How Does Zappos Contribute To Its Profitability

Decent Essays
This essay will discuss Zappos, and how its emphasis on customer satisfaction has greatly contributed to its profitability. Consequently, customer service is now an intricate part of a company’s success. For example, according to Newman (2015), “for Zappos, repeat customers contribute to 75% of their sales, and those returning customers tend to make larger purchase the second or third time around. Therefore, companies that desire to really grow their business and gain a competitive edge should focus on customer service not just for the purpose of sales or after-sales, but also as a way to enhance their marketing efforts” (p.1). Moreover, repeat customers help to increase customer loyalty, and, a majority of repeat customers, become customers …show more content…
Moreover, that excellence is critical to an organization’s sustainability because it increases customer loyalty and profitability’ (p.1). For example, Zappos has an almost fanatical following and customer satisfaction contributes to is profitability. Perhaps, that is why, Zappos focuses on customers instead of prices. Furthermore, Zappos advertisement is mostly focused on its customer service rather than the products it sells. Consequently, good customer service can sell a company’s products, and in Zappos case it does exactly that. Therefore, contributing to its profitability. Zappos, treats customers as an important asset, and in turn, 75% of their sales are from repeat customers. Furthermore, Venugopal & Priya (2015) states, “there is a shift of focus from the product oriented organization to the customer oriented organization in understanding the needs of the customer. Moreover, companies use a wide range of marketing strategies to attract new customers and to retain existing customers at a competitive edge to create a long-lasting profitable relationship with their

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