Sunday, April 27, 2008

The Purple Cow and Zappos

I recently read the Purple Cow by Seth Godin. This book came out a few years ago so I am a little late to the game on this one. That being said, the book was great. Godin's thesis is that to build a great business, you need to product something that is truly "remarkable." If you make something remarkable, your customers will do the marketing for you. A product or experience that is simply average is a loser; no one tells their friends about average experiences.

You can be remarkable in a number of different ways. It doesn't necessarily mean you need to invent the next ipod. A great example that I came across recently is Zappos. I have been a loyal customer of Zappos since 2003 when a friend told me about them. I always had great experiences with them and incesently told my friends about them. Little did I know, that was Zappos' exact strategy. Zappos CEO, Tony Hsieh, recently came and spoke at eBay's speaker series. In short, Zappos' strategy and culture are all centered around customer service. They think of customer service dollars the same way they think about marketing dollars. The no. 1 company value is to "Wow" customers. (This happened to me recently. I ordered shoes at 4pm on a Wednesday and based on past experiences, was expecting to get them Friday. I got the shoes at 10am on Thursday. I immediately told everyone around me.)

In fact, the way they allocate their resources is to figure out what operating profit they want to make, do everything they want do with customer service and then anything extra goes to either product or marketing.

As consumers, we can all think of MANY bad customer experiences. By going over the top and providing a great customer experience, Zappos is being truly remarkable.