zappos preso 2010-05-18 ecew

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Delivering Happiness

European Customer Experience World

Alfred Lin, COO/CFOalfred@zappos.com

May 18, 2010

’97-’98’94 ’99 ’05 - Today

A Little About Me (Alfred)

© 2009 sunnibrown.com

’01-’05

Zappos.com, Inc. at a GlanceCorporate Background

– Founded in 1999

– 1800 employees (half in Las Vegas headquarters, half in Kentucky) #15 in 2010 FORTUNE MAGAZINE’s “100 Best Companies To Work For” #23 in 2009 – highest debut for a newcomer in 2009

– Zappos.com is “Powered by Service” Providing the best online shopping experience possible. Fast, Free Shipping. Free return shipping. 365-day return policy. Fast fulfillment. Expedited delivery. Fast, friendly & expert customer service.

– Best selection Over 1,000 brands, over 200,000 styles, over 900,000 unique UPCs. Over 4 million items in warehouse 100% of products inventoried (no drop ship).

Repeat customers and word of mouth...

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Gross Sales 1.6 8.6 32 70 184 370 587 841 1,014 1,187

$0

$200

$400

$600

$800

$1,000

$1,200

Gro

ss S

ales

$ (m

illio

ns)

Customer Service: Establishing a personal emotional connection with the customer

See Experience Feel

What customers first see on Zappos.com web site?

What customers experience after their order?

What we do to establish a personal emotional connection?

• Great selection

• Easy to navigate web site

• 24/7 800 # on every page

• Free shipping

• Free return shipping

• 365-day return policy

• Fast, Accurate Fulfillment

• Most customers are “surprise”-upgraded to overnight shipping

• Friendly, helpful “above and beyond” customer service

• Occasionally direct customers to competitors’ web sites

• Manage Call Center Differently• No call times• No sales-based performance goals

for reps• Manage Fulfillment Differently• Run warehouse 24/7• Inventory all product (no drop-

ship)• Manage Culture Differently• Interviews and performance

reviews are 50% based on core values and culture fit• 5 weeks of culture, customer

service, and warehouse training for everyone in Las Vegas• Offer $2,000 for trainees to quit• Culture book

Clothing, Customer Service, Culture

Customer Service

Clothing

Culture

Clothing

Customer Service

Culture

Clothing, Customer Service, Culture

Customer Service

Clothing

Culture

Delivering Happiness(customers and employees)

“People may not remember exactly what you did or what you said, but they will always remember

how you made them feel.”

© 2009 sunnibrown.com

Building Great

CULTURE“Committable Core Values”

Don’t make your core values just a meaningless plaque on the wall…

Example: Core Values

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

“That’s great,but it would

never work at my company…”

ALIGNMENTIt doesn’t matter what your

core values are…

as long as you commit to them.

VISION

“Whatever you’re thinking, think bigger.”

Does the vision have meaning?

Chase the vision, not the money…

Don’t chasethe paper;chase theDREAM.

Sean Combs, a.k.a.

“Puff Daddy”

Biggie Smalls, a.k.a. “Notorious

B.I.G., ”

WORDS OF WISDOM

© 2009 sunnibrown.com

ENTREPRENEURS:

“What would you be passionate about doing for 10 years even if you never made a dime?”

EMPLOYEES:

What’s the larger vision and greater purpose in

their work beyond money or profits?

What’s the greater vision and purpose of employees’ work?

Go beyond the profit motive.

© 2009 sunnibrown.com

VISION

MOTIVATIONvs.

INSPIRATION

Motivation is differentfrom inspiration.

© 2009 sunnibrown.com

© 2009 sunnibrown.com

o 1999 Selection

o 2003 Customer Service

o 2005 Culture and core values as our platform

o 2007 Personal Emotional Connection

o 2009 Delivering Happiness

Evolution of a Brand

What is your goal in life?

Take a step back.Stop and ask yourself:

© 2009 sunnibrown.com

WHAT IS YOUR GOAL IN LIFE?

Grow Company

Get a Great Job

Boyfriend / Girlfriend Be Healthy

Retire Early Make Money Find Soul Mate Run Faster

Spend Time w/ Family Buy A Home Get Married Run A

Marathon

why? why? why? why?

why? why? why? why?

HAPPINESS

why? why? why? why?

“If happiness is your goal,ask why 5 times about every matter.”

– Taiichi Ohno

whywhy

whywhy

Research has shown that peopleare very bad at predicting whatwill bring us sustainedhappiness.

© 2009 sunnibrown.com

HAPPINESSPeople are very bad at predicting what will

bring them sustained happiness.

“When I get ___, I will be happy.”

“When I achieve ___, I will be happy.”

RESEARCH HAS SHOWN:

• There is a SCIENCE behind many aspects of business including:– conversion– psychology of buying– direct marketing– customer acquisition metrics– repeat customer behavior, etc.

• What if you spent just 10% of your time studying and learning the SCIENCE of HAPPINESS?

• How much HAPPIER could you be?

Happiness

WHAT IS YOUR GOAL IN LIFE?

Grow Company

Get a Great Job

Boyfriend / Girlfriend Be Healthy

Retire Early Make Money Find Soul Mate Run Faster

Spend Time w/ Family Buy A Home Get Married Run A

Marathon

why? why? why? why?

why? why? why? why?

HAPPINESS

why? why? why? why?

A FEW DIFFERENT

ON HAPPINESS

f r a m e w o r sk

© 2009 sunnibrown.com

Perceived Control

Perceived Progress

Connectedness

Vision / Meaning(Being part of something bigger than yourself)

A FEW DIFFERENT FRAMEWORKS ON HAPPINESS:

Maslow’s Hierarchy:

Rock Star(Pleasure – chasing the next high)

Flow(Engagement – time flies)

Meaning/Higher Purpose(Being part of something bigger than yourself)

3 TYPES OF HAPPINESS

time

time

time

Happy Great GreatPeople Employees Businesses

Pleasure Job ProfitsChasing highs Comp/Benefits Financial Performance

Flow Career PassionEngagement Recognition Passion

Meaning Calling PurposePurpose Purpose Purpose

time

time

time

ImportantQuestions

© 2009 sunnibrown.com

What of your time do you want to spend learning about the

SCIENCE of HAPPINESS?

How can the SCIENCE of HAPPINESS help your business, your brand, and yourself?

© 2009 sunnibrown.com

If the research shows that vision / meaning / higher purpose

leads to happiness…

What is your company’s higher purpose?

What is your higher purpose?

Recommended Books

PEAKChip Conley

TRIBAL LEADERSHIPDave Logan, John King & Halee Fischer-Wright

FOUR HOUR WORK WEEKTim Ferriss

HAPPINESS HYPOTHESISJonathan Haidt

RECOMMENDED BOOKS:

Delivering HappinessA Path to Profits, Passion and Purpose

by Tony Hsieh

RECOMMENDED BOOKS:

THANK YOU

Questions

– Email alfred@zappos.com for:

• This presentation

• Free culture book (need physical mailing address)

– Go to http://tours.zappos.com for:

• Tour of our offices when you’re next in Las Vegas (takes about an hour)

• We’ll pick you up from the airport or your hotel in a Zappos Shuttle!

Contact info and tours!

THANK YOU