Zappos

Branding Through Customer Service

Brief Overview

• Zappos.com is an online shoe and clothing shop based in Las Vegas, Nevada

• One of the world's largest online shoe stores• Zappos was founded in 1999 by Nick Swinmurn• Tony Hsieh and Alfred Lin• ShoeSite.com to Zappos.com• Zappos reached $70 million in gross sales and

abandoned drop shipping – 25% of revenue ??• Amazon’s outright proposition to buy Zappos – 2009 -

$1.2bn

Customer Service

• From Delivering Happiness : A path to Passion, Profits and Purpose

• Customers – Number one driver of Growth• WOM• More investments into Customer service and

customer experience• “LET OUR CUSTOMERS DO THE TALKING”

What is Great Customer Service?

• Easy transactions• Free Shipping – Ex: 5 different shoes– Additional shipping cost = Marketing expense– Flipkart case Last week

• Phone numbers at the top of every page• Best Branding device – Telephone

Call Centers

• Not the usual modus operandi• Not treated as an expense• Call centers are not an expense• Untapped Opportunity • WOM• Increase in life time value of the customer

How it works?• No measure of phone calls (Longest : Over 8 hours)• No upselling• No script• PEC• What happens if there is no stock?

– Competitors• Who are the callers?

– First timers– Fashion advice– Lonely and want someone to talk to

• Delivering Pizza

Warehouse

• 24/7• Very inefficient way to run• Get orders out asap• 15 minutes from UPS Worldport Hub• WOW experience• Loyal repeat customers get upgrades

Thank You