Zappos Building a Brand that Matters

Building a Brand that Matters

A little about me…

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R&D

Community and Experience

Culture

A service company that just happens to sell shoes, clothing,

handbags, accessories, housewares…

2009 #23 2010 #15

2011 #6

TOP 100 BEST COMPANIES TO WORK FOR

Headquarters: Henderson, NVFulfillment: Shepherdsville, KY1500+ employees

1,000+ brands200,000+ styles6 million items

in warehouse100% inventoried

Customer Service:What customers see first

24/7 1-800 number on every page

Free shipping

Free return shipping

365-day return policy

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Customer Service:What customers experience

Fast, accurate fulfillment

Surprise Upgrades

Occasionally direct to competitors’ web sites8

Customer Service:What we do internally

No call times/sales goals

Culture Reviews

4 weeks of training

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Customer Service:What we do internally

Pay to Quit

Culture Book

Interviews Based on Culture

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NPS Scores – The Ultimate Question

• Based on your recent experience, how likely would you be to recommend us to a friend or family member?

NPS Scores – The Ultimate Question

• Based on your recent experience, how likely would you be to recommend us to a friend or family member?

93%

NPS Scores

• If you started your own service-based company, how likely would you be to hire the team member who assisted you?

NPS Scores

• If you started your own service-based company, how likely would you be to hire the team member who assisted you?

92%

7 Steps to Building a Brand

that Matters

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Step #1

• Decide if you’re trying to build a long term sustainable brand

• Requires more patience with revenues & profits in order to lay the foundation

• Decide sooner rather than later

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DECIDE

Step #2

FIGURE OUTVALUES & CULTURE

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VALUES & CULTURE

• PERSONAL/COMPANY’S core values

• Start EARLY…• It doesn’t MATTER what the

values are.

• The most important thing is ALIGNMENT

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Zappos Core Values1. 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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Step #3

COMMIT TO TRANSPARENCY“Be real and you have nothing to fear”

Your culture is your brandDon’t try to be someone you are not

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Commitment to Transparency:Examples

“Ask Anything” newsletter

Extranet for vendors

Tours & reporter visits

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Step #4

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

Does the vision have meaning?Chase the vision, not the money…

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Evolution of the Zappos Vision

Deliver Happiness

Culture/Values

Best Customer

Service

Best Selection of Shoes

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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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VISIONMOTIVATION

vs.INSPIRATION

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Step #5

BUILD RELATIONSHIPS(not networking or marketing)

Be INTERESTED rather than trying to be INTERESTINGZCN Clubs – PEC - Wishez

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PEC – Personal Emotional Connection

Wishez

Step #6

BUILD YOUR TEAM“If you want to go quickly, go alone. If you want to go far, go together.”

(African proverb)

Hire slowly. Fire quickly.

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Step #7

THINK LONG TERMRepeat customersCustomer service

There is no “get rich quick” formula

“Overnight” successes are years in the making(both personally and in business)

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WHAT CULTURE CAN DO FOR A COMPANY

NOV ‘09 AMAZON ACQUIRES ZAPPOS

$1.2 BILLION SHARE VALUE AT THE TIME OF CLOSING

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Thank you for allowing me to be here!

Email me! Jamie@zappos.com• Questions or Comments• A copy of this presentation• Tour of our office – If you happen to be in Las Vegas!

• Copy of our culture book– Be sure to include your mailing address!