Skip navigation

San Francisco Conference Blog 2009

4 Posts tagged with the zappos.com tag
0

Laura DeSoto, Experian; Dr. Laura Brooks, Satmetrix; Desirree Madison-Biggs, Symantec; Diana Dykstra, San Francisco Fire Credit Union

 

“The customer is always right.”

 

IMG_2187.JPG

 

Wrong, according to this panel. That’s how our first session of conference day 2 began. Our panelists did not agree on all topics, but on this one they seemed united on the idea that a much better mantra would be “Do the right thing for the customer.”

 

Seems like a subtle distinction, but it’s not. As Diana Dykstra pointed out, you can certainly have customers with unreasonable demands. What matters is that the employee does the right thing for the customer.

The panel discussed several different topics, but I’ll highlight a few of the big ones here:

 

First: Break the shackles of corporate policies.

 

Desirree Madison-Biggs of Symantec talked about how Symantec had created a “Myth Busters” website to help employees let go of old policies and corporate myths about what was and was not acceptable. From my perspective, it’s sort of like cleaning up your desktop. When you are driving change into an organization, make sure you don’t just hit “delete” on the obsolete files, but also be sure to “empty trash” and then restart the computer.

 

Diana Dykstra agreed. Get rid of the policy book. Her policy for employees is to do the right thing for the customer. They have 4 core values: Creating Elationships; Be the Member; Done in One; and Listen, Learn, and Innovate.

 

Laura Brooks commented on how action oriented and descriptive those value statements are, and I wholeheartedly agree. Don’t underestimate the power of good, descriptive language…especially when they see leaders and other team members also living it out in their actions.

 

Second: Hire or Train for Customer Focus, but Do It

 

Hire or train? We had different opinions on that. Laura DeSoto of Experian rightfully pointed out that “you’d better hope you can train for it,” because most organizations already have a lot of great employees on board, and you want to leverage their knowledge and expertise. Diana Dykstra took the other angle. At her company, they hire for it. And she admitted that when they were changing the culture, a lot of employees who didn’t fit with the new values left over time…which allowed them to bring in new people who were more naturally inclined to customer-focused behavior.

 

Whatever your strategy, be sure to do it. You won’t get change if you don’t invest in different hiring practices, training, or both.

 

Third: Get Leadership Commitment

 

Employee behavior follows cues from company leadership, especially when you are trying to make change happen. An audience member asked, “What do you do if you don’t have leadership on board.” And Desirree Madison-Biggs summed it up nicely in her response: you’re hosed! I couldn’t have put it better than that. Companies try to dance around this topic, especially passionate customer experience advocates at mid-management level who really want to make Net Promoter work in their organization. But ultimately, long-term success is intimately tied to having your top management on board.

 

Desirree made the point that showing execs the economics of promoters and detractors can sometimes help to sway opinion. But ultimately, most executives either have a belief system that lends itself to believing in customer first, or they are likely to remain skeptics. Find the right exec to spearhead this.

 

Fourth: Tell Stories

 

All the panelists agreed that stories were an extremely effective way to drive home the importance of customer-focused behaviors, both to make change happen and to reinforce behavior and culture.

Laura DeSoto told a story about Experian’s CEO, Kerry Williams, who personally followed up with a disgruntled detractor. The purpose of his call was simply to confirm that the account manager had closed the loop already, but when the customer said “no,” the next call was a personal one to the account manager. What drives change faster…a couple of stories like that, or a corporate email memo advising account managers to close the loop with detractors? You get the point. Stories matter….a lot. As do actions from top management.

 

Desirree Madison-Biggs explained how Symantec uses peer awards to get the stories out there. Not necessarily for “grand” heroics, but for the day-to-day heroics that represent a regular rhythm of customer focus in the operations.

 

For Diana Dykstra, the employees at San Francisco Fire Credit Union evaluate great customer-focus stories, and how they fit with the organization’s core values. Moreover, their entire performance review process is based on the core values, which drives home the importance of these stories to the company’s culture.

 

Fifth: Compensate, At the Right Time

 

Laura Brooks closed the session with a hot topic of debate: should you link compensation to NPS or not? We got three very different answers…from “yes, I did it right away” to “it took us 6 years,” and one smack dab in the middle.

 

I was waiting for Laura Brooks to chime in and break the tie…but we ran out of time. What was obvious from the discussion, and what we teach in the Net Promoter Certification, is to make sure you have trustworthy data and buy-in before taking this big step. Tying compensation too early introduces a lot of risks, including gaming, an overly strong focus on “the score” instead of changing customer experience, and the potential for a major crash and burn if the underlying response rates and data quality are not representing the customers or segments who matter most to the business.

0

Tony Hsieh - CEO Zappos.com


Building a Brand that Matters

How many people have bought from Zappos? That’s a good question. According to the Net Promoter® Conference audience, a lot.


And the reason is because Zappos is focused on providing the best customer service and creating the most loyal customers. It is a mantra that is the corner stone of its corporate culture.

 

IMG_2012.JPG

 

Word of Mouth is Key


This is a business based on customer focus, creating repeat customers and driving Word of Mouth. They tried a large advertising campaign once but found they saw little rewards. Now the company takes the money that it would have been spent on advertising and puts it back into the customer experience.

Where a lot of companies are trying to lessen the amount of contact/calls from customers, Zappos wants to speak to the customers. They take about 5000 calls a day plus live chat, twitter, and emails. They want to create a complete word of mouth experience. One thing they’ve noticed is that when they do a random survey their Net Promoter Score (NPS)  is 83, but when they do the survey via phone their score raises to NPS 90. So Zappos is going to keep speaking with its customers as much as possible with the goal to build long term customer relationships.

 

To this end, everyone in the company goes through the same training as customer service, plus 2 weeks on the phone and training on twitter. Zappos believes that if the company is going to focus on customer service then everyone needs to be focused on customer service. Culture fit is key to the organization and every employee needs to believe in the core values.


Four things to building long term brand:

 

  1. Vision- chase the vision not the money. Their vision be about the very best customer service.
  2. Repeat customers- choose and focus on great product and great service
  3. Transparency - Be real and you have nothing to fear
  4. Culture - Committable core values:


  10. Be humble
    9. Be passionate
    8. Do more with less
    7. Build a positive team and family spirit
    6. Build open and honest relationship with commendations
    5. Pursue growth and learning
    4. Be adventurous, creative, and open minded
    3. Create fun and a little weirdness
    2. Embrace and drive change
    1. Deliver WOM through service

 

Zappos is owning the 3C - Clothing, Customer Service, and Culture and Zappos is all about delivering happiness to the customers and its employees.

0

Tony Hsieh, CEO, Zappos.com

 

Tony Hsieh has been speaking a lot lately at conferences. And when you hear the story of Zappos.com and it’s rise from $1.6 million in revenues in 2000 to $1 billion in revenues at the end of 2008, you can understand why people want to hear about it.

 

Tony.JPG

 

 

What was refreshing for me was the amazing level of openness that Tony conveyed in his talk. They are so confident that they are building a great company, that they are not afraid to open the kimono.

 

I introduced Tony by sharing two personal stories that point out the power of Word of Mouth for the Zappos.com brand. I’ve actually never bought anything from Zappos personally, but my house is full of empty Zappos boxes, as my wife is a big promoter of their selection and service. I also shared a photo that one of our Satmetrix employees gave to me from his first visit to their facility in Henderson, Nevada, outside Las Vegas. The company gives tours of the facility, and ends the tour with a nice surprise. I won’t spoil it for those of you who have yet to visit there. I may check it out next time I’m in Vegas.

 

The brand simply inspired storytelling, and Tony explained that this is not entirely by accident. They focus deeply on the company culture (which is all about being the very best at customer service). And as Tony said, if you get the culture right, all the other good stuff follows…including good Word of Mouth and high Net Promoter Scores. Their NPS as measured internally has been running between 80-90%...which is pretty remarkable. But the balance of the discussion made it clear that they do a lot of specific things differently to generate so many promoters.

 

Tony talked about how “everyone is a little bit weird.” I personally identified with this a lot. I’ve got my quirks, and most of the people I know and love do to. People who don’t have quirks, or who mask them, are honestly not that interesting to me. That’s a big part of what makes us real and human…and I think it’s a bit of secret sauce in how Zappos is connecting emotionally with their customers.

 

They embrace this “differentness” in everything they do.

 

First of all with employees. Employees are encouraged to be themselves. They spend a lot of time selecting the right employees, making sure their values are customer service oriented. Then they put them all (everyone) through the same 5 week hands-on training program. They even offer to pay employees a sort of “departure bonus” after the first week of training if they don’t believe Zappos.com is the place for them. Tony explained that these practices help to get really committed individuals who are wired to fit with the company’s service-oriented culture. And it also allows them to unleash that creative energy at every point of customer interaction (without lots of complex policies and procedures). Now that’s different!

 

Process was next. They obviously do have processes…but again they seem to think of it differently. For example, they call their customer service team the “customer loyalty team.” That’s the ultimate goal right? You may service an automobile, but with people your goal is to make them loyal. How to do this? Well, their support team doesn’t “upsell,” they don’t measure call time, and if they don’t have the product in stock, the members of the loyalty team are encouraged to check 3 competitor websites to help the customer get what they want. Different, right?

 

Marketing and branding is different too. I loved it when Tony said that they have their 800 number at the top of every web page on their site. This contrasts radically with companies who are thinking of customer service as a cost, and try to make it hard to figure out how to call in for service. As Tony put it, the telephone is the best marketing tool out there. You get your customer’s undivided attention for 5 or 10 minutes to make a connection with them, and to establish who you are and what your brand is all about. Different again!

 

He wrapped up by reinforcing the 4 core things that he thinks companies need to get right to have a successful strategy:

 

  1. Vision: theirs is to deliver the best customer service. That’s it.
  2. Repeat Customers (not advertising): This is a big connection to the Net Promoter philosophy. Tony explained that they were forced to focus on repeat customers early on because of the dot com bust, but it has turned into one of their core metrics. They have gone from 20% repeat customers in the first 12 months, to over 50% today.
  3. Transparency: They are committed to being open and honest about who they are, and you can get a copy of the Zappos.com culture book (with messages from every employee), or connect directly with Tony online in blogs on twitter, you name it. They are committed to being open and honest.
  4. Culture: Their culture is their brand, and so it is for every company. Tony believes they are just 2 sides of the same coin.

 

Well put, Tony. Thanks for an inspiring and different view of how a company can operate.

 

Use the link below to download the presentation from our Case Study Library:

http://www.netpromoter.com/netpromoter_community/docs/DOC-1041

(view case studies requires brief registration)

0

The 2009 Net Promoter Conference is just 3 weeks away, and I wanted to highlight a couple of the sessions that were added during December.

 

With all the recent news of corporate restructuring and expense controls, many employees and managers feel pretty beaten up. These sessions provide a dose of good medicine for what ails us...they are about keeping your employees engaged and motivated in the task of delivering excellent customer experiences.

 

 

For those of you in the telecommunications sector, we are pleased to have Lindsay Notwell of Verizon Wireless joining us. Lindsay is responsible for NPS at Verizon, and when I discussed his session with him, he was passionate about the impact Net Promoter has had on their employees. He pointed out that when customers start to describe why they love a particular service rep, and that feedback actually makes it back to the employee, it has a huge motivational impact. I'm sure Lindsay will have many more suggestions to share about how they are making this work at Verizon.

 

Verizon has earned a reputation in its industry as a loyalty leader. Dr. Vince Nowinski will touch on Verizon's strong performance in his presentation about WOM economics. Vince and his team are completing a whitepaper that will be available soon on WOM in the cellular phone industry, to add to their recent publications on the same topic for computer hardware and credit cards.

 

Another session I'm looking forward to is the panel discussion on Day 2 on "Making a Habit of Customer-Focused Behaviors." Dr. Laura Brooks will host this discussion with three companies that are pushing the envelope in the area of cultural transformation. The companies are from different industries, but all are highlighted as case studies in Dr. Brook's new book with Richard Owen called Answering the Ultimate Question.

 

Laura will be joined by Aisling Hassell of Symantec, who has been using Net Promoter for several years now across a global organization with both B2B and B2C customer relationships. Symantec is now actively measuring employee NPS and using a broad range of engagement strategies with its employees and management team. We will also hear from Diana Dykstra of San Francisco Fire Credit Union, whose focus on service and culture change has earned them Net Promoter Scores in the 75%+ range. The panel is rounded out by Laura DeSoto of Experian, who delivered the opening keynote at our first Net Promoter Conference in New York back in January of 2007. Experian has used many innovative engagement and training strategies to improve the employees' "line of sight" to the customer in their daily work.

 

Finally, I should remind everyone that Fred Reichheld will answer questions from the audience on Day 1. If you are registered, watch for an email this week to submit your questions for Fred.