The whole story started in 1999 when founder Nick Swimnurn couldn’t find the Airwalk Desert Chukka boots he wanted in any of the stores… Over the years we learned a lot about what customers want from an online retailer. Shipping costs and timeframes were a major concern for customers (and still are today!) – The Return policy and ease of executing a return was also very important.
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The whole story started in 1999 when founder Nick Swimnurn couldn’t find the Airwalk Desert Chukka boots he wanted in any of the stores… Over the years we learned a lot about what customers want from an online retailer. Shipping costs and timeframes were a major concern for customers (and still are today!) – The Return policy and ease of executing a return was also very important. Drop-Shipping as a start – Eventually got our first Fulfillment Center (in California) – next slide
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The whole story started in 1999 when founder Nick Swimnurn couldn’t find the Airwalk Desert Chukka boots he wanted in any of the stores… Over the years we learned a lot about what customers want from an online retailer. Shipping costs and timeframes were a major concern for customers (and still are today!) – The Return policy and ease of executing a return was also very important. Drop-Shipping as a start – Eventually got our first Fulfillment Center (in California) – next slide
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The whole story started in 1999 when founder Nick Swimnurn couldn’t find the Airwalk Desert Chukka boots he wanted in any of the stores… Over the years we learned a lot about what customers want from an online retailer. Shipping costs and timeframes were a major concern for customers (and still are today!) – The Return policy and ease of executing a return was also very important. Drop-Shipping as a start – Eventually got our first Fulfillment Center (in California) – next slide
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The whole story started in 1999 when founder Nick Swimnurn couldn’t find the Airwalk Desert Chukka boots he wanted in any of the stores… Over the years we learned a lot about what customers want from an online retailer. Shipping costs and timeframes were a major concern for customers (and still are today!) – The Return policy and ease of executing a return was also very important. Drop-Shipping as a start – Eventually got our first Fulfillment Center (in California) – next slide
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To control the shipping process we made the tough decision to do the fulfillment ourselves (we now have over a million square feet of warehouse space in Shepherdsville, KY)
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The whole story started in 1999 when founder Nick Swimnurn couldn’t find the Airwalk Desert Chukka boots he wanted in any of the stores… Over the years we learned a lot about what customers want from an online retailer. Shipping costs and timeframes were a major concern for customers (and still are today!) – The Return policy and ease of executing a return was also very important. Drop-Shipping as a start – Eventually got our first Fulfillment Center (in California) – next slide
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Presentation Notes
The whole story started in 1999 when founder Nick Swimnurn couldn’t find the Airwalk Desert Chukka boots he wanted in any of the stores… Over the years we learned a lot about what customers want from an online retailer. Shipping costs and timeframes were a major concern for customers (and still are today!) – The Return policy and ease of executing a return was also very important. Drop-Shipping as a start – Eventually got our first Fulfillment Center (in California) – next slide
Presenter
Presentation Notes
The whole story started in 1999 when founder Nick Swimnurn couldn’t find the Airwalk Desert Chukka boots he wanted in any of the stores… Over the years we learned a lot about what customers want from an online retailer. Shipping costs and timeframes were a major concern for customers (and still are today!) – The Return policy and ease of executing a return was also very important. Drop-Shipping as a start – Eventually got our first Fulfillment Center (in California) – next slide
S E R V I C E in Fabulous
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With shipping taken care of, we started looking for a better place for our call center. We wanted a place that was conducive to a 24 hour working environment. Out of all the cities we looked into, Las Vegas came out on top! It is a 24 hour town, the cost of living is more reasonable and you can make a living out of doing call center work (there are a lot of call centers in Vegas!) Vegas is a service town, so we knew we’d be able to find the right people for the job!
“Our Business Strategy since 2005 has been to invest in company culture, with the belief
That the culture will ultimately drive employee productivity, customer service
quality and brand strength.” - Tony Hsieh
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The Vision and focus changed/evolved again in 2009. Along with our focus on selection and service, the Zappos Family started offering culture training through Zappos Insights. The vision was now a bigger-picture of Delivering Happiness to the world!
15
6 years in a row!!
# 1 in 2011!
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Here’s a credibility slide! :0) Hit list in 2009 at #23, the highest ranking newcomer to the list! 5 Years in a row on the list! AMEX #1 customer service – Image How many of you here today have shopped on Zappos.com? How many have experienced the Zappos Service/Experience (called in, emailed or live-chatted with us)?
A bit about Zappos: Growth
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Here’s a credibility slide! :0) With the culture driving our strategies, our service and our environment, we’ve been able to drive employee productivity, customer service quality and brand strength. Not to mention it hasn’t hurt sales, either. Culture and brand are two sides of the same coin – we are living our brand and seeing the results!
Attitudes, Feelings, Values and Behaviour that characterize and Inform a group and its
members
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A definition of company culture from yours truly
Company Culture
Taken from Delivering Happiness P157, 158
Alignment “We wanted a list of committable core values that we were willing to hire and fire on. If we weren’t willing to do that, Then they weren’t really ‘values’.” - Tony Hsieh
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Tony quote re: Need to commit to living values and importance of culture as a long-term business focus
Deliver WOW through Service Embrace & Drive Change Create Fun & a little weirdness Be Adventurous, Creative and Open-Minded Pursue Growth and Learning Build Open & Honest Relationships with Communication Build a Positive Team and Family Spirit Do More with Less Be Passionate & Determined Be Humble
Core Values
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Our Values – will briefly discuss each one and what it means
Defines Who you are
Not just What you do
Who is responsible for the culture?
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We all are!
A Culture of ________?
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You don’t have to define your culture and brand the same way we do. Once you’ve discovered what values are driving your organization, you can really understand what your culture is all about!
A Culture of Service!
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For us, it is a ‘Culture of Service’ – that is, we are service-minded in every direction.
all
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Every aspect of what we do is focused on the culture of service we have been living since 2005! Bringing in people who are aligned with the culture means that we don’t have to ‘train’ the culture or the service-focus The Zappos Development Front-end designers make the online design and search/shopping experience the best that it can be by providing many ways to locate the items you are looking for Zappos Merchandising knows that their role in the service is to stay on top of trends and offer the brands & products the customers will want Zappos Fulfillment Centers works around the clock to make sure items are packed and shipped quickly Zappos CLT does everything in their power to make any customer service experiences the best they can (Stories, Stories, Stories!!)
Fast, Free shipping! o Most orders upgraded to NBD at no cost
o Correct item in New condition
o Easy (and free!) return process
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We’ve learned over the years that there are three fundamental elements required to WOW our customers. As you expand the self-service
Zappos Customer Loyalty Team (Calls – Emails – Live Chat)
NO Script No Call Time Restrictions No sales/upselling Core Value #3 We genuinely WANT to Speak to you!
The guy who sang our hold music - SINGING THE HOLD MUSIC!
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We’ve learned over the years that there are three fundamental elements required to WOW our customers. As you expand the self-service
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We do this with a variety of tools – most of which are “beyond the moment” experiences. While we can do all kinds of things to build bridges during our conversations, like talk about hometowns, weather, and pick up on environmental queues that aide in conversation starting, what really brings the WOW are the things all our team members are empowered to do AFTER the call ends. We send flowers, cookies, Jones’ soda. We send thank you cards, happy birthday messages, WOW packages, culture books. We follow-up and call customers back to see how their order was received. We send personalized videos. All of these things, by the way, were conceived of by our team members as they took it upon themselves to discover and promote new ways to WOW with service.
Makes Cents…
Companies with strong cultures tend to enjoy better returns on investment, higher net income growth, and bigger increases in share price than firms with weaker cultures. -Adam Zuckerman
International Survey Research
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33% higher profitability (Gallup)�43% more productivity (Hay Group)�37% higher sales (Shawn Achor)�300% more innovation (HBR) And lowers nearly every business liability: 51% lower turnover (Gallup)�50% less safety incidents (Babcock Marine Clyde)�66% decrease in sick leave (Forbes)�125% less burnout (HBR)
Makes Cents…
Less Burnout
Lower Turnover
More Productivity
Higher Profitability
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33% higher profitability (Gallup)�43% more productivity (Hay Group)�37% higher sales (Shawn Achor)�300% more innovation (HBR) And lowers nearly every business liability: 51% lower turnover (Gallup)�50% less safety incidents (Babcock Marine Clyde)�66% decrease in sick leave (Forbes)�125% less burnout (HBR)
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If you asked your employees for their honest thoughts about your company, would you publish the unedited responses and share it with the world? Each year we ask anyone who wants to participate to send in a sentence, paragraph or essay about what they think of the Zappos Family culture and what it means to them. These entries are not edited or censored, but rather compiled by department and shared in our annual Culture Book. You can request to have the book sent to you at no cost by visiting http://culturebook.org So what’s it all add up to? Happiness. Delivered. We’ve worked really hard to develop a place that people want to come to, want to work in, feel great about, take pride in and truly enjoy and a place where folks want to visit, shop at, and come back to, over and over again.
Customers come back…
75% of purchases are from returning customers
& shop More often!
Repeat customers
order >2.5x per
year
Customers tell Their friends
40% of the ‘new’
customers Were told about an
experience
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And, of course, what our customers become is REPEAT CUSTOMERS! Our repeat customer statistics are staggering. 75% of all purchases are from returning customers. So what’s it all add up to? Happiness. Delivered. We’ve worked really hard to develop a place that people want to come to, want to work in, feel great about, take pride in and truly enjoy and a place where folks want to visit, shop at, and come back to, over and over again.
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The amazing thing is that it only takes small change to get started. Small changes by leadership will be mirrored by the rest of the team! Change your language…. Change your focus…. Change your attitude….. Change your leadership approach…. Change your culture
Want to see more? We have a bunch of options through Zappos Insights! The website has a membership portal with content and blog posts The team offers live events in our offices in Las Vegas, too!
