Zappos, an online shoe retailer, has had incredible success built upon two main competitive advantages. The first is their high standard for customer service and developing a relationship with the customer. Top quality gives the consumer the unexpected and can be used as a significant competitive advantage. The second advantage is at the source of customer service, and it is a strong organizational culture. The two form a symbiotic relationship, for one cannot exist without the other.
There are several aspects of the Zappos customer service program. The goal of the organization is to implement and benefit from a long-term customer retention strategy. To begin with, Zappos offers free shipping, including any and all returns, 365 days a year. While this feature cost the company $100 million in 2006, it allows them to capture first-time shoppers and gets them to come back (Durst). The free return shipping combats the consumer anxiety that comes from buying products online and the uncertainty of whether or not it is going to be what was wanted. It reduces the consumer’s risk to try their service. This has directly impacted the amount of return shoppers in a positive manner as well. Sixty-five percent of their website’s daily shoppers are repeat customers according to Zappos (Durst).
A second aspect of their customer relationship program is their 24-hour customer service. Their call center is known to be the industry’s fastest service and is dedicated to satisfying the customer (Winiarczyk). It is toll-free and is one of the few call centers that have not been outsourced. Employees are not under any metrics that pushes them to get the call down to a minimum time or causes them to rush; they are open to talk and are not restricted by ...
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... They reached $1.5 billion in 2010 (Winiarczyk). Six years in a row, Zappos has been named to FORTUNE’s 100 Best Companies to Work For (“What Is Zappos Insights?”). Hand in hand, exceptional customer service and a strong organizational culture have given Zappos a sustainable competitive advantage.
Works Cited
Durst, Sidra. "Shoe In." CNNMoney. Cable News Network, 15 Mar. 2007. Web. 06 May 2014.
"How Zappos’ Organizational Culture Drives Its Competitive Advantage18." Generator Group. N.p., 18 June 2013. Web. 06 May 2014.
Ryssdal, Kai. "Zappos CEO on Corporate Culture and 'Happiness'" Marketplace. N.p., 19 Aug. 2010. Web. 06 May 2014.
"What Is Zappos Insights?" Zappos Insights. Zappos, n.d. Web. 06 May 2014.
Winiarczyk, Kacper. "Zappos Case Study." Prezi. N.p., 20 Sept. 2013. Web. 06 May 2014.
"Zappos Family Core Values." Zappos.com. Zappos, n.d. Web. 06 May 2014.
Nordstrom is one of the top retailers in the United States. With a solid brand image and a sound financial situation, Nordstrom is relentless in their expansion in the US, and are beginning to expand into international markets. Nordstrom takes pleasure in providing state of the art client support and having experienced sales people. In order to hold their position as the most successful high-end retailer in the United States, Nordstrom must continue to figure out ways to improve their brand image and customer satisfaction. Nordstrom’s current business working strategy is successful but I believe there are a few ideal solutions that the organization could apply to further enhance the organization. Due to the aggressive characteristics of the fashion retail store market, it is crucial that Nordstrom preserves an aggressive advantage providing the highest level of customer support as possible.
Zappos has got a customer base of nearly twenty-four million people. In the period of January 2012, Zappos has undergone suffering due to data security breach which provided hackers private info of their customers. The securities breach shown customer names, their addresses, and phone numbers but did not provide the credit card information of customers. After Zappos got to know about the security breach, Zappos have sent bulk emails to all the customers informing them about the security breach and recommended that they change their login details on the website.
Temple, Kim, "Naomi Klein: Who’s the rock star now?" Chart Attack. June 7, 2003: http://www.chartattack.com/damn/2003/06/0706.cfm
Blandino, S. (2012). Amazon’s Culture: How to Shape an Enduring Organizational Culture. Retrieved from: http://www.faithvillage.com/article/81939068ed36450197491582db1d7b21/amazon
First, when shopping, a big factor that will impact a customer 's experience is the customer service. Whether it’s from a simple “hello”, or an employee going out
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