The Impact of Employee Happiness on Company Profitability: Zappos as a Case Study

First, I LOVE Zappos. This is not a paid advertisement for them. Many people either love or hate Zappos, and that's a matter of personal preference. Regardless, every time I've interacted with Zappos, whether purchasing, returning an item, or just browsing, I've been met with excellent customer service and a genuinely happy attitude. In fact, Zappos' focus on happiness seems to increase its bottom line.

A Humble Example of Happiness on the Phone

It was about 8 weeks ago, and I was in desperate need of a pair of winter boots for a funeral. I was frantically searching online for a pair until I found them on Zappos and instantly dialed the phone. It was a time of grief, and I needed the boots within 24 hours, or I would be without proper footwear. To complicate matters, my home was a couple of hours away from the funeral, leaving me with no margin for error. In the midst of my emotional turmoil, a representative from Zappos called me a laugher. They managed to ship the boots cross-country to my location the next day, and they fit perfectly. Every time I look at those boots, I recall the happy phone call I received. It's a small act of kindness that made a huge impact.

Customer Loyalty and Repurchase Rate

Not only did Zappos ensure I was satisfied with my purchase, but they also took the conversation to a different level. At the funeral site, due to the cold weather and the arrival of my new boots, we had an informal conversation. When I mentioned that I had just received them and still needed funeral-appropriate boots, the representative quickly mentioned that they had delivered them quickly. This conversation led to increased sales, all because of their happy and positive attitude.

The Dark Side of Neglecting Employee Happiness

There is another smaller shoe store in California where I've dealt with a concerning lack of care and positive reinforcement. It's a stark contrast to Zappos and has significantly impacted their bottom line.

A Personal Health Crisis: Breast Cancer and PTSD

Fast forward to July 2009, when I was diagnosed with breast cancer. This diagnosis sent me into a fast-paced mode. It wasn't until the end of the year that I finally exhaled. In addition to the cancer, I also face a brain injury and PTSD. Throughout treatment, the doctors were highly sensitive and caring. However, the billings and insurance issues that followed were much different.

An Insurance Glitch and Billing Issues

During my chemotherapy treatments, there was a billing issue that caused some confusion. The business office neglected to get prior approval for 4 Herceptin treatments. Each Herceptin dose was approximately $8,600. When the business office called and spoke with my husband, we kindly asked if we were responsible for the error. We were not. We requested a letter stating this, and they sent one. Soon after, I reminded them about my history and the strength I had in my voice, which made the office manager silent on the other end of the call. This issue is also deeply personal, as the decision on which hospital to treat me at was also clouded by these issues. In the end, the office manager was faced with a tough decision.

Struggling to Keep Up with Deadlines

After multiple calls and reminders, the business office finally provided a letter. However, the billing and filing timeline was approaching, and the urgency of the situation mounted. If they wanted to resolve this issue, they needed to act quickly. I suggested they contact the Head Nurse Navigator for assistance. The issue remains unresolved, and the emotional and financial strain is immense.

Conclusion

These experiences illustrate that company profitability is closely linked to the happiness of its employees and the quality of customer service they provide. Companies like Zappos that prioritize happiness can see substantial benefits in terms of customer loyalty, repeat business, and overall market success. In contrast, neglecting these factors can lead to significant financial and personal hardships. Zappos' focus on happiness has seem to pay off, while the shoe store's issues highlight the devastating impact of a lack of care and concern on both individuals and businesses.