2. Agenda Company Overview Branding Strategy Positioning Statement Intended Experience Insights Target Consumer Point of Differentiation Zappos Customer Secondary Business Model Contact Points Calder Brand Analysis Conclusion
3. Zappos Overview Headquartered in Henderson, Nevada (outside Las Vegas). 1300 Employees in FY 2008. Recent Financials: “…we continued growing in 2009, finishing the year doing nearly $1.2 billion in gross merchandise sales.” Categories Zappos competes in: Footwear & Related Products Retail; Catalog, Mail Order & Television Sales; Retail; Apparel & Accessories Retail; Nonstore Retail; Internet Retail Type of company: Public. “As many of you know, back in July 2009 we announced that Amazon was acquiring Zappos…The transaction officially closed on November 1, 2009. True to their word, Amazon has continued to allow us to run Zappos independently, with our own unique culture, brand, and way of doing business. From our point of view, it's been as if we swapped out our previous board of directors with a new one, but we now have access to a lot more resources so we can continue to build the Zappos business even faster. In fact, over the past few months, we've actually seen our growth rate accelerate compared to the prior year.” In January 2010, Zappos makes Fortune magazine's "Best Companies to Work For" list again, moving up 8 places to the #15 spot.
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5. They believe spending their resources on the right people, training, and the customer service ) are their “marketing dollars”.
22. Free shipping both ways and 365-day, no questions-asked returns. They trust customers not to abuse the service
23. Only offer items physically held in their warehouses , while most retailers offer items currently out of stockWhile some may argue this may eat into sales by not having customers spend money and wait for items to be shipped, Zappos has bucked the trend and decided that being able to deliver a product as fast as possible trumps those potentials loses, and in the end, provides the customer will a better experience. And most importantly, one they are more likely to repeat. Approximately75% of Zappos sales are from repeat buyers.
30. More than 95% of Zappos’ transactions take place over the Web, making an actual phone call a special opportunity
31. Contact Points 1.) Zappos.com Website 2.)Social Badging Zappos offers easy to use html codes that consumers can plant on any of their social networking pages, letting people know how you feel about Zappos, and giving them an contact point that isn’t as intrusive as other methods. 3.) Youtube Channel Channel, on one of the world’s most popular websites, provides contact points for customers to see the service and experience Zappos offers.
32. Contact Points 4.) The Customer Service Rep 5.) Facebook http://www.facebook.com/zappos
37. Conclusion The goal is to position Zappos.com as an online service leader. If customers begin to associate the Zappos.com brand with the absolute best service, Zappos can inevitably expand into other product categories. Zappos focuses on the definition of service; work being done by one person or group that benefits another. That’s Zappos.com; Powered by Service.
Quotes from CEO blog post March 11, 2010: http://blogs.zappos.com/blogs/ceo-and-coo-blog/2010/03/11/zappos-com-update-march-11-2010Categories from Hoovers.com: http://hoovers.com/company/Zapposcom_Inc/rrtxfji-1-1njea3.html
Warehouse quote from Tony Hsieh speech at South by Southwest Interactive conference, 2009, YouTube.com
1.6 million followers on Twitter – more than CBS News or the NFLFreedom for customer service reps (may chat for hours with a customer, write thank-you notes, send flowers & direct shoppers to rival Web sites if an item is out of stock )
If getting your shoes, or other products, in less than half the time of normal delivery is still not enough for a customer to believe Zappos’ ability to follow through on their promises, the company gives customers other reasons to believe, outside of just their word. Zappos has established a youtube channel, dedicated to customers posting self-made video testimonials of their Zappos experience. The channel offers videos that are real, and speak to the Zappos experience. And smiles and positivity are found in all of the videos. So, going to a youtube channel can prove the Zappos experience is real. But the best way, like in many cases, is to order something form them. That will give you all the reason to believe, in about half the delivery time.
If getting your shoes, or other products, in less than half the time of normal delivery is still not enough for a customer to believe Zappos’ ability to follow through on their promises, the company gives customers other reasons to believe, outside of just their word. Zappos has established a youtube channel, dedicated to customers posting self-made video testimonials of their Zappos experience. The channel offers videos that are real, and speak to the Zappos experience. And smiles and positivity are found in all of the videos. So, going to a youtube channel can prove the Zappos experience is real. But the best way, like in many cases, is to order something form them. That will give you all the reason to believe, in about half the delivery time.
If getting your shoes, or other products, in less than half the time of normal delivery is still not enough for a customer to believe Zappos’ ability to follow through on their promises, the company gives customers other reasons to believe, outside of just their word. Zappos has established a youtube channel, dedicated to customers posting self-made video testimonials of their Zappos experience. The channel offers videos that are real, and speak to the Zappos experience. And smiles and positivity are found in all of the videos. So, going to a youtube channel can prove the Zappos experience is real. But the best way, like in many cases, is to order something form them. That will give you all the reason to believe, in about half the delivery time.
If getting your shoes, or other products, in less than half the time of normal delivery is still not enough for a customer to believe Zappos’ ability to follow through on their promises, the company gives customers other reasons to believe, outside of just their word. Zappos has established a youtube channel, dedicated to customers posting self-made video testimonials of their Zappos experience. The channel offers videos that are real, and speak to the Zappos experience. And smiles and positivity are found in all of the videos. So, going to a youtube channel can prove the Zappos experience is real. But the best way, like in many cases, is to order something form them. That will give you all the reason to believe, in about half the delivery time.
If getting your shoes, or other products, in less than half the time of normal delivery is still not enough for a customer to believe Zappos’ ability to follow through on their promises, the company gives customers other reasons to believe, outside of just their word. Zappos has established a youtube channel, dedicated to customers posting self-made video testimonials of their Zappos experience. The channel offers videos that are real, and speak to the Zappos experience. And smiles and positivity are found in all of the videos. So, going to a youtube channel can prove the Zappos experience is real. But the best way, like in many cases, is to order something form them. That will give you all the reason to believe, in about half the delivery time.