MGMT4310: Zappos Case Study
Zappos achieves such great service because of their focus on core values, determination to hire the ‘right’ people, and obsessive need for customer satisfaction. Zappos’ strategy, which is to acquire and retain happy customer is aligned with the company’s values. The philosophy “you can’t have happy customers without having happy employees, and you can’t have happy employees without having a company where people are inspired by the culture” reinforces their method, which enables them to prosper. Management invests a good deal of time and energy into hiring the ‘right’ people who will fit with the Zappos lifestyle. They conduct both a traditional skills- based interview and a “culture” interview. These interviews determine whether a potential candidate will support the company’s already established core beliefs, which is a critical factor in their ability to achieve great service. Applicants who do not reflect them will be inadequate in fostering relationships with their co-workers and thus unable to pass the Zappos image to the customer. The synergy between employees creates greater worker efficiency and productivity because they feel more engaged when there is a positive team spirit. The obsessive need to maximize customer satisfaction distinguishes Zappos from the rest of the e-commerce shoe industry. Over 2.9 million items are kept in supply to ensure a speedy turnover from warehouse to customer destination. The call center workforce is encouraged to spend any length of time necessary with a customer to create a personal emotion connection. The ten core values of Zappos were derived from employee input, assuring they manifest what front line workers believe to be most important. Great service is made possible by an environment where employees feel empowered and motivated.