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ZAPPOS.COM
DELIVERING HAPPINESS
DOWNTOWN PROJECT
Downtown Project
Collisions
Community
Co-Learning
Slide 3
A Little About Me (Tony)
•

Slide 4

1994-1995:

Pizza business in college
A Little About Me (Tony)
•

1994-1995:

Pizza business in college

•

1996-1998:

LinkExchange (online advertising)
Sold to Microsoft for $265 million

Slide 5
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.
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.
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
The Power of WOW
$1,000

Gross Sales $MM

800

600
400

200

‘00
Slide 9

‘01

‘02

‘03

‘04

‘05

‘06

‘07

‘08
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
the #1 priority

Slide 11
CULTURE

the #1 priority

Slide 12
CULTURE

the #1 priority
Hiring for culture
4 weeks of training
$4000 offer
Culture book
Slide 13
Clothing, Customer Service, Culture
Culture
Customer Service
Clothing
Slide 14
Clothing

Slide 15
Customer Service

Slide 16
Culture

Slide 17
Clothing, Customer Service, Culture
Culture
Customer Service
Clothing
Slide 18
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
Building Great

Slide 20
Ingredient #1

Slide 21
CULTURE
“Committable Core Values”

Don’t make your core values
just a meaningless plaque on the wall…
Slide 22
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
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
“That’s great…

Slide 25
“That’s great…
but it would
never work at my
company…”
Slide 26
ALIGNMENT
It doesn’t matter what your
core values are…
as long as you
commit to them.
Slide 27
Ingredient #2

Slide 28
VISION
“Whatever you’re thinking, think

bigger

Does the vision have meaning?
Chase the vision, not the money…

Slide 29

.”
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
ENTREPRENEURS:

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

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

Slide 33
MOTIVATION
vs.
INSPIRATION
Slide 34
Vision & Culture
inspire
Passion & Purpose
Slide 35
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
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?
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.
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
“a great brand is… ______”

Slide 39
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
Las Vegas City Hall

Slide 41

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

Slide 42
Las Vegas City Hall

Slide 43
Nike

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

Slide 45

http://static.panoramio.com/photos/original/400729.jpg
Apple

Slide 46

http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg
Doggy Day Care

Slide 47

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

Slide 48

http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
Downtown Vegas - Fremont East

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

Slide 50

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

Slide 51
Downtown Vegas - Fremont East

Slide 52

http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture

Slide 53
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
Community
Slide 54
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
Slide 55
DOWNTOWN PROJECT GOALS

Slide 56
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance

Slide 57
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large
City in the World

Slide 58
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
ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…

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

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

Slide 62
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
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
THE BIG BET
Accelerating
Collisions, Community, and Co-Learning

Slide 65
THE BIG BET
Accelerating
Collisions, Community, and Co-Learning
…will lead to…
Happiness, Luckiness,
Innovation, and Productivity
Slide 66
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
Slide 67
$50M – Small Businesses

Slide 68
$50M – Small Businesses


Slide 69

Criteria
$50M – Small Businesses


Criteria


Slide 70

Owner Operated - Passionate
$50M – Small Businesses


Criteria



Slide 71

Owner Operated - Passionate
Helps Build Community
$50M – Small Businesses


Criteria




Slide 72

Owner Operated - Passionate
Helps Build Community
Execution Ability
$50M – Small Businesses


Criteria





Slide 73

Owner Operated - Passionate
Helps Build Community
Execution Ability
Sustainable
$50M – Small Businesses


Criteria






Slide 74

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

Criteria







Slide 75

Owner Operated - Passionate
Helps Build Community
Execution Ability
Sustainable
Unique or First or Best at Something
Story-worthy
Natalie

Slide 76
Natalie

Slide 77
Natalie

Slide 78
Natalie

Slide 79
Natalie

Slide 80
Natalie

Slide 81
Check Cashing

Slide 82

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

Slide 83
Sarah

Slide 84
Sarah

Slide 85
Sarah

Slide 86
Shipping Containers

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

Slide 87
Shipping Containers

Slide 88
Shipping Container Park

Slide 89
Shipping Container Park

Slide 90
Shipping Container Park

Slide 91
Shipping Container Park

Slide 92
Shipping Container Park

Slide 93
Bike Sharing

Slide 94
$50M – Tech Startups

Slide 95

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

Slide 96

http://timenerdworld.files.wordpress.com/2011/12/romotivefinal.jpg?w=576
The City as a Startup

Slide 97

http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
$50M – Startups

Slide 98

http://www.shebytes.com/wp-content/uploads/2011/12/venture-for-america-12-12-11.jpg
$50M – Education, Arts, Culture

Slide 99

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

Slide 100

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

Slide 101

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

Slide 102

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

Slide 103

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

Slide 104

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

Slide 105
Slide 106
Slide 107
$200M – Real Estate

Slide 108

http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
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
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
HOW TO ACCELERATE LEARNING &
INNOVATION
Maximize serendipitous interactions
Density in the office
Density in the city
Collisions vs. convenience
Slide 111
Las Vegas City Hall

Slide 112

http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
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
LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company

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

Community is to a City

Slide 115
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
Our Secret Weapon

Slide 117

http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg
LEARNING FROM TED, SUMMIT
SERIES, SXSW, BIF…
Curated Content
Serendipity
Learning
Connections
Community

Slide 118
Downtown Vegas Every Day
Curated Content
Serendipity
Learning
Connections
Community

Slide 119
Fremont St. & Las Vegas Blvd.

Slide 120
Fremont St. & Las Vegas Blvd.

Slide 121
Fremont St. & Las Vegas Blvd.

Slide 122
Fremont St. & Las Vegas Blvd.

Slide 123
Fremont St. & Las Vegas Blvd.

Slide 124
Fremont St. & Las Vegas Blvd.

Slide 125
Fremont St. & Las Vegas Blvd.

Slide 126
Fremont St. & Las Vegas Blvd.

Slide 127
Fremont St. & Las Vegas Blvd.

Slide 128
Fremont St. & Las Vegas Blvd.

Slide 129
Downtown Vegas Monthly Cadence

Slide 130
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week

Slide 131
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week

Slide 132
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week

Slide 133
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Week 2 – Tech Week
Week 3 – Fashion Week
Week 4 – Catalyst Week

Slide 134
Fashion Incubator – Stitch Factory

Slide 135
Fashion Incubator – Stitch Factory

Slide 136
Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?

Slide 137
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
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
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
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
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
Jake – Flint and Tinder

Slide 143
Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?

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

12 hours/day

Slide 145
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
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
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
Return On Collisions (ROC)

“Subscribe” to
Downtown Vegas

Slide 149
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
Return On Collisions (ROC)
1.

Slide 151

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

Slide 152

100,000
Return On Collisions (ROC)
1.

Slide 153

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

Slide 154

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

Slide 155

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

Slide 156

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

Slide 157

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

Slide 158

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

Slide 159

100,000 “collisionable” community
hours per acre per year
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
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
Slide 162
ZAPPOS, DELIVERING HAPPINESS,
DOWNTOWN PROJECT

Slide 163
50% of Humans Live in Cities

Slide 164

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

Slide 165

http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
The 4-Minute Mile

Slide 166
The 4-Minute Mile

Slide 167

http://en.wikipedia.org/wiki/File:Iffley_Road_Track,_Oxford_-_blue_plaque.JPG
www.DowntownProject.com
tony@zappos.com

Slide 168

http://langintro.com/lv_dec_2010/pics/0950_emergency_arts_window.jpg
A great
brand

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

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

is a story that never stops unfolding.
Slide 171
A great
brand
company
city
community
is a story that never stops unfolding.
Slide 172
Thank you!
For a copy of this presentation:
tony@zappos.com

For more information:
www.DowntownProject.com
Slide 173
http://www.youtube.com/watch?v=AF4f3l4a4_A
Slide 174

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