• Business Week , Wednesday, September 17, 2008 10 AM

Billion-dollar e-tailer Zappos's breathless pursuit of the ultimate customer experience is the stuff of legend. It offers extremely fast shipping at no cost and will cover the return shipping if you are dissatisfied for any reason at any time. Customer service reps are given a lot of leeway to make sure every customer is an enthusiastic customer.

When Zappos hires new employees, it puts them through an intensive four-week training program, immersing them in the company's culture, strategy, and processes. Then, about one week in, Zappos makes what it calls "The Offer," telling newbies: "If you quit today, we will pay you for the amount of time you have worked, plus a $2,000 bonus." Only 2% to 3% take the offer.

Zappos is acting on the understanding that the character of a company can be the most powerful yet most difficult competitive advantage to develop and maintain. "The Offer" suggests a rare company that believes if you really want to amaze your customers, a great way to start is to amaze your employees and inspire them to amaze everyone who comes in contact with your enterprise.

Read the whole story at Business Week »