The Zappos Brand & Customer Service - Tony Hsieh - Motivational Speaker & Author

Summary

Zappos has redefined customer service, focusing on long-term relationships over immediate sales. By investing in an outstanding customer experience, the company builds loyalty through repeat business and word-of-mouth marketing. Key strategies include making customer service easily accessible, sending customers to competitors when out-of-stock items are unavailable, and upgrading shipping for loyal customers. Zappos ensures all listed items are in stock to avoid disappointment. Despite high costs, the brand sees these investments as crucial to building trust and offering exceptional service, aiming for customer satisfaction over traditional marketing tactics.

Takeaways

• 😀 Zappos is not just a shoe company; they sell a wide variety of products, including clothing, cosmetics, electronics, and housewares.
• 😀 The core philosophy of Zappos is to focus on providing the best customer service and experience rather than on traditional marketing.
• 😀 Around 75% of Zappos' orders come from repeat customers, demonstrating the power of great customer service and word of mouth as marketing tools.
• 😀 Zappos uses the money typically spent on paid marketing to enhance customer experience, building loyalty instead of relying solely on advertising.
• 😀 Zappos puts their 1-800 number at the top of every webpage, encouraging customers to call for any reason, which fosters direct customer communication.
• 😀 The telephone is considered one of the best branding tools for Zappos because it provides undivided customer attention and a lasting impression.
• 😀 Zappos runs a unique call center where customer service reps may direct customers to competitors if an item is out of stock, prioritizing customer satisfaction over sales.
• 😀 Zappos doesn't focus on maximizing every transaction. Instead, they focus on building long-term relationships with customers, even if it means losing a sale.
• 😀 Average handle time in Zappos' call center is not a priority. The emphasis is on spending as much time as necessary to wow the customer and build loyalty.
• 😀 Zappos provides surprise shipping upgrades to loyal customers, often delivering overnight shipping even for regular free shipping promises, which enhances customer delight and loyalty.

Q & A

What is Zappos known for in terms of customer service?

Zappos is known for its exceptional customer service, focusing on providing the best possible customer experience through personalized attention, including offering a phone number prominently on their website and ensuring customer satisfaction at every interaction.

Why does Zappos put their 1-800 number at the top of every webpage?

Zappos puts their 1-800 number at the top of every webpage to encourage customers to call directly. They believe that speaking with customers creates a personal connection and enhances the customer experience, turning these calls into valuable branding opportunities.

How does Zappos view the role of marketing?

Zappos views marketing as being closely linked to customer service. Rather than focusing on paid advertisements, they invest in customer experience and rely on repeat customers and word of mouth as their primary form of marketing.

What is Zappos' policy regarding out-of-stock items?

If an item is out of stock, Zappos encourages their customer service representatives to search for the item on competitor websites and direct customers to those sites. This builds trust and demonstrates a long-term focus on customer relationships rather than immediate profit.

What makes Zappos' call center different from most others?

Zappos' call center is unique because they prioritize building relationships with customers over maximizing the number of calls handled. Representatives are encouraged to spend as much time as necessary to ensure customer satisfaction, instead of rushing through calls to increase volume.

How does Zappos handle shipping for repeat customers?

Zappos surprises repeat customers with upgraded shipping, often offering overnight shipping even though the standard shipping promise is 4-5 business days. This creates a 'wow' experience that encourages loyalty and word-of-mouth marketing.

What was Zappos' original business model?

Originally, Zappos focused on selling shoes online. Over time, however, they expanded into other product categories, such as clothing, cosmetics, electronics, and housewares, while maintaining a strong emphasis on customer service.

What does Zappos consider more important than immediate sales?

Zappos prioritizes building lifelong relationships with customers over maximizing every single transaction. Their philosophy is to invest in customer service to foster repeat business and brand loyalty.

Why did Zappos stop showing items that were not in their warehouse on their website?

Initially, Zappos showed items that were not physically in their warehouse to increase sales. However, they later decided that the focus should be on customer experience, leading them to only list items that they know are in stock to avoid disappointing customers.

How does Zappos' approach to customer service contribute to its brand image?

Zappos' commitment to exceptional customer service creates a positive brand image, as customers remember and share their experiences. The company's focus on going above and beyond in service, such as providing free upgrades and ensuring fast delivery, builds loyalty and generates word-of-mouth marketing.