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Zappos.com CEO Tony Hsieh
Instead of real estate, big ads, limited selection
the way it operates on several occasions. In one post he says:
“Zappos changed the fundamental business model of a small-
time retailer. Instead of real estate, big ads, limited selection and
grumpy salespeople, it figured out how to use the internet to its
advantage by reversing every one of those rules. If it can work for
shoes, one wonders what it won't work for.” Kurlander acknowl-
In this day and age, when anyone with an opinion can publish edges that having such a “well regarded and knowledgeable”
a blog or have a conversation on a message boar
‘
and grumpy salespeople, [Zappos] figured out
how to use the internet to its advantage’
Stone, or a TV commercial during the Super Bowl. The word of
mouth that is generated from our customer-friendly practices has
been and will continue to be the reason for our growth. We are
all wary of messages from the corporate entity itself. But if that
same message is coming from the customer, more and more
people will continue to give Zappos a try.”
d, Kurlander is person on side can really help the business model.
aware it’s best for business if reviews sparkle. “The old adage Zappos has also tapped into the social networking space. The
that bad news travels a lot faster than good still holds true. It’s ‘I heart Zappos’ logo has been devised as an easy way for brand
especially important to have favourable news about your com- advocates with their own websites or pages on social sites like
pany on the first few pages of search results.” MySpace to show their affiliation. “The social space affords
Kurlander maintains it’s also extremely important to have a brands like ours, that have an emotional connection with their
large breadth of customer recommendations and product customers, a unique opportunity to interact with them and drive
reviews. “Whether the recommendation is happening offline word-of-mouth traffic to the site,” says Kurlander.
when a customer tells a friend or family member, or through a It remains to be seen if the company can keep the human
blog or web forum, prospective customers view these touch intact. “I don’t envisage any real challenges to continuing
peer-to-peer reviews as honest, unbiased opinions. to do the little random acts of kindness or provide the same level
“In terms of the products we sell — especially shoes and of human interaction,” he adds. “The benefits to providing this
apparel — the immediate concern is ‘how is this going to fit?’ level of service will always outweigh the costs.”
Since you can’t touch or try on the products, not only is it imper- While not quite ready to move beyond serving the North
ative that the return process is as easy as possible, but you need American and Canadian markets, the company has its eye on
your users to advocate that among their fellow consumers.” further growth in 2008. It intends launching electronics, house-
Bestselling author and entrepreneur Seth Godin, through his wares and cosmetics as well as expanding the offerings in some
own popular blog, has written very positively about Zappos and of its existing categories later this year.
May/June ‘08 Marketing Age 65
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