Greetings from FL350, somewhere west of Chicago. I’m winging my way home from Washington, D.C. where Yanik’s 5th Underground Seminar wrapped up yesterday.
Because we sign NDA’s (nondisclosure agreements) prior to entering the conference hall, I can’t really say too much about exactly what information was shared by this year’s speakers. Actually, I think I’m probably breaking Yanik’s rules by including the picture of him onstage – but what the heck, we all know that HE was there.
Because Yanik also went public about the fact that Bob Parsons, CEO of GoDaddy and Tony Hsieh (sounds like ‘Shea’) CEO of Zappos.com were the keynote speakers, I’ll say that I attended both their presentations and was very glad I did.
Tony’s presentation in particular resonated with me.
Here’s a guy whose company did over 1 billion dollars in 2008 and he talks about how he’d rather spend money on things that improve the customer experience (what he calls the “WOW” factor) than on marketing. For example, Zappos runs a very expensive 24-7, 77,000 square foot warehouse so they can ship directly to their customers – rather than relying on manufacturers to ship their products.
Does that feel counter-intuitive or run contrary to the ‘outsource everything’ business advice you’d typically hear from the ‘Internet marketing gurus’? Now ask yourself — are they running billion-dollar companies?
Tony understands that people are his business’ most valuable asset and attributes Zappos’ success to the huge emphasis Zappos places on providing the best possible customer service – NOT the bottom line.
For example, Tony shared the story of a woman who bought a pair of boots for her husband at Zappos. Sadly, her husband never received the gift as he was killed in a car accident on his way home from work. When the customer called to inquire about the return policy and told the Zappos representative what happened, the Zappos clerk ordered flowers to be sent to her in condolence.
WOW!
The woman shared her Zappos story at her husband’s funeral and you can bet that the 30 friends who heard it are all now Zappos customers.
Here’s another example.
Zappos only lists products on the site that are actually in stock. If a customer calls to ask about a product not currently available, Zappos’ staff will search their competitors’ websites and will then refer the caller to the site that has the requested product readily available.
WOW!
Very few salespeople in brick and mortar stores will refer to their competitors even when you specifically ask where else they think the product might be available. More often than not, they’ll shrug their shoulders, give you a blank look and say “I dunno” while turning their back to resume chatting with their cute co-worker.
What the misguided clerk (or owner) fails to appreciate is that they’re NOT losing a sale — they don’t have the product to sell anyway — but that they just lost a potential future customer, because after thinking “If I were your boss, I’d SO fire your ass“, I make a mental note NOT to darken their doorway again until they hold their going-out-of-business sale.
On the other hand, I’m so WOW-ed when a salesperson does make a referal, that I make a mental note to visit that store first when I’m looking for something in their niche again.
Both situations are memorable, but the latter is positive and powerful from a branding perspective — and 10 times moreso when it happens in the too-often nameless and faceless world of ecommerce.
So, how can you make your online business more memorable than your closest competition?
Put yourself in your customers’ shoes and ask yourself how you’d feel to be on the receiving end of your customer service process.
Should you cut back on the pitches? Share more valuable information upfront? Respond to your customers sooner? Allow your site visitors to contact you – period?
Perhaps you should ASK your site visitors to tell you what they like, don’t like and what services they would like to see offered on your site.
Test your competitor’s sites. What do they do that you don’t do? How can you improve on what they offer?
Or, you could go buy something at Zappos and see what the “WOW!” factor is really all about. 
About Rosalind Gardner
Good information I like it, the saying is true you learn something new every day.
thank you
Derrick
Its interesting how dramatically one story from a happy customer can impact sales for your business. I do think that “WOWing” your customers and treating them right will make the difference in your success.
Rosalind, It sounds like the session was well worth your time. Zappos is an extra-ordinary brand, with a long-term strategy. Many of the strategies “we” practice are short-to-medium-term strategies. Set up to acquire customers as efficiently as possible.
Retention, on the other hand, is someone else’s problem.
I have a problem with many of the affiliate offers out there. While they contain real value, that value is hidden behind sales letters with promise-after-promise, and huge dollar figure after huge dollar figure.
I MADE $57,139! SHE MADE $83,291!
The good offers are starting to sound just like bad ones.
I much prefer to see these genius super-affiliates, with their own products, offering free or very affordable content on the front-end… without the outlandish sales pitches.
Instead of trying to overwhelm me up-front… and likely disappointing me down the line. How about WOWing me up front by not pitching me like a car salesman?
Hi Ros,
Tks for sharing the insight from UG5 – especially the point that Zappos’ employees are refering competitors sites shows that their intent to help the customer overrides a mere profit motive, plus strongly reinforces their brand.
Zappos actually did a private tour for some participants at affiliate summit in vegas when we were there earlier and the guys who went on the tour had a blast.
WOW I’ve just found your blog post on your facebook profile and very interesting information Rosaline. Thank you!
WOW..
I should said that for this Zappo’s story Ros..Never think to redirect someone to competitor sites. I always think that it will not work in helping my site build credibility, but it work though from this Zappo’s story. Truly, this is new and really valuable to me.
Thank you
Well these ideas and incidence give me a reason to think about this.
I figure out one thing and speciality with this two incidence and that is TRUE HEART. In both cases they showed a character without caring about their loss.
So I am taking this factor be HONEST AND BE TRUE HEART.
Rosalind,
GREAT stories. My brother, friend, and I are in the web-development phase of a service based internet business. We’ve talked to various successful internet entrepreneurs and you share a common theme which they’ve pounded into our minds: It’s not about the bottom line, it’s about creating VALUE for the customer. If you create a tremendously valuable site to the customer, you bet your rear-end that the bottom line will be where you want it to be. Just wanted to thank you for the stories, and I think I’ll have to check out zappos now!
Regards,
Cody
Wow indeed! The Zappos story sparks the question, “What is the affiliate or internet marketing equivalent for me?” Of course, it depends, but online certainly free useful information, money back guarantees, personal touches (social media, email–including remembering birthdays), coaching, bonuses, free upgrades, and website referrals could be part of one’s Wow factor and are often used. Any ideas? Free surprise after-the-sale bonus?
I also wonder what management did at Zappos to make a lowly clerk dare to spend company money on flowers. How many companies create an employee atmosphere to encourage that kind of customer service?
Peter Rubel
Hi Rosalind,
Again a nice post from you.
It reminds me of 10 ways to improve visitor’s trust you wrote years ago.
I still have a printout hanging on the wall.
Thanks for all your tips, Rosalind.
Sybren.
True enough; the WOW Factor isn’t only applicable to marketing strategies but rather more applicable to your customers.
What I mean is, as an entrepreneur, it is also your goal to put your customer’s needs and answering them as your no.1 concern. The story regarding Zappos was incredible and quiet relatable in day to day interactions.
Don’t just get driven by the glamour of money, but get on your business with helping people in mind.
This is a very interesting post ros…I was WOW on how a dramatic stories gained customers and gave a great impact in business. Customers are really an asset of a business and it is very important to keep them for life!
Hi Ros,
Totally agree. After many years running offline businesses (mainly in niche engineering)I have learnt the importance of ‘going the extra mile’ with all customers and as a result I have only ever lost one customer in ten years to a competitor.
I have now set up a few online ventures and I continue this ethos… ‘Word of Mouth’ is a fantastic way to get new quality leads and customers.