1. Delivering Happiness A path to profits, passion, and purpose Alfred Lin © 2009 sunnibrown.com

2. It all started with pizza… © 2009 sunnibrown.com

3. A Little About Me (Alfred) ’97-’98 ’94 ’99 ’05 - Today ’01-’05 © 2009 sunnibrown.com

4. ZAPPOS AT A GLANCE * Founded in 1999 700 in Las Vegas 700 in Lewisville 1400 employees © 2009 sunnibrown.com

5. Zappos at a Glance Powered by SERVICE! Fast, FREE shipping FREE return shipping Fast, friendly expert customer loyalty team 365-day return policy Fast fulfillment Best Selection 4M items / 100% inventoried © 2009 sunnibrown.com

6. Public recognition is nice but remember to pay more attention to CUSTOMERS! “50 Most Innovative Companies” “100 Best Companies to Work For” “Top 25 Customer Service Champs” © 2009 sunnibrown.com

7. Customers come. Then they come back. Then they order more and more often! © 2009 sunnibrown.com

8. The Power of WOW $1,000 800 Gross Sales $MM 600 400 200 ‘01 ‘02 ‘06 ‘03 ‘04 ‘05 ‘07 ‘00 ‘08 © 2009 sunnibrown.com

9. SERVICE What customers notice first 24/7 customer service 800 number on every page 365-day return policy Free return shipping Free shipping © 2009 sunnibrown.com

10. SERVICE Building Customer Loyalty No scripts No call times No upselling Ensure every phone call is a brand-building experience © 2009 sunnibrown.com

11. SERVICE What customers experience next Redirection to competitors’ sites Fast, accurate fulfillment Surprise upgrades to overnight shipping Above-and-beyond customer service © 2009 sunnibrown.com

12. Culture (the #1 priority) Hiring for culture 5 weeks of training $2000 to quit Culture book Twitter helps build culture © 2009 sunnibrown.com

13. Clothing, Customer Service, Culture Culture Customer Service Clothing

14. lothing © 2009 sunnibrown.com

15. ustomer Service © 2009 sunnibrown.com

16. ulture © 2009 sunnibrown.com

17. Clothing, Customer Service, Culture Culture Customer Service Clothing

18. 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

19. ulture = COMMITTABLE COREVALUES Don’t make your core values just a meaningless plaque on the wall… © 2009 sunnibrown.com

20. An Example of CORE VALUES © 2009 sunnibrown.com

21. Be adventurous, creativeand open-minded. Embrace and Create fun and a little Deliver through service. drive change. Pursue growth and learning. weirdness. Do more with less. Be passionate and determined. Build open and honest Build a positive team and family spirit. Delivery relationships w/ communication. Be humble. © 2009 sunnibrown.com

22. Building Great…

23. 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

25. “Ask Anything” employee newsletter

26. Openness with vendors

27. Tours

28. Reporter visits

29. Sharing internal information with other companiesExamples of Transparency

30. That’s great, but it wouldnever work at my company… © 2009 sunnibrown.com

31. “It doesn’t matter what your core values are… as long as you commit to them. ALIGNMENT © 2009 sunnibrown.com

32. HAVE A VISION. Whatever you’re thinking, think bigger. © 2009 sunnibrown.com

33. 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., ” © 2009 sunnibrown.com

34. What would you do passionatelyfor 10years without making a dime? © 2009 sunnibrown.com

35. What’s the greater vision and purpose of employees’ work? Go beyond the profit motive. © 2009 sunnibrown.com

36. Motivation is different from inspiration. © 2009 sunnibrown.com

38. 2003 Customer Service

39. 2005 Culture and core values as our platform

40. 2007 Personal Emotional Connection

41. 2009 Delivering HappinessEvolution of a Brand

42. Take a step back. Stop and ask yourself: What is your goal in life? © 2009 sunnibrown.com

43. WHAT IS YOUR GOAL IN LIFE? Grow Company Get a Great Job Boyfriend / Girlfriend Be Healthy why? why? why? why? Retire Early Make Money Find Soul Mate Run Faster why? why? why? why? Spend Time w/ Family Buy A Home Get Married Run A Marathon why? why? why? why? HAPPINESS

44. Research has shown that people are very bad at predicting what will bring us sustained happiness. © 2009 sunnibrown.com

45. HAPPINESS People 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:

46. “If happiness is your goal, ask why 5 times about every matter.” – TaiichiOhno why why why why © 2009 sunnibrown.com

47. 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

48. WHAT IS YOUR GOAL IN LIFE? Grow Company Get a Great Job Boyfriend / Girlfriend Be Healthy why? why? why? why? Retire Early Make Money Find Soul Mate Run Faster why? why? why? why? Spend Time w/ Family Buy A Home Get Married Run A Marathon why? why? why? why? HAPPINESS

49. A FEW DIFFERENT ON HAPPINESS f r a m e w o s r k © 2009 sunnibrown.com

50. Perceived Control Perceived Progress Connectedness Vision / Meaning (Being part of something bigger than yourself) A FEW DIFFERENT FRAMEWORKS ON HAPPINESS:

51. Maslow’s Hierarchy:

52. 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

53. Happy Great Great PeopleEmployeesBusinesses Pleasure Job Profits Chasing highs Comp/Benefits Financial Performance Flow Career Passion Engagement Recognition Passion Meaning Calling Purpose Purpose PurposePurpose time time time

54. Important Questions © 2009 sunnibrown.com

55. 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

56. If the research shows that vision / meaning / higher purpose leads to happiness… What is your company’s higher purpose? What is your higher purpose?

57. Recommended Books

58. PEAK Chip Conley TRIBAL LEADERSHIP Dave Logan, John King & Halee Fischer-Wright FOUR HOUR WORK WEEK Tim Ferriss HAPPINESS HYPOTHESIS Jonathan Haidt RECOMMENDED BOOKS:

59. 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!

60. Delivering Happiness A path to profits, passion, and purpose Alfred Lin © 2009 sunnibrown.com