The power behind the Zappos brand is the team of agents who deliver spectacular service to customers. Opinions expressed by Forbes Contributors are their own. You have to hire people who have the same philosophy about customer service as you do. The new approach was very successful, and Zappos scaled it by insourcing operations to increase efficiency and by expanding the product line to handbags, eyewear, and other clothing, to benefit. 1. In a conversation with Zappos Executive, Fred Mossler, Tony was brainstorming ideas about the companys mission and purpose. Zappos loosens the reins and putsemployees closest to the customerin control of the customers fate. (Good luck uncovering a phone number on the Amazon site.) To a shortsighted manager or shareholder, breathing space looks expensive. They try to maximise for customer experience, which means getting orders out to their customers as quickly as possible. 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. One that we regularly follow. Imagine all the efforts required for a mango tree to grow from the beginning. At Zappos, they believe if you get culture right, most of the things - like great customer service, or building a great brand will happen naturally on its own. How much does the average organization spend on marketing and sales? Want to Drive Growth? 1. Your customer service strategy should be informed by an underlying customer service philosophy. And whatever you do must have an emotional impact on the receiver. Tony Hsieh ended up one by one selling off all of his apartments to fund the growth of Zappos. So how do you maintain the culture that you want as you grow? 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. In the early stages of the company's history, as Zappos was growing, it was haemorrhaging money. After this, Kelli recruited help from her fellow Zappos agents, and they sent dozens of packages, supplies, and thank you cards to all the soldiers at Tommys base for the holidays. While such wow actions do cost the company some money, as a general rule, wow customer service doesnt have to cost moneyat least not directly. 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. I'm a customer experience consultant and customer service trainer. 2. We want to align ourselves with a shareholder and partner that thinks really long term (like we do at Zappos), as well as do whats in the best interest of our existing shareholders and investors. Id argue, in fact, that the best way to understand Zappos and its approach to customer service is by studying the chalkboard on the wall of Zappos onsite contact center. It lets us have these in-depth, textured conversations with our customers. 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. Besides, once the customer purchases the product/service, the companies want the customers to be loyal and purchase repeatedly. Its almost like the whole industry has conspired against people with narrow feet. Who would want to buy shoes online people thought? Zappos's Customer Loyalty Team is known for its big, customer-delighting gestures. One of the highlights of Zappos' Customer Service Strategy is their 365 days Return Policy. Heres Why. Check. Were talking about the challenge at Zappos of competing directly with its overlords at Amazon.com, often selling the exact same items, and sharing the same technological backend. 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. 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 second is to assess a candidate's cultural alignment. A true customer service mindset isn't something that gets turned on when talking to a paying customer. Use data you already have to build actionable strategies for a better customer experience. 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. Thats how Zappos sustains and widens their competitive advantages. And she built that connection to spark happiness and improve well-being with one of her 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. Set up programs where peers can recognize one another for providing great customer service. Zappos doesnt make it hard for customers to get in contact. We want our reps to let their true personalities shine during each phone call so they can develop a personal emotional connection with the customer. - Tony Hsieh, CEO @ Zappos. June 6, 2016. Here's Where Average Monthly Mortgage Payments Are The Lowest in The U.S. 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.. 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. These sage words were given by Jeff Bezos just after Amazon acquired Zappos. Meet Zappos. It's not your customer's job to tell you what they need -- it's your job to predict those needs. Chattermills technology ensures that no piece of feedback remains unseen and unheard. 2. Apple A Unique Take on Social Media Strategy. They have been successfully executing their marketing strategy with a social focus since the first days of social media. To assure both current and potential customers you have their . By It takes tons of training and coaching (or untraining, according to Hsieh) to empower employees to make in-the-moment decisions that benefit customers AND the company. The company understands how much speed and accuracy matter for customers, and are prepared to invest dearly to ensure that the customer experience is improved every day. And about that ten-hour contact center phone call weve all heard about? All Zapponians know that delivering amazing customer service is what's at the heart of our organization. She got a live chat message from a customer at 4:30 a.m. 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. When the employees would step out of work after an odd-timing shift, they should see that the world around them is still up and running. So if you are hired by Zappos, you can expect to spend the first four weeks in your new job manning phones in their call center and learning how to respond to customer needs. 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. During her 12-year tenure, Foley helped create the Zappos Core Values Interview Assessment, which is now utilized company-wide. Hed ordered a pair of shoes to wear while hes in Afghanistan. Stream webinars from the CX industrys pioneering voices, Free in-depth research on the latest Trends in CX, Discover templates to power your customer experience, Benchmark and measure your NPS, CLTV, and sample size. Zappos agents pride themselves on delivering true happiness. Zappos, the online shoe retailer, is legendary for its employee culture and customer service. 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. And those agents thrive in a culture built on empowerment where theyre encouraged to make incredible connections with the people who reach out to them each day. We make sure that employees are here for more than just a paycheck. BlackRock, the story of the worlds largest shadow bank. Agents are available to text daily from 5am - 8pm PST. 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Pursue growth and learning. Putting customers at the heart of everything and Delivering Happiness is its main motto. 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. I dont know if they got bathroom breaks, says TonyJamie Naughton, Zappos Chief of Staff, breaks in and confirms that they did. Each year, the team sends out 13,000 custom-illustrated greeting cards directly to customers, for weddings, birthdays, and other special occasions. 855.249.3357, The Customer Service Strategies Behind Zappos Success. The year was 2000, and it was pretty much impossible for Zappos to raise any money from VCs. 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. And, they rally every employee around those core values and shared purpose. Those who choose to stay on are immersed in a culture of caring and friendship with leadership teams who treat their employees well. Zappos is certainly one of those in this category we believe. 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. The phone is. Zappos, who until then operated in San Francisco, decided to move their Customer Loyalty Team to Las Vegas. The company is known and routinely recognized for its excellent customer service. 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. But Why? So, we listened to our customers and came up with a solution: We would allow customers to order the same shoe in multiple sizes to try them on in the comfort of their homes, with free shipping and free returns. 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. It not only builds engagement but reaffirms your focus on delivering customer satisfaction. TEXT the Zappos Customer Loyalty Team: Text CHAT to 1-833-927-7898 to chat with the Zappos Customer Loyalty Team by text. Having the candidate's favorite drink ready for them when the interview starts? Like all exceptional companies know that you cant build great products without genuinely understanding the voice of the customer. All this was happening at a bad time. Do you want to know the history of Zappos? 5. How? As we discussed above, some of the world's biggest brands have put customer service at the . One of the primary lessons in our new hire training is the importance of personal emotional connections (PEC) with customers. >> Download Now: Build customer experience strategies backed by the data in your contact center. Learn about theses six powerful time management strategies you can implement in a hybrid or remote workplace. What differentiates Zappos from traditional brick-and-mortar business, and even most of its online competitors, is the technological innovation culture that Zappos fosters internally. Sharpen Technologies Inc. Their billion dollars in sales and thousands of raving fans certainly prove thatemployee empowermentand a positive culture lead to customer happiness. Tony reached out to all Zappos employees, asking for their input on core values. For example, when people mention @Zappos on Twitter, they immediately go for it and solve the problem. Zappos stresses fun and emphasizes customer service. Johnnie Walker is a 200 years old brand but it is still going strong with its marketing strategies and bold attitude to challenge the conventional norms. 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. . In Tonys words: At the time, Zappos relied on a revolving line of credit of $100 million to buy inventory.