The biggest retail news of the week was Amazon’s acquisition of Zappos. Articles and interviews of both company’s leadership covered some tough questions which loomed in the publics’ mind. The biggest one being “What is the future of the Zappo’s culture?”
Both Zappos CEO Tony Heisch and Amazon senior leadership emphasize Zappos continuation of independently managing operations. It’s important for both Zappos and their loyal customer to continue the culture that is built around providing amazing customer experiences in every sale. As a benefit for Zappos, their employees and investors now have the backing of one of the most successful e-commerce retailers. Amazon will gain being associated with the king of customer experience and increased product lines.
Bill Taylor, Harvard Business Review, explains the benefits for both the companies and consumers in his article covering the deal. Taylor epitomizes it best when he writes “But the real power of the Zappos business model “” and one reason Amazon paid so dearly to bring it into the fold “” is the fact that many of Zappos customers are as zealous about the company as its employees are.”
Zappos business model of customer service has been a leader in cultivating loyalty through great customer experience. It is a model which all retailers would love to recreate. The loyalty to the company radiates from within the organization through employees and outward with evangelist customers. It is a worthwhile notion to see if Amazon takes Zappos customer service lead and integrates it into their operations.
Amazon itself has grown successfully from its beginning book e-retail days. The strong backing of Amazon is one of the reasons why Heisch believes joining forces is the best move. Each company can share its lesson learned and success models with each other. For Amazon, being tied to one of the best customer experience leaders will give the opportunity to gain the trust of loyal Zappos customers. It will also be an opportunity for both companies to learn and excel from the other’s strengths.
How do you feel about the acquisition of Zappos? How would you like to see the companies emerge in the future?
