Zappos - SXSW Presentation - Top 10 Lessons Learned in E-Commerce - 03 08 08

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Powerpoint of presentation given by CEO Tony Hsieh at the 2008 SXSW Interactive conference.

Business Education

Top 10 Lessons Learned in E-Commerce Tony Hsieh CEO SXSW Interactive Conference March 8, 2008

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Power of Repeat Customers & Word of Mouth

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Customer Service: What We Do Internally ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

LESSON #1 THE E-COMMERCE BUSINESS IS BUILT ON REPEAT CUSTOMERS.

Repeat Customer Data for Zappos.com 1.29 2.53 51.0% March 2005 1.37 2.66 51.3% March 2006 1.05 2.36 44.6% March 2004 0.66 1.96 33.5% March 2003 0.47 1.74 27.0% March 2002 0.31 1.50 20.4% March 2001 % repeat customers multipled by avg # purchases avg # purchases by repeat customers over next 12 months % customers who buy again within next 12 months (repeat customers)

LESSON #2 WORD OF MOUTH REALLY WORKS ONLINE.

LESSON #4 MAKE SURE YOUR WEB SITE INVENTORY IS 100% ACCURATE.

LESSON #5 CENTRALLY LOCATE YOUR DISTRIBUTION.

LESSON #6 CUSTOMER SERVICE IS AN INVESTMENT . (NOT AN EXPENSE)

LESSON #8 DON'T BE SECRETIVE. DON'T WORRY ABOUT COMPETITORS.

LESSON #9 YOU NEED TO ACTIVELY MANAGE YOUR COMPANY CULTURE.

LESSON #10 BE WARY OF SO-CALLED EXPERTS. INCLUDING ME...

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Zappos Core Values ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Two Pens reverse-engineered Zappos's very successful content strategy based on public information available. This presentation was presented at Content Strategy Seattle's meetup on June 17, 2013. Our guess is that prior to Amazon's purchase of Zappos in 2009, Tony Hsieh would have freely given this information but Amazon loves to make a secret of their success. If you know more than we do, weigh in with your take in the comments.

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Discover how customer phenom Zappos.com grew their gross merchandise sales from $1.6M in 2000 to over $1 billion in 2008 by focusing relentlessly on customer service. Rob Siefker of the Zappos Customer Loyalty Team will discuss the Zappos commitment to WOWing their customers through service, how they retain repeat customers, and what they do internally to inspire the Zappos culture & core values. During this presentation you'll learn: :: How Zappos WOWs customers every day :: The power of repeat customers and word of mouth :: Why the Zappos culture = delivering happiness :: Seven steps for building a brand that matters

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Zappos - SXSW Presentation - Top 10 Lessons Learned in E-Commerce - 03 08 08

1. Top 10 Lessons Learned in E-Commerce Tony Hsieh CEO SXSW Interactive Conference March 8, 2008

4. Power of Repeat Customers & Word of Mouth

5. Customer Service in Action

9. Gross Merchandise Sales

10. Top 10 Lessons in E-commerce

11. LESSON #1 THE E-COMMERCE BUSINESS IS BUILT ON REPEAT CUSTOMERS.

12. Repeat Customer Data for Zappos.com 1.29 2.53 51.0% March 2005 1.37 2.66 51.3% March 2006 1.05 2.36 44.6% March 2004 0.66 1.96 33.5% March 2003 0.47 1.74 27.0% March 2002 0.31 1.50 20.4% March 2001 % repeat customers multipled by avg # purchases avg # purchases by repeat customers over next 12 months % customers who buy again within next 12 months (repeat customers)

13. LESSON #2 WORD OF MOUTH REALLY WORKS ONLINE.

14. LESSON #3 DON'T COMPETE ON PRICE.

15. LESSON #4 MAKE SURE YOUR WEB SITE INVENTORY IS 100% ACCURATE.

16. LESSON #5 CENTRALLY LOCATE YOUR DISTRIBUTION.

17. LESSON #6 CUSTOMER SERVICE IS AN INVESTMENT . (NOT AN EXPENSE)

18. LESSON #7 START SMALL. STAY FOCUSED.

19. LESSON #8 DON'T BE SECRETIVE. DON'T WORRY ABOUT COMPETITORS.

20. LESSON #9 YOU NEED TO ACTIVELY MANAGE YOUR COMPANY CULTURE.

21.

22.

23. LESSON #10 BE WARY OF SO-CALLED EXPERTS. INCLUDING ME...

24.

25.

26.

27.

Zappos - SXSW Presentation - Top 10 Lessons Learned in E-Commerce - 03 08 08

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