Zappos: Delivering Happiness Jessica Hendricks May 19, 2014

AGENDA Amazon Acquisition Lessons from Zappos Questions Company Background Customer-Focused Business Model Company Vision/Culture Exceptional Customer Service Leveraging Social Media Amazon Acquisition Lessons from Zappos Questions

COMPANY BACKGROUND Founded in 1999 by Nick Swinmurn Tony Hsieh originally served as an investor and advisor before joining Zappos as co-CEO ShoeSite.com  Zappos.com 2003 – Changed strategy 2004 – Moved headquarters to Las Vegas 2010 – Amazon acquires Zappos

CUSTOMER-FOCUSED BUSINESS MODEL Developing Long-Term Customer Relationships “Powered by Service” Unique and Addicting Shopping Experience http://www.zappos.com/womens-heels~C8#!/womens-heels~HJ Exceptional Customer Service Transparency Zappos Insights

COMPANY VISION Provide the very best customer service Happy employees give great service 1999 Selection 2003 Customer service 2005 Culture and core values as a platform 2007 Personal Emotional Connection 2009 Delivering Happiness

COMPANY CULTURE Culture is a movement Hiring and Training Benefits Work-Life Integration Work Environment: https://www.youtube.com/watch?v=QJy1slz4evk

ZAPPOS CORE VALUES Deliver WOW Through Service Embrace and Drive Change Create Fun and a Little Weirdness Be Adventurous, Creative, and Open-Minded Pursue Growth and Learning Build Open and Honest Relationships With Communication Build a Positive Team and Family Spirit Do More with Less Be Passionate and Determined Be Humble

EXCEPTIONAL CUSTOMER SERVICE “People may not remember exactly what you did or what you said, but they will always remember how you made them feel.” Connecting with Customers WOWing Accessibility

LEVERAGING SOCIAL MEDIA

Both want what is best for the customer AMAZON ACQUISITION Low prices Goal is to reduce customer service calls Does not compete on price Wants customers to call Both want what is best for the customer

LESSONS FROM ZAPPOS Does Your Customer Really Need You? How Connected is your Customer Base? Serve a Perfect Fit Make it Effortlessly Swift Step into the Personal Stretch Play to Win

QUESTIONS What type of internet marketing strategy does Zappos prefer? Search Engine Optimization Search Engine Marketing Social Media Marketing All of the above. What type of business model is Zappos? B2B B2C C2B C2C 3. Zappos growth is mainly attributed to Customer Service Company Culture Employee Training/Development All of the above

REFERENCES Hsieh, Tony. “Zappos’s CEO on Going to Extremes for Customers”. Harvard Business Review. July-August 2010 <http://www.tmi.dk/files/pdf/HBR_-_Zappo.pdf> Michelli, Joseph. 2011. Does your Customer Really Need You? Lessons from Zappos. “Why I sold Zappos.” Inc. Magazine. June1 2010 <http://www.inc.com/welcome.html?destination=http://www.inc.com/magazine/20100601/why-i-sold-zappos.html> “Zappos: Delivering Happiness to Stakeholders”. Daniel Fund Ethics Initiative, University of New Mexico. 2012 <http://danielsethics.mgt.unm.edu/pdf/Zappos%20Case.pdf> “Zappos: Happiness in a Box”. Stanford Graduate School of Business. August 23 2010, Case: M-333