Monday, February 24, 2014

Zappos Delivers Happiness By Listening

Zappos utilizes relatively little advertising or traditional marketing. They do not use coupons, promotions or specials, instead they rely and succeed almost exclusively on word of mouth and customer loyalty (Furness, 2012). They do not want customers to buy from them solely on the basis of price – it’s the Zappos experience. To do this, they must know exactly how their customers behave and what they desire and think. Zappos has generated over billion dollars of revenue (Koetsier, 2013), so of course they use web analytics tools to track their ecommerce site’s traffic and its outcomes. As a premier online retailer, Zappos currently manages 20 niche blogs and several social media sites as well as their popular ecommerce site, Zappos.com.

The number of apps and plug-ins available to web analytics solutions like Google Analytics is staggering. Researching what extensions ladder up to your business objectives is key. I am going to outline some marketing tactics and how Zappos has or could be using available software to optimize their data intelligence.

Targeted Enews
For retention programs, Zappos sends out e-mails to customers with information about new styles and new brands. Customers also can sign up for specific, targeted mailing lists, depending on their interests. They have an e-mail newsletter called Shoe Digest, which lets customers talk about shoes with other Zappos.com customers (Quesenberry, 2010). The opt-in e-newsletter discusses different topics every time, depending on what readers are interested in.

Utilizing a tool like MarketTraq can send customized, visually appealing emails to each reader. Each recipient gets their own dynamically customized copy, images and subject lines and based on your user’s behavioral and demographic profile each email is dynamically customized to speak to them in a very personal way.

Ecommerce
Through recording ecommerce traffic Zappos is able to determine how much business is repeat business (75% of their visitors in fact (Quesenberry, 2010)), as well as their popular or trending items, cart abandonment, purchase funnel issues, bounce rates, exit pages, landing pages and more. This information can also help Zappos determine problems or issues that the site is having, causing them to lose sales and create action items to fix the items in a timely manner. Alex Soria says, “Zappos approach to listening is organic” they do not engage with online users unless the user engages with the brand first.

Zappos also has the Associates Program, which allows online publishers to add a simple text link to their website advertising Zappos.com’s shoes. They in turn earn referral fees if the link results in a sale. They can choose one of Zappos.com’s banners and link straight to its homepage, recommend specific shoes and add a search box to their Websites - all examples of opportunities to monitor the connecting activity to understand visitor behavior.

To help understand your ROI, Clicktracks, now a part of Lyris HQ, features robust analytics, ROI tracking, revenue conversion and marketing campaign performance, all merged into a professional, multi-user web analytics package. What differentiates Clicktracks is the flexibly designed Funnel Report that shows you behavior of groups of visitors in your conversion funnel to see which pages are most effective at turning browsers into buyers (Clicktracks, 2014).

Powered by Service
Zappos promotes its toll-free number visibly on the home page and you can talk to someone 24/7 via phone or live chat. Instead of valuing quick time to resolution or processing high call volumes, Zappos looks at the percentage of a time an agent spends on the phone. This metric–personal service level–is a way to “empower the team to utilize their time how they see best promotes customer loyalty,” Carder says. The agent is expected to spend at least 80 percent of their time in customer-facing interactions. It doesn’t matter if that’s one call, or 100. That intimacy creates a special opportunity to build a relationship as opposed to a top of mind impression through advertising.

Easy Call Tracker is a call tracking system that works with U.S. Domestic and International phone numbers and reports call revenue directly with Google Analytics (Power My Analytics, 2014). It uses a specified phone number for a campaign and integrates reporting data to Google Analytics and your CRM. You will know where every sales call originated. A tool capable of handling calls world-wide is essential for a global company like Zappos.

Social Spaces
There are a few core values for social media that everyone at Zappos tries to live by: transparency, authenticity, and value (Kelly, 2011).

Zappos is constantly trying to discover new audiences to target. Tools like XA.net (now Optimal), uses Optimal Keyword to look for fan pages with overlapping Facebook users. Fan-page-user-overlap data helps us branch out from successful audiences we target with ads (Abdonovich, 2012). There are the obvious ones where we are finding success targeting fans of Whole Foods, states Nate Luman, Zappos Facebook marketing lead. It helps Zappos find not-so-obvious audiences.

Sysomos is an all-encompassing social media monitoring tool that quickly identifies the people driving conversations, who they are, their interests, and their relevance to your brand. Zappos has numerous blogs and all the employees of Zappos are on Twitter by the help of which the company has been able to engage deeply with customers. Sysomos integrates with blogs, forums, news sites, Twitter, YouTube, Facebook, Flickr and LinkedIn.

Customers share more often on Pinterest than on Facebook and Twitter, but revenue from Pinterest is significantly lower: $33.66 per order from Twitter posts, $2.08 per order from Facebook posts and only
75 cents per order from Pinterest. Will Young, director of Zappos Labs notes “Even if a person has 100,000 followers on Pinterest and she pins something to a board called ‘Stuff I Love,’ that’s not as big a deal as an endorsement tweeted to 10,000 followers.” Pinterest has given its blessing for the
experimental tool that lets Zappos customers get product suggestions based on Pinterest activity. Zappos suggests ten “featured pinners” on the page and shows Zappos-only products that they’ve pinned. Shoppers can also enter any Pinterest username and PinPointing will analyze his/her pins and boards and make product recommendations from Zappos’ website — even if the pins don’t exactly match what Zappos sells (McGee, 2012).

Outcomes can be whatever a company has determined to be a valuable goal for their business. There are big benefits to integrate applications to your analytic solutions, CRM other marketing platforms to understand the voice of the customer and their behaviors. It can make all the difference in sales growth.

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