Delivering Happiness - BIG Summit - 11-19-09

DELIVERING HAPPINESSA PATH TO PROFITS, PASSION, AND PURPOSE

Tony Hsieh

B.I.G. SummitNovember 19, 2009

A Little About Me (Tony)

Shepherdsville,

Kentucky

Las Vegas,Nevada

1400employees

Founded in 1999*

1000+ brands

5 million

+warehous

editems

“We are a service company

that happens to sell stuff.”

Public recognition is nice, but remember to pay more attention to customers.

TV Stories Oprah (2008/2009) ABC Nightline (2008) 60 Minutes (2007)

Fortune “100 Best Companies to Work For” #23 (2009) – Highest ranking newcomer to list

Fast Company “50 Most Innovative Companies” #20 (2009)

BusinessWeek Top 25 “Customer Service Champs” #7 (2009)

The Power of WOW

‘01 ‘02 ‘06‘03 ‘04 ‘05 ‘07‘00 ‘08

Gro

ss S

ale

s $M

M

$1,000

800

600

400

200

What customers notice firstSERVICE

800 number on every page

Free shipping

Free return shipping

24/7 customer service

365-day return policy

Building Customer Loyalty

No call times

Every phone call is a brand-building opportunity

No upselling

No scripts

SERVICE

What customers experience next

Redirect to competitors’ sites

Fast, accurate fulfillment

Surprise upgrades to overnight shipping

Above-and-beyond customer service

SERVICE

the #1 priorityCULTURE

5 weeks of training

Culture book

$2000 to quit

Hiring for culture

Twitter helps build culture

Clothing, Customer Service, Culture

Customer Service

Clothing

Culture

Clothing

Customer Service

Culture

Clothing, Customer Service, Culture

Customer Service

Clothing

Culture

Delivering 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.”

Building Great

CULTURE“Committable Core Values”

Don’t make your core values just a meaningless plaque on the wall…

Example: 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

COMMIT TO TRANSPARENCY

“Be real and you have nothing to fear”

Your culture is your brand

Don’t try to be someone you are not

Examples of Transparency

Twitter

“Ask Anything” employee newsletter

Openness with vendors

Tours

Reporter visits

Sharing internal information with other companies

“That’s great,but it would

never work at my company…”

ALIGNMENTIt doesn’t matter what your

core values are…as long as you

commit to them.

VISION

“Whatever you’re thinking, think bigger.”

Does the vision have meaning?

Chase the vision, not the money…

VISION

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

Sean Combs aka “Puff Daddy” to rapper Biggie Smalls aka “Notorious B.I.G.” in Notorious

ENTREPRENEURS:

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

EMPLOYEES:

What’s the larger vision and greater purpose in

their work beyond money or profits?

VISION

MOTIVATIONvs.

INSPIRATION

Evolution of a Brand

1999 Selection

2003 Customer Service

2005 Culture and core values as our platform

2007 Personal Emotional Connection

2009 Delivering Happiness

TAKE A STEP BACK…

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?

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.”

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 HAPPINESS?

How much HAPPIER could you be?


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?

why? why? why? why?

HAPPINESS

A FEW DIFFERENT FRAMEWORKS OF

HAPPINESS

A FEW DIFFERENT FRAMEWORKS ON

HAPPINESSPerceived Control

Perceived Progress

Connectedness

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

Maslow’s Hierarchy

3 TYPES OF HAPPINESS

Rock Star(Pleasure – chasing the next high)

Flow(Engagement – time flies)

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

time

time

time

RECOMMENDED BOOKS

PEAKChip Conley

TRIBAL LEADERSHIPDave Logan, John King & Halee Fischer-Wright

FOUR HOUR WORK WEEKTim Ferriss

HAPPINESS HYPOTHESISJonathan Haidt

Contact info and tours!

Email [email protected] for:

This presentation

Free culture book (need physical mailing address)

Go to http://tours.zappos.com for:

Tour of our offices when you’re next in Las Vegas (takes about an hour)

We’ll pick you up from the airport or your hotel in a Zappos Shuttle!

Profits

Passion

Purpose

GREAT BUSINESS

HAPPINESS

time

time

time

GREAT BUSINESS

Profits

Passion

Purpose

Pleasure

Passion

Purpose

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?

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 Happiness - BIG Summit - 11-19-09

Business

Transcript of Delivering Happiness - BIG Summit - 11-19-09