Service quality

Service quality

Tuesday, 3 February 2015

CEO of Zappos saying

In 2009, the CEO Tong Hsieh spelled out the company's approach more explicitly:

We view most of the money that we put into the customer experience as our marketing dollars. The number one driver of our business is repeat customers and word of mouth, so most of the money that we would have spent on paid advertising we put toward things like free shipping both ways, surpeise upgrades to overnight shipping, our call centre, and our warehouse, which run 24/7- which isn't actually the most efficient way to run the warehouse. The most efficient way is to let the orders pile up, but because we run it 24/7 to get our orders out as quickly as possible, customers can order as late as midnight Eastern(time), and it is on their doorstep 8 hours later. That creates that 'Wow!" effect, and they remember that for a long time. And then they tell their friends.

The saying above shows us that such revenue doesn't strictly comes from marketing strategies or even advertising. Most of all, it comes from service which makes people keep talking about it and it tends to sink into your customers first thought.

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