Bright Spot Delivering Happiness

Delivering Happiness
Tony Hsieh, CEO

It all started with pizza…

MY BACKGROUND
’96-’98
’94-’95
’99
’99 - Today

ZAPPOS AT A GLANCE
*
Founded in 1999
700 in
Las Vegas
700 in
Lewisville
1400
employees

ZAPPOS AT A GLANCE
4 million
warehouse
items
100%
inventoried
BEST
SELECTION!

Zappos is powered by
SERVICE!
Fast, FREE
shipping
FREE return
shipping
Fast, friendly
expert customer
loyalty team
365-day
return policy
Fast
fulfillment

Zapposon TV!

Zapposin the News!
“50 Most
Innovative
Companies”
“100 Best
Companies
to Work For”
“Top 25
Customer
Service Champs”

Zappos is committed to
WOWing every customer.
365-day returns!

Customers come.
Then they come back.
Then they order more and more often!

The Power of WOW
$1,000
800
Gross Sales $MM
600
400
200
‘01
‘02
‘06
‘03
‘04
‘05
‘07
‘00
‘08

SERVICE
What customers notice first
24/7 customer service
800 number on every page
365-day return policy
Free return shipping
Free shipping

SERVICE
What customers experience next
Redirection to competitors’ sites
Fast, accurate fulfillment
Surprise upgrades to overnight shipping
Above-and-beyond customer service

SERVICE
How we ensure it with our employees
$2000 incentive to quit
5 weeks of training
No sales-based performance goals
No call times

SERVICE
How we ensure it through our policies
Use of the telephone and Twitter
Culture Books
24/7 warehouse
All products inventoried –
no drop shipping
50% of interviews and performance
reviews based on values and culture fit

WE OWN THE 3
S

lothing

ustomer Service

ulture

“I’ve learned that people will forget what you said,
people will forget what you did, but
people will never forget how you made them feel.”
- Maya Angelou

ulture =
COMMITTABLE
COREVALUES

ZAPPOS
CORE
VALUES

Deliver
through
service.

Embrace and drive change.

Create fun and alittle
weirdness.

Be adventurous, creative
and open-minded.

growth
Pursue
and learning.

Build open and
honest relationships
with communication.

Build a positive
team and
family spirit.

Do more with less.

Be passionate
and determined.
Delivery!

Be humble.

That’s great for
Zappos but it
wouldnever work
at my company…

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

S
7
P
E
TO BUILDING A
T
S
BRAND THAT
MATTERS

Sooner rather than later,
DECIDE
if you’re trying to build a long-
term, sustainable brand.
STEP 1:

STEP 2:
Figure out
values
and culture.

company
personal
Values
Culture
Live the brand!
Align!

STEP 3:
Commit to
transparency.

transparency
tours and reporter
visits
“Ask Anything”
newsletter
extranet for
vendors
twitter.zappos.com
zapposinsights.com

STEP 4:
HAVE A VISION.
Whatever you’re thinking, think bigger.

WORDS OF WISDOM
Don’t chase
the paper;
chase the
DREAM.
Sean Combs, a.k.a.
“Puff Daddy”
Biggie Smalls, a.k.a. “Notorious B.I.G., ”

What would you do
passionatelyfor
10years without
making a dime?

What’s the greater vision and purpose of employees’ work?
Go beyond the profit motive.

Motivation is different
from inspiration.

STEP 5:
BUILD RELATIONSHIPS.
Don’t “network.”

STEP 6:
BUILD YOURTEAM.
Hire slowly, fire quickly.

If you want to go quickly, go alone. If you want to go far, go together.
– African proverb

STEP 7:
THINK LONG TERM.
There is no get-rich formula.

Stop and ask yourself:
What is your goal in life?

“If happiness is your goal,
ask why 5 times about every matter.”
– TaiichiOhno
why
why
why
why

Get an education. Why?
Have a great career. Why?
Save money. Why?
Retire early. Why?
Spend time with your family. Why?

Research has shown that people
are very bad at predicting what
will bring us sustained
happiness.

There’s a science behind business.
conversion
psychology of buying
direct marketing
repeat customer behavior
customer acquisition metrics

What if we studied
the science behind happiness?

A FEW DIFFERENT
ON HAPPINESS
f
r
a
m
e
w
o
s
r
k

Perceived Control, Perceived Progress, Connectedness, Vision and Meaning

Maslow’s Hierarchy
Self
Actualization
Self-Esteem
Love/Belonging
Safety
Physiological

TYPES OF HAPPINESS
Rock Star (Pleasure)
Flow (Engagement)
Meaning (Higher Purpose)

2 Important
Questions

If research shows that vision and a higher purpose leads to happiness…

…what percentage of your time
are you willing to spend learning
the science of happiness?’

How can the science of happiness
help your business,
your brand,
and yourself?

Recommended Books

http://www.waxcom.com	16
http://www.slideshare.net	8
http://www.blogger.com	1
http://fortyonwards.blogspot.com	1
http://health.medicbd.com	1

Bright Spot Delivering Happiness

by Sunni Brown on Sep 09, 2009

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