Entrepreneur and its related marks are registered trademarks of Entrepreneur Media Inc. How Zappos creates a customer-obsessed culture -- and you can, too. 855.249.3357, The Customer Service Strategies Behind Zappos Success. This average spends to acquire a new customer is the Cost of Customer Acquisition (CoCA). There is no script given or upselling attempt in these calls. Who would want to buy shoes online people thought? How? It lists three categories of customer interaction, each sporting a Zappos z for good measure: For each of these channels, someone has written in the number of customer inquiries received for the day (yesterday), and the average time it took for Zappos to respond. Depending on where you live, your monthly mortgage payment can be as low as $1,700 or as high as $3,600. 600E This team works 365 days and 247 to make the entire journey special. 2. Zappos is synonym of the best customer service in the world. 6. If you expect to have a genuine customer-obsessed culture, think of your employees, vendors, shareholders and candidates as customers and treat them accordingly. And by doing so, theyre setting the bar for a positive agent experience. Either way, Zappos is depending on customer service as marketing, trusting that the intimate engagements they're having are enough to cement the loyalty of the customers on those calls and. Zappos crossed the $1 billion gross sales mark in 2008. . Name 3 things that makes Zappos customer service so special. I dont think the difference [between the appeal of Zappos and the Amazon brand] is in the UI [the website user interface]. Because to understand Zappos, and in particular Zappos celebrated customer service methodology, Tony isnt the only place you can start. Specifically, if someone wanted to start a fitness habit such as running, cycling, or home-workout, he/she would mostly be looking for sports attire, especially for a good pair of sports shoes. Retailers with gated offer programs include Urban Outfitters, J. 50% of the customers shopping from Zappos do return for further purchases. 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. But what it does require is breathing space. Website Planning and Creation Customer Service Strategy- Theoretical Foundations: "Customer is King" is a timeless and worldwide business motto! Chattermill 2015-2022 All Rights Reserved, Be Adventurous, Creative, and Open Minded, Build Open and Honest Relationships with Communication. We focus on making sure we have a great service-focused culture. In Tonys words: At the time, Zappos relied on a revolving line of credit of $100 million to buy inventory. Tony reached out to all Zappos employees, asking for their input on core values. If the employee doesnt take the payout after two weeks, Zappos leaders introduce them to an entirely human way of work. Zappos Interview Technique #3: The Service Test A core value at Zappos is creating WOW customer service experiences. And about that ten-hour contact center phone call weve all heard about? Zappos runs at 60-70% agent occupancy rather than industry norm which is somewhere in the 80s. 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? Were talking about the challenge at Zappos of competing directly with its overlords at Amazon.com, often selling the exact same items, and sharing the same technological backend. We want to align ourselves with a shareholder and partner that thinks really long term (like we do at Zappos), as well as do whats in the best interest of our existing shareholders and investors. 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. Let us explore the importance of having a good customer service strategy. Four hours does seem long to me on the email front (I counsel customer service consulting clients that every hour seems like a day in internet time; after just a couple hours not hearing from you, customers start to assume that a companys never getting back to them), but more, I was impressed that the Zappos volume is weighted six- or sevenfold toward the telephone as opposed to email or chat. In fact, some of our own customers expressed that concern. As unsexy and low tech as it may sound, our belief is that the telephone is one of the best branding devices out there. Having the candidate's favorite drink ready for them when the interview starts? You have to hire people who have the same philosophy about customer service as you do. Johnnie Walker is a 200 years old brand but it is still going strong with its marketing strategies and bold attitude to challenge the conventional norms.