Zappo´s Case Study

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Zappo’s Final Assignment

Before starting the analysis it should be taken in consideration that Zappo’s business is done thru e-commerce and it managed to introduce itself at the early 2000’s when society had trust issues with making business online, which is the platform that Zappo’s used to create trust and enhance it’s value proposition.

1. Acquisition
Zappo’s strategy for acquisition is to aim to prospect customers by:
Word of Mouth - The best policy for adquiere a client trust is thru a good referral, this fact is exponentialize when applied to e-commerce
Excellence in Customer Service - Achieved by an easy contact either thru the website and most importantly thru the call center, whose goal is not only help the client to
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2. Returned Merchandise Policy

Zappo’s brand has been built from gained trust from clients, this is what makes it exceptional, since it has created customer experience of delight that comes not only from exceptional operational process but from the service provided, making client’s needs a first priority.

As previously explained, the returned merchandise policy is a main component in the customer life cycle, not only is present in all stages, but its relevant for throughout acquisition, retention and development. As if it wasn’t enough, this policy is crucial to the product value proposition and its a main differentiation factor from all competitors, since there’s no other company thats so flexible on the returned merchandise.

Customer equity, might be affected “negatively” by high acquisitions/retention costs, but rather than an expense, this should be counted as an investment (as Zappo’s view it), since they will increase the profitability of each client and will constantly attract more customers induced by a social network effect.
If Zappo’s decided to cut down on returned policy, it would create a “dissatisfied effect” since as we had learned, the problem with delighting customers is that from now on this special treatment is now an expectation that if its not fulfil would bring to disappointment.

Secondly, e-commerce is filled with competitors, big and small, you can
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