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How social customer service can create a $900m company

July 24, 2009 Leave a comment

zapposamazon

Big, big things. Amazon buy Zappos for around $900m . I am fan of both companies for different reasons. AmazonI like, because I buy stuff there and have always had a good online experience doing so.  I have never bought anything from Zappos but still love them. Why? Because how they conduct their customer service and social engagement is the benchmark for how all brands should ‘be’ online. However, $900m is some serious coin and I think highlights that Amazon are buying something a lot more valuable than Zappos’ annual revenues. They are buying a blueprint of how to win using social media.

A good article here from Eric von Coelln  (thanks to @lebrun for the link) shows that Amazon has the far larger, and more talked about brand in the social web, so they weren’t buying numbers of followers or fans – they already have that. What they needed was Zappos’ ethos to social engagement to leverage that opportunity as much as possible.

Amazon won’t dream of diluting Zappos’ brand into Amazon’s and they have kept (I think) all the management and staff so I think they will be spending some solid time looking at the company in action and replicating it as closely as possible within their current structure. A combo of Amazon’s product line and reviews/purchase history data coupled with Zappos’ customer service ethic = if I had any money I would be buying Amazon stock!