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About developing relationships and emotional connections

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Question

Shoes, not the most exciting product category, right? Try telling that to Tony Hsieh (pronounced Shay), CEO of Zappos.com. In less than a decade, Hsieh has built Zappos into a billion dollar business through delivering a vast selection of shoes, clothing, handbags and other products (over three million items available) and unsurpassed customer service. The company was acquired by Amazon in 2009 and operates as an independent entity. Mr. Hsieh is a self-professed scholar of "happiness" and, as part of his vision to create the world's most customer-centric online company, aims to deliver "Happiness in a Box." This three-part formula is to: 1) meet expectations by delivering the right items, 2) meet desires through free shipping, free return shipping when necessary and a 365 day return policy and 3) often delight customers via surprise upgrades to overnight shipping (four to five day shipping is standard).

The Zappos customer experience (obsession) is all about developing relationships, emotional connections and high-touch "WOW" customer service. The Zappos program for customer service is summarized below:
> Make customer service a priority for the whole company, not just a department
> Make WOW a verb part of your company's everyday vocabulary
> Empower and trust your customer service reps
> Don't measure call times, upsell or use scripts
> Don't hide your 1-800 number
> View each call as an investment in building a brand
> Celebrate (company-wide) great service
> Find people passionate about customer service
> Give great service to everyone: customers, employees and vendors.

To Discuss

1. What prevents other companies from adopting customer service best practices?

2. How can the Zappos philosophy of creating exceptional value be adopted by your company?

3. Zappos recently adopted a holacracy leadership style where the company has no managers and all employees are self-directed. What impact does this new organizational governance approach have on Zappos and what impact will this structure have on Zappos customers?

4. How do you view the long-term prospects for Zappos?

Reference no: EM133955902

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