Delivering HappinessTony Hsieh – CEOceo@zappos.com

twitter.com/zappos

Startup SchoolOctober 24, 2009

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A Little About Me (Tony)My Background

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Power of repeat customers and word of mouth...

2000 2001 2002 2003 2004 2005 2006 2007 2008

Gross Sales 1.6 8.6 32 70 184 370 597 841 1014

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Focusing on the 3 C’s

Clothing

Customer Service

Culture

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Clothing

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Customer Service

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Culture

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Focusing on the 3 C’s:Clothing, Customer Service, Culture

Customer Service

Clothing

Culture

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ZapposDelivering 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.”

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Building Great

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VISION“Whatever you’re thinking, think bigger.”

Does the vision have meaning?

Chase the vision, not the money…

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VISION

“Don’t chase the paper, chase the dream.”

Sean Combs aka “Puff Daddy” to rapperBiggie Smalls aka “Notorious B.I.G.”

in Notorious

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ENTREPRENEURS:

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

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EMPLOYEES:

What’s the larger vision and greater purpose in

their work beyond money or profits?

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CULTURE“Committable Core Values”

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Zappos Core Values

1. Deliver WOW Through Service2. Embrace and Drive Change3. Create Fun and a Little Weirdness4. Be Adventurous, Creative, and Open-Minded5. Pursue Growth and Learning6. Build Open and Honest Relationships With Communication7. Build a Positive Team and Family Spirit8. Do More with Less9. Be Passionate and Determined10. Be Humble

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It doesn’t matter what your core values are… as long as

you commit to them.

ALIGNMENT

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MOTIVATIONvs.

INSPIRATION

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Vision & CultureCAN INSPIRE

Passion & Purpose

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Evolution of Zappos BrandTranscends shoes & service

• 1999 Selection

• 2003 Customer Service

• 2005 Culture and core values as our platform

• 2007 Personal Emotional Connection

• 2009 Delivering Happiness

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TAKE A STEP BACKWhat is your goal in life?

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WHAT IS YOUR GOAL IN LIFE?

Grow Company

Get a Great Job

Boyfriend / Girlfriend Be Healthy

Retire Early Make Money Find Soul Mate Run Faster

Spend Time w/ Family Buy A Home Get Married Run A

Marathon

why? why? why? why?

why? why? why? why?

HAPPINESSwhy? why? why? why?

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RESEARCH HAS SHOWN:

HAPPINESSPeople 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.”

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HAPPINESS:

• 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 HAPPINIESS?

• How much HAPPIER could you be?

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WHAT IS YOUR GOAL IN LIFE?

Grow Company

Get a Great Job

Boyfriend / Girlfriend Be Healthy

Retire Early Make Money Find Soul Mate Run Faster

Spend Time w/ Family Buy A Home Get Married Run A

Marathon

why? why? why? why?

why? why? why? why?

HAPPINESSwhy? why? why? why?

A Few Different Frameworks of

HAPPINESS

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Perceived Control

Perceived Progress

Connectedness

Vision / Meaning(Being part of something bigger than yourself)

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Maslow’s Hierarchy:

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Pleasure / Rock Star(Chasing the next high)

Passion / Flow(Engagement – time flies)

Higher Purpose / Meaning(Being part of something bigger than yourself)

3 TYPES OF HAPPINESS

time

time

time

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• Email ceo@zappos.com for:

A copy of this presentation

FREE culture book (need physical mailing address)

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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?

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GREAT BUSINESS

Profits

Passion

Purpose

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Pleasure

Passion

Purpose

HAPPINESS

time

time

time

GREAT BUSINESS

Profits

Passion

Purpose

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If the research shows that vision / meaning / higher purpose

leads to happiness…

What is your company’s higher purpose?

What is your higher purpose?

Delivering HAPPINESS

Delivering HappinessTony Hsieh – CEOceo@zappos.com

twitter.com/zappos

Startup SchoolOctober 24, 2009