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AMA Dayton, OH 08/26/2010- Zappos Presentation


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AMA Dayton, OH 08/26/2010- Zappos Presentation

  1. 1. Extending the Customer Experience Aaron Magness – Sr. Director of Brand Marketing & Business Development AMA – Dayton, OH August 26, 2010 1
  2. 2. Who is this Aaron character?• Work • Play – Sold trade show space – Family/Friends – Business Development for Williams- – Athletics Sonoma, Inc – Music – Business Development & Marketing for – Marathons (completed 8 so far) – Triathlon (Escape from Alcatraz) – Poker 2
  3. 3. Corporate Background at a Glance, Inc. is a service Best selection company that • Over 1,000 happens to sell is brands, over clothing, “Powered by 200,000 styles, handbags, Service” over 900,000 shoes, unique UPCs. accessories, • Providing the 2000 employees best online • 5 million items in housewares, …. (half in NV, half in shopping warehouse KY) experience • 100% of products • #23 in FORTUNE possible. inventoried (no MAGAZINE’s “100 • Fast, Free drop ship). Best Companies Shipping. Free To Work For” 2009 return shipping. Founded in 365-day return • Highest debut 1999 policy. for a newcomer in 2009 • Fast fulfillment. • #15 in FORTUNE Expedited MAGAZINE’s “100 delivery. Fast, Best Companies friendly & expert To Work For” customer service. 2010 3
  4. 4. Customer service value proposition in action… Committed to WOW’ing every customer Customers come Customers come Customers come… back, order more and back… order more often… On any given day, Repeat customers Over 10 million total about 75% of have higher average purchasing customers purchases from order size returning customers $123.86 – first time customers in Q407 Over 4 million have Repeat customers purchased in the last order >2.5x in the $156.27 – returning 12 months next 12 months customer in Q407 4
  5. 5. Power of repeat customers and word of mouth... $1,000 $800Gross Sales $Ms $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 5
  6. 6. 3 fundamental things we’ve learned are necessary for WOW service online: What What What We Customers Customers Do See First Experience Internally 6
  7. 7. Customer Service: What customers see first• 24/7 1-800 number on every page• Free shipping• Free return shipping• 365-day return policy 7
  8. 8. 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 8
  9. 9. Customer Service: What is done internally• No call times • The telephone is one of the best branding devices available• No sales-based performance goals for reps• 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/Facebook/YouTube/Blogs help build company culture 9
  10. 10. 2 things we’ve learned… 10
  11. 11. Give your customers a voice on your siteCustomer Reviews• Provide useful information• Help lower return rates• Wonderful SEO Value!• Credibility!Feedback Mechanism (VoC)• Better user experience• Build empathy• SEO Value• Builds community/repeatvisits 11
  12. 12. Enable Product Sharing• “free” link backs• High converting trigger• Community engagement is high!• Creates referrals that lead to customer acquisition 12
  13. 13. Times are changing! 13
  14. 14. Customer experience extends beyond just your site! 14
  15. 15. Customer experience extends beyond just your site! 15
  16. 16. Customer experience extends beyond just your site! 16
  17. 17. Time to figure out howto extend the experience! 17
  18. 18. What’s the on Social Media? •No social media strategy •We have a COMMUNICATION strategySocial Media 18
  19. 19. Create more opportunities tocommunicate with your customers… … and you enable more and engagement with them (Brand longevity)! 19
  20. 20. Why? 20
  21. 21. Because people want to be heard! 21
  22. 22. Yeah, but why? 22
  23. 23. To gather information! 23
  24. 24. Really, though, why? 24
  25. 25. To make better educated purchases! 25
  26. 26. Come on, why? 26
  27. 27. To feel like they are part of it! 27
  28. 28. Why won’t you tell me why? 28
  29. 29. To talk about their experiences! 29
  30. 30. Why ask why?Probably all of the above, and more! That’s LOTS of people willing to help look out for your business, provide feedback and ideas, etc! 30
  31. 31. That is, if you are listening… 31
  32. 32. Most peopledon’t pick up the phone and call us! 32
  33. 33. Evolving Customer Connections • Phone • 6,000+ Calls a day • Live Chat • 400+ live chats per day • Social Sites, Networks, etc… • 1,100,000+ opportunities to interact per day 33
  34. 34. That’s right, 1,100,000 per dayin the social space… And Growing! 34
  35. 35. Or you can annualize it: 401,500,000+invitations to interact per year 35
  36. 36. How does a company engage in an organized predictive way? 36
  37. 37. People! 37
  38. 38. Isthe new media planning? 38
  39. 39. Don’t plan great media, plan great !Have the people, have the voice 39
  40. 40. Peter Piper picked peppers 40
  41. 41. People planning produced experiences 41
  42. 42. People PlanningTrain to be a customer service agent Good Customer Service = 42
  43. 43. People PlanningTrain to be a customer service agent •Customer Service •Marketing •IT •Finance •Facilities •Fulfillment Center •Legal •HR •etc 43
  44. 44. People PlanningRally the company behind the of proactively talking to customers 44
  45. 45. People PlanningEmployees will want to engage customers, as often as possible 45
  46. 46. Goal: Have as many employees as possible be a voice!We believe People Planning is at the heart of our success 46
  47. 47. How does one do that?• Have the right culture and nurture it• Have committable core values and aspire to live them• INVEST in hiring and firing and pay people to leave ($$$)• Stay focused and make people focused investments• Education! 47
  48. 48. Step #1 DECIDE• Decide if you’re trying to build a long term sustainable brand• Requires more patience with revenues & profits in order to lay the foundation• Decide sooner rather than later 48
  49. 49. Step #2 FIGURE OUTVALUES & CULTURE 49
  50. 50. VALUES & CULTURE Figure out values & culture sooner rather than later• What are your PERSONAL core values?• What are the COMPANY’S core values?• Start EARLY.• It is surprisingly HARDER than you think.• It doesn’t MATTER what the values are.• The most important thing is ALIGNMENT.• …LIVE the BRAND 50
  51. 51. Step #3COMMIT TO “Be real and you have nothing to fear” Your culture is your brand Don’t try to be someone you are not 51
  52. 52. Commitment to Transparency: Examples • • “Ask Anything” newsletter • Extranet for vendors • Tours & reporter visits • 52
  53. 53. Transparency Tools 53
  54. 54. Get your partners involved! 54
  55. 55. Transparency Tools Zappos.TV 55
  56. 56. Transparency Tools Facebook Page 56
  57. 57. Transparency Tools Facebook Page 57
  58. 58. What does a Snuggie have to do with nothing, but it has everything to do with an engagement opportunity! 58
  59. 59. Step #4 VISION“Whatever you’re thinking, think bigger.” Does the vision have meaning? Chase the vision, not the money… 59
  60. 60. ENTREPRENEURS: “What would you bepassionate about doing for10 years even if you never made a dime?” 60
  61. 61. EMPLOYEES:What’s the larger vision and greater purpose in their work beyond money or profits? 61
  63. 63. Step #5 BUILD RELATIONSHIPS (not networking or marketing)Be INTERESTED rather than trying to be INTERESTING 63
  64. 64. Step #6BUILD YOUR TEAM“If you want to go quickly, go alone. If you want to go far, go together.” (African proverb) Hire slowly Fire quickly 64
  65. 65. Step #7 THINK LONG TERM Repeat customers Customer service There is no “get rich quick” formula“Overnight” successes are years in the making (both personally and in business) 65
  66. 66. What’s the ? 66
  67. 67. What’s the eturn n being rrelevant? 67
  68. 68. some links to check out… • (public mentions, employees) • “How Twitter Can Make You a Better (And Happier) Person” • (photos & videos of culture) • (more information about us & core values) • (job opportunities) 68
  69. 69. 69
  70. 70. 70
  71. 71. Thank you for allowing me to be here! Email for a copy of this presentation or a copy of the Culture Book (it’s a physical book, so I need a physical address). 71
  72. 72. 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. assumes no obligation and does not intend to update these forward-looking statements. Congratulations on making it through all the fine print. 72