Chewy
How Ryan Cohen built fanatical customer loyalty by sending flowers when a pet died and turned an online pet store into a three billion dollar acquisition.
Ryan Cohen and Michael Day launched Chewy in 2011 as a Pet Supply e-commerce site. Amazon was growing but hadn't dominated pets. PetSmart controlled physical retail. Cohen faced a problem every subscription business faces. How do you make people come back? When a customer's pet died, Chewy sent flowers, not automated, hand-written cards, five million per year. The company staffed a 24-hour customer service team that answered calls from people grieving over their animals at three in the morning. The auto-ship subscription locked customers in, place an order once, it arrives automatically. But the real lock-in wasn't convenience, it was emotional.
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