1. The talk of Tony Hsieh, founder of
Zappos about Delivering Happiness
Author: Mike Le (05/29/2010)
On May 26, 2010, I attended an event at Asia Society New York. The speaker was Tony Hsieh, the
founder of Zappos. His talk was about "Delivering Happiness", his coming book this June, 2010, and it
was very inspiring.
I'd like to share with you my notes at the event, for those friends who was not there:
Tony showed up at the event, look like a bright student more than a multi-millionaire. He was young,
smart, and humble.
Tony started with a few questions:
- What do customers expect?
- What do customers actually experience?
- What emotions do customers actual feel?
- What stories do they tell the friends?
- How can culture create more stories and memories?
It was interesting to hear how Tony focused on "the stories". Word-of-mouth is the best marketing. At
Zappos,75% of orders come from repeat customers.
Zappos offers amazing customer service:
- FREE overnight shipping!
- 365-day return policy!
Zappos started with 30-day return policy, then extended to 60, 90, and finally offers 365-day return policy
like today.
Zappos placed its first warehouse next to UPS in Shepherdsville, Kentucky so if a customer orders a
pair of shoes, she would receive it in the next 8 hours!

2. Zappos put its 1-800 number on every website pages. People can call in anytime. Tony thinks that
phone remains the wonderful tool to communicate with clients, because you can have your customer
concentration, uninterrupted, for 15 minutes or more.
Zappos motivates its call center to have long phone calls with customers. Recently, Zappos has the
recorded phone call for over 6 hours!
Tony quoted "Good to Great" and "Tribal Leadership" books, saying that great companies have strong
culture. At Zappos, Culture fits Personality. It recruits employees that fit with company culture.
Zappos has a 5-week training program. At the end of the program, it offers $2000 for the employees to
quit!
Tony said, in 2007 3% quit. 2008 there is 1%. 2009, no one. "We started with $100, then increased that,
because we were worried that we do not give enough incentive for the employees to quit!"
Tony found Twitter is helpful in building company culture. Employees may share their hobbies and
stories with each other, or invite colleagues to events, etc.
Culture needs committable core values. First, have core values, second, commit to it. Don't make your
core values just meaningless plaque on the wall.
Zappos published "Culture Book" with its 10 core values:
1. Deliver WOW through service
2. Embrace and drive change
3. Create fun and a little weirdness
4. Be adventurous, creative and open-minded
5. Pursue growth and learning
6. Build open and honest relationships with communication
7. Build a positive team and family spirit
8. Do more with less
9. Be passionate and determined
10. Be humble

3. Vision: "Whatever you are thinking, think bigger."
"Don't chase paper, chase the dream"
Tony summarized the Zappos progress:
1999: Selection
2003: Customer Service business
2005: Culture & Core values
2007: Personal Emotional Connection (PEC)
2009: Delivering Happiness
After that, Tony talked about Happiness.
What is your goals in life? then ask deeper about why?, why? why?, why? why?, why? finally research
has shown that all the answers will lead to "Happiness".
"When I get, I will be happy"
"When I achieve ________, I will be happy"
There is a SCIENCE behind business:
- Conversion
- Psychology of buying
- Direct Marketing
- Customer Acquisition Metrics
- Repeat Customer Behaviors, etc
How about spend 10% of your time to learn the SCIENCE of Happiness?
Tony talked about 3 types of Happiness, which are fun :-)
1. Rock Star (Pleasure - chasing the next high)
2. Flow (Engagement - Time files. Artists often say, there is a zone where peak engagement meets peak
performance)
3. Meaning/Higher Purpose (being part of something bigger than yourself)

4. People often follow 1 -> 2 -> 3. It should be 3 -> 2 -> 1 :-)
There were a lot more interesting details about the talk that I cannot write them all down.
I hope you will find this note useful!
Mike Le