Zappos has become one of the largest online shoe stores through its focus on outstanding customer service. It believes customer service is the number one driver of growth and makes significant investments in the customer experience. Zappos operates call centers and warehouses 24/7 to ensure easy transactions, free shipping, and quick order fulfillment in order to provide a great customer experience and turn customers into loyal brand advocates through word-of-mouth marketing.

1. Zappos
Branding Through Customer Service

2. Brief Overview
• Zappos.com is an online shoe and clothing shop
based in Las Vegas, Nevada
• One of the world's largest online shoe stores
• Zappos was founded in 1999 by Nick Swinmurn
• Tony Hsieh and Alfred Lin
• ShoeSite.com to Zappos.com
• Zappos reached $70 million in gross sales and
abandoned drop shipping – 25% of revenue ??
• Amazon’s outright proposition to buy Zappos –
2009 - $1.2bn

3. Customer Service
• From Delivering Happiness : A path to Passion,
Profits and Purpose
• Customers – Number one driver of Growth
• WOM
• More investments into Customer service and
customer experience
• “LET OUR CUSTOMERS DO THE TALKING”

4. What is Great Customer Service?
• Easy transactions
• Free Shipping – Ex: 5 different shoes
– Additional shipping cost = Marketing expense
– Flipkart case Last week
• Phone numbers at the top of every page
• Best Branding device – Telephone

5. Call Centers
• Not the usual modus operandi
• Not treated as an expense
• Call centers are not an expense
• Untapped Opportunity
• WOM
• Increase in life time value of the customer

6. How it works?
• No measure of phone calls (Longest : Over 8 hours)
• No upselling
• No script
• PEC
• What happens if there is no stock?
– Competitors
• Who are the callers?
– First timers
– Fashion advice
– Lonely and want someone to talk to
• Delivering Pizza

7. Warehouse
• 24/7
• Very inefficient way to run
• Get orders out asap
• 15 minutes from UPS Worldport Hub
• WOW experience
• Loyal repeat customers get upgrades

8. Thank You