Isn't selling shoes one of the oldest retail sectors on the planet? There has been a village cobbler since the beginning of recorded history, right?
So how does an online shoe retailer build up its business to be worth over $900M in a period of 10 years? Zappos.com did just that, having agreed to be acquired by Amazon last month (http://www.nytimes.com/2009/07/23/technology/companies/23amazon.html?_r=2&hpw).
Now, I'm not a zappos.com customer nor am I a shoe purchasing addict. From what I understand, what fueled zappos.com's rise to the top was its bold commitment to happy customers. Virtually every policy is designed to make the customer happy without regard for the nickels and dimes it may cost the company. Essentially, zappos is willing to trade nickels and dimes in exchange for twenty dollar bills.
My observation is that this should not be a sustainable competitive advantage. But it is because of the entrenched idea that nothing can be "given away" and every activity down to the smallest task must have a hard-dollar ROI. So competitors give lip service to creating customer happiness and encourage token displays but just do not commit to it totally.
Customers are smart, slightly selfish and see through this right away. Essentially, a commitment to making happy customers cannot be faked. A business is all-in or it's not.
What does it take to be all-in? Fanatical focus on happy customers. Employee empowerment to make instant decisions if they make customers happy. Zero tolerance for poor customer treatment. Executive engagement with customers.
Does your company have the courage to go all-in?
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