She talked to him for nearly two hours exchanging stories and learning of Tommys nickname, gummy bear. 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. Zappos runs at 60-70% agent occupancy rather than industry norm which is somewhere in the 80s. This team works 365 days and 247 to make the entire journey special. Zappos uses a differentiation strategy. Develop a leadership purpose that combines your company goals with your agent well-being and performance to drive empowerment like Zappos. Why? Chattermills technology ensures that no piece of feedback remains unseen and unheard. The first is to assess the candidate's technical capabilities, making sure he or she can actually do the work the position calls for. Customer Service In The Time Of COVID: 7 Strategies From - Forbes 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. Screening for culture and values alignment is as important as screening for technical skills. I dont think the difference [between the appeal of Zappos and the Amazon brand] is in the UI [the website user interface]. But because we felt they werent a culture fit, we were willing to sacrifice the short term benefits to protect our culture (and therefore our brand) for the long term. - Tony Hsieh, CEO @ Zappos. Yahoos story or case study is full of strategic mistakes. Do reach out to Arjun for discussing conversion of ideas to business, cross-mentoring, IoT topics, or random chats about anything and everything. In 2009, Amazon acquired Zappos through an all . This set of . It's that important. PDF Zappos - Deloitte Paying employees to quit; offering customers free shipping both ways and a year to make returns;. 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. The total amount that a customer spends on the products/services of the company is the Customer Lifetime Value (CLTV). Contrary to most brands, it wasnt all talk. Zappos' customer service is built on one objective: to deliver customer delight and happiness. Sharpen Technologies Inc. An impressive44% of new customers heard about Zappos via word of mouth. Check. Photo Credit: Zappos. 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. 5. Share that feedback with all of your employees and celebrate the happiness that they were a part of delivering. Merchant-focused Business & Growth Strategy of Shopify, Business, Growth & Acquisition Strategy of Salesforce, Strategy Ingredients that make Natural Ice Cream a King, Investing in Consumer Staples: Profiting from Caution, Storytelling: The best strategy for brands, How Acquisitions Drive the Business Strategy of New York Times. Learn to build a culture rooted in purpose and rally your agents around that shared purpose, Use Sharpen Insights to improve your interactions (not just your metrics), 4 Ways Banks Can Hyperpersonalize Customer Experiences at Scale, How to Use Data (And Your Instincts) to Evaluate Your Next AI Project, 5 Ways to Prepare Your Contact Center for a Recession. We originally published this post on September 9, 2016, and we updated it on February 6, 2019. But cmon! Further, we don't promote work-life balance in the traditional sense. The customer service strategies behind Zappos' success that you can implement today. 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. Forbes readers: Get two free chapters of Micah Solomons books here. As discussed in the previous section, the call center or the Customer Loyalty Team at Zappos is at the core of their business. If youve ever shopped on Zappos.com, you know the site isnt overly flashy. During her 12-year tenure, Foley helped create the Zappos Core Values Interview Assessment, which is now utilized company-wide. 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. 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. >> Learn More: Use Sharpen Insights to improve your interactions (not just your metrics). Getting upper management invested in providing service directly to customers - by spending 6 weeks at Zappos's call center! Today they are worth billions of dollars, and have become one of the most recognizable brands in the world. The dot com bubble had just popped and even if someone wanted to raise money as an internet company. It not only builds engagement but reaffirms your focus on delivering customer satisfaction. Arjun Vasudev is passionate about BITS (Business Innovation Technology Strategy & Products). Their time is spent observing and tracking customer behavior with the on-going goal of creating more . Putting customers at the heart of everything and Delivering Happiness is its main motto. Here are some of the reasons why they did that:-. Being focused on customer service requires dedication. 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. Combined with the free 2-way shipping, this takes away the customers risk and makes it convenient for them to order as many shoes as they want, keep the ones that fit, and return the others at no additional cost. Early on at Zappos, we recognized the need for two distinctly different interviews. If the employee doesnt take the payout after two weeks, Zappos leaders introduce them to an entirely human way of work. Zappos has set up its operations to fully support its strategy of being the company that provides the best customer service through a variety of ways: Supply Chain - Zappos has intentionally made the decision to insource all operations. Customer Service: It should always be capitalized. Thats because other companies hide their phone number. They also believed that outsourcing customer service would be outsourcing their core strength. Theres the story of an agents 10-hour phone call whereservice was put before metrics. Some time after that, she sent me a letter and a photo of her father., It was quite a story. The company exemplifies what it means to make employees happy, so they can make customers happy. Yes, HR paperwork needs to get done, but if customer obsession is your goal, put your money where your mouth is. I think its most meaningful and useful if you take this comment both narrowly and broadly. 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. They agreed that high-quality, empathetic customer care executives are essential to achieve this. In this piece, we connect Apples unique and successful take on social media to its core values. How one step towards digital transformation completely changed the brand perception of Dominos from a pizza delivery company to a technology company? Arjun loves solving puzzles, traveling, sports, Improv/acting, cooking different cuisines, and learning new things. How much does the average organization spend on marketing and sales? ZAPPOS' Social Media Customer Service Performance - Juphy Without support, you're already signaling to potential customers that they'll be flying solo in the face of problems or questions. (Remember, customer service is more than the people that talk to customers on the phone. Create a culture of people who believe in your company's values. 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? The pillars of technology that have helped Zappos blitzscale growth are advanced supply chain management, their social media strategy and the use of Chattermills customer insights. 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 commits itself to delivering wowor at least a wow attempton every phone call that employees field in its contact center, employees who are called, in Zapposspeak, the Customer Loyalty Team. Deliver wow through service. It has grown sales year over year since 1999. And they test new employees commitment byoffering them $2,000 to quit after 2 weeks of training. Back when Zappos was still in its infancy, a lot of people said, "No way will people buy shoes online without even trying them on." We have specially trained recruiters who conduct cultural alignment interviews, and if they sense a red flag -- if they sense the candidate doesn't care about customer service the way we do -- we will not move forward with said candidate. To live and deliver WOW. This creates a WOW experience, which customers remember for a very long time and tell their friends and family about. - Tony Hsieh, CEO @ Zappos. In the early stages of the company's history, as Zappos was growing, it was haemorrhaging money. Speakers from Amazon, Wise, and H&M provide critical CX insights. The company is known and routinely recognized for its excellent customer service. Its only understandable (and as such it makes sense) as a flag that Zappos has planted to show their employees how important it is to connect with customers. Because it needs to be. 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. But thats exactly what Zappos has done. The digital wave has brought the customers closer to brands making customer interactions more frequent and real-time. 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. The Zappos Customer Loyalty Team, Las Vegas. So investing in good customer service increases customer experience which in turn increases customer loyalty and CLTV, resulting in better topline and bottom line. Weve actually said no to a lot of very talented people that we know can make an immediate impact on our top or bottom line. Zappos considers this customer service strategy as a marketing expense towards customer acquisition and the results are visible in the overall increase in the customer lifetime value. It was acquired by Amazon in 2009 for $1.2 billion on the condition of not diluting the company culture. Out of that stressful situation came a silver lining. That only forces your employees into situations where they may come off as scripted or disingenuous. 24/7 operating warehouses, equipped with the most advanced systems and robotics infrastructure ensure speed, organization and overall efficiency. Succcessful eCommerce case: the history of Zappos - Oleoshop Each Zappos employee needed to understand that customer experience is a priority for the whole company, not just a department. It's an evergreen approach to all your interactions. One of the primary lessons in our new hire training is the importance of personal emotional connections (PEC) with customers. Zappos wanted top quality and the best resources handling its customer service, and the high rents at San Francisco and competing ecosystem meant that they could not get the best talent for their budget. See the customer reality with Unified Customer Intelligence. We all know robot customer service reps fall short, and not meeting your customers' expectations has a damaging and lasting impact on your brand. Pimped out conference rooms to set the stage for a genuine conversation rather than an interrogation? This average spends to acquire a new customer is the Cost of Customer Acquisition (CoCA). (Agent occupancy is the percentage of time that agents spendor are predicted to spendactually handling calls, as a percentage of the time they are on the clock.). Intelligently, and in the interest of keeping their customers happy, Zappos made sure that the deal remained governed by a contract that formally recognized the uniqueness of Zapposs culture and Amazons duty to protect it. The Customer Service Strategies Behind Zappos' Success
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