She got a live chat message from a customer at 4:30 a.m. A clear manifestation of the company's vision is its philosophy around technology. So, if telephone inquiries ever drop off from Zappos customerswhich seems likely as customer support trends continue to move toward messaging, chat, and social mediaI expect Zappos will find ways to have engaging conversations on those channels as well. Learn about the key takeaways from Chattermills Customer Intelligence Summit 2023 in this article, which addresses the biggest talking points in CX right now. Our chat eventually ended, and althoughI was able to WOW Tommythat day with a simple shoe exchange, my heart told me to do more. Moving to Vegas was also dictated by the fact that it is a 247 city, and the city never sleeps. When your absolute bottom line is, as it is at Zappos, to make an emotional connection with each caller, it creates great variability in call length. The volume of these customer inputs is heavily skewed toward telephone: 7,394 calls, answered in 25 seconds on average, as opposed to 1656 chats (sorry, chatz) answered in 31 seconds each, and 988 emails (sorry again: emailz) answered on average in 4 hours and 15 minutes. Christa Foley If the employee doesnt take the payout after two weeks, Zappos leaders introduce them to an entirely human way of work. In the following three years, Zappos grew to achieve $840 million in gross sales and added additional products such as handbags, eyewear, clothing, watches, and kids merchandise. There are concerns about fit, feel, colors, textures, and many such things. In his letter, the CEO summed up his thoughts: We are excited about doing this for 3 main reasons: In hindsight, its logical to assume that Amazon bought Zappos customer-centricity flywheel, which displayed the companys growth potential and its legendary customer service culture, all built by Zappos exceptional talent base. As in a funnel, the number of customers passing on to the next steps keeps reducing in every step (refer above diagram). Join us on our mission to build the first Unified Customer Intelligence Platform, Read the latest coverage about Chattermill in the news. As if it could get much better than that, Tommy sent a thank you letter and pictures to Kelli, and so did his Colonel. Introduction to digital marketing 2. My visit with Hsieh (in theory pronounced Shay, but everybody calls him Tony)continues in this funhouse manner for the rest of my time at Zappos new headquarters. It seems like every other conversation I have with my aunt, who has elegant, narrow feet like you, has centered on this. As you can imagine, soon the two of them were besties. For extra credit, consider having all of your employees pitch in to support the customer service team during peak moments of the year, like the holiday season, July 4th weekend, etc. Learn about theses six powerful time management strategies you can implement in a hybrid or remote workplace. Further, we don't promote work-life balance in the traditional sense. As customer service standards continue to dip, delivering outstanding customer care is a truly fantastic way to differentiate your company from the rest of the herd. Zappos has built a brand powered by customer experience. TEXT the Zappos Customer Loyalty Team: Text CHAT to 1-833-927-7898 to chat with the Zappos Customer Loyalty Team by text. To WOW, you must differentiate yourself, which means do something a little unconventional and innovative. Tony Hsieh is sporting a Mohawk, the first Ive encountered atop a gainfully employed billionaire. Before Zappos, Tony Hsieh learnt a hard lesson. Today Zappos is world renowned for its culture. But Ryo didnt want me to take the wrong lesson from it. The easiest way to define this vision is to create a set of statements that act as guiding principles. The key here is to support a strong coaching and training culture rather than on strict policies and procedures. Both have been highly effective, and it's become clear that there isn't a singular way to achieve customer satisfaction. Zappos stresses fun and emphasizes customer service. Zappos, who until then operated in San Francisco, decided to move their Customer Loyalty Team to Las Vegas. Broadly speaking, the telephone at Zappos represents human contact, and extending rather than contracting the amount of time and resources that the company wants to spend in human-on-human connect with customers, whether it is telephone to telephone, terminal to terminal, or even asymmetrically, like when the wildly engaging employees at Zappos create their signature video demos for any and all products they have for sale on their site. Initially named shoesite.com, it soon adopted the name Zappos derived from the Spanish word for shoes (Zapatos). N26 Business Model: Changing banking for the better, Sprinklr Business Model: Managing Unified Customer Experience, How does OpenTable make money | Business model, How does Paytm make money | Business Model, How does DoorDash make money | Business Model, Innovation focused business strategy of Godrej. When agents always have to ask for approval or squirm around policies, they dont feel trusted. Companies are often more focused on acquisition than retention, but Zappos has turned this on its head, looking to market itself through quality of service. This customer-centricity is extended throughout the Zappos website. Why? They had the foresight to invest in what was at the forefront, for the long-term; something we can all learn from and apply in our own organizations! They found a true, congruent partner that would not only safeguard the business, but exponentially increase its value. Narrowly speaking, its true: Zappos takes the telephone experience very, very seriously. Click here to check them out! Simply that your coworker went above and beyond for you. Starbucks prices products on value not cost. 2) Customer Service Strategy- Theoretical Foundations: 3) Zappos's Expansion: 4) Zappos' Marketing Strategy: Zappos.com Information: Download these Free EBooks: 1. These insights can be used by the entire team to allocate resources more efficiently and hone in on the priorities behind logistical, product, and marketing strategies which drive the companys value generation. Company-wide, it is a daily quest for every employee to WOW customers in new and wonderful ways. Nokia is a perfect case study of a business that once invincible but failed to maintain leadership as it did not innovate as fast as its competitors did! Pursue growth and learning. And yet, Zappos is a household name one that reached $1 billion in sales in less than 10 years. Agents are available to text daily from 5am - 8pm PST. At Zappos, we encourage every employee to bring their whole self to work. This starts with promoting the chance to call Zappos round the clockyoure invited to do so right at the top of the Zappos homepage, where, in their signature white on blue color scheme, they proclaim, Customer Service Available 24/7 at (800) 927-7671. Christa Foley is a culture champion and adviser at Zappos. Or they can be achieved through the use of theright words in conversation, words that make an emotional connection that transcends the transactional. Zappos developed a set of key values that lives at the heart of their company culture. But our lending agreements required us to hit projected revenue and profitability targets each month. The chalkboard has a second sector of hand-drawn stats that youll never see compiled at any other contact center, these telling how many flowers, cookies, postcards and unnamed wow gifts have been sent to customers in the previous month and previous year. Surely you have heard many urban legends about Zappos. These sage words were given by Jeff Bezos just after Amazon acquired Zappos. An emotional connection can take just a moment (maybe a quick second of bonding over both being named Megan without an hwhich is the sensible spelling, of course!), an example that Megan Petrini, the Zappos Insights facilitator, is fond of sharing from her personal experience. After 2.5 years he sold Link Exchange sold to Microsoft in 1998 for 268 million dollars. He ditches the all-too-common mentality that the job of a contact center is to operate at the lowest cost, highest efficiency possible. Out of that stressful situation came a silver lining. Surprisingly, it had nothing to do with shoes. Once the core values were set, we began incorporating them into every aspect of Zappos; from hiring and onboarding to tough business decisions and customer interactions, our clearly defined core values have become the core of what makes Zappos Zappos. Thats because other companies hide their phone number. One of the highlights of Zappos Customer Service Strategy is their 365 days Return Policy. In fact, some 75% of Zappos purchases come from returning customers. Johnnie Walker The legend that keeps walking! This board, the Daily Breakdown Report, is a lot simpler than the kind of call analytics youll find at traditional contact centers. Apple A Unique Take on Social Media Strategy. It's not your customer's job to tell you what they need -- it's your job to predict those needs. The Zappos leadership team has been contrarian since the beginning and have pioneered the use of social media to gather customer feedback, at a time when most other companies weren't doing that. In Tonys words: At the time, Zappos relied on a revolving line of credit of $100 million to buy inventory. Keep Zappos customer service success in mind as you set your customer experience strategies. Zappos invested their money in customer service rather than in expensive marketing campaigns. We want to distinguish the service experience for every customer, on each and every phone call, says Megan Petrini, a customer service trainer/ training facilitator for Zappos Insights, the training arm of Zappos that offers programs designed to help other companies learn the ways of Zappos, including one called, literally, School of Wow. The connection can be anything, as long as it authentically relates to the customer. Its in how we build a personal connection, primarily on the phone. P.S - We'll be publishing a bi-weekly column here on Chattermill.com presenting a brief CX analysis of thought-provoking companies and events in tech. Zappos designed a 4 week program, in which they go over company history, the importance of customer service, the long term vision of the company. Indeed, Zappos can boast customer retention rates of 75%, while staff rates are 85%, figures not many other firms can match. Create fun and a little weirdness. I definewow customer service as service that goes beyond fulfilling basic customer expectations and does so in a creative, unexpected way. These "wow connections" can be achieved by an employee taking special action: action that iscustomizedfor that particular customer and goes beyond the expectations of a mercantile, pay-for-play relationship. Zappos, the online shoe retailer, is legendary for its employee culture and customer service. Kelli embraced whats important to us as people connection. Depending on where you live, your monthly mortgage payment can be as low as $1,700 or as high as $3,600. In fact, Zappos has the record for the longest customer care call at 10 hrs 43 mins! Zappos Interview Technique #3: The Service Test A core value at Zappos is creating WOW customer service experiences. Apples social media strategy is extremely unusual. No need to check with anyone else. We put ours front and center on the website, says Ryo. When other companies were using Facebook, Twitter, and YouTube for promotion, Zappos was using these social media platforms to gather comments from customers and employees and do word-of-mouth marketing. All this was happening at a bad time. Tony Hsieh ended up one by one selling off all of his apartments to fund the growth of Zappos. . A customer goes through several steps in the customer journey before purchasing a product/service (refer above diagram). The original idea for the book was simple. Is Michelin Star by the same Michelin that sells tires, yes, it is! Great customer service is essential in 2022 Learn why consumers are willing to spend 17% more with companies that deliver superior customer experiences. Zappos offer a 365-day return policy for people who have trouble committing or making up their minds. At Zappos, they don't measure call time, theyre longest call was almost six hours long! Each month, every employee is able to give a coworker $50. Cannabis Testing Emerges As Crucial Service, Generative AI: Why An AI-Enabled Workforce Is A Productivity Game Changer, Surprising Economists, Small Business Surges Across America, Yes, The Midwest Is Different: Tech, Infrastructure And Values Mark The Rise Of A Corn Belt City, The Son Of A Single Mom, He Rose From Poverty To Lead One Of The Worlds Largest Foundations, Why Change Management Skills Are Essential To Data-Driven Success, A New $500K Accelerator For Black Founders Opens In Brooklyn. 44% of new customers heard about Zappos via word of mouth. The power behind the Zappos brand is the team of agents who deliver spectacular service to customers. We tell our new recruits that they are the empowered ones and can do what's necessary to make their customers happy. Even after four weeks of onboarding and training, focusing the entire time on how to make that personal, emotional connection we're so known for, the Zappos customer loyalty team still follows just one general rule: "Always do what's right for the customer!". Use data you already have to build actionable strategies for a better customer experience. Navigating legal and regulatory changes can be challenging, but it's fundamental for entrepreneurs to ensure that their businesses are compliant. There is no script given or upselling attempt in these calls. Lets listen in on Madison, an experienced and proficientZappos employee whos working the phones when a customer calls in, distraught over the challenges of finding a comfortable shoe in narrow for an upcoming family wedding. Especially a company that has proved the quality of its customer service has to be accessible. It not only builds engagement but reaffirms your focus on delivering customer satisfaction. Now you dont have to put those $90 Nikes on Craigslist. Arjun Vasudev is passionate about BITS (Business Innovation Technology Strategy & Products). When that one call comes in, Zappos will do anything to make sure its an engaging and personable experience for the customer, in the hope that a single great phone interaction will serve as a proxy in the customers mind for the overall personality of this companythat this company wants to be my friend, to put it rather elementarily. As we discussed above, some of the world's biggest brands have put customer service at the . make employees happy, so they can make customers happy. For example, Zappos offers free shipping both ways to make transaction as easy as possible and risk free for customers. Chattermills technology ensures that no piece of feedback remains unseen and unheard. Since its founding in 1999, Zappos has leveraged cutting-edge technology, social media presence, and excellent customer service practices to sell its products in a way that follows the ever-changing lifestyles of its consumers. And that kind of restrictive environment leads to a negative customer experience. Like all exceptional companies know that you cant build great products without genuinely understanding the voice of the customer. This team works 365 days and 247 to make the entire journey special. These will tell how Zappos managed to build such a solid customer base. CALL the Zappos Customer Loyalty Team: 1-800-927-7671 2. In early 2009, there weren't a lot of banks eager to give out $100 million to a business in our situation.. By 2004, Zappos gross sales had reached $184 million and had received an additional $35 million from Sequoia Capital. Who would want to buy shoes online people thought? We tell them: "You are the one with the PEC; you read their energy and their tone best; you should do what you think is best! It was acquired by Amazon in 2009 for $1.2 billion on the condition of not diluting the company culture. Website Planning and Creation Customer Service Strategy- Theoretical Foundations: "Customer is King" is a timeless and worldwide business motto! With the shops not yet open, one could still buy the shoes online but it is a tougher challenge than waking up for a jogging session! Zappos focused on providing an exceptional customer experience through fast and free shipping, a 365-day return policy, and 24/7 customer service. Zappos - Personally reply to every email; Us! Meet Zappos. In fact, the right customer service strategy can - and should - support your sales. 2. The Amazon founder and billionaire was with partner Lauren Sanchez and famous friends, Kris and Kendall Jenner. Here are some of the reasons why they did that:-. Tony looks at me sourly, or as sourly as his essentially affectless demeanor would allow. Not an offer to skip the course, or take some additional holiday. Why is this contact center overstaffing necessary? Sharpen Technologies Inc. Were actually experimenting with ways to get more people to call because its such a valuable marketing and brand builder for us.. I try to do one uncomfortable thing every day.. Why does Teslas Zero Dollar Budget Marketing Strategy work? We'll be in your inbox every morning Monday-Saturday with all the days top business news, inspiring stories, best advice and exclusive reporting from Entrepreneur. Related: 5 Ways to Make Your Customers Say 'WOW'. Tony is insistent, however, that this differentiation isnt achieved through the website; its a result of how people are treated when they actually interact with Zappos. He did his MBA from HEC Paris with Strategy specialization and Leadership & Digital Transformation certificates. 1. Paying employees to quit; offering customers free shipping both ways and a year to make returns;. Most call centers are set up by policies and so the actual person thats answering the phone doesnt really have the ability to do anything. This creates a WOW experience, which customers remember for a very long time and tell their friends and family about. - Tony Hsieh, CEO @ Zappos. Set clear expectations for new hires surrounding it, trust your employees to deliver it, celebrate it and innovate on your customers' behalf to nail it. Thats how Zappos sustains and widens their competitive advantages. Therefore, their move to Vegas (apart from the lower tax rates) was to hire top talent for their customer service team. Tony Hsieh was the CEO of the company for 20+ years, and he stepped down in August 2020 to pursue philanthropic activities but unfortunately died in a fire accident in November 2020. If we missed our numbers even by a small amount, the banks had the right to walk away from the loans, creating a possible cash-flow crisis that might theoretically bankrupt us. The saying Customer is King is timeless and is a universal business mantra! Get an overview of the Chattermill platform, and see Unified Customer Intelligence for yourself, Leverage your customer feedback to discover what your customers really think, Analyse customer support data to create retention-driving support experiences, Create product experiences your customers love, Analyse customer experiences from social media data to complete your VOC program, Master your customer feedback with deep-dive demos, Integrate your tech stack and create a truly unified view of your customers, Create better customer support experiences, Create retention-driving retail experiences, Get a unified, intelligent view of your customers. Early on at Zappos, we recognized the need for two distinctly different interviews. I told her not to bother returning them; that we would refund her money but she was free to give the boots away instead of returning them. He ordered a pair of shoes that we had in our warehouse, and we surprised him with a shipping upgrade, so he got his order in two days instead of our original promise of a week. This differentiation strategy allowed Zappos to stand out in a crowded marketplace and to continue to grow despite the 2008 economic downturn. Screening for culture and values alignment is as important as screening for technical skills. (Good luck uncovering a phone number on the Amazon site.) 855.249.3357, The Customer Service Strategies Behind Zappos Success. You must do something thats above and beyond whats expected. The 10-hour phone call, which has become an essential part of Zappos lore(akin to the tire-refund legend at Nordstrom, that other customer-focused company) is no joking matter to Tony, butto lighten the mood, he pulls up a Jimmy Fallon segment on his laptop where the agent on the Zappos end of themarathon call finally gets to meet the customer he was speaking with.
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