1. ZAPPOS.COM
DELIVERING HAPPINESS
DOWNTOWN PROJECT

2. Downtown Project
Collisions
Community
Co-Learning

3. Slide 3

4. A Little About Me (Tony)
•
Slide 4
1994-1995:
Pizza business in college

5. A Little About Me (Tony)
•
1994-1995:
Pizza business in college
•
1996-1998:
LinkExchange (online advertising)
Sold to Microsoft for $265 million
Slide 5

6. A Little About Me (Tony)
•
1994-1995:
Pizza business in college
•
1996-1998:
LinkExchange (online advertising)
Sold to Microsoft for $265 million
•
Slide 6
1999:
Venture Frogs (investment fund) - Invested in Zappos.com, Inc.

7. A Little About Me (Tony)
•
1994-1995:
Pizza business in college
•
1996-1998:
LinkExchange (online advertising)
Sold to Microsoft for $265 million
•
Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
•
Slide 7
1999:
1999-Today:
Zappos.com, Inc.

8. A Little About Me (Tony)
•
1994-1995:
Pizza business in college
•
1996-1998:
LinkExchange (online advertising)
Sold to Microsoft for $265 million
•
Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
•
1999-Today:
Zappos.com, Inc.
•
2009:
Amazon acquires Zappos for $1.2 billion
•
Slide 8
1999:
2010:
NYT bestseller Delivering Happiness published

9. The Power of WOW
$1,000
Gross Sales $MM
800
600
400
200
‘00
Slide 9
‘01
‘02
‘03
‘04
‘05
‘06
‘07
‘08

10. Customer Experience

What do customers expect?

What do customers actually experience?

What emotions do customers feel?

What stories do they tell their friends?

How can culture create more stories and memories?
Slide 10

11. the #1 priority
Slide 11

12. CULTURE
the #1 priority
Slide 12

13. CULTURE
the #1 priority
Hiring for culture
4 weeks of training
$4000 offer
Culture book
Slide 13

14. Clothing, Customer Service, Culture
Culture
Customer Service
Clothing
Slide 14

15. Clothing
Slide 15

16. Customer Service
Slide 16

17. Culture
Slide 17

18. Clothing, Customer Service, Culture
Culture
Customer Service
Clothing
Slide 18

19. Delivering Happiness
(customers and employees)
“People will forget what you said.
People will forget what you did.
But people will never forget
how you made them feel.”
-Maya Angelou
Slide 19

20. Building Great
Slide 20

21. Ingredient #1
Slide 21

22. CULTURE
“Committable Core Values”
Don’t make your core values
just a meaningless plaque on the wall…
Slide 22

23. Example: Core Values
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Slide 23
Deliver WOW Through Service
Embrace and Drive Change
Create Fun and a Little Weirdness
Be Adventurous, Creative, and Open-Minded
Pursue Growth and Learning
Build Open and Honest Relationships With Communication
Build a Positive Team and Family Spirit
Do More with Less
Be Passionate and Determined
Be Humble

24. COMMIT TO
TRANSPARENCY
“Be real and you have nothing to fear”
Your culture is your brand
Don’t try to be someone you are not
Parades at Zappos…
Slide 24

25. “That’s great…
Slide 25

26. “That’s great…
but it would
never work at my
company…”
Slide 26

27. ALIGNMENT
It doesn’t matter what your
core values are…
as long as you
commit to them.
Slide 27

28. Ingredient #2
Slide 28

29. VISION
“Whatever you’re thinking, think
bigger
Does the vision have meaning?
Chase the vision, not the money…
Slide 29
.”

30. 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 30

31. ENTREPRENEURS:
“What would you be
passionate about doing
for 10 years even if you
never made a dime?”
Slide 31

32. EMPLOYEES:
What’s the larger vision
and greater purpose in
their work beyond
money or profits?
Slide 32

33. MOTIVATION
Slide 33

34. MOTIVATION
vs.
INSPIRATION
Slide 34

35. Vision & Culture
inspire
Passion & Purpose
Slide 35

36. Evolving vision and brand at
Zappos.com

Selection

2003
Customer Service

2005
Culture and core values as our platform

2007
Personal Emotional Connection

Slide 36
1999
2009
Delivering Happiness

37. Questions


Where does the story end?

How do you reinforce the good memories?

What were the emotions, positive and negative?

Slide 37
Where does the story begin?
How can you create more stories and memories?

38. What’s your business?


Cirque du Soleil is not in the circus business.

You’re in the experience and emotions business.

You’re in the stories and memories business.

Slide 38
You’re not in the _______ business.
Think bigger.

39. Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
“a great brand is… ______”
Slide 39

40. Zappos.com
Slide 40
http://media.glassdoor.com/m/7b/2c/00/f6/entrance-to-the-zappos-com-headquarter-office-inhenderson-nv-photo-by.jpg

41. Las Vegas City Hall
Slide 41
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg

42. Las Vegas City Hall
Slide 42

43. Las Vegas City Hall
Slide 43

44. Nike
http://standardatl.com/home/wp-content/uploads/2010/07/Nike_Campus_Tour_01.jpg
Slide 44

45. Google
Slide 45
http://static.panoramio.com/photos/original/400729.jpg

46. Apple
Slide 46
http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg

47. Doggy Day Care
Slide 47
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG

48. NYU Campus
Slide 48
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG

49. Downtown Vegas - Fremont East
http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg
Slide 49

50. Downtown Vegas - Fremont East
Slide 50
http://www.lucyvegas.com/sites/default/files/griffin5.jpg

51. Downtown Vegas - Fremont East
Slide 51

52. Downtown Vegas - Fremont East
Slide 52
http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg

53. Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
Slide 53

54. Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
Community
Slide 54

55. DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
Slide 55

56. DOWNTOWN PROJECT GOALS
Slide 56

57. DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
Slide 57

58. DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large
City in the World
Slide 58

59. DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large
City in the World
The Co-Learning and Co-working Capital
of the World
Slide 59

60. ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
Slide 60

61. ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
Slide 61

62. ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)
Slide 62

63. ROI vs. ROC and ROL
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)
and institutionalizing ROL
Slide 63

64. ROI vs. ROC and ROL
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)
and institutionalizing ROL
(Return On Luck) – Accelerating Serendipity
Slide 64

65. THE BIG BET
Accelerating
Collisions, Community, and Co-Learning
Slide 65

66. THE BIG BET
Accelerating
Collisions, Community, and Co-Learning
…will lead to…
Happiness, Luckiness,
Innovation, and Productivity
Slide 66

67. DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
Slide 67

68. $50M – Small Businesses
Slide 68

69. $50M – Small Businesses

Slide 69
Criteria

70. $50M – Small Businesses

Criteria

Slide 70
Owner Operated - Passionate

71. $50M – Small Businesses

Criteria


Slide 71
Owner Operated - Passionate
Helps Build Community

72. $50M – Small Businesses

Criteria



Slide 72
Owner Operated - Passionate
Helps Build Community
Execution Ability

73. $50M – Small Businesses

Criteria




Slide 73
Owner Operated - Passionate
Helps Build Community
Execution Ability
Sustainable

74. $50M – Small Businesses

Criteria





Slide 74
Owner Operated - Passionate
Helps Build Community
Execution Ability
Sustainable
Unique or First or Best at Something

75. $50M – Small Businesses

Criteria






Slide 75
Owner Operated - Passionate
Helps Build Community
Execution Ability
Sustainable
Unique or First or Best at Something
Story-worthy

76. Natalie
Slide 76

77. Natalie
Slide 77

78. Natalie
Slide 78

79. Natalie
Slide 79

80. Natalie
Slide 80

81. Natalie
Slide 81

82. Check Cashing
Slide 82
http://www.vegaschatter.com/files/100501/checks_cashed..jpg

83. Check Cashing
Slide 83

84. Sarah
Slide 84

85. Sarah
Slide 85

86. Sarah
Slide 86

87. Shipping Containers
http://images03.olx.com/ui/8/84/18/1280992807_108377618_4-cargo-containers-40ft-20-ft-For-Sale.jpg
Slide 87

88. Shipping Containers
Slide 88

89. Shipping Container Park
Slide 89

90. Shipping Container Park
Slide 90

91. Shipping Container Park
Slide 91

92. Shipping Container Park
Slide 92

93. Shipping Container Park
Slide 93

94. Bike Sharing
Slide 94

95. $50M – Tech Startups
Slide 95
http://imgs.foursquare.com/pix/EN1ZIL0JC5HTCZYD0PW41SWQYJHURTD204ZFZYBFGPM3F5JS.jpg

96. $50M – Tech Startups
Slide 96
http://timenerdworld.files.wordpress.com/2011/12/romotivefinal.jpg?w=576

97. The City as a Startup
Slide 97
http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png

98. $50M – Startups
Slide 98
http://www.shebytes.com/wp-content/uploads/2011/12/venture-for-america-12-12-11.jpg

99. $50M – Education, Arts, Culture
Slide 99
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg

100. $50M – Education, Arts, Culture
Slide 100
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg

101. $50M – Education, Arts, Culture
Slide 101
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg

102. $50M – Education, Arts, Culture
Slide 102
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg

103. $50M – Education, Arts, Culture
Slide 103
http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg

104. $50M – Education, Arts, Culture
Slide 104
http://mikerossart.net/images/mikeross_enter.jpg

105. $50M – Education, Arts, Culture
Slide 105

106. Slide 106

107. Slide 107

108. $200M – Real Estate
Slide 108
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg

109. WHEN CITIES DOUBLE IN SIZE…
Productivity and innovation per resident
increases by 15%
(But not true for companies)
Accelerate serendipity -> Accelerate learning ->
Accelerate productivity and innovation
Slide 109

110. 3 INGREDIENTS FOR SERENDIPITY
1.
2.
Street-level activity for residents to
collide
3.
Slide 110
Residential density of 100 residents/acre
Culture of openness, collaboration,
creativity, and optimism

111. HOW TO ACCELERATE LEARNING &
INNOVATION
Maximize serendipitous interactions
Density in the office
Density in the city
Collisions vs. convenience
Slide 111

112. Las Vegas City Hall
Slide 112
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg

113. DIFFERENT GROUPS COLLIDING
1.
2.
3.
4.
5.
6.
7.
Slide 113
2000 Zappos employees
1000 Teach For America corp members
and alumni
Tech Startup Community
Small Business Community
Art and Music Communities
Other Passion Communities
Local Residents

114. LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company
Slide 114

115. LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company
as
Community is to a City
Slide 115

116. LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company
as
Community is to a City
Slide 116
Values
Innovation
Serendipity
Participation
Upward Mobility
Attracting Startups and the Creative Class

117. Our Secret Weapon
Slide 117
http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg

118. LEARNING FROM TED, SUMMIT
SERIES, SXSW, BIF…
Curated Content
Serendipity
Learning
Connections
Community
Slide 118

119. Downtown Vegas Every Day
Curated Content
Serendipity
Learning
Connections
Community
Slide 119

120. Fremont St. & Las Vegas Blvd.
Slide 120

121. Fremont St. & Las Vegas Blvd.
Slide 121

122. Fremont St. & Las Vegas Blvd.
Slide 122

123. Fremont St. & Las Vegas Blvd.
Slide 123

124. Fremont St. & Las Vegas Blvd.
Slide 124

125. Fremont St. & Las Vegas Blvd.
Slide 125

126. Fremont St. & Las Vegas Blvd.
Slide 126

127. Fremont St. & Las Vegas Blvd.
Slide 127

128. Fremont St. & Las Vegas Blvd.
Slide 128

129. Fremont St. & Las Vegas Blvd.
Slide 129

130. Downtown Vegas Monthly Cadence
Slide 130

131. Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Slide 131

132. Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week
Slide 132

133. Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week
Slide 133

134. Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week
Week 4 – Catalyst Week
Slide 134

135. Fashion Incubator – Stitch Factory
Slide 135

136. Fashion Incubator – Stitch Factory
Slide 136

137. Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
Slide 137

138. Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
3-4 hours/day
Slide 138

139. Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
3-4 hours/day
x 7 days/week
Slide 139

140. Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
3-4 hours/day
x 7 days/week
x 40 weeks/year
Slide 140

141. Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
3-4 hours/day
x 7 days/week
x 40 weeks/year
= 1000 “collisionable” hours/year
Slide 141

142. Jake – Flint and Tinder
http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-YouWill-Love-It-b.jpg
Slide 142

143. Jake – Flint and Tinder
Slide 143

144. Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
Slide 144

145. Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
Slide 145

146. Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
Slide 146

147. Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
x 12 weeks/year
Slide 147

148. Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
x 12 weeks/year
= 1000 “collisionable” hours/year
Slide 148

149. Return On Collisions (ROC)
“Subscribe” to
Downtown Vegas
Slide 149

150. Return On Collisions (ROC)
1.
2.
Street-level activity for residents to
collide
3.
Slide 150
100 residents per acre
Culture of openness, collaboration,
creativity, and optimism

151. Return On Collisions (ROC)
1.
Slide 151
100 residents per acre

152. Return On Collisions (ROC)
1.
Slide 152
100,000

153. Return On Collisions (ROC)
1.
Slide 153
100,000 “collisionable”

154. Return On Collisions (ROC)
1.
Slide 154
100,000 “collisionable” community

155. Return On Collisions (ROC)
1.
Slide 155
100,000 “collisionable” community
hours

156. Return On Collisions (ROC)
1.
Slide 156
100,000 “collisionable” community
hours per

157. Return On Collisions (ROC)
1.
Slide 157
100,000 “collisionable” community
hours per acre

158. Return On Collisions (ROC)
1.
Slide 158
100,000 “collisionable” community
hours per acre per

159. Return On Collisions (ROC)
1.
Slide 159
100,000 “collisionable” community
hours per acre per year

160. Return On Collisions (ROC)
1.
100,000 “collisionable” community
hours per acre per year
2.3 collisionable hours
per square foot
per year
Slide 160

161. OUR BIG BET… 3 Guiding Principles
Accelerate:
1.Collisions
2.Community
3.Co-Learning
And everything else will fall into place…
(productivity, innovation, growth, happiness)
What will people say about downtown?
Slide 161

162. Slide 162

163. ZAPPOS, DELIVERING HAPPINESS,
DOWNTOWN PROJECT
Slide 163

164. 50% of Humans Live in Cities
Slide 164
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg

165. 75% Will Live In Cities in
Our Lifetime
Slide 165
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg

166. The 4-Minute Mile
Slide 166

167. The 4-Minute Mile
Slide 167
http://en.wikipedia.org/wiki/File:Iffley_Road_Track,_Oxford_-_blue_plaque.JPG

168. www.DowntownProject.com
tony@zappos.com
Slide 168
http://langintro.com/lv_dec_2010/pics/0950_emergency_arts_window.jpg

169. A great
brand
is a story that never stops unfolding.
Slide 169

170. A great
brand
company
is a story that never stops unfolding.
Slide 170

171. A great
brand
company
city
is a story that never stops unfolding.
Slide 171

172. A great
brand
company
city
community
is a story that never stops unfolding.
Slide 172

173. Thank you!
For a copy of this presentation:
tony@zappos.com
For more information:
www.DowntownProject.com
Slide 173

174. http://www.youtube.com/watch?v=AF4f3l4a4_A
Slide 174