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What is the Zappos Culture

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What is the Zappos Culture Powered By Docstoc
					                                                                                                                                               11/12/09




                                                     Zappos at a Glance
                                                     Corporate Background
             Zappos.com                                – Founded in 1999

       Service, Culture, People                        – 1400 employees (half in Las Vegas headquarters, half in Kentucky)
                                                             #23 in FORTUNE MAGAZINE’s “100 Best Companies To Work For”
                                                             Highest debut for a newcomer in 2009
                    Jane Judd                          – Zappos is “Powered by Service”
       Sr. Manager, Customer Loyalty Team                    Providing the best online shopping experience possible.
                                                             Fast, Free Shipping. Free return shipping. 365-day return policy.
                                                             Fast fulfillment. Expedited delivery. Fast, friendly & expert customer service.

                                                       – Best selection
                                                             Over 1200 brands, over 200,000 styles, over 900,000 unique UPCs.
                                                             4 million items in warehouse
                                                             100% of products inventoried (no drop ship).

                                                       – Zappos is a service company that happens to sell clothing, shoes, handbags,
                                                         eyewear, watches (and eventually a bunch of other stuff).




Recent Recognition:
Nice, but we pay more attention to our customers
• TV Stories
   –
   –
       Donald Trump-Apprentice (2009)
       Oprah (2008/2009)
                                                      What is the Zappos
   –
   –
       ABC Nightline (2008)
       60 Minutes (2007)                                    Culture?
• 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)




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     Culture: establish “committable core values”…
Every employee is asked to live & breathe the core values
            and inspire the culture in others.
1. Deliver WOW Through Service
2. Embrace and Drive Change
                                                               Hiring the Right
3. Create Fun and a Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning                                       People
6. Build Open and Honest Relationships With Communication
7. Build a Positive Team and Family Spirit
8. Do More with Less
9. Be Passionate and Determined
10. Be Humble




                   Culture and Recruiting                               Culture and Recruiting
 •   How do we recruit for culture?
                                                             – The challenge!
      – 2 interviews
                                                                • Canned interview responses
          • Technical
          • Culture                                          – The solution!
               – Culture FTW!                                   • Shake ‘em up before you sit ‘em down!
      – Culture Interview                                            – “A three hour tour”
          • It’s all about the Core Values                           – Do you know the answer to 3 across?
               – Wow!                                                – What’s your theme song?
                     » Can you roll the way Zappos does?             – The cabin or Cher’s dressing room?
               – Adventurous & Creative!                        • I know you said you know… but do you really know?
                     » Do you feel lucky!?
                                                                     – CLT Training
               – Fun & Weird!
                                                                     – Testing
                     » You got to be, but don’t get crazy…
               – Team & Family!
                     » Workin’ 9 to 5?




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                               Culture and Recruiting
                                                                                                                       Customer Loyalty Vision & Philosophy
 • 100% Certified and Guaranteed!?
    – Continual evolution                                                                                              •   Provide the best possible customer experience
       • Peak Questions-                                                                                               •   Deliver happiness and build relationships with our customers
                                                                                                                           through “Personal Emotional Connections” (PEC)
    – Students have the exam ahead of time?
                                                                                                                       •   Hire people who are passionate about customer service to
       • Training is an extended screening process                                                                         preserve our strong culture
       • $2000 Offer to leave after New Hire Training                                                                  •   Invest in the development of people and cultivate our culture
                                                                                                                       •   Evaluate employees on their commitment to service and culture
                                                                                                                       •   Continue to improve operation efficiencies


                                                                                                                           Build and sustain an excellent culture that keeps
                                                                                                                           service as the major driver




Customer Service: the Zappos way…establishing a
personal emotional connection with the customer                                                                            Customer Loyalty Progression
                     See                        Experience                                Feel
 What customers first see on       What customers experience            What we do to establish a
 Zappos web site?                  after their order?                   personal emotional                         •   Investing in our Employee through continues training
                                                                        connection?
 • Great selection                 • Fast, Accurate Fulfillment         •   Manage Call Center Differently
                                                                        •   No call times—PSL                      •   Happy and Engaged Employees= Happy Customers
 • Easy to navigate web site       • Most customers are “surprise”-     •   No Scripts
                                     upgraded to overnight shipping     •   No sales-based performance goals
 • 24/7 800 # on every page                                                 for reps                               •   All-Star path or Leadership/Management path
                                   • Friendly, helpful “above and       •   Manage Fulfillment Differently
 • Free shipping                     beyond” customer service           •   Run warehouse 24/7
                                                                        •   Inventory all product (no drop-ship)   •   Two paths that intersect at many points throughout an employee’s career and
 • Free return shipping            • Occasionally direct customers to   •   Manage Culture Differently
                                     competitors’ web sites             •   Interviews and performance reviews
                                                                                                                       they are free to change paths at any time
 • 365-day return policy                                                    are 50% based on core values and
                                                                            culture fit
                                                                        •   5 weeks of culture, customer           •   Each path outlines responsibilities and milestones so employees know from
                                                                            service, and warehouse training for        the moment they walk in the door what steps they need to complete and how
                                                                            everyone in Las Vegas
                                                                        •   Offer $2,000 for trainees to quit
                                                                                                                       long it will take to reach any particular level
                                                                        •   Culture book

                                                                                                                   •   Examples: Zappos Specific testing, tour certification, Pipeline Classes, Mentor/
                                                                                                                       Ambassador Skill Sets




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            Teams and Relationships                                                         Trust and Transparency
• Relationships
  – Socialize with co-workers                                                   •    Employee Surveys                       • Twitter
  – ZCN Clubs                                                                   •    Culture Book                           • Distribution Lists
  – Twitter                                                                     •    OCM Notes                              • CLT
• Manager’s Role:                                                               •    Sales Reports                                  – No Scripts
  – Drive the culture, our Core Values should guide                             •    Ask Anything                                   – No Call Times
    decision making                                                                                                                 – Full Responsibility
                                                                                •    Media
  – Build their team (Team Building)
  – Inspire new ideas and creative thinking
                                                                                    “Trust men and they will be true to you; treat them greatly,
  – Help employees find their calling, reach their peak                                      and they will show themselves great.”
                                                                                                              Ralph Waldo Emerson




Customer service value proposition in action…                                                                Q and A
Zappos is committed to WOWing every customer.
                                                                                                   Email me – jjudd@zappos.com
  – Customers come…                                                                      Follow me on Twitter! http://twitter.com/juddj (@juddj)
      • 9.9M total purchasing customers (3.3% of US population)
      • 4.1M have purchased in the last 12 months

                                                                            • Copy of our Culture Book (Please provide a physical mailing
  – Customers come back…
                                                                              address)
      • On any given day, about 75% of purchases from returning customers
      • Repeat customers order >2.5x in the next 12 months                  • Tour of our offices when you’re next in Las Vegas (takes about
                                                                              45-60 minutes)
  – Customers come back, order more and order more often…
      • Repeat customers have higher average order size                     • Job Opportunities
      • $123.86 – first time customers in Q407
      • $156.27 – returning customer in Q407




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       Put a little Zappos in your day…
        …some links to check out…
– http://twitter.com/juddj (Jane Judd)

– http://twitter.com/zappos_service

– http://twitter.zappos.com
  (public mentions, employees)

– http://blogs.zappos.com
  (photos & videos of culture)

– http://about.zappos.com
  (more information about us & core values)

– http://www.zapposinsights.com
  (video Q&A from different depts., book recommendations)




        Legal and Financial Disclaimer




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