Zappos Case Study
In the year 1998, a young man named Nick Swinmurn went to a shopping mall in San Francisco to buy a pair of shoes. He was disappointed that he was not able to find the particular size, color and style that he wanted.
This prompted him to create an online retail site specializing in footwear which grew to give rise to Zappos.com (Frances, Robin and Laura, 2011). From its inception Zappos value proposition has been to create and deliver to each customer a WOW experience. They are able to achieve this by simply empowering their workforce to deliver a shopping experience that is irresistible. They provide unrivalled customer service and free fast shipping , while at the same time offering almost one thousand two hundred and fifty brands and two million eighty hundred thousand products. As a result of this strategy they have a fanatical customer loyalty with up to 75% being repeat customers (Zappos, 2011).
Zappos ability to create and capture value emanates from their nearly obsessive passion to create customer satisfaction and good customer relationships. In fact customer’s loyalty is of such great importance to Zappos that it is their primary goal to be the best customer experience and customer service company. They have a culture that runs deep down and that is customer-focused (Scribd, 2012). In order to create and capture value, Zappos directly invests huge amount of money into customer service. ...