Branding through Customer Service

1. Zappos
Branding Through Customer Service

2. 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

3. 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”

4. 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

5. 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

6. 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

7. 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

8. Thank You