Question

In: Operations Management

Argue for or against the following statement: “In the electronic age, customer relationships are more important...

Argue for or against the following statement: “In the electronic age, customer relationships are more important than ever, and Zappos provides the new benchmark that all corporations should follow.”

Solutions

Expert Solution

# Customer Relationships are More Important than ever, in the Electronic age-Powerful Customer relationships are essential to Business success. just like personal relationship,it's important to cultivate and nurture customer relationships. when organization develop strong relationship with custmers it can lead to loyal clients,positive word of mouth and Increased sales.the benefits of doing so includes-

  1. Better client relationship.
  2. Improved ability to cross-sell.
  3. Increased team Collabration.
  4. Improved Efficiency in serving clients.
  5. Greater staff satisfaction.
  6. Increased Revenue and Profitability.
  7. Cost savings.
  8. Less client attrition.

# Zappos Provides the new benchmark that all corporations should follow-is considered a leader when it comes to customer experience, but it has'nt always been that way. when rob siefker, now the senior director of customer loyalty, started representing the company at conferences years ago, he estimate only 10 % of people had heard of Zappos. now the number is around 99 %, and the company has created a benchmark for other corporations.

the company from starting has a customer-obsessed mindset. although customer trends, expectations and technology have changed, Zappos has been able to stay true to its brand and respond to a changing evvironment.

Zappos is commited to wowing every customer, with its unique offerings, as 9.9 M total customers(3.3 of US population) and 4.1M have purchased in the last 12 months. it has a good Customer back, about 75% of purchases from returning customers. it entered in new products as clothings and great selection of clothing delivered with great service.

Customer Service : the zappos way---establishing a personal emotional connection with the customer. this can be understand with these points-

# See- what customer first see on Zappos website ?-

  1. Great Selection.
  2. Easy to navigate website.
  3. 24/7 800 # on every page.
  4. free shipping.
  5. Free return shipping.
  6. 365 day return policy.

# Experience-what customer experience after their order ?-

  1. fast, accurate fullfillment.
  2. Most Customers are " surprise " upgraded to overnight shipping.
  3. friendly, helpful, "above and beyond "customer service.
  4. Occasionally direct customers to competitors websites.

# Feel- what Zappos do to establish a personal emotional connection ?-

  1. Manage call center differently.
  2. No call times.
  3. No sales-based performence goals for reps.
  4. manage fulfillment differently.
  5. Run warehouse 24/7.
  6. Inventory all Product( no drop-ship).
  7. Manager culture differently.
  8. Interview and performence reviews are 50% based on core values and culture fit.
  9. 5 weeks of culture, cutomer service, and warehouse training for everyone in Las vegas.
  10. offer $ 2000 for trainees to quit.
  11. Culture book.
  • Zappos has developed a Great work culture.
  • Zappos believe in Building teams and relationships, which in turn provides returns in long terms.
  • Zappos has proved that- Zappos=Delivering happiness to customers and Employees.
  • Zappos has developed Trust and Transparency.

# Zappos has created a Benchmark for others corporations to follow, by providing these seven steps for Building a Brand that matters-

  1. Decide-if you are trying to build a long term sustainable brand ?
  2. Values and culture-figure out values and culture rather than later.
  3. Commit to transparency-Be real and you have nothing to fear. your culture is your brand.
  4. Vision-Whatever you are thinking, think bigger. Don't chase the paper, chase the dream.
  5. Build relationships not networking.
  6. Build Your team.
  7. Think Long Term.

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