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June 2010 Archives

June 6, 2010

Zappos.com follows the Golden Rule. Do you?

Zappos.com CEO Tony Hsieh’s first book, Delivering Happiness: A Path to Profits, Passion, and Purpose, hits bookstores today.

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For those who don’t know, Zappos.com is a mega-successful online shoe retailer. It’s also been named to Forbes list of top companies to work for. If you had the chance to watch CBS’s Sunday Morning yesterday, you would have learned from employees what makes Zappos.com a great place to work. If you read the excerpt from the book that appeared in Hsieh’s Harvard Business Review (HBR) post on Saturday you would have learned how Zappos.com has built extraordinary relationships with its vendors.

In the blog post, Hsieh describes how Zappos.com built these relationships using the Golden Rule - treat others as you would like to be treated. Having decided not to view vendors as adversaries, the company opened up its tracking system so suppliers could monitor what shoes were selling and make suggestions about new products. They are also treated well when they visit Zappos headquarters. The net result is better business and profits—for everyone.

Similarly, the employees interviewed for the Sunday Morning piece were uniformly enthusiastic about the company. One thing became clear as I watched: The Zappos employees felt valued and were engaged in their work and with the company. This engagement leads to great customer service, which in turn leads to happy customers and more sales and profits.

In following the Golden Rule, Hsieh and his team at Zappos.com have created a business model built on respect and engagement rather than top-down compliance. I’m sure Hsieh has more insights into successful retailing so I’ll be stopping at the bookstore on my way home from work. Passion, profits and purpose—who wouldn’t want to read more?

June 13, 2010

Are you showing your customers that you care?

Friday’s collection of Harvard Business Review blogs included
a post by John Sviokla titled “Three Tips for Curating Your Audience.”
In it Sviokla explains that “curation is the process of overseeing the preservation and use of something precious.” For a business, this “something precious” is its “audience,” which is comprised of past, present and future customers. Curation, he writes, is about caring. The million dollar question: Are you showing your customers that you care?

Sviokla writes that when he taught marketing, he would say “Your brand is nothing more than the sum total of memory traces which everyone who has touched your company have in their heads—good or bad.” A curator, he explains, “thinks about how precious those memory traces are and how important it is to be prepared to create new positive memories.” To do this, he says, firms “must at least do” these three things: 1. Have full information about all the interactions a customer has had with your firm. 2. Be ready to do business anytime, anywhere and any way. 3. Treat their audience like it is precious.

This brings me to the garage I take my car to for maintenance and repairs. It’s a family-run business recommended to me by a colleague who was the editor of a service station management magazine. The garage had won an award from the magazine for its excellent relationships with customers and suppliers so I decided to give it a try.

That was eight years ago. This garage is not the cheapest place in the area to get my car fixed. In fact, there’s a Canadian Tire just as close. However, I continue to bring my car there because over the years they’ve proven to be honest and caring. They also never miss a customer service—and consequently, marketing—opportunity.

To begin with, they see keeping my car running safely and well as their responsibility. Routine oil change appointments are booked ahead of time and they call two to three days ahead of the arranged date to confirm that it’s still convenient for you and that you’ll be coming. At the end of an appointment, the service manager reviews what you need to have done to your car at the next appointment. They have always had a loyalty program but this year they changed it from earning one free oil change in ten to accumulating a cash credit that can be used on any service or product. They now also offer their customers complimentary roadside assistance (through a supplier). This comes complete with a 1-800 number to call, free towing, etc. In addition, they offer complimentary use of loaner vehicles; rides to and from home if needed; and a clean, pleasant waiting room. They also wash and vacuum the inside of your car before returning it to you.

All these things add up to a memorable, positive customer service experience. But as someone who studies and writes about marketing, I also like the fact that they quietly and efficiently take advantage of any marketing opportunity that presents itself to them. I had my car in for maintenance work and an oil change last Thursday. On Saturday, I opened the trunk to put my groceries in after shopping and found my beaten up, Subaru-branded license plate frame/cover. I looked down and saw that it had been replaced with a shiny, new one with the name of the garage on it. I had to smile—positive memory trace created. The car looked better and it’s good advertising for them.

I have to admit that there are days when I think I should be looking for a less expensive garage. But then I take my car in, they take good care of it and me, and price isn't that important any more. And, that's why caring for your customers is good business.

About June 2010

This page contains all entries posted to Editorial Blog in June 2010. They are listed from oldest to newest.

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