Case Study Of Zappos

717 Words 3 Pages
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…
Offering consistent customer service is key to maintaining current customers and attracting new customers. For example, Ferrell & Hartline (2014) explains, “Zappos has established a method of serving customers and handling their issues that is distinctive from the rest of the industry. Moreover, Zappos believes great customer service is an opportunity to make the customer happy. Customers are encouraged to call Zappos with any questions. Consequently, the number is displayed on every page of the website. Hsieh says, “…At Zappos, we urge people to call us. Furthermore, we believe that forming personal, emotional connections with our customers is the best way to provide great service.” Customer service representatives also actively use social media sites such as Facebook and Twitter to respond to customer issues. Another key aspect of Zappos’ customer service model is that nothing is scripted. Employees have free rein in their decision-making and are expected to spend as much time as they need to “wow” customers. They help customers shop, even on their competitors’ websites, encourage them to buy multiple sizes or colors to try (since return shipping is free), and do anything it takes to make the shopping experience memorable” …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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