Customer service masterclass
Zappos.com is a fascinating case sudy in customer service…
Here’s a fascinating insight into what makes Zappos tick by Tony Hsieh the CEO back in 2008 prior to theit acquisition by Amazon.
One of the killer lines is – Zappos is a service company that happens to sell shoes, clothes, handbags….
Some of the headline information:
1. Shoe Market size of $50Bn in the States
2. Projected turnover of Zappos for 2008 $1Bn – 2% of the market (After 9 years)
3. Powered by Service – Focus is on creating the WOW factor for the client
a. Free Shipping
b. Free Returns Shipping
c. Return for up to 365 days
d. 24 hr Freephone support
4. Scale of offering
a. 1200 Brands
b. 200,000 Styles
c. 900,000 UPC
d. 4 M items in stock (no drop shipping)
e. Every product has extensive photographic collateral (8 shots), descriptions, reviews (and analysis of reviews), sizing information.
5. Customers
a. 7.5 M people have purchase (2.5% of population)
b. 3.4 M people have purchased in the last 12 months
c. On any given day 75% is repeat custom (average order size of repeat customers is 27% more that first time buyers)
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