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Case Analysis On Zappos

Zappos took several initiatives to provide excellent customer service, including soliciting customer feedback, assisting customers to purchase from other companies if needed, and emphasizing its 10 core values. Employees are the core of Zappos' customer service because they have the most interaction with customers and aim to provide the best, most satisfying experience. Zappos focused on hiring people who fit the company culture, provided extensive paid training, and equipped employees to solve problems. This helped lower turnover rates and increase employee satisfaction, quality service, and profits.

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Nishan Shetty
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360 views7 pages

Case Analysis On Zappos

Zappos took several initiatives to provide excellent customer service, including soliciting customer feedback, assisting customers to purchase from other companies if needed, and emphasizing its 10 core values. Employees are the core of Zappos' customer service because they have the most interaction with customers and aim to provide the best, most satisfying experience. Zappos focused on hiring people who fit the company culture, provided extensive paid training, and equipped employees to solve problems. This helped lower turnover rates and increase employee satisfaction, quality service, and profits.

Uploaded by

Nishan Shetty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Service Marketing

Case
on
Zappos
To Dr Sugant R
By Group 8, Sec ‘B’
Kishor M 19027
Harshit Y 19081
Akshay Shetti 19125
Nishan N 19153
Sinduja Sista 19171
1) What are the initiatives taken by the company in
bridging the ‘Service performance gap’

• Customer feedback
• Assistance to the customers
• The CLT members of the company would assist the customers to buy shoes from other company,
if it wasn’t available with them
• The company practiced the 10 core values of their company
• The employees strived hard to create an impact that CLT is more than a shoe company
2) Employees are the core of Zappos customer service.
Justify this statement

The customer service employees at Zappos are the most important customer personnel which has most
interaction with the customers. As Zappos is a online platform the customer service employees are more aware
and understand their customers than anyone else. In fact the main objective of the employees is to provide
customers the best and satisfying service
• Zappos focused on providing an exceptional customer service even in situations where they were not able to
sell their products.
• Zappos considered customer service as a core activity that it provided them the opportunity to take decisions
according to their views/choices and not rely on the higher management
• Zappos provided free return shipping and provided 24/7 customers service which worked in tandem with
their office location being operated for 24/7 period
• Zappos not only had one of the unique version of shoes with them but also they provided fast delivery and
courteous customer service where customers were more impressed from it more than the products
• They had special CLT staffs whose job was to clear the doubts of customers and they went to extraordinary
lengths unless the customer is satisfied.
3) Explain the HR initiatives by Zappos management that ensures excellent
customer service by its employees. (Map to Service Talent Cycle & The Cycle
of Success
Service Talent Cycle:
 Hire the right people
 Emphasis on both skill and cultural fit
 Fun and weird workplace attract candidates
 Develop and empower people
 All new hires have to complete four week paid training
 Pipeline: To develop employee skills for leadership
 Provide needed support system
 Equipped fulfilment centre
 CLT employees were problem solvers
 Used customer feedback for evaluation
 Retain the best people
 Average pay with benefits
 Growth opportunities for employees
Employee cycle
 Intensified selection effort: Ensure applicants fit within the
Zappos culture
 Extensive training : Four week initial training , pipeline, Science
of Happiness class
 Employee satisfaction : Create fun and weirdness, themed
parades, Socializing with team members

Cycle of  Lowered turnover, high quality service :7% turnover rate


compared to industry average of 150%
Success Accountable for wowing customer with outstanding customer
service
 Higher Profit margin: High service quality lead to increased net
income of $ 10.8 million in 2008
 Broad Job design: Cross training for warehouse workers
 Train and empower frontline workers : Mandatory call centre
training for all new hires during initial training CLT employees
were responsible for delivering superior service
 Above average Pay : average pay with various benefits
Customer cycle
 High customer satisfaction: Obsessive focus on delivering superior customer service by
all employees
 Continuity in relation with customers: Built personal relationship with customers
 Customer Loyalty : 75% of Zappos orders were from repeat customers
 Low customer turnover: Most customers were happy with the service
 Repeat emphasis on customer loyalty and relation: Customer centric core values
Thank You

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