Why Zappos Is Brilliant

2008 definitely ended on a gloomy note. Recession, layoffs, foreclosures… more depressing news every day. So I thought I’d kick off 2009 on a more positive note by writing about a company that’s making some smart decisions and rethinking traditional marketing. Zappos, the online shoe retailer, has really impressed me with how it has gone about attracting and building a consumer base. According to Adweek, here are some of Zappos’ policies:

Every Zappos employee is offered $2,000 to quit after his or her first month. This weeds out people who don’t really want to be there.
Zappos has built a reputation for openness and honesty. It collects its employees’ Twitter feeds here, and stresses the need for communication and tolerance of diverse viewpoints as one of its 10 core values.
It doesn’t play hide-the-ball with consumers, like so many online retailers. Instead, it posts its 800# at the top of every page.
Finally, Zappos thinks of the free shipping and returns it offers to customers as a marketing cost. Zappos CEO Tony Hsieh explains, “We spend most of the money we’d spend on paid advertising and put it into the customer experience and let them do the word of mouth marketing for us.”

To me, that last point is brilliant. Why spend money on advertising - most of which is ignored in our saturated world - when you can get a much better return from word of mouth simply by offering an excellent customer experience? I wish more companies followed this logic.

I must confess that despite my addiction to shoes, I’ve never shopped at Zappos. But I am going to give them a chance next time. I respect what they are doing and I think they deserve my business.

Posted by Gayle Weiswasser on January 5, 2009 at 5:43 PM
in Changing Expectations, Communication, Customers, Marketing, Saturation

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COMMENTS (5)

I can speak from experience when I say that Zappos does actually have the best customer service out of any online or offline retailer I’ve ever gone to. When people feel happy about their purchase, they’re also much more likely to review the products on the website too– which is why Zappos.com is also such a great resource for shoe reviews!

Posted by: Gloria Huang | January 6, 2009 at 9:13 AM

I also love Zappos! I go there when I’m looking for other things besides shoes too - bags, sunglasses, clothing. I usually check zappos.com first if I’m looking for something online because I’ve never had anything less than exceptional service from them. One thing of note is that they don’t offer coupon codes like most online retailers do - they explain why here:

http://www.zappos.com/zappos_coupons.zhtml

I really don’t mind though because their prices are always competitive and the experience can’t be beat!

Posted by: Kristen Variola | January 6, 2009 at 9:29 AM

Amazon.com also traded its marketing budget for its shipping budget, which I’m sure has increased sales. With places like zappos and amazon, why would you ever go to a real brick and mortar store? I love that I can order something from one of these places and have the item in the next day or two, which is often quicker than I could get to a store myself.

Posted by: Josie | January 6, 2009 at 9:44 AM

Gayle - I love love love Zappos. Because of my (I’ll use the words) “specially-sized” feet, I won’t even go to a store anymore because they won’t have my size and it is a total waste of my precious time (not to mention the “salespeople”). You are so right about free shipping both ways too - it makes the experience totally worth it. I feel like I have a shoe store delivered straight to my own house and by partnering with UPS to quickly and easily accept returns (which happens to be right across the street from us at TMG), it makes shopping with them a no-brainer. I’ve never had a problem with my returns quickly being processed and credited back to my card also. Have I mentioned how much I love Zappos? SHOP ZAPPOS TODAY! (or whenever you need shoes) (or purses too!)
MT

Posted by: MT | January 6, 2009 at 12:14 PM

Zappos is the closest thing to INSTANT GRATIFICATION than I have ever experienced in my life. I ordered a pair of shoes late night Pacific time and received them the next day!! Their website is awesome…the search feature and the ability to view the shoe from all angles is very helpful in making a purchase decision. If you haven’t tried Zappos before now…I HIGHLY recommend that you do!

Posted by: Valerie in LA | June 2, 2009 at 3:49 AM

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