Sales Plan
Sales Methodology
The most appropriate method for Zappos to reach and engage with new leads is associated with its primary customer-centric strategy. The company aims to constantly surprise its customers and puts much effort and money into providing the best possible customer service to win the loyalty of current and potential buyers (Askin & Petriglieri, 2016). That approach provides Zappos with an opportunity to attract new customers by demonstrating the quality of its services which is confirmed by those who already represent the company’s loyal clientele (word of mouth). In addition, the customer-oriented methodology assists with implementing an inbound sales strategy, prioritizing customers’ interests, and guiding them through decision-making (Askin & Petriglieri, 2016). That strategy makes sense for the business as it correlates with Zappos’ primary goals and customer-related policies.
Sales Organization Structure
Zappos has a unique organizational structure, which is why there is no concrete breakdown of roles or a specific person in charge of selling the company’s products and services. Zappos follows an organizational form of Holacracy, which represents a self-governing flexible structure that utilizes temporary functional roles instead of fixed jobs (Askin & Petriglieri, 2016). Furthermore, Zappos prefers to put money not into marketing itself but the customer experience, making word of mouth the company’s primary marketing tool that passively increases sales.
Sales Channels
Zappos is an online retail company, meaning that the central area of the organization’s activity refers to the online sector. Thereby, the only major facilities that Zappos will utilize to sell its products are warehouses needed to store shoes for the purposes of further delivery (Askin & Petriglieri, 2016). Stores are not part of the organization’s business, but partners’ warehouses can be used in case it is possible and necessary. In addition, Zappos’ team includes sales reps, but their primary goal was not to sell the product as quickly as possible but to develop a personal emotional connection with the calling customer (Askin & Petriglieri, 2016). These methods are more appropriate for the company as per its customer-oriented strategy.
Tools and Technology
The company’s website and call software are the primary technological tools required to achieve Zappos’ goals. The website allows customers to make purchases and arrange their deliveries online, but the call centers’ functionality is much more critical for Zappos as the company values calls significantly higher than online orders (Askin & Petriglieri, 2016). Thereby, a well-functioning website and a permanently active calling line are the tools Zappos needs the most.
Legal Notes
Legal Structure
As mentioned previously, Zappos follows the principles of Holacracy, which is why its structural principles are different from a typical firm. Although Zappos is the subsidiary company of Amazon, it is based on its own decentralized system without any hierarchy (Askin & Petriglieri, 2016). Zappos has, however, a well-known form of legal structure, namely limited liability company (LLC), but it is rather a formality. Nevertheless, it still implies some legal considerations and the absence of personal liability for the owners.
Legal Considerations
The legal considerations under discussion include a standard set of registrations for LLCs. For instance, operating agreements with specifications related to management control, withdrawal and transfer of interest, distributions, taxation, capital contributions, and dissolution. However, as the parental company, Amazon will cover and address most legal issues since it has agreed to provide Zappos with independence and protect the company on multiple levels (Askin & Petriglieri, 2016). Thereby, Amazon will be responsible for dealing with government registrations, permits, health codes, insurance requirements, and zoning laws that need to be addressed in Zappos’ activity.
Reference
Askin, N., & Petriglieri, G. (2016). Tony Hsieh at Zappos: Structure, culture and change [PDF document]. Web.