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Delivering Happiness Tony Hsieh, CEO
It all started with pizza…
MY BACKGROUND  ’96-’98 ’94-’95 ’99 ’99 - Today
ZAPPOS AT A GLANCE * Founded in 1999 700 in Las Vegas 700 in Lewisville 1400 employees
ZAPPOS AT A GLANCE 4 million warehouse items 100% inventoried BEST SELECTION!
Zappos is powered by SERVICE! Fast, FREE shipping FREE return shipping Fast, friendly expert customer loyalty team 365-day return policy Fast fulfillment
Zapposon TV!
Zapposin the News! “50 Most Innovative Companies” “100 Best Companies to Work For” “Top 25 Customer Service Champs”
Zappos is committed to WOWing every customer. 365-day returns!
Customers come. Then they come back. Then they order more and more often!
The Power of WOW $1,000 800 Gross Sales $MM 600 400 200 ‘01 ‘02 ‘06 ‘03 ‘04 ‘05 ‘07 ‘00 ‘08
SERVICE What customers notice first 24/7 customer service 800 number on every page 365-day return policy Free return shipping Free shipping
SERVICE What customers experience next Redirection to competitors’ sites Fast, accurate fulfillment Surprise upgrades to overnight shipping Above-and-beyond customer service
SERVICE How we ensure it with our employees $2000 incentive to quit 5 weeks of training No sales-based performance goals No call times
SERVICE How we ensure it through our policies Use of the telephone and Twitter Culture Books 24/7 warehouse All products inventoried – no drop shipping 50% of interviews and performance reviews based on values and culture fit
WE OWN THE 3  S
lothing
ustomer Service
ulture
“I’ve learned that people will forget what you said,  people will forget what you did, but people will never forget how you made them feel.” - Maya Angelou
ulture = COMMITTABLE COREVALUES
ZAPPOS CORE VALUES
Deliver through service.
Embrace and drive change.
Create fun and alittle weirdness.
Be adventurous, creative and open-minded.
growth Pursue and learning.
Build open and honest relationships with communication.
Build a positive team and family spirit.
Do more with less.
Be passionate and determined. Delivery!
Be humble.
That’s great for Zappos but it wouldnever work at my company…
“It doesn’t matter what your core values are… as long as you commit to them.
S 7 P E TO BUILDING A T S BRAND THAT  MATTERS
Sooner rather than later, DECIDE if you’re trying to build a long- term, sustainable brand. STEP 1:
STEP 2:  Figure out values and culture.
 company personal Values Culture Live the brand!  Align!
STEP 3:  Commit to transparency.
transparency tours and reporter visits “Ask Anything” newsletter extranet for vendors  twitter.zappos.com zapposinsights.com
STEP 4:  HAVE A VISION. Whatever you’re thinking, think bigger.
WORDS OF WISDOM Don’t chase the paper; chase the DREAM. Sean Combs, a.k.a. “Puff Daddy” Biggie Smalls, a.k.a. “Notorious B.I.G., ”
What would you do passionatelyfor 10years without making a dime?
What’s the greater vision and purpose of employees’ work?  Go beyond the profit motive.
Motivation is different from inspiration.
STEP 5:  BUILD RELATIONSHIPS. Don’t “network.”
STEP 6:  BUILD YOURTEAM. Hire slowly, fire quickly.
If you want to go quickly, go alone. If you want to go far, go together. – African proverb
STEP 7:  THINK LONG TERM. There is no get-rich formula.
Stop and ask yourself: What is your goal in life?
“If happiness is your goal, ask why 5 times about every matter.” – TaiichiOhno why why why why
Get an education. Why? Have a great career. Why? Save money. Why? Retire early. Why? Spend time with your family. Why?
Research has shown that people are very bad at predicting what will bring us sustained happiness.
There’s a science behind business. conversion  psychology of buying  direct marketing repeat customer behavior  customer acquisition metrics
What if we studied the science behind happiness?
A FEW DIFFERENT ON HAPPINESS f r a m e w o s r k
Perceived Control, Perceived Progress, Connectedness, Vision and Meaning
Maslow’s Hierarchy Self Actualization Self-Esteem Love/Belonging Safety Physiological
TYPES OF HAPPINESS Rock Star (Pleasure)  Flow (Engagement)  Meaning (Higher Purpose)
2 Important Questions
If research shows that vision and a higher purpose leads to happiness…
…what percentage of your time  are you willing to spend learning  the science of happiness?’
How can the science of happiness help your business, your brand, and yourself?
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Bright Spot Delivering Happiness

Editor's Notes

  1. Zappos is Powered by SERVICE - Best online shopping experience possibleFast fulfillment and Fast, free shipping, Expedited delivery (redundancy here – email Brian)
  2. ZAPPOS on TVTV: Oprah, ABC Nightline, 60 Minutes (don’t need the years and Tony can say ‘nice but we pay more attention to our customers)
  3. ZAPPOS IN THE NEWSMagazines: #23 on Fortune’s “100 Best Companies to Work For”. (Tony should say Highest ranking debut for a newcomer)
  4. ZAPPOS IS COMMITTED TO ‘WOW’ING EVERY CUSTOMER (Tony can indicate that they’ve seen the service value prop in action)
  5. Customers come. (Tony states the stats)Then they come back. (Tony states the stats)And when they come back, they order more and more often. (Tony states the stats)
  6. SB (Now) Slide 11:The reason why it’s acceptable to remove the stats on the slide before is because (a) these types of things need to be STATED, not read (b) no one will remember the minutiae/numbers and (c) this slide punctuates their success and people will remember the visual of the exponential increase.
  7. With our Employees:5 weeks of culture, core values, customer service and warehouse training (remove for everyone in Vegas office – that’s where their customer loyalty team is and Tony can mention that if he wants to);
  8. WE TAKE OWNERSHIP OF THE THREE Cs (or WE OWN THE THREE Cs) – (Ask Tony/Brian)
  9. SB (Now) Slide 21 (or deleted preferably):I don’t love the pyramid and the flow to the next slide would be just fine without it. Do we really need it? And is the meaning implied by a pyramid really the importance? Ask Tony and Brian.
  10. “People may not remember exactly what you did, or what you said, but they will always remember how you made them feel.” (Tony’s quote in PP – tell him you found the real one and the author.)
  11. Culture = Committable Core Values‘Committable Core Values’ represented by image of person standing with a heart on his shirt and a heart on a flag that’s stuck in the ground next to him, that he’s holding proudly (metaphor is that you put a stake in the ground when you commit to something).Keep four photos but array them like a stack of books, spread arched like a deck of cards.(Ask Tony and Brian if the pictures of the Culture books serve a particular purpose?)
  12. SB (Now) Slide 35Text “It doesn’t matter what your core values are…as long as you commit to them. Remove the word ‘Alignment’ (Ask Tony and Brian about this. Does he really want to say that it doesn’t matter what your core values are?)
  13. SB (Now) Slide 37Text ‘Step 1: Sooner rather than later, DECIDE if you’re trying to build a long-term, sustainable brand.’ (Remove the words ‘Requires more patience with revenues & profits in order to lay the foundation. He can say that.)
  14. SB (Now) Slide 39Smaller but exact version of DECIDE text above Then ‘Figure out values and culture with two arrows going overhead pointing to ‘personal’ and ‘company.’ Two arrows underneath point to ‘ALIGN’ and ‘LIVE THE BRAND.’ (Remove the words ‘Start early. It is surprisingly harder than you think. It doesn’t matter what the values are. Some of this he’s already included before and others he can say in his presentation.)
  15. SB (Now) Slide 40Text ‘Step 3: COMMIT TO TRANSPARENCY’ Text fade to gray. Text in my own handwritten font – larger than the 10 committable values earlier which are in Hand of Sean font. None of the 7 will have images because the font will serve as a word picture. Remove the words ‘don’t try to be someone you’re not – he can say that.’ First, ‘Your culture IS your brand’ and then ‘Be real and you have nothing to fear.’
  16. SB (Now) Slide 42Text Step 4: VISION – Whatever you’re thinking, think bigger. (Remove Does the vision have meaning? (Tony can say) And ‘Chase the vision, not the money.’ Because that’s on the next slide basically)
  17. SB (Now) Slide 43Text’ Don’t Chase the paper, chase the dream.’ (Hand of Sean font) Photo of Biggie with hand-drawn frame around him like the other photos of employees. Remove the word ‘vision’ and all the other text. Also, confirm that it’s okay to put Puff Daddy’s photo in there since he’s the one with the actual quote.
  18. SB (Now) Slide 44Text ‘What would you do passionately for 10 years without making a dime? (Remove the word entrepreneurs. Tony can say.)
  19. SB (Now) Slide 45What’s the greater vision and purpose of employees’ work – beyond the profit motive?’(Remove the word ‘employees.’ Included in question.)
  20. (Now) Slide 50Text ‘Step 7: “There is no get-rich formula (above and in Hand of Sean font), THINK LONG TERM’ in my own handwritten font. (Remove the words ‘overnight successes are years in the making, both personally and in business.’ Tony can say.)
  21. SB (Now) Slide 53“Get an education. (Why?) Have a great career. (Why?) Save money. (Why?) Retire early. (Why?) Spend time with your family. (Why?) Happiness.” Use Slide 37 Prototype B as sample for image. (Only need one of these threads of thought to get the point across.)
  22. SB (Now) Slide 54Image of someone at a slot machine. Research has shown (in hand of sean font), PEOPLE ARE VERY BAD AT PREDICTING WHAT WILL BRING THEM SUSTAINED HAPPINESS.” Remove “when I get ___, I will be happy and When I achieve _____, I will be happy.”
  23. SB (Now) Slide 58Text: Perceived Control, Perceived Progress, Connectedness, Vision and Meaning(Need to know where this came from so it can have an actual framework name, like Maslow’s Hierarchy.)
  24. Not sure if I need to recreate the following slides – may be just for SXSW? Can’t include all the links because it takes too much time, no one will read them all, can’t see them in small font and don’t want a string of slides. Probably need to mention the following:  Follow me on TwitterEmail me for copy of this presentation.Take a Zappos Tour! SB (Now) Slide 66Repeat of pizza illustration slide. SB (Now) Slide 67Text: Zappos: Delivering Happiness Image: repeat of title slide.