Growing a Customer Focused Culture                       &Inspiring Employee Happiness and Engagement to              Wow ...
Jim Carrillo, Manager, ZapposCustomer Loyalty Team, Inc.            Duke Cajala, Manager , Zappos Customer                ...
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Who we              are?What our                          How wecustomers become            Zappos         do it?         ...
Zappos is a                                                                       service                                 ...
1. Deliver WOW Through Service2. Embrace and Drive Change3.   Create Fun and a Little Weirdness4.   Be Adventurous, Creati...
Who we              are?What our                          How wecustomers become            Zappos         do it?         ...
• The Application (Beyond the Basics)   – If you entered a room and a theme song played, what would your song     be and w...
• The Application (Beyond the Basics)   – If you entered a room and a theme song played, what would your song     be and w...
• The Application (Beyond the Basics)   – If you entered a room and a theme song played, what would your song     be and w...
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•   4 week new hire training class•   The Offer•   1 week Kentucky Hero Academy•   3 weeks Incubation (ZCLT only)         ...
Growth    Skill Sets           Culture                                        And Learning• Specialty Teams   • Culture Cl...
•   Personalize the workspace•   Create an environment of empowerment•   Encourage connections•   Focus on doing the right...
What         What       What WeCustomers    Customers        Do See First   Experience   Internally                       ...
What customers see first•   24/7 1-800 number on every page•   Free shipping•   Free return shipping•   365-day return pol...
It’s all about the experience!• Fast, accurate fulfillment• Surprise your customers    •   Create WOW, PEC• Friendly, help...
Inside message needs to match the outside message•   No call times     •   The telephone is one of the best branding devic...
Personal Emotional Connection                                21
Who we              are?What our                          How wecustomers become            Zappos         do it?         ...
• Inspire employee happiness & engagement.• A sense of ownership and pride.• A workforce who make business decisions based...
Social Sites                                       Twitter       1,100,000+                                       300+ Twe...
Time to figure out howto extend the experience!                            25
Who we              are?What our                          How wecustomers become            Zappos         do it?         ...
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Facebook           15           28
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Customers come back,Customers come   Customers come back,                                        order more often and     ...
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Zappos Presentation for 11th Annual Digital Dealers Conference Oct 7, 2011

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  • Welcome and thank you for having us we are super excited to have the opportunity to speak with ya’ll today. We’re sorry we can’t be with you in person – we were really looking forward to it. However, recently enacted California legislation which more broadly defines, for e-commerce companies, the definition of “doing business in the state” prohibits us from attending. We’re happy, though, that if we couldn’t be there in person, we COULD be here in SPIRIT, and in Web XS. A little bit about us…..
  • I’m Jim, the superhuman manager of live chat, emails, our department’s leadership training program, and, of course, cc. I’m cc and I oversee several phone’s teams and the coaching and feedback process we use in our contact center.And we’re here to talk about growing the customer focused culture and inspiring happiness and engagement. So, let’s first get a good look at our culture -- our “zappos garden” and then we can talk about how we cultivate it.
  • So, that’s really what we look like and how the garden feels. Let’s get into the nitty gritty of how we get there. First, Who are we? And How’d we get where we are today?
  • First there was a shoe…. Or should we say, there wasn’t.In 1999 Nick Swinmurn, our founder, was living in SF and wanted a pair of Airwalks – BAD. After extensive searching, to his dismay, he was unable to find a pair of Chukka boots that would fit him. While the dot com boom was in full swing, this dreamer had a vision of an online shopping experience where someone could find just the right shoe in every color, size and material possible. Though some scoffed, he persisted.He reached out to friends and family and convinced some folks to back his idea of having an online shoe company. Thus began the Zappos journey.Tony Hsieh joined as an original investor and brought with him a tremendous sense of corporate values that transcend the bottom line. His determination to deliver happiness within and without the workplace drove Zappos to develop it’s core values, create it’s customer centric culture, and lead us to a place on Fortune’s list of Best Companies to Work.Today, with over 3000 employees in Kentucky and Nevada, we’re very happy to say we’re a service company…… that just happens to sell stuff.
  • Our core values are the heart of our culture and the touchstones for all that we do. We consider them the tools with which we cultivate our garden of culture. What’s important about a value set is your commitment as a company to them. If your values are an integral part of everything you do, you’ll be certain to achieve them. Your company’s core values can be anything, but the secret sauce is the commitment to them in all areas from all levels of management and team members alike.When it comes to “who” we are, we’re a group of individuals engaged with a common goal to explore, embrace and promote a set of values we have created together.
  • No garden grows on it’s own and there’s a lot that the Zappos management team does to cultivate our culture for our team members –both professionally AND personally.
  • Our first step is in gathering the very best seeds. Our motto is, “Hire slowly – fire quickly.” We have a dedicated recruiting team who select candidates for our customer contact center based on TWO interviews – one, standard, skills and experience interview and one, strictly cultural, interview where we assess things like the level of weirdness and their humility. We are looking for like-minded folks who can help us to make business decisions based on our core values and do what’s right for the company and our customers.We take all of our candidates around for a tour of the joint and that is really crucial for us as we observe their reaction to the reality of the environment. It’s important that everyone feel confident and comfortable within our walls.Even our applications are a little different and help us to measure the out-of-the-box thinking abilities of our candidates. We ask questions like “How lucky are you?” not because we value “luck” but because we want to assess the positive demeanor of candidates and get a sense of their attitude towards life and their self-esteem. The next slide is an actual video job application that was sent to us.
  • Our first step is in gathering the very best seeds. Our motto is, “Hire slowly – fire quickly.” We have a dedicated recruiting team who select candidates for our customer contact center based on TWO interviews – one, standard, skills and experience interview and one, strictly cultural, interview where we assess things like the level of weirdness and their humility. We are looking for like-minded folks who can help us to make business decisions based on our core values and do what’s right for the company and our customers.We take all of our candidates around for a tour of the joint and that is really crucial for us as we observe their reaction to the reality of the environment. It’s important that everyone feel confident and comfortable within our walls.Even our applications are a little different and help us to measure the out-of-the-box thinking abilities of our candidates. We ask questions like “How lucky are you?” not because we value “luck” but because we want to assess the positive demeanor of candidates and get a sense of their attitude towards life and their self-esteem. The next slide is an actual video job application that was sent to us.
  • Our first step is in gathering the very best seeds. Our motto is, “Hire slowly – fire quickly.” We have a dedicated recruiting team who select candidates for our customer contact center based on TWO interviews – one, standard, skills and experience interview and one, strictly cultural, interview where we assess things like the level of weirdness and their humility. We are looking for like-minded folks who can help us to make business decisions based on our core values and do what’s right for the company and our customers.We take all of our candidates around for a tour of the joint and that is really crucial for us as we observe their reaction to the reality of the environment. It’s important that everyone feel confident and comfortable within our walls.Even our applications are a little different and help us to measure the out-of-the-box thinking abilities of our candidates. We ask questions like “How lucky are you?” not because we value “luck” but because we want to assess the positive demeanor of candidates and get a sense of their attitude towards life and their self-esteem. The next slide is an actual video job application that was sent to us.
  • It’s important to realize that everyone is a customer service representative. From the contact center front line to development, IT, HR, finance, management – everyone – we all serve someone and our organization functions as one big customer service company with each department actively concerned with providing the very best customer experience to “their” customers – internal or external.All of our employees, in any department, first go through our ZCLT training which focuses on customer service, our core values, the Zappos experience, and how we WOW the folks who reach out to our contact center. This extensive training program is in addition to any departmentally specific training that may take place for our merchandisers, finance folks, IT or Development departments and takes a full four weeks to complete.
  • Once we have those seeds, we plant them in our, richly fertilized and tilled soil. The environment we’ve cultivated is a huge part of how we nurture the folks we’ve hired and help them to engage, be happy and spread that spirit to our customers. We try to ensure that folks have a sense of perceived progress and control. We want them to feel like they are part of something bigger than themselves and we encourage many and deep connections with their fellow co-workers – especially with their direct supervisors. People leave companies not because of the job, but because of their managers. Having personal relationships within the workplace increases employee happiness, engagement and productivity – having personal relationships with their supervisors creates loyalty.
  • Beyond the basics, our garden needs fertilization! After the initial training, in the customer loyalty center, we provide an additional on-boarding experience which we call “Incubation”. Incubation provides an additional three weeks of customer centric, real time experience within a controlled and extremely coached environment. While our newest Zapponians are immersed more deeply in the specific culture of the contact center, they are also rigorously and continuously evaluated at this stage of the game to ensure that they are the right fit and have the right stuff.During both the initial training and the incubation periods, we extend “The Offer”. We are so committed to and feel so passionately about ensuring that everyone we hire is culturally compatible, that we offer to pay them to leave us if they don’t feel like this is the right place for them.And, of course, because we are a bifurcated organization, we send all of our employees to our warehouse in Kentucky for a week’s worth of hands on experience and an inside look at how “the other half lives”.
  • No garden grows if you don’t water it! Progression is so important to us that it has been defined as one of the four elements of our team member’s performance. Because we stress empowerment, the progression opportunities we offer are really in the team member’s control. It is up to them to discover an area of passion and interest and pursue it. We don’t favor a linear progression model or annual review based merit raises. Instead, we have created “Skill Sets” -- always available, these opportunities to grow and learn new skills which will positively impact the contact center, provide both an increase in personal knowledge and in pay! We provide multiple ways to progress financially, to increase the invaluable skills which help us help our customers, and personally, through our culture clubs, team building opportunities and via our commitment to helping everyone build strong relationships with each other. Our commitment to our team members progression extends beyond the professional. We are just as, if not moreso, interested in the personal development of our team members.
  • In a nutshell, we arecommitted to creating the right environment, in terms of physical space, personal motivation, opportunity provision, education and growth stimulation. This commitment to providing a “WOW” experience to OUR customers, the team members we, as managers, serve, along with ensuring that we hire the right people who have the ability to deliver exceptional customer service and the dedication to doing just that, helps us to create a culture that drives customer service.But creating the environment for great customer service INTERNALLY is only half the story. We also have the responsibility of creating a customer centric environment from the customer’s perspective right from the get go. The online experience is, by far, the most prevalent experience our customers have. The majority of our customers relate to Zappos solely through our website. And though, statistically, every customer will contact our customer loyalty center once in their lifetime, they will most often interact only with our website. The percentage of customers the contact center deals with on a daily basis is less than 7 percent. So it’s vital that we ensure that the Zappos experience and the customer centric feel is translated via our website, too.
  • We’ve learned, over the years, that there are three fundamental elements required to WOW our customers.
  • You never get a second chance to make a first impression. What our customers see first impacts their decision to connect with our culture more strongly than any other moment we could create. Our website is constantly evolving as we improve the customer’s first experience, but we always maintain our focus on customer service.
  • How our customers interact with us, via our website or the contact center is vital. Whether they are shopping without our assistance or with the help of our customer loyalty team members, we ensure fast, accurate delivery of all merchandise ordered, provide surprises (like overnight shipping upgrades for free) as often as possible, and always go above and beyond to do the right thing for our customers.
  • In the customer loyalty center, we focus on the customer experience. There aren’t any call time metrics that we ask our team mates to consider – if they’re providing WOW, they’re doing their job! We really think that the telephone is one of the most underutilized and underestimated branding devices available. For the period of time that our team members are on the phone with our customers, they have a captive audience and the ability to drive home the message of our brand and inspire the kind of loyalty that mass market advertising struggles to deliver. Because we understand that the role of the CLT employee is more of a marketer than a salesman, we do not set performance goals or attempt to upsell our customers who contact us. Our goal is simply to make a personal, emotional, connection.
  • We do this with a variety of tools – most of which are “beyond the moment” experiences. While we can do all kinds of things to build bridges during our conversations, like talk about hometowns, weather, and pick up on environmental queues that aide in conversation starting, what really brings the WOW are the things all our team members are empowered to do AFTER the call ends.We send flowers, cookies, Jones’ soda. We send thank you cards, happy birthday messages, WOW packages, culture books. We follow-up and call customers back to see how their order was received. We send personalized videos. All of these things, by the way, were conceived of by our team members as they took it upon themselves to discover and promote new ways to WOW with service.
  • What’s the end result of all this cultivation and our picky recruiting? What do we get out of it?
  • It’s not easy to find just the right seeds and there’s quite a bit of work involved in preparing and tending a healthy garden, but the harvest is well worth it. Our team is…. A family. We are a group of folks who truly feel personally engaged, empowered and know we each contribute to something greater –making a difference. We are aligned by our values and we put service above everything else. Our customers gain the most as we strive to create the very best, most enjoyable and most memorable experiences for them each time they connect with us, however they choose to.
  • And, it’s working. We’ve grown in every measurable way, increasing the amount of customer contacts and human connections we make year over year.
  • No, it’s not just about the telephone, either. Emails, live chat and, most definitely, the social media space, is an opportunity for us to continue to develop our brand, creating story-worthy experiences that bury into the collective memories of Zappos customer base. Our reputation as a customer centric company grows daily through social media.
  • What’s the end result? What is the extent of our influence?
  • Jeanette is a customer who created this video and posted it on Youtube.Our customer base become true fans. Loyalty is our middle name (literally! - we’re the Customer Loyalty Team) and our goal is to create truly brand loyal individuals who will not only continue to shop with us, but spread the word by being advocates and promoters of our site.
  • Our social space on facebook is brimming with these stories.
  • And we’re connecting will millions via twitter. Here’s one of the stories that’s on you-tube right now.
  • And, of course, what our customers become is REPEAT CUSTOMERS! Our repeat customer statistics are staggering. 75% of all purchases are from returning customers. So what’s it all add up to? Happiness. Delivered. We’ve worked really hard to develop a place that people want to come to, want to work in, feel great about, take pride in and truly enjoy and a place where folks want to visit, shop at, and come back to, over and over again.
  • Zappos Presentation for 11th Annual Digital Dealers Conference Oct 7, 2011

    1. 1. Growing a Customer Focused Culture &Inspiring Employee Happiness and Engagement to Wow your Customers Jim Carrillo Customer Loyalty Team Manager Duke Cajala Customer Loyalty Team Manager 1
    2. 2. Jim Carrillo, Manager, ZapposCustomer Loyalty Team, Inc. Duke Cajala, Manager , Zappos Customer Loyalty Team, Inc. Joined Zappos in 2006  Joined Zappos in 2005 Oversees “ToolBox”, leadershipdevelopment, Live Chat Team & Work  Oversees the on-boarding program,from Home departments along with which emphasizes on identifying cultureseveral phones teams. advocates and TLC Team which provides continuous training to our customer loyalty Spent 20+ years in the Jewelry team members.Industryas a Regional Manager.  I am a highly trained Ninja and I am aware of the other aspiring Ninjas at Happily married for over 23 years. Zappos because they are my apprentices =) Originally from The SF Bay Area.  I was born and raised in Hawaii 2
    3. 3. 3
    4. 4. Who we are?What our How wecustomers become Zappos do it? What we get out of it? 4
    5. 5. Zappos is a service Selection company that • Over 1,000 happens to sell Zappos is brands, over clothing, hand “Powered by 200,000 styles, bags, shoes, ac 3000 Service” over 900,000 cessories, hous employees • Providing the best unique UPCs. ewares,…. (half in NV, half online shopping • 5 million items in KY) experience in warehouse • #23 in FORTUNE possible. • 100% of MAGAZINE’s • Fast, Free products “100 Best Shipping. Free inventoried (no Companies To return shipping. drop ship). Work For” 2009 365-day returnFounded in • #15 in FORTUNE policy.1999 MAGAZINE’s • Fast fulfillment. “100 Best Companies To Expedited Work For” 2010 delivery. Fast, friendly & expert • #6 in FORTUNE MAGAZINE’S customer service. “100 Best” in 2011 5
    6. 6. 1. Deliver WOW Through Service2. Embrace and Drive Change3. Create Fun and a Little Weirdness4. Be Adventurous, Creative and Open-Minded5. Pursue Growth and Learning6. Build Open and Honest Relationships With Communication7. Build a Positive Team and Family Spirit8. Do More with Less9. Be Passionate and Determined10. Be Humble 6
    7. 7. Who we are?What our How wecustomers become Zappos do it? What we get out of it? 7
    8. 8. • The Application (Beyond the Basics) – If you entered a room and a theme song played, what would your song be and why? – How lucky in life do you consider yourself to be on a scale from 1-10?• The Tour• The Hiring Process – Managers interview for technical fit and department culture fit. – Human Resources interviews for culture fit. – Must pass both in order to be hired.• Hire slowly, Fire quickly 8
    9. 9. • The Application (Beyond the Basics) – If you entered a room and a theme song played, what would your song be and why? – How lucky in life do you consider yourself to be on a scale from 1-10?• The Tour• The Hiring Process – Managers interview for technical fit and department culture fit. – Human Resources interviews for culture fit. – Must pass both in order to be hired.• Hire slowly, Fire quickly 9
    10. 10. • The Application (Beyond the Basics) – If you entered a room and a theme song played, what would your song be and why? – How lucky in life do you consider yourself to be on a scale from 1-10?• The Tour• The Hiring Process – Managers interview for technical fit and department culture fit. – Human Resources interviews for culture fit. – Must pass both in order to be hired.• Hire slowly, Fire quickly 10
    11. 11. 11
    12. 12. 12
    13. 13. 13
    14. 14. • 4 week new hire training class• The Offer• 1 week Kentucky Hero Academy• 3 weeks Incubation (ZCLT only) 14
    15. 15. Growth Skill Sets Culture And Learning• Specialty Teams • Culture Clubs • Pipeline classes• Mentoring • Team Building • Tech Seminars• Ambassador • Building • Senior Rep. program Relationships Program • Internships
    16. 16. • Personalize the workspace• Create an environment of empowerment• Encourage connections• Focus on doing the right thing• Provide continuous feedback 16
    17. 17. What What What WeCustomers Customers Do See First Experience Internally 17
    18. 18. What customers see first• 24/7 1-800 number on every page• Free shipping• Free return shipping• 365-day return policy 18
    19. 19. It’s all about the experience!• Fast, accurate fulfillment• Surprise your customers • Create WOW, PEC• Friendly, helpful “above and beyond” customer service• Don’t have it? Assist them with finding it elsewhere 19
    20. 20. Inside message needs to match the outside message• No call times • The telephone is one of the best branding devices available • Longest Call was 8 hours & 28 minutes.• No sales-based performance goals for reps• Run warehouse 24/7• Inventory all product (no drop-shipping) 20
    21. 21. Personal Emotional Connection 21
    22. 22. Who we are?What our How wecustomers become Zappos do it? What we get out of it? 22
    23. 23. • Inspire employee happiness & engagement.• A sense of ownership and pride.• A workforce who make business decisions based on our core vales.• A team who is willing to do what’s right for our customers and our company. 23
    24. 24. Social Sites Twitter 1,100,000+ 300+ Tweets opportunities Live Chat per day to interact per day and 1500+ Live growing! Chats per day Emails 1300+ EmailsPhones resolved a day7000+Calls aday 24
    25. 25. Time to figure out howto extend the experience! 25
    26. 26. Who we are?What our How wecustomers become Zappos do it? What we get out of it? 26
    27. 27. 27
    28. 28. Facebook 15 28
    29. 29. 29
    30. 30. Customers come back,Customers come Customers come back, order more often and back… order more often… order more… On any given Repeat day, approx. Repeat customers 75% of customers have higherpurchases are order >2.5x avg. order sizefrom returning per year vs. 1st time customers customers 30
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