Introduction
Zappos’ success from 1999 to 2009 can be attributed to its exceptional customer service. Being an online shoe seller, the company relied on clients’ orders. However, Zappos struggled with increasing their customer base. In order to fix this issue, management changed its marketing strategy – it decided to offer free shipping and free returns, which was an unprecedented practice in the industry at that period (Harnish & Collins, 2021). The success of this strategy was evident in the drastic increase in growth gross revenue from 2000 to 2009 as well as the reputation as one of the most customer-oriented companies (Collier et al., 2018). As a result, the use of free shipping in both customer service and marketing was a successful strategy that ensured its growth.
Discussion
The Service Triangle model will showcase the current strategic positioning of the company. The specific action that ensured Zappos success in external marketing was free shipping and free returns, which significantly increased the company’s attractiveness. Interactive marketing was accomplished with the implementation of a user-friendly interface, which facilitated browsing the products. The introduction of a hiring policy directed at people who are “a little weird” ensured internal marketing, because it attracted psychologically compatible employees (Broadbridge & Fielden, 2018, p. 320). As a result, the Triangle is well-aligned, but the longer the company prioritizes the satisfaction of customers, the less attractive to employees it becomes, thus forming an internal marketing threat.
The Zappos blueprint would likely consist of three foundational elements. The first is customer service, which would encompass website support, which would be expected to be available 24/7 to help customers choose a product, thus constituting the first critical moment of truth. The second element would be a corporate culture that appeals to people with unusual and creative mindsets, thus minimizing turnover of valuable employees. The final element would be the fulfillment process, which would stem from the satisfaction of quick browsing and free shipping, which would be the second critical moment of truth expected by customers.
Acquisition of Amazon by Zappos presented two important challenges for Zappos. First, Amazon is known for its cost-effective deliveries, which are an important component of its profit (Aćimović et al., 2020). Yet, it may come into conflict with Zappos’ policy of free shipping and free returns. The second challenge would be changing the corporate culture – Amazon is a publicly traded company that makes decisions based on data and efficiency. Meanwhile, Zappos was a private company, which made its most important decision – to offer free shipping – in spite of the data and costs. The most likely way for Zappos to continue the same strategy under Amazon’s umbrella is to increase the price of products, which will inevitably alienate many customers.
Conclusion
The most evident element of the Zappos website reinforcing its service marketing is a large banner, offering “hassle-free returns” in a variety of options (Zappos, 2021). They include using a QR code or a box to return a number of goods. The introduction of E-commerce is the logical continuation of Zappos’ trademark service – easy and free returns. As Zappos culture is built around convenient customer service, the use of online communication and QR verification of returned goods aligns with the company’s management style. This is also the reason why the company hires employees with unusual personalities – they make customers’ interaction with the company more enjoyable.
References
Aćimović, S., Mijušković, V., & Milošević, N. (2020). Logistics aspects of goods home delivery: The case of Amazon company. Marketing, 51(1), 3-11. Web.
Broadbridge, A. M., & Fielden, L. F. (2018). Research handbook of diversity and careers. Edward Elgar Publishing.
Collier, J. E., Barnes, D. C., Abney, A. K., & Pelletier, M. J. (2018). Idiosyncratic service experiences: When customers desire the extraordinary in a service encounter. Journal of Business Research, 84, 150-161. Web.
Harnish, V., & Collins, J. (2021). The greatest business decisions of all time: How Apple, Ford, IBM, Zappos, and others made radical choices that changed the course of business. Fortune Books.
Zappos. (2021). Web.