e-commerce lesson learned: customer service is an investment
Sunday, March 9th, 2008Would you ever call an apparel retailer like L.L. Bean and ask for a pizza? Even if you did, would you expect them to assist you? Well, that’s just what a customer service rep at Zappos.com did, according to company CEO Tony Hsieh, who led a discussion on Top Ten Lessons Learned in e-commerce at SXSW Interactive.
Hsieh recounted the time when (at a different) conference, someone couldn’t get a late night pizza from room service, he jokingly suggested they ring his call center. Zappos, he said, focuses its branding on providing superlative customer service. The rep came through, providing the names of 5 pizza joints in the vicinity of the hotel.
Zappos sells apparel (primarily shoes) but Hsieh said that delivering exceptionally great customer service is key to their branding strategy - and their success. He said it may be more expensive to do that - Zappos provides free shipping and staffs its call center so that the average hold time is only 15 seconds - but its viewed as an investment, not an expense.
Hsieh says that important because when it comes to e-commerce, customer loyalty, repeat business and word-of-mouth referrals are very important to developing a successful business.
Here’s Hsieh’s Top Ten Lessons Learned in e-commerce:
- e-commerce is built on repeat customers
- word-of-mouth really works online
- don’t compete on price
- make sure Web site inventory is 10% accurate
- centrally locate your distribution
- customer service is an investment, not an expense
- start small, stay focused
- don’t be secretive; don’t worry about competitors
- actively manage your company culture
- be wary of so-called “experts”
Here’s a link to Hsieh’s presentation.


