Do you think Zappos should consider this?
Growing any type of business can be difficult in the face of managing your costs that seem to increase year after year. As a result, an acute focus is put on being as efficient as possible operationally and creating long-term loyal customers in the process. This can often times be even more challenging for an online retail business that sees hyper-competition and which customers have many alternatives if they are not satisfied with any respective online retailer in particular.
In order to get a better look into this; you will be reading a case study, on page 352 353 of our ebook, that focuses on a company called Zappos®. They are known for having developed extreme customer loyalty and the streamlining of their operations has resulted in a very high level of efficiency in their business. Once you read the Real-World Case on this Company, and complete your additional outside research, address the following questions: (please note the questions here are slightly different than those in the ebook and you should only address the questions that follow here.)
The great customer service at Zappos can be expensive with real costs exemplified by free same day shipping and extensive employee training. Do you think the company can reduce costs in other areas of the operations to help offset these costs? If so, how?
By offshoring its customer call center, even if Zappos offers wages and perks much higher than the going rate, it would stand to save substantial amounts of money. Do you think Zappos should consider this? Why or why not?
In what other ways do you think Zappos can affordably enhance its customer service?
In building upon the business that you would like to start, how would you approach the need to keep operational costs down while building up customer loyalty at the same time?
In your business, what specific approaches to customer service do you think will make you stick out from your competition and achieve a high level of customer loyalty?
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