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In 2000, a year after they were founded, Zappos turned over $16 million in revenue In 2003 it was $32 million, in 2005 it was $370 million, and in 2008 it was just over $1 billion They not only made money, but even though they are venture backed (Sequoia is a big investor), they are profitable with a 5 percent net margin on 2007 revenues and cash flow positive But investment numbers aren t the only measure of success for this remarkable company They have a repeat buyer customer rate of
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75 percent with 97 million customers These repeaters don t only buy once either They buy 25 more times over a given year, and the amount they spend increases as it goes Think that s all Nope As with customers, a culture premised on trust and collaboration will end up with the happiest employees and thus, those best suited to engage customers because of institutional support, not just individual merit In 2008, Zappos debuted on Fortune magazine s Best Places in America to Work list at number 23 the highest for any rookie company that year If you think now we re at the end of it, wrong again In July 2009, Amazon acquired Zappos for $928 million Oh, in case you re curious only three now-former employeesin-training took the $2,000 bribe to leave the company in 2008 Yep
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The tools of Enterprise 20 the social software that Bosox-loving Professor McAfee discusses are explicitly aimed at collaboration These include the aforementioned blogs, instant messengers like Twitter, and, as importantly and perhaps even more so, wikis You re going to hear a lot about these tools and their application to Social CRM in succeeding chapters s 6 through 9 to be exact So I don t want to beat them into the ground in this chapter You ve seen a hint of what some of them can do when they are applied to a progressive Enterprise 20 culture like Zappos Now we ll take a brief look at how they are structured inside the contemporary intelligent business What you see in Figure 4-1 is a matrix of the most likely tools to be used by the enterprise to bridge the gap both technologically and culturally between the operational side of the company (left column) with the interactions of the customers (right column) That intersection becomes real when the culture of the company supports the use of the tools internally Not only is productivity improved, but the staff is familiar and comfortable enough with their own collaboration and their subsequent empowerment to work with their customers in the same way But note the figure s central column Those are the tools most commonly used to internally collaborate For example, IBM created its social software product, Lotus Connections (see 7 for a longer discussion), based on its internal use of wiki-like collaboration spaces called activities, social bookmarks and social tagging, blogs
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CRM at the Speed of Light: SoCiaL CRM StRategieS, tooLS, and teChniqueS foR engaging YouR CuStoMeRS
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with the capability to rate and comment on the wiki, and community threads thrown in for good measure
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Interaction (External)
tiona Bidirec
Blogs & podcasts Wikis Communities User-generated content (employee ratings, rankings comments) Enterprise widgets/ gadgets Internal messaging Text/web behavior analysis Social sales tools (eg, opportunity optimization) Social marketing tools (eg, social network outreach) Customer service 20 tools (eg, Twitter service issues analyzed)
Bidirec
tional
Salesforce automation (eg, opportunity management) Marketing automation (eg, campaign management) Customer service (call center) Dashboards Features & functions Business intelligence
Blogs & podcasts Twitter/IM Social networks/ communities Forums/threaded discussions User generated content video upload, comments, ratings, rankings Social tags & social bookmarks Features, functions, characteristics
Enterprise SOA; web services (or REST/WOA) Integration/APIs Master data management (MDM) Business rules engine Workflow RSS feeds/Subscription services
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