News
PROFILE: When the shoe fits
Zappos CEO continues tradition of unparalleled customer service
February 12, 2009
 |
Tony Hsieh Age: 35 Hometown: San Rafael, Calif. College: Harvard First retail job: Selling pizza |
Tony Hsieh has built a customer-friendly brand by hiring people he would like to know even if they weren't co-workers.
Hsieh, CEO of online shoe retailer Zappos, said working only with people he likes and who have the same goals will give customers a good impression of his company on and off the clock. So as Hsieh helped build Zappos into the Internet's biggest shoe store, he looked for employees who would be passionate about extra-mile customer service.
"Communication is better, trust is higher and, generally, people are more productive when they are working with people they enjoy being around," Hsieh said.
To ensure that new employees share the company's goals, after a week of training Zappos offers them $2,000 to quit. Less than 1 percent take the money.
Word gets around
Finding workers who buy into his company's culture has paid off for Hsieh, 35, ofSan Rafael ,Calif.
Customers have picked up on those positive vibes, spurring Zappos' growth from a five-man outfit in 1999 to a staff of hundreds that is expected to generate about $1 billion in gross sales in 2009. That growth came despite spending little on traditional advertising.
Instead, Hsieh's company counts on customers to spread the word about its outstanding customer service — free shipping both ways, a one-year return policy and salespeople who are encouraged to take their time and be themselves.
The Zappos Web site proudly displays page after page of glowing testimonials about quick shipments and above-and-beyong customer service. |
The Zappos Web site proudly displays page after page of glowing testimonials about quick shipments and above-and-beyond customer service. One poster wrote about returning a pair of boots after breaking a buckle months before: "I am shocked that I have a new pair of boots on the way to my house to replace my broken pair, which I can return free of charge AFTER I receive the new ones. I don't have to go one single rainy day without my rain boots. Way to go, Zappos!"
Such testimonials can be found off-site, too.One writer inOregon
Communication is key
Great customer service was part of the reason for Zappos' existence even before Hsieh came aboard. Founder Nick Swinmurn got the idea for ShoeSite.com in 1999 after he spent more than an hour at a mall searching several stores for shoes but left empty-handed. One store didn't have the right size; another didn't have the right color. A big online retailer could stock the perfect fit.
Hsieh's advice is not to hire just talented people with the right experience and skill set, but to find people who really believe in the Zappos culture of customer service. The company's human resources department does a round of interviews with new hires to screen for culture fit.
Other policies have come from the customers themselves. Early on, Zappos extended its return policy from 30 days to 60 because customers began asking for more time so they could do early Christmas shopping.
"We got such a positive response to that from both employees and customers that we then made it 90 days and eventually extended it to what it is today: 365 days," Hsieh said.
Zappos' culture also includes open, honest communication with customers about the company. That transparency is important, Hsieh said, for the same reasons Internet companies thrive through word of mouth: Gone are the days when companies could control their images through marketing.
Employees, including Hsieh, post quirky updates on Twitter.com, and the CEO has several blog posts about the company and the way it does business. For example, he wrote last year about why 8 percent of the Zappos workforce was laid off, a move he said was necessary to succeed this year as the company expands beyond shoe sales.
"I think the biggest challenge will be figuring out how to continue growing while the economy and e-commerce overall is shrinking," Hsieh said. "We are making a big push into clothing in 2009, which is about four times the size of the footwear market in theUnited States
A big part of the battle will be continuing to earn consumers' trust with customer service, an area in which Zappos clearly has cornered the market.
Related Media
Subscribe
Get the latest news and resources from Retail Customer Experience.
