Wednesday, September 23, 2009

The Power of Word of Mouth


Tony Hsieh, CEO of Zappos, knows a thing or two about the power of word of mouth. In the beginning, Hsieh made a critical decision to invest the majority of his marketing and advertising budget into the customer experience.


Over 80 percent of Zappos customers hear about the brand through word of mouth or online advertising. Once customers place their first order and experience Zappos's stellar customer service, they usually come again.


Today, 75 percent of sales come from repeat customers. And it’s those happy customers who gladly share their enthusiasm about the brand with others.


What’s makes Zappos talk worthy? Zappos loves their customers and will go to great lengths to make them happy. Here, “P-E-C” or “Personal Emotional Connection” with the customer reigns.


Customer loyalty reps send hundreds of thank you cards to customers every week—not the automated email variety, but personalized notes handwritten on paper.


While most companies would see this as an unnecessary expense, Zappos understands the value of building relationships with its customers.

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