Making and delivering happiness, Zappo business model leads the way

We are familiar with the dictum “creating, delivering and capturing value” as the core principle guiding business model. That is fine. But a tweak has taken place in the case of Zappo, the online shoe retailer who declares that “making and delivering happiness” is the new success mantra. Let us have a peek on it:

In most business models, employees and customers are often set on collision course. Where the customer is king the model ignores the aspirations of the employees. An employee-centric business model, on the other hand treats its customers in a nonchalant manner. Both are not making it great in the business world. What is required is to make both employees and customers happy and satisfied. In other words we need a business model that is on even keel vis-à-vis employees and customers.

The bond that ties both employees and customers, as in the case of Zappo is the shared culture of core values that are based on making and delivering happiness. By doing this, the revenues stream turns into a natural and never ending one.

All employees is Zappos get a grounding in learning and expanding their knowledge with fun and weirdness. They are transformed into caring, creative, open-minded and perhaps adventurous people in handling customer relationship. They tend to build open and honest relationship in interaction with fellow employees and with customers. Employees are motivated to work as effective team players in family spirit so that they can do more with less resource. On one side they are passionate to do the best yet on the other angle it is done with humility and empathy.

Customers get the feeling that they are not only kings but their questions and concerns are taken in the right spirit. Zappo clients notice a sea-change in the attitude of Zappo staff unlike in other online shoe retailers. That is Zappo guys go to any extent to please customers, that too done in ethical manner within the shared culture. While core values remain the same, employees are allowed to go out of the way to help or please a customer. Instances where staff going across to other vendors to buy a pair of shoes that customer passionately wants but not available within are known and encouraged too.

In sum, Zappo business model has succeeded in changing the entire logic of business model: make and deliver happiness and then capture value for the company!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist