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Delivering Happiness,[object Object],Tony Hsieh, CEO,[object Object]
It all started with pizza…,[object Object]
MY BACKGROUND ,[object Object],’96-’98,[object Object],’94-’95,[object Object],’99,[object Object],’99 - Today,[object Object]
ZAPPOS AT A GLANCE,[object Object],*,[object Object],Founded in 1999,[object Object],700 in,[object Object],Las Vegas,[object Object],700 in,[object Object],Lewisville,[object Object],1400,[object Object],employees,[object Object]
ZAPPOS AT A GLANCE,[object Object],4 million,[object Object],warehouse,[object Object],items,[object Object],100%,[object Object],inventoried,[object Object],BEST,[object Object],SELECTION!,[object Object]
Zappos is powered by,[object Object],SERVICE!,[object Object],Fast, FREE,[object Object],shipping,[object Object],FREE return,[object Object],shipping,[object Object],Fast, friendly,[object Object],expert customer,[object Object],loyalty team,[object Object],365-day,[object Object],return policy,[object Object],Fast,[object Object],fulfillment,[object Object]
Zapposon TV!,[object Object]
Zapposin the News!,[object Object],“50 Most,[object Object],Innovative,[object Object],Companies”,[object Object],“100 Best,[object Object],Companies,[object Object],to Work For”,[object Object],“Top 25,[object Object],Customer,[object Object],Service Champs”,[object Object]
Zappos is committed to,[object Object],WOWing every customer.,[object Object],365-day returns!,[object Object]
Customers come.,[object Object],Then they come back.,[object Object],Then they order more and more often!,[object Object]
The Power of WOW,[object Object],$1,000,[object Object],800,[object Object],Gross Sales $MM,[object Object],600,[object Object],400,[object Object],200,[object Object],‘01,[object Object],‘02,[object Object],‘06,[object Object],‘03,[object Object],‘04,[object Object],‘05,[object Object],‘07,[object Object],‘00,[object Object],‘08,[object Object]
SERVICE,[object Object],What customers notice first,[object Object],24/7 customer service,[object Object],800 number on every page,[object Object],365-day return policy,[object Object],Free return shipping,[object Object],Free shipping,[object Object]
SERVICE,[object Object],What customers experience next,[object Object],Redirection to competitors’ sites,[object Object],Fast, accurate fulfillment,[object Object],Surprise upgrades to overnight shipping,[object Object],Above-and-beyond customer service,[object Object]
SERVICE,[object Object],How we ensure it with our employees,[object Object],$2000 incentive to quit,[object Object],5 weeks of training,[object Object],No sales-based performance goals,[object Object],No call times,[object Object]
SERVICE,[object Object],How we ensure it through our policies,[object Object],Use of the telephone and Twitter,[object Object],Culture Books,[object Object],24/7 warehouse,[object Object],All products inventoried –,[object Object],no drop shipping,[object Object],50% of interviews and performance,[object Object],reviews based on values and culture fit,[object Object]
Bright Spot Delivering Happiness
WE OWN THE 3 ,[object Object],S,[object Object]
lothing,[object Object]
ustomer Service,[object Object]
ulture,[object Object]
“I’ve learned that people will forget what you said,,[object Object], people will forget what you did, but,[object Object],people will never forget how you made them feel.”,[object Object],- Maya Angelou,[object Object]
ulture =,[object Object],COMMITTABLE,[object Object],COREVALUES,[object Object]
ZAPPOS,[object Object],CORE,[object Object],VALUES,[object Object]
Deliver,[object Object],through,[object Object],service.,[object Object]
Embrace and drive change.,[object Object]
Create fun and alittle,[object Object],weirdness.,[object Object]
Be adventurous, creative,[object Object],and open-minded.,[object Object]
growth,[object Object],Pursue,[object Object],and learning.,[object Object]
Build open and,[object Object],honest relationships,[object Object],with communication.,[object Object]
Build a positive,[object Object],team and,[object Object],family spirit.,[object Object]
Do more with less.,[object Object]
Be passionate,[object Object],and determined.,[object Object],Delivery!,[object Object]
Be humble.,[object Object]
That’s great for,[object Object],Zappos but it,[object Object],wouldnever work,[object Object],at my company…,[object Object]
“It doesn’t matter,[object Object],what your core values are…,[object Object],as long as you commit to them. ,[object Object]
S,[object Object],7,[object Object],P,[object Object],E,[object Object],TO BUILDING A,[object Object],T,[object Object],S,[object Object],BRAND THAT ,[object Object],MATTERS,[object Object]
Sooner rather than later,,[object Object],DECIDE,[object Object],if you’re trying to build a long-,[object Object],term, sustainable brand.,[object Object],STEP 1: ,[object Object]
STEP 2: ,[object Object],Figure out,[object Object],values,[object Object],and culture.,[object Object]
 company,[object Object],personal,[object Object],Values,[object Object],Culture,[object Object],Live the brand! ,[object Object],Align!,[object Object]
STEP 3: ,[object Object],Commit to,[object Object],transparency.,[object Object]
transparency,[object Object],tours and reporter,[object Object],visits,[object Object],“Ask Anything”,[object Object],newsletter,[object Object],extranet for,[object Object],vendors ,[object Object],twitter.zappos.com,[object Object],zapposinsights.com,[object Object]
STEP 4: ,[object Object],HAVE A VISION.,[object Object],Whatever you’re thinking, think bigger.,[object Object]
WORDS OF WISDOM,[object Object],Don’t chase,[object Object],the paper;,[object Object],chase the,[object Object],DREAM.,[object Object],Sean Combs, a.k.a.,[object Object],“Puff Daddy”,[object Object],Biggie Smalls, a.k.a. “Notorious B.I.G., ”,[object Object]
What would you do,[object Object],passionatelyfor,[object Object],10years without,[object Object],making a dime?,[object Object]
What’s the greater vision and purpose of employees’ work? ,[object Object],Go beyond the profit motive.,[object Object]
Motivation is different,[object Object],from inspiration.,[object Object]
STEP 5: ,[object Object],BUILD RELATIONSHIPS.,[object Object],Don’t “network.”,[object Object]
STEP 6: ,[object Object],BUILD YOURTEAM.,[object Object],Hire slowly, fire quickly.,[object Object]
If you want to go quickly, go alone. If you want to go far, go together.,[object Object],– African proverb,[object Object]
STEP 7: ,[object Object],THINK LONG TERM.,[object Object],There is no get-rich formula.,[object Object]
Stop and ask yourself:,[object Object],What is your goal in life? ,[object Object]
“If happiness is your goal,,[object Object],ask why 5 times about every matter.”,[object Object],– TaiichiOhno,[object Object],why,[object Object],why,[object Object],why,[object Object],why,[object Object]
Get an education. Why?,[object Object],Have a great career. Why?,[object Object],Save money. Why?,[object Object],Retire early. Why?,[object Object],Spend time with your family. Why?,[object Object]
Research has shown that people,[object Object],are very bad at predicting what,[object Object],will bring us sustained,[object Object],happiness.,[object Object]
There’s a science behind business.,[object Object],conversion ,[object Object],psychology of buying ,[object Object],direct marketing,[object Object],repeat customer behavior ,[object Object],customer acquisition metrics,[object Object]
What if we studied,[object Object],the science behind happiness?,[object Object]
A FEW DIFFERENT,[object Object],ON HAPPINESS,[object Object],f,[object Object],r,[object Object],a,[object Object],m,[object Object],e,[object Object],w,[object Object],o,[object Object],s,[object Object],r,[object Object],k,[object Object]
Perceived Control, Perceived Progress, Connectedness, Vision and Meaning,[object Object]
Maslow’s Hierarchy,[object Object],Self,[object Object],Actualization,[object Object],Self-Esteem,[object Object],Love/Belonging,[object Object],Safety,[object Object],Physiological,[object Object]
TYPES OF HAPPINESS,[object Object],Rock Star (Pleasure) ,[object Object],Flow (Engagement) ,[object Object],Meaning (Higher Purpose) ,[object Object]
2 Important,[object Object],Questions,[object Object]
If research shows that vision and a higher purpose leads to happiness…,[object Object]
…what percentage of your time,[object Object], are you willing to spend learning,[object Object], the science of happiness?’,[object Object]
How can the science of happiness,[object Object],help your business,,[object Object],your brand,,[object Object],and yourself?,[object Object]
Recommended Books,[object Object]

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Bright Spot Delivering Happiness

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Editor's Notes

  1. Zappos is Powered by SERVICE - Best online shopping experience possibleFast fulfillment and Fast, free shipping, Expedited delivery (redundancy here – email Brian)
  2. ZAPPOS on TVTV: Oprah, ABC Nightline, 60 Minutes (don’t need the years and Tony can say ‘nice but we pay more attention to our customers)
  3. ZAPPOS IN THE NEWSMagazines: #23 on Fortune’s “100 Best Companies to Work For”. (Tony should say Highest ranking debut for a newcomer)
  4. ZAPPOS IS COMMITTED TO ‘WOW’ING EVERY CUSTOMER (Tony can indicate that they’ve seen the service value prop in action)
  5. Customers come. (Tony states the stats)Then they come back. (Tony states the stats)And when they come back, they order more and more often. (Tony states the stats)
  6. SB (Now) Slide 11:The reason why it’s acceptable to remove the stats on the slide before is because (a) these types of things need to be STATED, not read (b) no one will remember the minutiae/numbers and (c) this slide punctuates their success and people will remember the visual of the exponential increase.
  7. With our Employees:5 weeks of culture, core values, customer service and warehouse training (remove for everyone in Vegas office – that’s where their customer loyalty team is and Tony can mention that if he wants to);
  8. WE TAKE OWNERSHIP OF THE THREE Cs (or WE OWN THE THREE Cs) – (Ask Tony/Brian)
  9. SB (Now) Slide 21 (or deleted preferably):I don’t love the pyramid and the flow to the next slide would be just fine without it. Do we really need it? And is the meaning implied by a pyramid really the importance? Ask Tony and Brian.
  10. “People may not remember exactly what you did, or what you said, but they will always remember how you made them feel.” (Tony’s quote in PP – tell him you found the real one and the author.)
  11. Culture = Committable Core Values‘Committable Core Values’ represented by image of person standing with a heart on his shirt and a heart on a flag that’s stuck in the ground next to him, that he’s holding proudly (metaphor is that you put a stake in the ground when you commit to something).Keep four photos but array them like a stack of books, spread arched like a deck of cards.(Ask Tony and Brian if the pictures of the Culture books serve a particular purpose?)
  12. SB (Now) Slide 35Text “It doesn’t matter what your core values are…as long as you commit to them. Remove the word ‘Alignment’ (Ask Tony and Brian about this. Does he really want to say that it doesn’t matter what your core values are?)
  13. SB (Now) Slide 37Text ‘Step 1: Sooner rather than later, DECIDE if you’re trying to build a long-term, sustainable brand.’ (Remove the words ‘Requires more patience with revenues & profits in order to lay the foundation. He can say that.)
  14. SB (Now) Slide 39Smaller but exact version of DECIDE text above Then ‘Figure out values and culture with two arrows going overhead pointing to ‘personal’ and ‘company.’ Two arrows underneath point to ‘ALIGN’ and ‘LIVE THE BRAND.’ (Remove the words ‘Start early. It is surprisingly harder than you think. It doesn’t matter what the values are. Some of this he’s already included before and others he can say in his presentation.)
  15. SB (Now) Slide 40Text ‘Step 3: COMMIT TO TRANSPARENCY’ Text fade to gray. Text in my own handwritten font – larger than the 10 committable values earlier which are in Hand of Sean font. None of the 7 will have images because the font will serve as a word picture. Remove the words ‘don’t try to be someone you’re not – he can say that.’ First, ‘Your culture IS your brand’ and then ‘Be real and you have nothing to fear.’
  16. SB (Now) Slide 42Text Step 4: VISION – Whatever you’re thinking, think bigger. (Remove Does the vision have meaning? (Tony can say) And ‘Chase the vision, not the money.’ Because that’s on the next slide basically)
  17. SB (Now) Slide 43Text’ Don’t Chase the paper, chase the dream.’ (Hand of Sean font) Photo of Biggie with hand-drawn frame around him like the other photos of employees. Remove the word ‘vision’ and all the other text. Also, confirm that it’s okay to put Puff Daddy’s photo in there since he’s the one with the actual quote.
  18. SB (Now) Slide 44Text ‘What would you do passionately for 10 years without making a dime? (Remove the word entrepreneurs. Tony can say.)
  19. SB (Now) Slide 45What’s the greater vision and purpose of employees’ work – beyond the profit motive?’(Remove the word ‘employees.’ Included in question.)
  20. (Now) Slide 50Text ‘Step 7: “There is no get-rich formula (above and in Hand of Sean font), THINK LONG TERM’ in my own handwritten font. (Remove the words ‘overnight successes are years in the making, both personally and in business.’ Tony can say.)
  21. SB (Now) Slide 53“Get an education. (Why?) Have a great career. (Why?) Save money. (Why?) Retire early. (Why?) Spend time with your family. (Why?) Happiness.” Use Slide 37 Prototype B as sample for image. (Only need one of these threads of thought to get the point across.)
  22. SB (Now) Slide 54Image of someone at a slot machine. Research has shown (in hand of sean font), PEOPLE ARE VERY BAD AT PREDICTING WHAT WILL BRING THEM SUSTAINED HAPPINESS.” Remove “when I get ___, I will be happy and When I achieve _____, I will be happy.”
  23. SB (Now) Slide 58Text: Perceived Control, Perceived Progress, Connectedness, Vision and Meaning(Need to know where this came from so it can have an actual framework name, like Maslow’s Hierarchy.)
  24. Not sure if I need to recreate the following slides – may be just for SXSW? Can’t include all the links because it takes too much time, no one will read them all, can’t see them in small font and don’t want a string of slides. Probably need to mention the following:  Follow me on TwitterEmail me for copy of this presentation.Take a Zappos Tour! SB (Now) Slide 66Repeat of pizza illustration slide. SB (Now) Slide 67Text: Zappos: Delivering Happiness Image: repeat of title slide.