Your SlideShare is downloading. ×
0
Slide 1
Delivering Happiness
              Tony Hsieh – CEO
             tony@zappos.com
  Follow me on Twitter: twitter.com/zappo...
Slide 3
A Little About Me (Tony)
  My Background




Slide 4
Zappos at a Glance
  Corporate Background

          •   Founded in 1999

          •   1300 employees (half in Las Vegas ...
Recent Recognition:
  Nice, but we pay more attention to our customers

  •       TV Stories
           •   Oprah (2008/20...
Customer service value proposition in action…
  Zappos is committed to WOWing every customer.

          •   Customers com...
Power of repeat customers and word of mouth...
                      $1,000


                       $800
   Gross Sales $...
Customer Service:
  What customers first see

          •   24/7 1-800 number on every page

          •   Free shipping

...
Customer Service:
  What customers experience

           •   Fast, accurate fulfillment

           •   Most customers ar...
Customer Service:
  What we do internally

           •   No call times, no sales-based performance goals for reps.
      ...
Owning the 3 C’s



                     Clothing
            Customer Service
                     Culture

Slide 12
Clothing




Slide 13
Customer Service




Slide 14
Culture




Slide 15
Owning the 3 C’s:
  Clothing, Customer Service, Culture



                        Culture

                 Customer Serv...
Zappos
           Delivering Happiness
                (customers and employees)



      “People may not remember exactly...
CULTURE
           “Committable Core Values”




Slide 18
Zappos Core Values


           1.    Deliver WOW Through Service
           2.    Embrace and Drive Change
           3. ...
COMMITTING TO
            TRANSPARENCY
             “Be real and you have nothing to fear”

                   Your cultur...
Commitment to Transparency:
  Examples

           •   twitter.zappos.com

           •   “Ask Anything” newsletter

     ...
“That’s great for Zappos but
   it would never work at my
           company…”


Slide 22
It doesn’t matter what your
     core values are…as long as
       you commit to them.
           ALIGNMENT

Slide 23
VISION
           “Whatever you’re thinking, think bigger.”

                Does the vision have meaning?

              ...
VISION

       “Don’t chase the paper,
          chase the dream.”
               Sean Combs aka “Puff Daddy” to rapper
  ...
ENTREPRENEURS:


            “What would you be
           passionate about doing
           for 10 years even if you
    ...
EMPLOYEES:


       What’s the larger vision
       and greater purpose in
         their work beyond
         money or pr...
VISION



           MOTIVATION
                vs.
           INSPIRATION
Slide 28
Evolution of Zappos Brand
  Transcends shoes & service

           •   1999   Selection

           •   2003   Customer Se...
Slide 30
TAKE A STEP BACK
What is your goal in life?
WHAT IS YOUR GOAL IN LIFE?

              Grow               Get a Great   Boyfriend /
            Company                ...
RESEARCH HAS SHOWN:



                 HAPPINESS
           People are very bad at predicting what
             will brin...
HAPPINESS:

  • There is a SCIENCE behind many aspects of business including:
           •   conversion
           •   psy...
WHAT IS YOUR GOAL IN LIFE?

              Grow               Get a Great   Boyfriend /
            Company                ...
A Few Different Frameworks
             of
        HAPPINESS
A FEW DIFFERENT FRAMEWORKS ON HAPPINESS:

                        Perceived Control
                       Perceived Progr...
Maslow’s Hierarchy:




Slide 38
3 TYPES OF HAPPINESS

                          Rock Star
                                                            tim
...
RECOMMENDED BOOKS:

                             PEAK
                           Chip Conley

                  TRIBAL LEA...
Put a little Zappos in your day…
  …some links to check out…

           • Follow me on Twitter: @zappos
           http:/...
Put a little Zappos in your day…
  …to contact me or get a tour…

           •   Email tony@zappos.com for:

             ...
What % of your time do you
           want to spend learning about
            the SCIENCE of HAPPINESS?

     How can the...
If the research shows that
           vision / meaning / higher purpose
                    leads to happiness…

     What...
Delivering HAPPINESS
Legal and Financial Disclaimer
      P.S. You might be wondering why we need to have a legal and financial disclaimer in t...
Slide 49
Zappos.Com, por Tony Hsieh
Zappos.Com, por Tony Hsieh
Upcoming SlideShare
Loading in...5
×

Zappos.Com, por Tony Hsieh

2,727

Published on

0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,727
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
110
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Transcript of "Zappos.Com, por Tony Hsieh"

  1. 1. Slide 1
  2. 2. Delivering Happiness Tony Hsieh – CEO tony@zappos.com Follow me on Twitter: twitter.com/zappos Digital Age 2.0 - Brazil August 26, 2009
  3. 3. Slide 3
  4. 4. A Little About Me (Tony) My Background Slide 4
  5. 5. Zappos at a Glance Corporate Background • Founded in 1999 • 1300 employees (half in Las Vegas headquarters, half in Kentucky) #23 in FORTUNE MAGAZINE’s “100 Best Companies To Work For” Highest debut for a newcomer in 2009 • Zappos is “Powered by Service” Providing the best online shopping experience possible. Fast, Free Shipping. Free return shipping. 365-day return policy. Fast fulfillment. Expedited delivery. Fast, friendly & expert customer service. • Best selection Over 1,000 brands, over 200,000 styles, over 900,000 unique UPCs. 4 million items in warehouse 100% of products inventoried (no drop ship). • Zappos is a service company that happens to sell clothing, shoes, handbags, eyewear, watches (and eventually a bunch of other stuff). Slide 5
  6. 6. Recent Recognition: Nice, but we pay more attention to our customers • TV Stories • Oprah (2008/2009) • ABC Nightline (2008) • 60 Minutes (2007) • Fortune “100 Best Companies to Work For” • #23 (2009) – Highest ranking newcomer to list • Fast Company “50 Most Innovative Companies” • #20 (2009) • BusinessWeek Top 25 “Customer Service Champs” • #7 (2009) Slide 6
  7. 7. Customer service value proposition in action… Zappos is committed to WOWing every customer. • Customers come… Over 11 million total purchasing customers Over 4 million have purchased in the last 12 months • Customers come back… On any given day, about 75% of purchases from returning customers Repeat customers order >2.5x in the next 12 months • Customers come back, order more and order more often… Repeat customers have higher average order size $123.86 – first time customers in Q407 $156.27 – returning customer in Q407 Slide 7
  8. 8. Power of repeat customers and word of mouth... $1,000 $800 Gross Sales $M's $600 $400 $200 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Gross Sales 1.6 8.6 32 70 184 370 597 841 1014 Slide 8
  9. 9. Customer Service: What customers first see • 24/7 1-800 number on every page • Free shipping • Free return shipping • 365-day return policy Slide 9
  10. 10. Customer Service: What customers experience • Fast, accurate fulfillment • Most customers are “surprise”-upgraded to overnight shipping Create WOW • Friendly, helpful “above and beyond” customer service • Occasionally direct customers to competitors’ web sites Slide 10
  11. 11. Customer Service: What we do internally • No call times, no sales-based performance goals for reps. • The telephone is one of the best branding devices available. • Run warehouse 24/7. Inventory all product (no drop-shipping). • 5 weeks of culture, core values, customer service, and warehouse training for everyone in Las Vegas office. • We’ll pay you $2000 to quit. • Culture Book • Interviews & performance reviews are 50% based on core values & culture fit. • Twitter helps build company culture. Slide 11
  12. 12. Owning the 3 C’s Clothing Customer Service Culture Slide 12
  13. 13. Clothing Slide 13
  14. 14. Customer Service Slide 14
  15. 15. Culture Slide 15
  16. 16. Owning the 3 C’s: Clothing, Customer Service, Culture Culture Customer Service Clothing Slide 16
  17. 17. Zappos Delivering Happiness (customers and employees) “People may not remember exactly what you did or what you said, but they will always remember how you made them feel.” Slide 17
  18. 18. CULTURE “Committable Core Values” Slide 18
  19. 19. Zappos Core Values 1. Deliver WOW Through Service 2. Embrace and Drive Change 3. Create Fun and a Little Weirdness 4. Be Adventurous, Creative, and Open-Minded 5. Pursue Growth and Learning 6. Build Open and Honest Relationships With Communication 7. Build a Positive Team and Family Spirit 8. Do More with Less 9. Be Passionate and Determined 10. Be Humble Slide 19
  20. 20. COMMITTING TO TRANSPARENCY “Be real and you have nothing to fear” Your culture is your brand Don’t try to be someone you are not Slide 20
  21. 21. Commitment to Transparency: Examples • twitter.zappos.com • “Ask Anything” newsletter • Extranet for vendors • Tours & reporter visits • ZapposInsights.com • Zappos Insights Live events – www.zapposinsights.com/live Slide 21
  22. 22. “That’s great for Zappos but it would never work at my company…” Slide 22
  23. 23. It doesn’t matter what your core values are…as long as you commit to them. ALIGNMENT Slide 23
  24. 24. VISION “Whatever you’re thinking, think bigger.” Does the vision have meaning? Chase the vision, not the money… Slide 24
  25. 25. VISION “Don’t chase the paper, chase the dream.” Sean Combs aka “Puff Daddy” to rapper Biggie Smalls aka “Notorious B.I.G.” in Notorious Slide 25
  26. 26. ENTREPRENEURS: “What would you be passionate about doing for 10 years even if you never made a dime?” Slide 26
  27. 27. EMPLOYEES: What’s the larger vision and greater purpose in their work beyond money or profits? Slide 27
  28. 28. VISION MOTIVATION vs. INSPIRATION Slide 28
  29. 29. Evolution of Zappos Brand Transcends shoes & service • 1999 Selection • 2003 Customer Service • 2005 Culture and core values as our platform • 2007 Personal Emotional Connection • 2009 Delivering Happiness Slide 29
  30. 30. Slide 30
  31. 31. TAKE A STEP BACK What is your goal in life?
  32. 32. WHAT IS YOUR GOAL IN LIFE? Grow Get a Great Boyfriend / Company Be Healthy Job Girlfriend why? why? why? why? Make Find Soul Retire Early Run Faster Money Mate why? why? why? why? Spend Time Run A Buy A Home Get Married w/ Family Marathon why? why? why? why? HAPPINESS Slide 32
  33. 33. RESEARCH HAS SHOWN: HAPPINESS People are very bad at predicting what will bring them sustained happiness. “When I get ___, I will be happy.” “When I achieve ___, I will be happy.” Slide 33
  34. 34. HAPPINESS: • There is a SCIENCE behind many aspects of business including: • conversion • psychology of buying • direct marketing • customer acquisition metrics • repeat customer behavior, etc. • What if you spent just 10% of your time studying and learning the SCIENCE of HAPPINIESS? • How much HAPPIER could you be? Slide 34
  35. 35. WHAT IS YOUR GOAL IN LIFE? Grow Get a Great Boyfriend / Company Be Healthy Job Girlfriend why? why? why? why? Make Find Soul Retire Early Run Faster Money Mate why? why? why? why? Spend Time Run A Buy A Home Get Married w/ Family Marathon why? why? why? why? HAPPINESS Slide 35
  36. 36. A Few Different Frameworks of HAPPINESS
  37. 37. A FEW DIFFERENT FRAMEWORKS ON HAPPINESS: Perceived Control Perceived Progress Connectedness Vision / Meaning (Being part of something bigger than yourself) Slide 37
  38. 38. Maslow’s Hierarchy: Slide 38
  39. 39. 3 TYPES OF HAPPINESS Rock Star tim (Pleasure – chasing the next high) e Flow tim (Engagement – time flies) e Meaning /Higher Purpose tim (Being part of something bigger than yourself) e Slide 39
  40. 40. RECOMMENDED BOOKS: PEAK Chip Conley TRIBAL LEADERSHIP Dave Logan, John King & Halee Fischer-Wright FOUR HOUR WORK WEEK Tim Ferriss HAPPINESS HYPOTHESIS Jonathan Haidt Slide 40
  41. 41. Put a little Zappos in your day… …some links to check out… • Follow me on Twitter: @zappos http://twitter.com/zappos • http://twitter.zappos.com (public mentions, employees) • http://bit.ly/twitterbetter - “How Twitter Can Make You a Better (And Happier) Person” • http://blogs.zappos.com (photos & videos of culture) • http://about.zappos.com (more information about us & core values) • http://www.zapposinsights.com (video Q&A, book recommendations) • http://jobs.zappos.com (job opportunities) Slide 41
  42. 42. Put a little Zappos in your day… …to contact me or get a tour… • Email tony@zappos.com for: A copy of this presentation Copies of our culture book (need physical mailing address) • Email tours@zappos.com for: Tour of our offices when you’re next in Las Vegas (takes about 45-60 minutes) We’ll pick you up from the airport or your hotel in a Zappos Shuttle! Slide 42
  43. 43. What % of your time do you want to spend learning about the SCIENCE of HAPPINESS? How can the SCIENCE of HAPPINESS help your business, your brand, and yourself? Slide 43
  44. 44. If the research shows that vision / meaning / higher purpose leads to happiness… What is your company’s higher purpose? What is your higher purpose? Slide 44
  45. 45. Delivering HAPPINESS
  46. 46. Legal and Financial Disclaimer P.S. You might be wondering why we need to have a legal and financial disclaimer in this presentation, but you are still reading, so our lawyers, auditors and accountants would really like to make sure we make the following clarifications. Although an audit was underway and almost done, the financial information presented in this slide show was unaudited. We made every effort to present the best information we had at the time. Gross merchandise sales is a non-GAAP metric. We use it to express the total demand across all of our web sites and stores. This number measures the dollar value of the orders placed in the year before accruing for certain items such as returns, and it ignores certain timing cut-offs that are required by GAAP for revenue recognition purposes. If we were a public company, we would have to reconcile gross merchandise sales to the nearest GAAP metric (net sales), but we are currently a private company so the gross merchandise sales number should be viewed just as an interesting number that we want to share with our friends. This presentation contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by the forward-looking statements and assumptions. These risks and uncertainties include, but are not limited to, the risk of economic slowdown, the risk of over or underbuying, the risk of consumers not shopping online or at our web site at the rate we expected, the risk of supplier shortages, the risk of new or growing competition, the risk of a natural or some other type of disaster affecting our fulfillment operations or web servers, and the risk of the world generally coming to an end. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including statements of expectation or belief; and any statement of assumptions underlying any of the foregoing. Zappos.com assumes no obligation and does not intend to update these forward-looking statements. Congratulations on making it through all the fine print. If you enjoy fine print, look for openings on our legal and finance team at jobs.zappos.com. Slide 47
  47. 47. Slide 49
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×