Monday, March 4, 2013

Zappos – powered by service and Web analytics




Zappos was started in 1999 when Nick Swinmurn could not find a pair of airwalks at his local mall.


He was able to raise capital to start the company and the company grew to a worth of more than one billion dollars thanks to the vision of Tony Hsieh—providing superior customer service.

Although Zappos was eventually bought for $1.2 billion by Amazon in 2009, the spirit of great service continues to exist. This is not to say that Amazon does not provide good service, there is just something very special and unique about Zappos and the good nature the company exudes.

A big part of the company’s superior customer service is through the use of Web analytics—collecting Web activity data and customer information to enhance the experience and deliver relevant, engaging messaging online and in email. One of the company’s core family values is to build open and honest relationships with communication (Zappos, 2013). The rich experience comes with making a purchase. This results in two emails from Zappos. Customers can expect to receive a shipping confirmation within minutes of the purchase. After approximately three weeks, customers will receive an email requesting feedback on the purchase.

Shipping Confirmation Email

When you make a purchase on the Zappos website you provide shipping address information and your first and last name. The products you purchase are immediately associated with your personal information to deliver effective email communications. The shipping confirmation email includes a photo and product description of each item along with pricing and tracking information. This is step one in exceeding expectations. Rather than providing customers with an estimated delivery timeframe, a tracking number is assigned so that customers can get near real-time tracking info anytime they want it. Zappos could take it a step further. The company has the location of my mailing address. If the company integrated messaging into the email related to Florida and similar to other product purchases, then maybe they could have encouraged me to make additional purchases.

Survey Email

The survey email messaging is really creative. Subject = Help Others! Write A Zappos.com Review! We all want to help others and understand the value of reviews—it is what many of us use to base our purchases. Zappos includes a photo of your most recent purchase helping you to recall your thoughts and feelings towards the experience. Amazon clearly understands the value of product rating and reviews and incorporates ways to increase user-generated content using email.  The email is personalized, but what could the company do to get a better response? Based on Web analytics data, Zappos could have referenced the days since my last purchase and again referenced the area where I live. Although the experience and communication from Zappos is unique and effective, why not include other data to make the experience a bit more personal and unlike any other communication from other online retailers.

Web analytics can come in the form of data relating to email activity, including email opens, clicks, forwards, replies, and opt-outs. Even better, with email clicks, Zappos can track clickstream data to the website to create new email segments based on personal information and consumer behavior. Web analytic tools have matured to the point that some are offering overlay features where you can view your email campaign and consumer behavior in a single interface. WebTrends integrated with ExactTarget. WebTrends' browser overlay functionality allows the user to see the Web metrics on top of her email campaign performance. The user can literally drill into site click behavior to create segments. Coremetrics has seven ESPs partners, including Responsys, Digital Impact, Yesmail, and CheetahMail. They've built connectors to the application so the data flow easily between the applications (Daniels, 2005).

With proper campaign tagging, such as Google Analytics tagging using specific parameters, companies like Zappos can benefit from deeper insights from email campaigns and refine as needed to increase sales. What parameters you ask? Let us use the following URL used in an email campaign and add to is using campaign tagging that works with Google Analytics.

Email Text: View All Sale Items Now

URL: Zappos.com/?utm_medium=Email&utm_source=ShippingConfirmationEmail&utm_campaign=ViewSaleItems&utm_content=RightNavLink

Campaign tagging like what I have shown you above would allow Zappos to immediately identify traffic from email and drill down to the type of email, campaign information that drove the click, and location of the link. That sure looks like helpful information to help optimize future email campaigns and ultimately, increase conversion rates and sales.

What about the Zappos website experience?

When I login to Zappos.com, I am immediately presented with recommended products that are similar to my last purchase. The company now also has the ability to store click activity to gain a better understanding of my interests. Zappos offers tremendous empowerment to Web visitors allowing us to filter the information we want to see and provide reviews. All of this information could be neatly stored in my user profile for segmentation and personalization.

In addition to recommended products similar to my last purchase, the company could offer up a few different options also based on my location, gender, and price of last purchase. Think about this for a moment. Someone who frequently purchases $80 shoes for a child is going to behave much differently than a customer who frequently purchases children’s shoes for $25. You guessed it, I am more likely to make the $25 purchase, but do you think you have a better idea of the differences between these two types of customers and if you were Zappos the information you would serve up to encourage additional purchases?


Analytics is powerful and provides more insight to businesses than any other form of business activity, including economic and category trends. Analytics is tied to your brand and allows company’s to have a granular view of consumer behavior based on the content published and the entire online experience. Analytics is pertinent to providing superior customer service. Hopefully, we will continue to see Zappos grow and exceed expectations. I like a smart company and especially one that cares more about customer service than selling shoes.



Zappos (2013). Zappos Family Core Value #2. Retrieved on March 4, 2013, from http://about.zappos.com/our-unique-culture/zappos-core-values/embrace-and-drive-change

Daniels, D. (2005, April 25). ClickZ. Integrating E-mail marketing and Web analytics. Retrieved on March 4, 2013, from, http://www.clickz.com/clickz/column/1713351/integrating-email-marketing-web-analytics

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