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Zappos.com CEO on Growth

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  • Description

    Tony Hsieh of Zappos.com explains how good customer service can impact your company's bottom line.

  • Duration 3:45
  • Date

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-- well we thought that we they get off on the right foot today.

Heading out west -- -- all things.

CEO.

Of online -- retailer zappos Shibani Joshi is live in Rancho post queries California -- body.

Outlook for -- -- where -- this company needs no introduction this company.

Has a relentless focus on customer service even in these trying economic times.

The company was also so attracted it was purchased by Amazon back in 2009.

For one point two billion dollars of course I'm talking about zappos.com.

And I'm happy to be joined by the founder and CEO of the company.

-- Tony CA we're happy having here today Tony thanks for hadn't.

So we -- this news making conference everybody that is anyone is here at all things digital.

-- certainly making a big foot mark and a footprints in the e-commerce space.

-- wanting that you have done exceptionally well you have a relentless focus on customer service.

But during these trying times customer service is often the first thing that gets thrown out the window why is that so important to your company and to the online shopping.

Variance I guess it's really just a long term strategy for us that we actually continue to -- year very year in the last two or three years.

But despite the down economy and a lot of people ask us what have we done differently and it's not actually anything we do differently during the last two or three years is about investment we made into customer service -- -- customer experience.

In all the time leading up to that -- any given -- about 75% of our.

Customers are -- -- customers and they continue to be loyal to us because of things like.

Free shipping both ways so a lot of customers to order.

Ten different pairs of shoes for example and try them on in the comfort of their living room with ten different outfits and sent back the ones that don't like -- don't -- -- know we pay for that -- back and so.

They tell their friends and found me about that and our 365 -- term policy and now when -- -- actually made a big question of clothing the end.

And so those customers are buying.

Start of higher close rate gotten that is all great on the customers -- things that for you we're seeing an environment where gas prices are rising shipping costs as -- moving higher.

-- -- shipping in this sort of three and a exchange policy.

Can start to eat into your margins how are you hurt your bottom lines impact in what is it doing overall to your cost picture well for us we've.

Pat had a great relationship with UPS over the years and they've been great partners and it actually hasn't impacted our our constant.

Significantly and and a lot of that is also because.

For us shipping was always expensive we would do -- surprise -- overnight shipping for example for.

Most of our loyal repeat customers and the way we think about those increased costs are.

The really marketing costs and but what we get a return as we don't have to spend a lot of money on -- fact most of the money.

We would have normally spent on paid advertising and marketing we spent on shipping and our call -- to improve the customer experience and.

We have just ten seconds before we go what sort of the next big horizon -- -- is going to move until we announced we're taking over in Las Vegas city hall and -- -- revitalizing downtown Las Vegas it's a pretty exciting project where are you working in community revitalization as.

All right thank you Tony.

The head of school -- Talking to other executives that are making news and breaking headlines in announcing new products here at all things did it also states you know Fox Business throughout today are right so Bonnie thank you very much we'll see very -- of course for going to be out there all -- -- shipments.

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