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This edition of BrandBuzz details the quest of online retail giant Zappos.com to prove that delivering “WOW through service” is the fastest way to build a billion dollar company.
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Create Raving Fans
After four weeks of paid training, “the offer” is made: $2000 to quit, in addition to money already earned. Sounds like a dicey move, but as it turns out, less than 1% of new hires take the money. It’s a surefire way for Zappos.com, the world’s largest online shoe retailer, to weed out anyone just looking for a paycheck, and it’s the first step in ensuring that Zappos customers are guaranteed a “wow” experience.
In just eight years, Zappos has grown gross merchandise sales from $1.6 million in 2000 to $1 billion in 2008 by introducing the internet to good old-fashioned customer service.
The Zappos story began in 1999 when founder Nick Swinmurn and then investor/now CEO Tony Hsieh (pronounced “shay”) joined forces to build “a service company that just happens to sell shoes.” Other 25-year-old entrepreneurs might have focused on building the most efficient online sales model, but Hsieh and Swinmurn decided to build their brand by first building their culture.
Hsieh believed that making employees raving fans of Zappos would directly impact the customer’s experience with the brand.
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“At Zappos, our belief is that if you get the culture right, most of the other stuff -- like great customer service, or building a great long-term brand, or passionate employees and customers -- will happen naturally on its own. We believe that your company's culture and your company's brand are really just two sides of the same coin.” (excerpt from Hsieh’s blog)
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The right hire is essential, as Hsieh insists on controlling “the entire customer experience,” from the moment someone searches for a product on Zappos.com to the lightning-fast shipping (which is free both ways) that necessitated the company’s purchase of over one million square feet of warehouse space in Kentucky, to the upbeat customer service representatives available if a customer needs to call Zappos for any reason.
All new hires, from developers to lawyers to accountants, go through customer loyalty training that involves taking calls at the Las Vegas-based call center and getting to know Zappos customers.
There are no scripts or suggested time limits for customer phone calls, in contrast to the practices of most companies. In fact, company lore includes stories of Zappos customer service reps sending flowers to customers who have mentioned losing loved ones, or sending Zappos branded merchandise and gifts to customers who need a pick-me-up. They’ve even been known to help out with driving directions or look up the numbers to nearby pizza places. The goal is to give customers a positive, memorable experience to keep them coming back. Hsieh claims that, of the nine million customers Zappos is reportedly transacting with, 70% place repeat orders. The company has said that its rapid growth is a testament to the word-of-mouth of its customers.
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The Zappos brand has garnered such a loyal following that the company began selling Zappos Gear, its own branded merchandise line of t-shirts, backpacks, hats and more so that devotees could show their “Zappos spirit” by sporting the company logo.
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Looking for your own company gear? »
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Hsieh’s and Swinmurn’s commitment to culture and customer experience is paying off. In 2009 the company celebrated its tenth anniversary, Forbes ranked Zappos as the No. 23 best place to work in the nation, and sales are expected to be over a billion dollars, with the Zappos brand now extended beyond shoes to handbags, clothing and accessories. Hsieh has personally developed one of the largest followings on Twitter (@zappos) with over 600,000 “tweeps” keeping up with his nearly daily updates on the company and his many travels. Keep an eye on Zappos as it continues to reap the benefits of building a strong brand on a strong company culture and creating raving fans by delivering "WOW through service."
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