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Tony Hsieh
“It starts with what customers first see when they visit our Web site. In the United States, we offer free shipping both ways to make the transaction as easy as possible and risk-free for our customers. A lot of customers will order five different pairs of shoes, try them on with five different outfits in the comfort of their living rooms, and then send back the ones that don’t fit or they simply don’t like—free of charge. The additional shipping costs are expensive for us, but we really view those costs as a marketing expense. We also offer a 365-day return policy for people who have trouble committing or making up their minds. At most Web sites, the contact information is usually buried at least five links deep and even when you find it, it’s a form or e-mail address that you can only contact once. We take the exact opposite approach. We put our phone number (1-800-927-7671) at the top of every single page of our Web site, because we actually want to talk to our customers. And we staff our call center 24/7. I personally think it’s kind of funny when I attend marketing or branding conferences and”
Tony Hsieh, Delivering Happiness: A Path to Profits, Passion, and Purpose

Tony Hsieh
“about how quickly they can get a customer off the phone, which in our eyes is not delivering great customer service. Most call centers also have scripts and force their reps to try to upsell customers to generate additional revenue. At Zappos, we don’t measure call times (our longest phone call was almost six hours long!), and we don’t upsell. We just care about whether the rep goes above and beyond for every customer. We don’t have scripts because we trust our employees to use their best judgment when dealing with each and every customer. We want our reps to let their true personalities shine during each phone call so that they can develop a personal emotional connection (internally referred to as PEC) with the customer. Another example of us using the telephone as a branding device is what happens when a customer calls looking for a specific style of shoes in a specific size that we’re out of stock on. In those instances, every rep is trained to research at least three competitors’ Web sites, and if the shoe is found in stock to direct the customer to the competitor.”
Tony Hsieh, Delivering Happiness: A Path to Profits, Passion, and Purpose

Tony Hsieh
“For example, for most of our loyal repeat customers, we do surprise upgrades to overnight shipping, even though we only promise them standard ground shipping when they choose the free shipping option. In conjunction with that, we run our warehouse 24/7, which actually isn’t the most efficient way to run a warehouse. The most efficient way to run a warehouse is to let the orders pile up, so that when a warehouse worker needs to walk around the warehouse to pick the orders, the picking density is higher, so the picker has less of a distance to walk. But we’re not trying to maximize for picking efficiency. We’re trying to maximize the customer experience, which in the e-commerce business is defined in part by getting orders out to our customers as quickly as possible. The combination of a 24/7 warehouse, surprise upgrades to overnight shipping, and having our warehouse located just fifteen”
Tony Hsieh, Delivering Happiness: A Path to Profits, Passion, and Purpose

Tony Hsieh
“minutes away from the UPS Worldport hub means that a lot of customers order as late as midnight EST, and are surprised when their orders show up on their doorstep eight hours later. This creates a WOW experience, which our customers remember for a very long time and tell their friends and family about. We receive thousands and thousands of phone calls and e-mails every single day, and we really view each contact as an opportunity to build the Zappos brand into being about the very best customer service and customer experience. Seeing every interaction through a branding lens instead of an expense-minimization lens means we run our call center very differently from most call centers. Most call centers measure their employees’ performance based on what’s known in the industry as “average handle time,” which focuses on how many phone calls each rep can take in a day. This translates into reps worrying”
Tony Hsieh, Delivering Happiness: A Path to Profits, Passion, and Purpose

Tony Hsieh
“Branding Through Customer Service Over the years, the number one driver of our growth at Zappos has been repeat customers and word of mouth. Our philosophy has been to take most of the money we would have spent on paid advertising and invest it into customer service and the customer experience instead, letting our customers do the marketing for us through word of mouth.”
Tony Hsieh, Delivering Happiness: A Path to Profits, Passion, and Purpose

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