Zap: $1500 for Quitting!

Question: How do you build an outstanding company?

Answer: Start with a commitment to establish a culture of delivering outstanding service to your customers. “OK, fine�, you say. What the heck does that mean and how do you actually do that? The two most important prerequisites are:

  1. The top leadership (President/CEO) must be convinced that spending time and money to develop a customer service culture will yield a significant return on investment.
  2. Develop on-boarding processes that facilitate hiring only those people that are predisposed to providing great customer service.

This morning on the CNBC program Squawk on the Street, I listened to the founder and CEO of Zappos.com, Tony Hsieh, as he outlined his strategy for creating a culture of great customer service in his 1,600 person on-line shoe company. Zappos puts all new employees coming into their Las Vegas headquarters (even if you are an attorney or an accountant) through 4 weeks of customer service training. About a week into the training program, an offer is made to each new employee: quit now and we will pay you a $1500 “quitting bonus� in addition to being paid for the time you have worked. Approximately 2%-3% of the employees going through the training program accept this offer. Let’s face it, to stay (and give up that instant $1500) you have to have some faith in the future of the company.

zapposHere are a couple more hints about how serious they are about customer service. Their logo contains the phrase “Powered by Service� and their call center is called the “Customer Loyalty Team�. Time for some new shoes!

 

Note: Thank you to Chris Jones for initially putting this company and its culture on my radar.

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