CUSTOMER EXPERIENCE SUPER BOWL

Myra Golden

CUSTOMER EXPERIENCE DNA OF ZAPPOS

Zappos is powered by service Providing the best service and online shopping experience possible. Free shipping both ways. 365-day return policy. Fast fulfillment. Expedited delivery. Fast, friendly & expert customer service.

Best selection Over 1100 brands. Over 150,000 styles. 3 million pairs of shoes. Photographed in multiple angles. Videos of many products. 100% of products inventoried (no drop ship).

Zappos is a service company that happens to sell shoes, clothing, handbags, eyewear, watches (and eventually a bunch of other stuff).

GREAT CUSTOMER EXPERIENCE = $$$

Zappos is committed to WOWing each and every customer.

Customers come… 7.4M total purchasing customers (about 2.5% of US population) 3.3M have purchased in the last 12 months

Customers come back… On any given day, about 75% of purchases from returning customers Repeat customers order >2.5x in the next 12 months

Customers come back, order more and order more often… Repeat customers have higher average order size $111.98 – first time customers $143.22 – returning customer

EARLY ON ITS LIFE, ZAPPOS MADE A DELIBERATE DECISION TO RE-DIRECT ITS MARKETING BUDGET TOWARDS DELIVERING EXCEPTIONAL

CUSTOMER SERVICE WITH A GREAT COMPANY CULTURE,

encouraging customers to order as many products as they wanted in order to “try them on,” then offering free return shipping for a full 365 days

only listing products on the site when stock was in their own warehouse (which actually lowered sales by 25% at a time when the company was still in the red)

deciding to run their warehouse operation 24/7 to deliver super-fast turnaround on orders, despite it being an inefficient way to manage fulfillment

EARLY ON ITS LIFE, ZAPPOS MADE A DELIBERATE DECISION TO RE-DIRECT ITS MARKETING BUDGET TOWARDS DELIVERING EXCEPTIONAL

CUSTOMER SERVICE WITH A GREAT COMPANY CULTURE,

encouraging customers to call them about nearly everything. Their call center takes 5,000 calls per day, and employees work independent of scripts, quotas, or call time limits. The longest call to date has been four hours. Zappos views the phone experience as a branding device, and speaks to virtually every customer at least once.

deciding to invest in “surprise” (free) upgrades to overnight shipping for most customers. This means that most orders are delivered within 24 hours, despite the web site indicating it will take 2-5 business days.

What customer’s see…

CUSTOMER SERVICE:WHAT CUSTOMERS EXPERIENCE

Fast, Accurate Fulfillment

Friendly, helpful “above and beyond” customer service

Refer customers to competitors’ web sites

CUSTOMER SERVICE:WHAT THEY DO INTERNALLY

No call times, no scripts

No sales-based performance goals for reps

Run warehouse 24/7

5 weeks of culture, core values, customer service, and warehouse training for everyone in Las Vegas

Culture book

Interviews and performance reviews are 50% based on core values and culture fit

ZAPPOS NEW-HIRE TRAINING

5-week training period that immerses employees in the company's strategy, culture, and obsession with customers

Incubation Program to help new hires transition from training to call floor

Pay $2000 to quit

SELF MONITORING (FULL CIRCLE FEEDBACK)

Launched a QA program a few years ago…

Removing the fear of poor performance

Rep selects a call and reviews

Lead also selects a call to review

Focus is on coaching and feedback

ADVANCEMENT & REWARD

Any employee can be a Lead within 5 years

Promotions all based on skill set, skill set based on core values

Courses offered to develop skill sets, small raises for completing skill set courses

Professional Life Coach on staff

“Happiness” survey monthly

ONGOING TRAINING: PIPELINE

Zappos history Professional

development Career development Time management Science of Happiness How to Write Emails Communication Finance “Holiday Helpers”

(outside of CLT)

LIVE and DELIVER

WOW

HOW ZAPPOS DELIVERED WOW TO THE GOLDEN HOUSE

LOOK WHAT 15 MINUTES A DAY CAN DO

Make emotional

connections with

customers

Surprise & Delight

ZAPPOS CORE VALUES

1. Deliver WOW Through Service2. Embrace and Drive Change3. Create Fun and a Little Weirdness4. Be Adventurous, Creative, and Open-Minded5. Pursue Growth and Learning6. Build Open and Honest Relationships With

Communication7. Build a Positive Team and Family Spirit8. Do More with Less9. Be Passionate and Determined10. Be Humble

Adopt the Man in the Desert Philosophy

idea 15:Be Flexible

HOW A BEST BUY E-SERVICE REP WOWED ME

HOW BEST BUY GOT EMAIL RIGHT

Personalized the email Acknowledged my satisfaction with the

product Explained policy in lay terms Exercised empowerment Restored my confidence in Best Buy

STARBUCKS HAS MASTERED WARM CUSTOMER EXPERIENCES

MEETING NEEDS, EVEN UNUSUAL NEEDS

SERVICE LEADERS COMMON THREAD Emotional

Connections Concierge-level

service Identifying and

meeting customer needs, even un-expressed needs

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Email me at myra@myragolden.com for:

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