Review Chapter 17 at the following link:

https://saylordotorg.github.io/text_emarketing-the-essential-guide-to-online-marketing/s20-customer-relationship-manageme.html

 Mini Case Study: Customer Service as Public Relations

Zappos http://www.zappos.com

,a U.S. online shoe retailer, bases much of its success on its customer service.  It offers free shipping on all its purchases, as well as free returns.  In fact, goods are shipped with a preprinted return label, making he process straightforward for customers.  Zappos also invests heavily in its customer service team, empowering each member of the team to do what he needs to do to delight customers.

For example, Zaz LaMarr blogged about her experience with Zappos.  She had meant to return some shoes to Zappos, but her mother passed away, and naturally she just didn't have time.  Zappos arranged to have UPS come pick up the shoes and then sent her flowers.

There is no doubt that Zappos' customer service costs are high.  Not only is shipping free but its customer service team has been given the authority to make gestures like the one above.  The return to Zappos in terms of goodwill is almost immeasurable (although its online reputation is excellent) but no doubt leads to increased referrals and sales and customer loyalty.

 Questions:  

Evaluate this case and visit Zappos.com, answer the following questions referencing chapter 17 a minimum of twice.

• Explain why you think Zappos has given its customer team the authority to make gestures like these.  What are the benefits of doing so.
• Do you think most businesses would allow these types of gestures to happen?  What are some other company examples?