Zappos does it again!

I continue to wonder why Google ranks our blog #1 when you search for direct marketing blogs...We tend to veer off the topic of DM quite a bit. Yet, in order to make any direct marketing project successful, so many other pieces of the puzzle need to be in place.

For example, if, say, you have horrible customer service, then no matter how awesome your direct marketing campaign may be--no matter how many calls you generate--your sale will never happen if the prospect is treated poorly when they call you. Hence today's focus on customer service.

Some months ago, we wrote about the corporate culture at Zappos. In a nutshell, they make doing business fun! They also empower their employees to keep their customers happy. Zappos has taken customer service to a level that most firms can only dream of.

Well, I continue to be amazed and impressed by this online shoe retailer. I found this article from Harvard Business that explores one extremely innovative reason why Zappos is able to maintain and cultivate their culture of excellence.

They are so committed to retaining committed and dedicated employees that they are willing to bet $1,000 on each new hire. From the article:

"After a week or so in this immersive (training) experience, though, it’s time for what Zappos calls “The Offer.” The fast-growing company, which works hard to recruit people to join, says to its newest employees: “If you quit today, we will pay you for the amount of time you’ve worked, plus we will offer you a $1,000 bonus.” Zappos actually bribes its new employees to quit!

Why? Because if you’re willing to take the company up on the offer, you obviously don’t have the sense of commitment they are looking for. It’s hard to describe the level of energy in the Zappos culture—which means, by definition, it’s not for everybody. Zappos wants to learn if there’s a bad fit between what makes the organization tick and what makes individual employees tick—and it’s willing to pay to learn sooner rather than later. (About ten percent of new call-center employees take the money and run.)"

What a novel and smart idea. I'd be willing to bet that the $1,000 is a drop in the bucket if you consider money, sales and time lost if a non-engaged employee is working with your clients. And, remember that we're talking about customer service/call center jobs here. That $1,000 is a lot of money to all of us and a big chunk of change to these employees.

I think the challenge here is to think about new ways that we can change our business. How can we go outside of what others are doing to reach new levels of excellence?

More From BlogWorld: Corporate Blogging

As promised, here is more from our learnings from the BlogWorldExpo. Again, we think that blogging and social media participation will become imperative to your successful direct marketing strategy.

One of the first sessions that I attended was on CEO and Corporate blogging. Needless to say, this was a very interesting session. Debbie Weil, author of The Corporate Blogging Book, did a great job of moderating the session. Corporate bloggers on the panel consisted of Jennifer Cisney from Kodak, Pete Johnson from HP, John Earnhardt from Cisco and Paula Berg and Brian Lusk (AKA BlogGirl and BlogBoy) from Southwest Airlines. So, all in all, a good cross-section of Corporate Bloggers.

Here are some of the key learnings from this session -- and we think, excellent ideas to consider when pondering whether or not to start a corporate blog.

• Blogging is the beginning of a new revolution. Those corporations not jumping into it are not doing so because they are either fearful of losing control or of being criticized. Those who are should not be . . . the bottom line is that you set the rules for your blog and can control it. Think of it as your editorial channel and a great way to get the good word out about your company. In addition, you are providing an excellent opportunity for your customers/potential customers to not only get to know your company but to actively engage them to participate and interact with your company.
• CEO Blogs rarely work -- except for Mark Cuban's (see yesterday's post). This is because many CEO's simply aren't the best writers and/or communicators. However, you can definitely highlight your CEO in your corporate blog by including his or her insights or interviews with them from time to time on your blog. Some even ghost-write for their CEO's -- and anyone at the conference can attest that this is, indeed, quite the controversial topic.
• There are different ways to go about creating a corporate blog -- and all are equally effective. For example, HP has over 50 blogs. Anyone at HP who wants to do a blog within HP can. They are careful to keep it to a technical discussion of their products and keep customer service out of it (i.e., they refer customer service questions to the customer service department). Cisco also encourages employees to host a Cisco blog in order to participate in meaningful discussions with their audiences. And, here, the Cisco CEO does both participate and see the value of this -- he does one video blog per week. Kodak does it somewhat differently -- they have employees post poignant stories of how they've used Kodak products. You can imagine it -- how getting your photos out when your house burns down helps to ease the pain of loss, the pictures taken during the birth of your children, etc. Very cool blog. Southwest uses their blog to run ideas past their customers -- trust me, I'll be commenting on their latest numbering system. It turns out that I was a big fan of the cattle call.
• Moderating your blog is a must to protect your brand. Most companies allow people to post pretty much anything -- but most moderate the comments to get rid of swear words or personal attacks. In addition, if your company issues a press release, it's a good idea to blog about it so that people have the opportunity to comment about it. Southwest did this for their new seating idea and immediately got 700 comments -- they got immediate and passionate feedback from those who vote with their dollars -- their customers. How valuable is that? Talk about direct marketing -- this is as direct as it gets!
  
• In order to have an effective Corporate blog, you have to have an inside evangelist to take a leading role and convince the leadership that it's worth it. Most corporate bloggers contribute along with doing their real jobs. All panelists seemed passionate about their blogs and insisted that everyone involved really wanted to be involved. They also said that it's important to ensure that your blog is deliverable by email. Sometimes the RSS feeds are behind Corporate firewalls, so those who may wish to subscribe to them can't.
• Your culture is important. If you are like Southwest whose culture allows the employees to take risks, your blog will probably be more successful than a company who is more risk averse. Also, blogging can make your company very transparent. So, if your corporate culture isn't all that great, a blog is probably going to expose that fact. It may be wiser not to blog if this is the case. : )
  

Overall, this session was just full of great stuff to ponder. I hope you've gleaned some good ideas from this post on launching your blog -- Corporate or otherwise. For more on this session, please see another great blog -- The Scratching Post. You'll love KT Cat -- I know we do!

Promote Fun. Promote Profits

I have to admit, some of the antics that this article reports sound a tad bit wacky. Fun, yes, but definitely wacky.

"Direct Magazine" reports on online shoe merchant, Zappos.com's focus on the customer and their unique belief that a fun, eclectic culture will promote and drive great customer service.

From the article: “Co-workers will burst into song and dance at random intervals throughout the day,” writes human resources staffer Christa F. “Upon request, the CFO will groom your hair.”

She adds: “Parades. Why, you may ask? Why not!”

But, it's not all fun and games at Zappos.com. They also have the right attitude about enabling their customer service reps. "Zappos' call center reps are not scripted and have the power to do most anything they want to make sure the customer leaves the call happy.

“There's really nothing a manager can do that the rep himself or herself can't do,” Hsieh (Tony Hseih, CEO) says. “A customer should never have to be transferred for any reason, because the rep can pretty much take care of everything.”

Reps are even encouraged to recommend competitors' Web sites when Zappos doesn't have what shoppers are looking for. The reason: Next time these people are in the market for a new pair of shoes, they'll think of Zappos first."

And guess what, this fun, crazy, empowered environment is delivering success. "The company is on track to do $800 million in sales this year, up from $597 million in 2006. That's a good chunk of the total online footwear market for 2006, which totaled $2.9 billion last year, according to Forrester Research."

In my opinion, there are two key lessons to be gained from this case study:

1. Empowerment drives customer service. Let reps do the right thing for the customer and that company's earned a customer for life.
2. Make the corporate atmosphere FUN. Happy employees make for a better company, they really do. If someone has fun going to work (and, I personally think that a mid-day parade would be a great thing), they're going to be more productive. Heck, at Zappos, they even work for a lower wage!

I would love to see some of the stuffy Fortune 500 companies take on more of the Zappos attitude. I truly believe we'd see increased productivity and definitely more innovation. Plus, the world would be a lot more fun.