Some agents would be dismissive and rush through an interaction that early in the morning, but not Kelli. Furthermore, they believed that people who could not connect to their customers culturally might not deliver a WOW experience. Zappos takes a completely different approach. Zappos' customer service is built on one objective: to deliver customer delight and happiness. Zappos provides potential employees with two sets of interviews. ZAPPOS' Social Media Customer Service Performance - Juphy Nike doesnt sell shoes. 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. Ryo told me the story behind one of the 2016 flower stats on this board: Last year, when I was working the phones, a woman called, trying to return some boots. In fact, Zappos has the record for the longest customer care call at 10 hrs 43 mins! They put the contact information at the top of every single page of their website, because they actually want to talk to customers. And, they rally every employee around those core values and shared purpose. Our busiest time at Zappos is the holiday season; during that period, all employees take at least 10 hours of customer service calls -- myself included. Utopian, one might wonder. Bean, Lowe's, and Alex and Ani. Related: 5 Ways to Make Your Customers Say 'WOW'. He did his MBA from HEC Paris with Strategy specialization and Leadership & Digital Transformation certificates. Name 3 things that makes Zappos customer service so special. Moving to Vegas was also dictated by the fact that it is a 247 city, and the city never sleeps. . Next article, Ill revisit Zappos to consider how its proudly-weird culture does, or doesnt, fit into the customer service picture. What is this strategy and how Nike has used it? A creative application that shows our fun culture and is the opposite of boring applications? Those values are set up to reflect everything Zappos does, including how they interact with customers, how they interact with each other, how they interact with vendors and business partners. Zappos is known for its company culture and customer service strategy. Every Zappos employee we encountered seemed to be genuinely interested in helping us answer our questions . Deeply Analyzing Zappos Customer Service Strategy - The Strategy Story A lot of customers will order five different pairs of shoes, try them on with five different outfits in the comfort of their living rooms, and then send back the ones that dont fit or they simply dont like - free of charge. That only forces your employees into situations where they may come off as scripted or disingenuous. Your Company's Values Should Always Matter to You Zappos CEO Tony Hsieh takes an unconventional approach to customer service. Pimped out conference rooms to set the stage for a genuine conversation rather than an interrogation? At his first company he sold he began to hate the culture and didnt want to get out of bed. Like all exceptional companies know that you cant build great products without genuinely understanding the voice of the customer. Opinions expressed by Forbes Contributors are their own. The metrics used for the performance of this team are based on the value-added to the customer and the quality of interactions, which is opposite to the conventional practice measuring number of calls completed per shift. Great customer service is essential in 2022 Learn why consumers are willing to spend 17% more with companies that deliver superior customer experiences. Their time is spent observing and tracking customer behavior with the on-going goal of creating more . Photo Credit: Zappos. 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. This set of . I dont think the difference [between the appeal of Zappos and the Amazon brand] is in the UI [the website user interface]. Definitely, check. (Good luck uncovering a phone number on the Amazon site.) 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. Retailers with gated offer programs include Urban Outfitters, J. Meet Zappos. He even said we should one day start Zappos Airlines.. Social networking is not about farming followers, it's a way of cultivating relationships. It's an offering we state loud and clear to this day. A strong customer service strategy is not just a feel-good factor notionally but also makes good business sense with enough supporting data to it. 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. Christa Foley '", Culture Adviser and Director of Insights at Zappos. All the profits they make they reinvest back into the customer experience. 11 Great Customer Service Examples (2022) - Qualtrics No need to check with anyone else. 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. . Above all, because the company believes culture is an essential part of the business, it has become the brand book. They encourage a fun environment filled with co-creation. They have been successfully executing their marketing strategy with a social focus since the first days of social media. Here are some of the reasons why they did that:-. I think the main thing is just trust [the customer service reps] and let them make their own decisions. >> Download Now: Build customer experience strategies backed by the data in your contact center. Feeling low on inspiration? Why is this contact center overstaffing necessary? 3. They display the customer care numbers easily visible on every page instead of burying several layers (or clicks) below the surface. Is AI the death knell for traditional supply chain management? I wanted to know: What did they talk about? And did they get bathroom breaks?. Amazon andZappos consistently claim some of the most satisfied customers in ecommerce. I'm a customer experience consultant and customer service trainer. Those who choose to stay on are immersed in a culture of caring and friendship with leadership teams who treat their employees well. Zappos: Best in Class Customer Service - Technology and Operations Tony Hsieh is sporting a Mohawk, the first Ive encountered atop a gainfully employed billionaire. 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. Shit happens and c'est la vie. By 2009 Zappos had grown revenue to over $1 billion in gross merchandise sales. The company's entire strategy is to create loyalty through incentivizing 'wow' moments and emotional connections. There's no way to predict every customer scenario your employees may deal with, and even if you could, writing them painstakingly out as a 500-page policies and procedures playbook is kind of crazy. Our relaxed and supportive office environment allows individuals to show up authentically yes, even in their flip flops or footie pajamas. To assure both current and potential customers you have their . The phone is. Given below are the five most important lessons you can learn from Zappos' customer-first approach. Now is the Best Time to Migrate From Avaya. However, Zappos sale came at a time of dire straits. Whatever friends would talk about. But, not to flog a dead phone line, but they werent friendsthis was a call between a contact center employee and a Zappos customer. Zappos is a trailblazer. If you get the culture right, then a lot of really amazing things happen on their own. - Tony Hsieh, CEO @ Zappos. Pursue growth and learning. Initially named shoesite.com, it soon adopted the name Zappos derived from the Spanish word for shoes (Zapatos). These personal posts served to spread the culture and mission, and was able to magnify the customer-centric philosophy that governed not only Zappos strategy, but the entire companys purpose. Agents are available to text daily from 5am - 8pm PST. I'm Buying Your Customer Experience, Not Your Product. Zappos offer a 365-day return policy for people who have trouble committing or making up their minds. It acts as a medium for the employees to freely express themselves, and a way everyone can get a pulse of where the companys culture and core values stand. They have been successfully executing their marketing strategy with a social focus since the first days of social media. 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. You must do something thats above and beyond whats expected. After Kelli shipped a new pair of shoes to Tommy and ended their convo, she felt the urge to do more. Thus, I decided to send him a care package, and in it, I included a Zappos culture book, Rice Krispies treats, a five-pound gummy bear and a 12-inch, hand-stitched teddy bear that I aptly named Tommy.. A true customer service mindset isn't something that gets turned on when talking to a paying customer. 3. For over 5 years, and their strategies have played a significant role in their growth. The company exemplifies what it means to make employees happy, so they can make customers happy. 1. An Inside Look at Zappos Customer Service Metrics Because their phenomenal customer service speaks for itself. He said he loved our customer service and would tell his family and friends about us. 9 customer service principles that'll delight your customers Zappos was started in 1999 as an online retailer for shoes in San Francisco, USA. A lot of customers order as late as midnight EST, and are surprised when their orders show up on their doorstep eight hours later. Its simply an ecommerce store boasting popular, brand-name items like Adidas running shoes and Calvin Klein bags. 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. (Agent occupancy is the percentage of time that call center agents. Create fun and a little weirdness. The customers now do not have to worry about the fit, design, or comfort of the shoes and try out all the options at home. You can find this breathing space reflected in the metrics of the Zappos contact center. How does Vinted make money by selling Pre-Owned clothes? Arjun Vasudev is passionate about BITS (Business Innovation Technology Strategy & Products). Screening for culture and values alignment is as important as screening for technical skills. How to Create a Great Customer Experience Strategy - SuperOffice The Customer Service Strategies Behind Zappos' Success Deliver wow through service. This final statistic is troubling to Ryo Hanalei Zsun, a former call center agent (customer loyalty team member, in Zapponian) who served as the guide on my tour, and whose dialogue until now has been bathed in Hawaiian-inflected equanimity (as he told me, although hes lived on the mainland since 1999, he proudly carries on the spirit of Aloha). One of the highlights of Zappos Customer Service Strategy is their 365 days Return Policy. Tony looks at me sourly, or as sourly as his essentially affectless demeanor would allow. To maintain focus on the customer, they laid a few initiatives to ensure customer service was central to what they did as they scaled. Both have been highly effective, and it's become clear that there isn't a singular way to achieve customer satisfaction. All Zapponians know that delivering amazing customer service is what's at the heart of our organization. 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! It's that important. The cycle feeds itself - like a snowball that grows bigger and bigger. Narrowly speaking, its true: Zappos takes the telephone experience very, very seriously. Simply that your coworker went above and beyond for you. This pandemic made people discover their latent Mozart, Monet, MasterChef, or marathoner. Understanding Zappos' Customer Service Model - joinclyde.com They dont follow conventional thinking when it comes to building a business. 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!". They offer everyone $2,000 to quit. It is not seen as just another supporting function or an operational department but is viewed as the most important team, which can greatly impact their customers. Zappos's Customer Loyalty Team is known for its big, customer-delighting gestures. Click here to check them out! A full tour of the campus? There is no script given or upselling attempt in these calls. I think its most meaningful and useful if you take this comment both narrowly and broadly. Were not talking about the happiness that comes with a casual 15-minute phone or email conversation. Our goal for emails is to respond in an hour.. The sad story turned out to be that she had bought them for her father, who had since died. Case Study: How Zappos Created a Customer-Centric Approach to Digital Zappos - Personally reply to every email; Us! The first interview is looking for technical ability and relevant experience, etc. Craziest part is that they would leave it completely unedited. Heres Why. If you don't have established values, define them and make sure customer focus, service or obsession is one of them. A customer goes through several steps in the customer journey before purchasing a product/service (refer above diagram). I'm a customer experience consultant and customer service trainer. Ill get back to my visit with Tony in a minute, but first follow me upstairs to the call center. Today they are worth billions of dollars, and have become one of the most recognizable brands in the world. 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. As if it could get much better than that, Tommy sent a thank you letter and pictures to Kelli, and so did his Colonel. The key here is to support a strong coaching and training culture rather than on strict policies and procedures. Starbucks has mastered the art of value-based pricing. Develop a spirit of camaraderie. Breathing space is necessary as well when youre hiring for wow; you need the time to find the people with an aptitude for make emotional connections with customers. Zappos.com (Zappos), the top online shoe retailer,1 is ranked 31 on Fortune magazine's 2013 "Best compa-nies to work for" list,2 on which it has been for five years. 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. 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. Tony is succeeded by Kedar Deshpande as the CEO of Zappos. Or they can be achieved through the use of theright words in conversation, words that make an emotional connection that transcends the transactional. Its almost like the whole industry has conspired against people with narrow feet. Is Michelin Star by the same Michelin that sells tires, yes, it is! To live and deliver WOW. At Zappos, we developed our core values using feedback from all of our teammates. 855.249.3357, The Customer Service Strategies Behind Zappos Success. Zappos positions itself as A Service Company That Happens To Sell Shoes. The top management was not averse to the prospect of having Zappos Airline and Zappos Hotels someday. 4. 44% of new customers heard about Zappos via word of mouth. The reason that wow fails to take root or be sustained at most companies is that success here requires the support of an entire organization, all the way up to the highest levels of leadership. With online shopping growing by the day, Zappos is well-positioned as it begins its third decade. 5. And they staff their contact centre 24/7. Zappos invested their money in customer service rather than in expensive marketing campaigns. Indianapolis, IN 46204 In the context of Zappos, a company whose stated purpose is To Live and Deliver WOW, wow is typically delivered over the phone, the humble vessel that Zappos considers to be its most important connection with customers. Apple A Unique Take on Social Media Strategy. We had a customer email us the other day. You should think long-term and continually innovate, recognizing that some of your new ideas may take five years or more to come to fruition. 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. By 2004, Zappos gross sales had reached $184 million and had received an additional $35 million from Sequoia Capital. (Remember, customer service is more than the people that talk to customers on the phone. Would you allow your call center agent to do the following without approval? Its known for being a little bit weird and they are always looking for ways to improve company culture, no matter how unconventional or counterintuitive the approach may be. Type above and press Enter to search. Surely you have heard many urban legends about Zappos. Don't force your customer service representatives to jump through multiple hoops before they can get approval to give their customers what they need -- give your employees the power to make executive decisions and watch your customers smile. After 2.5 years he sold Link Exchange sold to Microsoft in 1998 for 268 million dollars. Putting customers at the heart of everything and Delivering Happiness is its main motto. As it turns out, on average, less than 1% of people end up taking the offer. - Tony Hseih, CEO @ Zappos. Knowing these companies, one could say that between them Amazon and Zappos represent the A to Z of customer service! This customer-centricity is extended throughout the Zappos website. Each Zappos employee needed to understand that customer experience is a priority for the whole company, not just a department. Here are the four KPIs they use to monitor, track and improve performance: Measuring Call Quantities Zappos's longest call on record lasted more than eight hours, and guess what? They actually encourage customers to call their customer care numbers. Reachhim directlyhere. Zappos releases a culture book every year. Company-wide, it is a daily quest for every employee to WOW customers in new and wonderful ways.