Zappos: Happiness in a Zappos: Happiness in a BoxBox

Presented by: Chris HeathPresented by: Chris Heath

Company HistoryCompany History

Zappos is an online company that sells shoes and other Zappos is an online company that sells shoes and other apparelapparel

The company was founded in 1999 by Nick Swinmurn The company was founded in 1999 by Nick Swinmurn and is currently run by CEO Tony Hsiehand is currently run by CEO Tony Hsieh

From the start Zappos has focused on great customer From the start Zappos has focused on great customer

service and developing a culture at work that is uniqueservice and developing a culture at work that is unique

Employee Hiring and TrainingEmployee Hiring and Training

http://http://www.youtube.com/watch?vwww.youtube.com/watch?v=g6WHAfWqX3s=g6WHAfWqX3sZappos only hires happy peopleZappos only hires happy peopleOne of their questions during the interview process is on One of their questions during the interview process is on scale of 1-10 how lucky are youscale of 1-10 how lucky are youFound that people that consider themselves lucky Found that people that consider themselves lucky performed betterperformed betterPassed on many well qualified and smart candidates Passed on many well qualified and smart candidates because they were not a cultural fitbecause they were not a cultural fitEvery employee must go through Customer Loyalty Every employee must go through Customer Loyalty Team (CLT) training so they can learn how to WOW Team (CLT) training so they can learn how to WOW customerscustomers

http://http://www.youtube.com/watch?vwww.youtube.com/watch?v=g6WHAfWqX3s=g6WHAfWqX3sZappos only hires happy peopleZappos only hires happy peopleOne of their questions during the interview process is on One of their questions during the interview process is on scale of 1-10 how lucky are youscale of 1-10 how lucky are youFound that people that consider themselves lucky Found that people that consider themselves lucky performed betterperformed betterPassed on many well qualified and smart candidates Passed on many well qualified and smart candidates because they were not a cultural fitbecause they were not a cultural fitEvery employee must go through Customer Loyalty Every employee must go through Customer Loyalty Team (CLT) training so they can learn how to WOW Team (CLT) training so they can learn how to WOW customerscustomers

Happy Employees Equals Great Happy Employees Equals Great Customer ServiceCustomer Service

Employees are able to determine when they receive Employees are able to determine when they receive raises by taking classes and mastering skillsraises by taking classes and mastering skills

Not paid based on the amount of calls they handle a dayNot paid based on the amount of calls they handle a day

One call lasted 7 hours and 28 minutesOne call lasted 7 hours and 28 minutes

MSN Money ranked Zappos.com in the top 10 for MSN Money ranked Zappos.com in the top 10 for customer servicecustomer service

http://http://www.youtube.com/watch?vwww.youtube.com/watch?v=IwE1zb9fiVs=IwE1zb9fiVs

Repeat CustomersRepeat Customers

75% of sales on any given day are from repeat 75% of sales on any given day are from repeat customerscustomers

During period Q407 first time customers spent $123.86 During period Q407 first time customers spent $123.86 while repeat customers spent $156.27while repeat customers spent $156.27

Mostly word of mouth marketingMostly word of mouth marketing

Stories Of SuccessStories Of Success

Personal ConciergePersonal Concierge A flight attendant from Qantas was in San Francisco A flight attendant from Qantas was in San Francisco

and needed to exchange a pair of shoesand needed to exchange a pair of shoes

She had no access to a computer and did not know She had no access to a computer and did not know where a UPS store waswhere a UPS store was

A Zappos CLT member found the closest UPS store A Zappos CLT member found the closest UPS store and asked them to print the label for her and asked them to print the label for her

Stories of Success Stories of Success

Caring For The SickCaring For The Sick

A Grandmother ordered some Lelli Kelly shoes for her A Grandmother ordered some Lelli Kelly shoes for her four year old daughter that was going to have heart four year old daughter that was going to have heart surgerysurgery

The CLT member had special shoes, flowers, and a The CLT member had special shoes, flowers, and a homemade card signed by team members sent to herhomemade card signed by team members sent to her

Stories of SuccessStories of Success

From Confusion to MobilityFrom Confusion to Mobility

The women's dad had a stroke and was trying to The women's dad had a stroke and was trying to learn to walk againlearn to walk again

The CLT member had all the shoes overnighted even The CLT member had all the shoes overnighted even

though she was only going to keep one pairthough she was only going to keep one pair

The shoes ended up being molded into his castThe shoes ended up being molded into his cast

Stories of SuccessStories of Success

Offering Praise and GratitudeOffering Praise and Gratitude

A women went on the Breast Cancer 3 Day in Denver A women went on the Breast Cancer 3 Day in Denver and left an auto-reply on her emailand left an auto-reply on her email

A CLT member got the auto-reply email and decided A CLT member got the auto-reply email and decided to sent the woman a card to let her know what an to sent the woman a card to let her know what an admirable thing she was doingadmirable thing she was doing

TwitterTwitter

Tony originally created the account as a personal search Tony originally created the account as a personal search engine, but soon realized the power Twitter could have in engine, but soon realized the power Twitter could have in growing the brandgrowing the brand

He now has over 1.7 million followersHe now has over 1.7 million followers

““You can’t stop the waves, but you can learn to surf” –You can’t stop the waves, but you can learn to surf” –Jon Kabat-ZinnJon Kabat-Zinn

““At Vegas airport. While in bathroom, I had an AMAZING At Vegas airport. While in bathroom, I had an AMAZING revelation: Toiled seat covers are shaped exactly the revelation: Toiled seat covers are shaped exactly the same as life vests!”same as life vests!”

499 employees are now using Twitter with the only rule 499 employees are now using Twitter with the only rule being, “Use your best judgment”being, “Use your best judgment”

Blogs and YouTubeBlogs and YouTube

Every employee is able to blog on the websiteEvery employee is able to blog on the websiteZappos feels its better to see what every employee is Zappos feels its better to see what every employee is thinking even if it is not positivethinking even if it is not positiveThey want to see the good, the bad, and the uglyThey want to see the good, the bad, and the uglyThey have two different channels on YouTube: ZTV and They have two different channels on YouTube: ZTV and Inside ZapposInside ZapposZTV shows the virtues of Zappos and has 187 videos ZTV shows the virtues of Zappos and has 187 videos with over 2 million viewswith over 2 million viewsInside Zappos shows the fun employees have at work Inside Zappos shows the fun employees have at work Inside Zappos has 870 videos with almost 600,000 viewsInside Zappos has 870 videos with almost 600,000 views

AmazonAmazon

Zappos merged with Amazon in a stock exchange in Zappos merged with Amazon in a stock exchange in 20092009

The deal was valued at 1.2 billion dollarsThe deal was valued at 1.2 billion dollars

Though they became a part of Amazon they were kept Though they became a part of Amazon they were kept as a separate entity and were able to maintain their as a separate entity and were able to maintain their cultureculture

Q1 2010 net sales were up almost 50 percent compared Q1 2010 net sales were up almost 50 percent compared to Q1 2009to Q1 2009

SummarySummary

Zappos has been able to grow their business through Zappos has been able to grow their business through amazing customer serviceamazing customer service

This amazing customer service is made possible by This amazing customer service is made possible by creating a culture at work that allows team members to creating a culture at work that allows team members to have funhave fun

Team members constantly go above and beyondTeam members constantly go above and beyond

Zappos has also been able to grow its’ brand through Zappos has also been able to grow its’ brand through new social media outlets such as Twitter and YouTubenew social media outlets such as Twitter and YouTube

QuestionsQuestions11. Who founded Zappos.com?. Who founded Zappos.com? a. Alfred Lina. Alfred Lin b. Tony Hsiehb. Tony Hsieh c. Nick Swinmurnc. Nick Swinmurn d. Matt Zapposd. Matt Zappos

2. Which is not a core value?2. Which is not a core value? a. Be professional at all timesa. Be professional at all times b. Do more with lessb. Do more with less c. Be humblec. Be humble d. Pursue growth and learningd. Pursue growth and learning

3. Repeat customers accounted for what percentage of sales?3. Repeat customers accounted for what percentage of sales? a. 20a. 20 b. 45b. 45 c. 75c. 75 d. 90d. 90