As both a consumer and customer service critic, Tony Hsieh’s (sounds like ‘Shay’) recent presentation at Yanik Silver’s Underground Seminar really resonated with me.
Zappos did over 1 billion dollars in 2008 and Tony talks about how he’d rather spend money on things that improve the customer experience (what he calls the “WOW” factor) than on marketing. For example, Zappos runs a very expensive 24-7, 77,000 square foot warehouse so they can ship directly to their customers – rather than relying on manufacturers to ship their products.
Does that feel counter-intuitive or run contrary to the ‘outsource everything’ business advice you’d typically hear from the ‘Internet marketing gurus’? Now ask yourself — are they running billion-dollar companies?
Tony understands that people are his business’ most valuable asset and attributes Zappos’ success to the huge emphasis Zappos places on providing the best possible customer service – NOT the bottom line.
For example, Tony shared the story of a woman who bought a pair of boots for her husband at Zappos. Sadly, her husband never received the gift as he was killed in a car accident on his way home from work. When the customer called to inquire about the return policy and told the Zappos representative what happened, the Zappos clerk ordered flowers to be sent to her in condolence.
WOW!
The woman shared her Zappos story at her husband’s funeral and you can bet that the 30 friends who heard it are all now Zappos customers.
Here’s another example. Zappos only lists products on the site that are actually in stock. If a customer calls to ask about a product not currently available, Zappos’ staff will search their competitors’ websites and will then refer the caller to the site that has the requested product readily available.
WOW!
Very few salespeople in brick and mortar stores will refer to their competitors even when you specifically ask where else they think the product might be available. More often than not, they’ll shrug their shoulders, give you a blank look and say “I dunno” while turning their back to resume chatting with their cute co-worker.
What the misguided clerk (or owner) fails to appreciate is that they’re NOT losing a sale — they don’t have the product to sell anyway — but that they just lost a potential future customer, because after thinking “If I were your boss, I’d SO fire your ass“, I make a mental note NOT to darken their doorway again until they hold their going-out-of-business sale.
On the other hand, I’m so WOW-ed when a salesperson does make a referal, that I make a mental note to visit that store first when I’m looking for something in their niche again.
Both situations are memorable, but the latter is positive and powerful from a branding perspective — and 10 times moreso when it happens in the too-often nameless and faceless world of ecommerce.
So, how can you make your online business more memorable than your closest competition?
Put yourself in your customers’ shoes and ask yourself how you’d feel to be on the receiving end of your customer service process.
Should you cut back on the pitches? Share more valuable information upfront? Respond to your customers sooner? Allow your site visitors to contact you – period?
Perhaps you should ASK your site visitors to tell you what they like, don’t like and what services they would like to see offered on your site.
Test your competitor’s sites. What do they do that you don’t do? How can you improve on what they offer?
Or, you could go buy something at Zappos and see what the “WOW!” factor is really all about. 
Rosalind;
How refreshing! Customer service is making a comeback!! I’m with you – when I get great customer service, I’m always amazed and make a note of it too. Zappos is a great role model for what we should all be doing. I need to go review my site and see where improvements can be made. Maybe more companies will get on the bandwagon, one can only hope!
Thanks for sharing!
Kathy
Thanks for that information, Rosalind. I found it really eye-opening. Especially the bit about making an honest referral to a competitor.
I’m certainly going to look into this.
Have a nice day.
Fiona
Wow is right Ros! Nice article. Great lesson. Without gushing…(I find gushing slightly sickening unless it is directed my way, then it’s o.k.! LOL!) You are somebody who seems to follow Tony’s model….I visit your blog regularly because I know I’ll not only be entertained and better informed for it, but I ALWAYS come away with at least one AHA! moment….and there are few other places that do that for me.
The above coupled with the fact that, upon occasion, you’ve taken the time to privately email me twice, even though you don’t know me and I have never purchased anything from or thru you. I’d say that pretty much emulates business practices similar to Tony’s.
Thanks for your insight!
Michael Rytter
Ps. It’s snowing like crazy down here in Chilliwack….if we’re getting it this heavy, you must be in a blizzard up there in Hillbilly Hell!
Hi, I love reading your articles, you are so discriptive….I think in this day and age Zappos has the best business practices. They don’t have to worry about the economy, maybe that is why I keep on listening to you and some others, you are not affraid to share what you know and that is so encouraging to a fledgling like me……I have yet to try out my wings but the knowledge I am obtaining is giving me so much that when I do start I will not have to wonder what I am doing….I have a body of knowledge in all the articles and your web sites to help me out…..Thank you, Rosalind
I look forward to hearing from you again with more enlightening information.
Content is king or (Queen).
Denise
Great post Ros,
Yes, people want to be treated by business the way they expect to be treated by other people: with courtesy at the least and caring at best. It is, after all, customer SERVICE, is it not?
Ros, Thanks for sharing this very helpful article. I also take notice when a business goes out of their way to help me find a solution. I will definitely continue to apply the WOW factor to my business.
Hi Rosalind
I am a Zappos customer and I keep buying from that site because of their customer service. They offer free overnight shipping, free shipping on returns and overall great customer service. Their prices are sometimes higher (which probably covers some of the shipping costs), but there’s something to be said about receiving your item the very next day. Thank you for putting Zappos in the spotlight because they are truly a great website to buy from!
Great post!
Hi Rosalind,
I’m thrilled to hear that someone still thinks customer service is important. I had an experience yesterday with a very large delivery service. Hint: Its name is not commonly shortened to three letters. It’s the other big one.
I ordered something on Friday and I was told the expected delivery was scheduled for today, 2/25. However, I tracked the package yesterday morning and I saw that it was on the truck out for delivery. I was happy to hear that and waited for the package.
I tracked the package again around 4:30pm and I saw in the notes column that the package was taken back to the depot as the package wasn’t “due” to be delivered until today.
Can you imagine they took the package back to the depot rather than delivering it earlier than the expected delivery day? It’s speaks to the lack of good customer service that has swept the country and the lack of good sense on the part of the driver.
Ellen
Great post Ros,
It’s amazing at how easily we can forget about the importance of good customer service.
We are human after all, and people sincerely respect and remember those who go out of their way to be human about affairs and not label them as merely a number or a figure.
Since 1998, AWeber has always had a world class support team and we always go out of our way to make sure our cutomers get the best service possible. Sometimes this means going above and beyond the call of duty
.
I personally see to our affiliates’ need as well, and am always here to address any affiliate queries personally, as you know.
Great job!
-Ron
Thanks Ron,
And yes, you folks (you in particular) do a fabulous job of working with your affiliates. Now if only we could change the first-click rule, things would be perfect.
Cheers,
Ros