Customer Engagement (delight) at its best

The facebook team of zappos.com posted on their pagethe following post:



They got about more than 300 responses to thisquestion. One of the responses was the one below: 



They selected this fan, called her and offered herto choose a watch from their collection and they will ship it to her mom forfree.

She was totally wowed!!!

The team does not stop there. They take herpermission to post their conversation as a video on their facebook page (whichshe gladly agrees to – who wouldn’t in her position ;-))



Now, there are even more people who are wowed by thevideo and here I am writing about this wonderful thing.

What works wonders because of the surprise element(they did not mention that they will give away or that this was a contest) and connected to the emotions of all their fans (who would not like a person who would rather put her mothers need ahead out her own). Thewinner was taken by surprise (pleasantly). And the entire episode happens under 18 hours. 

Wow!!!

Engagement at its best!!! 

This explains whyzappos.com customers are so so happy and loyal. 

This also explains why their employeesare so motivated and happy. 

Do you know of any other story about awesomecompanies doing some really awesome things? 

Building great products


I have been thinking about a lot of great products that have now become an integral part of our life aka Google, iPods, iPads, SAP ERP, Zappos, Facebook, Twitter, Intuit, Amazon, Mitticool, etc.. 

When I think about what is common across these products and their growth to super-stardom and i found these common traits:

  1. Great products are highly focused in solving a particular need of a particular customer. No product ever succeeds if it tries to solve a lot of problems for a lot of people. 
  2. Great products are very simple to learn & use. Great user experience can make the difference between greatness and extinction. 
  3. Great products are born out of conviction and never out of consensus. Conviction can create great products or crappy products. Consensus can only create average products. 
  4. Great products continuously improve to solve the needs better. Continuous,  concentrated improvements make good products great.   
  5. Great products are built by small teams. I have never seen any great product coming out of a large team. The larger the team, the greater the chance that the product will turn out to be average or less than average. 
Guy Kawasaki also talks about DICEE (Deep, Intelligent, Complete, Elegant and Emotive as the characteristics of any great product. These are traits that also need to be kept in mind while designing any new products. 




Zero Inventory Retail Business Model

I recently came across a company, CornerStone which has implemented a unique retail business model where the physical stores do not hold any inventory at all. All the inventory is maintained at the central warehouse from where all shipments are made. I think they should go one step further and tailor the garment only upon the receipt of an order. They also provide an online store from where you can purchase.

The business model is unique in the industry as it combines the best and worst of the virtual and real world models. Low or zero inventory at the retail store means that the cost of opening up a store is drastically low and conducive to franchising mode of growth. This also provides them the opportunity to optimize the supply chain and reduce the overall cost of production. All of this put together means that the possibility of good profit margin  is high.

The flip side is the fact that customer’s who do impulse buying are less likely to buy or place orders in this model. This model would work very well for the customers who are very particular about the fit and less about the impulsive high of owning something immediate (aka, online shoppers).

If they can find ways to scale fast, the economies of scale will provide them a great opportunity to disrupt high-end fashion retailers.

Some more ideas that they could mull over:

  1. Tailor the garment only upon receipt of a confirmed order and then dispatch. 
  2. Allow customer’s to book an appointment and go to their home/office to take orders. 
  3. Aggressively franchise to gain economies of scale
  4. Look at the consumer gift voucher as a mode of promotion of sales
  5. Adapt the Zappos way of doing business for their own benefit,  like  
    1. 365 day return policy 
    2. 2 way delivery free 
  6. Allow customers to advocate the product from the stores directly as soon as they purchase
  7. Increase the product mix to include women’s wear
Hope that they are able to improve their sales and scale their operations nationally. 
Wishing them all the very best.!!!!!