The user experience of online shopping website is also a key factor. Zappos shortens the loading time by avoiding flashy ads. It also categorizes shoes into different groups to cater to the different navigation habits of the customers. Owing to the limited business scale, other small online shoe stores do not design their display as carefully as Zappos.
To supplement the service, Zappos steps into the shoes of the customers to make convenience for them as much as possible. It offers detailed pictures and video to display the products, and a free, 365-day return policy etc. which allows customer shopping under no pressure. In this way, the risks of purchasing is reduced to the minimum.
To maintain the customer and realize healthy development, Zappos organizes a well-staffed call center and encourages service representatives to have a real conversation with customers rather than read the prepared script. Meanwhile, other online shops ignores the customer service sector to save the cost, which leaves a negative impression to their clients.
In regard of marketing, Zappos abandons the TV and printing ads, but allows third parties to placing the links, ads and diverting the traffic to the Zappos. It is a more efficient method to target the customers with the lowest cost.
3.2 The Value Curve Analysis
To bring shoe store home, the factors of purchase, price, delivery, use, and customer service are taken into consideration (see Exhibit 1). In the exhibit 1, five indicates the highest level.
Purchase from Zappos is more convenient due to its wider selection of brands, meanwhile other online retailers only have a limited amount of shoe brands. Considering the price, conventional online shoe stores have an advantage which is their key competitive edge. When comes to the using of the website, Zappos generally are handy to use due to its well-thought navigation design and short loading time. Customer service is major advantage of Zappos against other online shoe stores which offer little customer service. For the sake of customers, Zappos offers the most thoughtful service to solve any inconveniences customers meet in shoe shopping.
Through value curve analysis, it can be observed that Zappos has an overall relatively high ranking among the influencing factors.
3.3 The Methods to Create Blue Oceans
Of the six paths to create blue oceans, Zappos put its emphasis on the customers, the complementary offerings, and functional or emotional appeal as well.
Through establishing well-functioned call center, and designing a user-friendly navigation system, customers enjoy their shoe shopping experience with Zappos. Meanwhile, an efficient delivery system also satisfy the need of the customers.
Through meeting these requirements, Zappos successfully creates a blue ocean in the highly competitive online retailing market.
4. Wedging into the Conventional Online Shoe Store
In order to gain a larger market share, Zappos differentiates its service from other online and offline competitors. For instance, engaging in the thoughtful customer service. Implementing a one-year penalty-free return policy makes customers feel relaxing when doing purchasing, which leads them to have a high WTP. Meanwhile, Zappos does not neglect the grade and the quality of products they offer. Through a successful brand-building strategy, shoe brands are enthusiastic to entrust their products to Zappos, which on one hand, offers a wide range of footwear selection to customers, but on the other hand, lowers the procurement price from the manufacturers.
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