A little while back I wrote a post about how I sent Tony, the CEO of Zappos, a direct message on Twitter looking for a little advice on customer service for Foodzie.
To my surprise, not only did Tony reply - but said he was more than happy to help. He put me in touch with Jane Judd, who manages their customer loyalty program. Jane and I had a pretty intense game of phone tag going until we finally connected Monday. We spent about an hour talking about what makes for a successful e-commerce business and killer customer service. So, in the spirit of Zappos (they are transparent and open about nearly everything with their business), I thought I would share the valuable insights Jane shared with me.
Build a business on repeat customers - These customers are dependable, loyal and help to grow the business. Make sure this number is consistently growing. Currently 72% of Zappos’ customers are the kind that keep on comin’ back.
Don’t underestimate word-of-mouth marketing online - This is no big shocker, many of us know how virally things can spread online. But Jane said most companies aren’t tapping it to it’s fullest potential. Use this to your advantage.
Don’t compete on price - For a long time Zappos tried coupons and promotions to drive more sales, but it only brought them one-time customers. They decided to cut out the deals and focus on offering the best selection of shoes and top-notch customer service. This strategy brought them repeat customers, which helped them to grow the business.
Look at customer service as an investment not an expense - This is pretty self-explanatory, but most companies don’t get it. A good chunk of the money Zappos makes goes right back into their customer loyalty program.
Start small and stay focused - Lot’s of companies fret about small revenues up front when they first launch and get off track trying to make that happen fast. Success isn’t always overnight, in fact it rarely is. Zappos has been in business for nearly 10 years - it took them awhile to get where they are today.
Be open, don’t worry about competition - Jane said Tony felt like way too many traditional retailers tried to protect their “secrets” and thus has little transparency. The culture at Zappos is just the opposite; they will share just about everything but financial statements with anyone - even their competitors. This strategy allows them to do what’s best for the customer. When a customer calls looking for shoes Zappos doesn’t carry, Zappos reps search online for other sites where they can buy the shoe and pass along the info to the customer - very cool.
Stay active managing company culture - Zappos’ culture is what really helps them stand apart. Culture fit is the most important thing they look for when hiring new people.
Be wary of so-called “experts” - Zappos spent a lot of money working with consultants to improve the business. In the end, they realized that their gut instinct was usually right and they just needed to look to themselves for the answer. Tony believes that you’re the only one that truly knows what’s right for your business.