Zappos.com 2009: Clothing Customer Service and Company Culture Harvard Case Solution & Analysis

Introduction

Zappos is one of the largest online retailer of shoes, clothing, handbags and accessories that provides high quality and excellent services to the customers. In addition to this, the company has always focused on providing outstanding and superior customer services in order to make them feel online shopping experience as close as possible to visit a retail store.

The company offered a wide range of larger footwear selection as compared to any other online or offline shoe store that enhanced the sales and growth of the company. Zappos has developed a customer focused business where employees of the company are encouraged to make decisions that will positively impact the customer satisfaction. The company continuously focuses on delivering superior customer services as major growth of the brand offering comes from the customer loyalty. The company’s aim is that every customer must have positive and superior experience of the brand offerings.

Case Analysis

The culture of the company creates the environment where the customer receives the services more than their expectations. The services at the Zappos are defined as how the company creates value for its customers and are determined in the way that greatly contributes to the competitive strength for the Zappos. The company is known for providing the outstanding customer services and shipment of products on time. As well, employees of the company are also considered helpful and persistent throughout the process of customer making purchases.

Moreover, customers while making purchasing decisions can search their desire product offering by size, style, color, width and gender that enhances the customer services of the company. The main objective of the Zappos is to provide the excellent customer experience and the call center of the company is intended in achieving this goal by answering different queries of the customers and providing them with the best potential solution. As, CLT members of the call center are authorized to take as much as time in order to help the customers with their orders, answer their queries and solve their problems.

Zappos.com 2009 Clothing, Customer Service and Company Culture

The customers can also initiate online chat sessions with product experts as well as can also print their shoe size template and each shoe of the company is photographed from nine different angles in order to help the customers to make the purchase decision. Additionally, Zappos constantly innovates the new and unique ways to enhance its customer services as well as provide customers with the high level of service.

The most of the Zappos orders are from the repeated customers as customer loyalty plays a key role in the development of the company. Additionally, due to the company’s great emphasis on the customer services, 75%, sales of the company are from the repeated customers. The 96% of the sales of the company come through the company’s website as most of the customers of the Zappos placed their orders through the website. These results come from due to the fast, free shipping and wide selection of the brand offerings that enhance the productivity and growth of the company.

The company has established a Zappos insight a subscription based online resource that provide video interviews and articles  of the senior management of the company that  shares the learning of the company as well as the factors behind its growth. In addition to this, management of the company have provided with the leadership and other important trainings in order to inspire the employees and help them during the customer services to get desirable results for the company.

Employees must fit with the culture of the company as it is the only way to stay in the company.  Each new hire has to complete the 4 week session of the paid training that is mostly focused on providing the call center training. The main purpose of theses employees’ trainings is that it will enhance the productivity as well as the efficiency of the employees in order to treat the customers effectively that must result in a superior service experience. The company used the formalized pipeline process that is used to develop the employee from the entry level to the highest level of the management and it requires the core level training of all the employees for 225 hours. However, the formalized pipeline process sets the expectation that anyone who meet will rise to the position of senior management....................

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On July 17, 2009, Zappos.com, privately-held online retailer of shoes, clothes, and other soft-line retail categories, learned that Amazon.com, $ 19 billion multinational online retailer, won his Board of Directors, approval of directors' to propose the merger of two companies. Amazon was courting Zappos since 2005, hoping that the merger would allow Amazon to expand and strengthen its market share in the soft-line retail categories. While interest in Amazon's intrigued by Zappos' senior executives, that they did not feel the time was right - until now. Proposal 10 Amazon's million shares of stock (valued at $ 807 million), $ 40 million in cash, restricted units available to ship personnel Zappos', and a promise that Zappos could work as independent subsidiary, was on the table. Zappos' financial adviser, Morgan Stanley, estimated future value of the share capital of the IPO, to be between $ 650 million and $ 905 million, this estimate skewed offer-at Amazon least in financial terms - toward the high end of Zappos' estimated market value. Hsieh and Lin, Zappos 'CEO and COO, respectively, knew that many of Zappos' growth, and therefore its value, had been due to strong company culture and obsessive focus on customer service. In 2009, they were focusing on three C's-clothing, customer service, and company culture - the key to the continued growth of the company. Hsieh and Lin had only a few days to consider whether to recommend the merger to the board Zappos' for their 21 July meeting. "Hide
by Francis H. Frey, Robin J. Ely, Laura Winig Source: HBS Premier Case Collection 27 pages. Publication Date: October 20, 2009. Prod. #: 610015-PDF-ENG

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