud to go to work everyday He thought that making customer happy was the best ever marketing tactic and that instead of investing in adverstising, he would devote all his budget efforts to create the best ever customer experience mardi, 4 août 2009

Because happy customers having had a unique experience repeat buying and eventually advocate ‣They provide free shipping both ways 365 days return ‣Whenever possible upgrade to free overnight shipping (get your parcel 8hours after order) ‣Only show products they have on stock ‣Find products and refer at competitors when out of stock ‣Work 24/7 mardi, 4 août 2009

Because you can’t ask your employees to care about your customer if you do not care about them ﬁrst, they showed they cared ‣Free food and snacks ‣100% medical insurance & dentist mardi, 4 août 2009

Because brand are about culture they cared to make sure people would ﬁt into that culture ‣This drive the recruitment process (hiring interview, training) ‣This also drives the assessment process : 50% of people’s review is based on culture ‣Make sure people stay for culture and not money : 2000$ cash if you leave mardi, 4 août 2009

Because they cared to take any opportunity to talk to their customers ‣No time limit on phones (call center metrics on customer satisfaction, not numbers) ‣They published the 800 direct numbers on their website ‣Take advantages of all given opportunities to talk to customers and be helpful to them mardi, 4 août 2009

Because they want a long term relationship and not short term proﬁts ‣They don’t try to maximize all of their actions by reducing the time they spend, or the efforts they give ‣They persue exceeding expectations services, including when they cannot help directly : deliver WOW mardi, 4 août 2009

How unique is this ? mardi, 4 août 2009

So unique that from initial footwear delivery customers have asked them more (clothes, accessories, cookwear...) mardi, 4 août 2009

Zappos is a service company offering exceeding expectation level of service mardi, 4 août 2009

They don’t outsource because you cannot give such service when outsourcing They were bought this year by amazon for 920 million dollars mardi, 4 août 2009

Sources and more info on : ‣Crunchbase : company description http://www.crunchbase.com/company/zappos and Inc. http://www.inc.com/magazine/20060901/hidi-hsieh.html ‣Slideshare : values of Zappos http://www.slideshare.net/krianbalma/zappos-pg- presentation-82008-presentation ‣Article : why Zappos continue growth in economic downturn http:// knowledge.wpcarey.asu.edu/article.cfm?articleid=1736 ‣Youtube : ‣Video at web 2.0 summit http://www.youtube.com/watch?v=JQ2DmNk3YjQ ‣Video by nightline http://www.youtube.com/watch?v=tFyW5s_7ZWc ‣Video at SXSWi http://www.youtube.com/watch?v=63WFjoFiXns mardi, 4 août 2009

Customer excellence : #1 marketing tactic

by netinfluence on Jul 31, 2009

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Customer excellence : #1 marketing tactic — Presentation Transcript

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