GREAT 172 IDEA: Customer Service the Zappos Way

Maura Sullivan, senior manager of Zappos' customer loyalty team, frequently does cartwheels around the office. During the holidays, she wears a Santa hat.

Sullivan sets an upbeat and positive tone for the 500-person customer service team answering phones at the super-successful Las Vegas-based company.

In 2009, Zappos (a word play on zapatos, the Spanish word for shoes) was acquired by Amazon for more than $1 billion in a cash and stock deal. The company expected to post $1.2 billion in revenues in 2010, so they must be doing something right. Providing incredible customer service is a core value.

Everyone told founder and CEO, Tony Hsieh, he was crazy to sell shoes online. They were wrong. Zappos' devotion to customer service is legendary. Customers order shoes online or on the phone, try them on at home, and have a year to return them. Zappos asks only that you don't wear the shoes outside. “We're not a shoe rental company,” said Sullivan.

She said customer service is such a high priority that every employee is required to pass a four-week call center training course. No exceptions.

“Our new COO just went through it (the training),” said Sullivan. “If you can't pass the training, you won't go on to your new position.”

If you call to place an order in November or December, don't be surprised if a guy named Tony answers your call. Hsieh answers phones in the call center for about eight hours—along with every other executive during the busy holiday season. “We call them our holiday helpers,” said Sullivan. “It brings back that family spirit.”

Zappos now sells much more than shoes. Company warehouses are stocked with footwear, housewares, and accessories. The company also offers free shipping on most purchases, making it easy to buy and return products. She reminds her team to “stay positive and have fun.” Most importantly, “just focus on helping the customer that you are on the phone with.”

Although only 5 percent of sales are made over the phone, Zappos relies on 500 full-time customer service reps and no seasonal workers. Although they deal with such a small percentage of customers on the phone, “we have the opportunity to wow the socks off them.”

“Our number one thing is providing the best service and being helpful,” said Sullivan. “If someone doesn't have an answer, their job is to get one.”

She said product-related questions are often relayed to members of a special “resource staff.” If Zappos doesn't stock whatever you want, the rep is instructed to tell you where you can buy the product from another company. Pretty cool.

Here's the big Zappos secret for providing great customer service: “It's really about hiring the right people,” said Sullivan, who previously worked for Nordstrom. “It seems like such an easy thing to do—just hire friendly and helpful people.”

Sullivan said customers buy from Zappos even when its prices are higher than competitors. “The customers end up doing the marketing for you because they share the good experience with their friends.”

She admits she never imagined herself in the shoe business. She has a degree in anthropology and was living in San Francisco and working part time at an Asian art museum. Looking to earn more money, she took a job answering phones at Zappos seven years ago and never looked back.

When we spoke, she told me she was planning to do most of her holiday shopping at Zappos. “We get a pretty good discount,” she joked.

My last question: how many pairs of shoes does she own? She paused: “Around 100 pairs.”