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Delivering happiness

Delivering happiness



Delivering Happiness is a book written by the CEO of Zapoos.com Mr. Tony Hsieh. This presentation try to deliver some of the key concepts shared in his book.

Delivering Happiness is a book written by the CEO of Zapoos.com Mr. Tony Hsieh. This presentation try to deliver some of the key concepts shared in his book.



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    Delivering happiness Delivering happiness Presentation Transcript

    • I AM TONY HSIEH Cofounded Zappos And Link exchange DELIVERING HAPPINESS
    • The Author- Tony Hseih   Born to a typical Asian American parents  Emigrated family from Taiwan to US  A voracious attitude towards entrepreneurship  An attitude to learn from mistakes, being creative and experiment  A versatile-A Polyglot, Mastered 4 musical instruments  Ambitious and Flexible
    • LINK EXCHANGE AND ZAPPOS • Link exchange- A mediator between an online company and the customers • Zappos- An online shoe store, eventually sold to Amazon for $1.2 billion
    • The Tiny Businessman  Worm Business  Garage sales  „Gobbler‟ operations  Boys Life magazine  Greeting cards  Button Image business(0.25$ :075$)  Videogame playing  Programming  Crowd sourcing
    • His Journey To The Corporate World “ORACLE”  Tony and Sanjay were software engineers.  They were paid $40k per year.  Gradually they felt the job was quite boring.
    •  THOUGHT PROCESS PROVOKED: to create web sites for other companies simultaneously  Sanjay was the product and design guy and tony lead the sales  Tony and Sanjay “QUITS ORACLE”
    •  Link exchange is a mediator between a online company and a customer  When a website sign up for free into link exchange which in turn show as a banner add for customer
    • • Tony recruited most of his friends as employees • JERRY YANG cofounder of yahoo proposed to buy at $20 million, but was rejected Michael Moritz from Sequoia capital invested $3 million for 20% stake in the company.
    • • Microsoft and Netscape offered to buy the company. • Tony demanded for $250 million. • Microsoft ended buying the company at $265 million at few string attached.  they wanted Sanjay, Ali and Tony to stay with them for next 12 months else they will cut 20% of the amount. • Deal was signed..
    •  Tony acquires a loft and creates a community  Simultaneously Alfred and tony starts venture frogs and raises $27 million and starts a restaurant  A voice mail- Nick Swinmurn  commenced shoesite.com
    •  Nick told Footwear is a $40 billion in US making up to $2billion.  Nick renamed shoe site as ZAPPOS a Spanish word called shoes.  ZAPPOS business idea was to form partnerships with 100 of brands and each of the brands provide Zappos with inventory feed in their warehouses.
    •  “Drop Ship” Relation Ship entered in the era of shoe business.  As Zappos was progressing hence tony and Alfred invested in Zappos.  Fred was official employee of Zappos after venture frogs investment.  Tony got boredom with investment  business and discovered “POKER”
    • MEANING • Investing and day- trading INVESTMENTS • Invested in stock markets, movies etc.. END OF DABBLING • He realized investing in industries or companies you don‟t understand and people you don‟t trust is always non benefial
    •  Introducing Zappos to sequoia and Tony & Alfred was surprised to hear that sequoia was not interested to invest.  High flying dot-com stocks started to crash in stock market- shattered tony‟s dream of $100 million funding investment.  End of investment business and entered to entrepreneurship. “ TONY WAS PASSIONATE TO PROVE EVERYONE WRONG”
    •  Tony & Alfred put additional investment into Zappos for their survival.  Cut the costs and maximize the profits of next 9 months and layoff their employees.  They addressed the remaining employees to take their big pay cuts or work for free in exchange for equity in company.
    • • Employees residing in the lofts without charging any rents. • Tony started investing his personal cash into Zappos. • Started selling every property except for the party loft he was living. • Restaurant was not meeting its sales projections.
    • • They believed in “ having right product at the right time in right quantity and sales will take care of them selves” • Changing “Drop ship strategy to have their own inventory of different brands” which triple their sales- Fred.
    • STEPS TO IMPLEMENT “Their Own Inventory”  Build a new team to manage Inventory.  Update software  Need a warehouse to hold inventory.  How to raise $2 million?  Convince many brands to sell to their physical store. Hiring of employees for this physical stores.
    •  Fred was responsible to convince brands  Tony was responsible to bring in cash of $2 million for inventory
    • the strategy of having their own inventory was successful. But gradually it declined since they took the help of E-logistics
    • End Of An Era “Club BIO sold” Got another six months of run way “Even if Zappos failed, we would know we have done everything we could to chase a dream we believed in“
    • KENTUCKY • Ends relationship with eLogistics • Birth of WHISKY Ware House Inventory System in Kentucky Learning from eLogistics relationship “We should never outsource our core competency”
    • 2002 • $32 million gross merchandise sale, 4 times that of 2001 • Set a goal of $1 billion merchandise sales in 2010 • Realization that the biggest vision to be to build the Zappos brand to be about the very best customer service. • Zappos brand and Zappos Library
    • 2003 • Projected the sales figure to double • Handling the difficult time taking everyone in trust • Got a credit of $6 billion from Wells Fargo • Relocated the head quarters to Las Vegas including the Customer Loyalty Team (call center)
    • The Zappos Culture • Zappos Culture Book • Ask anything
    • Branding through Customer Service • Letting the customer do the marketing through word of mouth • 365 day return policy • Displaying the customer care number at the top of every single page
    • Branding through Customer Service Call Center – No AHT – No Scripts – PEC with customer in each call “Pizza, Tony and Zappos call center” Top 10 ways to instil customer service in your company
    • Your culture is your brand “At Zappos, our belief is that if you get the culture right, most of the other stuff—like great customer service, or building a great long-term brand, or passionate employees and customers—will happen naturally on its own.” • Building a brand 50 year back and now is very different – Bald and Blue day – Face game
    • PROFITS, PASSION, AND PURPOSE Delivering Happiness- Tony Hsieh (CEO Zappos .com)
    • PR and Public Speaking  Lots of Press Attention  Culture  Improving Customer Experience  Paying Employees for quitting the organization
    • PR and Public Speaking  Speaking request from different Conferences  Example  Footwear News CEO Summit in 2005  Different People represented conferences  No standard presentations  Opportunity to build Relationships
    • PR and Public Speaking  To Help Audience to pursue Growth and learning  To Build Open and Honest Relationships  To change the world not just by doing things differently at Zappos
    • Zappos Insights Program  Video Subscription service and Zappos insights live  A two day immersion seminar  Both Programs designed to help entrepreneurs and established businesses improve their companies
    • Three basic rules -Public speaking 1. Be passionate 2. Tell personal stories 3. Be real
    • Value Platforms  Brand  Culture  Pipeline
    • Amazon Acquisition – October 31st , 2009 • $1.2 billion worth transaction • Exchange of share for amazon Shares • Run as independent entity – Continue the culture and business • A wholly own subsidiary • Considered as a great marriage than a sales of the company
    • Amazon Acquisition Both Shares common approach “ Customer Centric”
    • END GAME Delivering Happiness- Tony Hsieh (CEO Zappos .com)
    • Delivering Happiness • 1999—Largest Selection of Shoes • 2003—Customer Service • 2005—Culture and Core Values as Our Platform • 2007—Personal Emotional Connection • 2009—Delivering Happiness
    • Happiness Framework 1
    • Happiness Framework 2 Chip Conley ’s book “Peak” Explains How Maslow‟s Hierarchy can be condensed to three levels for business purposes and applied to customers, employees, and investors
    • Customers • Meets expectations Meets desires Meets unrecognized needs Employees • Money Recognition Meaning Investors • Transaction A l i g n m e n t Relationship Alignment Legacy
    • Happiness Framework 3 • Pleasure • Passion • Higher Purpose
    • Happiness Framework 3
    • Ask Right Question to be happy • Are you working toward maximizing your happiness each day ? • What is the net effect of your existence on the total amount of happiness in the world each day ? • What are your values? • What are you passionate about?
    • Ask Right Question to be happy • What in spires you ? • What is your goal in life? • What are your company‟s values? • What is your company ‟ s higher purpose? • What is your higher purpose?
    • OUR LEARNINGS Zappos‟ competitive advantage is mainly due to • customer service • culture for passion and unity Delivering happiness culture Culture book-10 core values of Zappos
    • 1.Deliver WOW Through Service 2Embrace and Drive Change 3. Create Fun and a Little Weirdness 4. Be Adventurous, Creative, and Open-Minded 5. Pursue Growth and Learning 10 CORE VALUES
    • 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 10 CORE VALUES
    • Success mantras: • Focus on core competence • Team work • Transparency • Long term views
    • Gowtham Sujana Vivek Agil Vyshnavi Prudhvi Charan Happiness delivered by