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Delivering Happiness the Zappos Way

Posted: 2009-05-27 15:17:05
Filed Under: Small Business, Marketing, Online Business

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BusinessWeek

How the footwear e-tailer's CEO, Tony Hsieh, builds a brand through public speaking.

"Happiness in a box." That's how one customer described the feeling of receiving her shoe order from online retailer Zappos.com.

Much has been written about how Zappos cultivates a culture dedicated to exceptional customer service (it famously offers $2,000 to employees who quit during its mandatory four-week training program for new hires, although few people take the offer). What's less known about Zappos is just how much time CEO Tony Hsieh has dedicated to spreading the Zappos gospel to most anyone who will listen.

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    During a recent interview, Hsieh told me he gives anywhere from one to four presentations a week, speaking at a variety of conferences and "pretty much anything" in Las Vegas (the company is based in the Vegas suburb of Henderson, Nev.). According to Hsieh, entrepreneurs and business owners should give as many public presentations as possible to support and help build the brand. "It's one thing to read about your company, but when a customer can associate it with an actual person, it creates a deeper, more meaningful connection to the brand," Hsieh told me. Here are Hsieh's three tips to building a brand through public speaking:

    • Speak about topics you're passionate about. Although Hsieh started an online shoe retailer, he's most passionate about customer service, corporate culture, and happiness. Yes, happiness. "Tony, what does happiness have to do with selling shoes?" I asked. "At Zappos, our higher purpose is delivering happiness," said Hsieh. "Whether it's the happiness our customers receive when they get a new pair of shoes or the perfect piece of clothing, or the happiness they get when dealing with a friendly customer rep over the phone, or the happiness our employees feel about being a part of a culture that celebrates their individuality, these are all ways we bring happiness to people's lives."

    Speaking about a topic he's passionate about, Hsieh engages his audiences and teaches them something new in the process. In a 55-slide PowerPoint deck, Hsieh devotes no more than five slides to a corporate discussion of Zappos data. The rest is dedicated to explaining how Zappos achieved its success ($1 billion in gross sales in 2008) and, most important, what the audience can learn from the Zappos story.

    • Tell personal stories. Hsieh begins and ends every presentation with stories that reinforce his themes of happiness, service, and culture. He typically kicks off his presentations with the story of working at a company he founded and finding that, once it had grown to a hundred people, he dreaded going to work because it wasn't fun anymore—the company had stopped hiring people based on how well they fit the culture. That story serves as a bridge into a discussion of why culture is so important to him today.

    Hsieh likes to end his presentation with what he calls his pizza story. One night, he and some vendors returned to a hotel room late. Someone in the group was craving pizza and was told room service had ended. As a joke, Hsieh suggested calling Zappos. You can probably guess the end of the story—even though Zappos doesn't sell pizza, the customer service rep found a list of local pizza places that would deliver to the hotel. It's a fun story that seriously reinforces Hsieh's theme of customer service.

    • Don't "sell" your product. Hsieh's goal in a presentation is not to sell shoes; it's to inspire his audience. Inspire them to do what? I asked Hsieh. "Inspired to provide better customer service, inspired to improve your corporate culture, inspired to learn more about the science of happiness," Hsieh responded. Most presenters fail to make the distinction between selling and inspiring. According to Hsieh, a brand is a shortcut to emotions. Decide what emotion you want your brand to stand for. Hsieh's presentations hardly touch on the subject of e-commerce, and neither do his blog or Twitter posts. Instead, he takes every opportunity to write and speak on customer service, culture, and happiness. "Ultimately, it causes people to be more attached to the brand and the company. You'd much rather support a company that inspires you than one that doesn't," says Hsieh.

    Carmine Gallo is a communications coach for some of the world's most admired brands. He is a speaker and author of the new book Fire Them Up! (John Wiley & Sons)

    2009-05-27 14:31:01
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    figuresman 08:07:40 PM Aug 08 2009

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    I've been to their warehouse in Kentucky. Incredible! The automation is second to none. I am a small business owner and I wish I had the kind of loyalty that they have with their employees. A well run company that makes a profit. In todays enviroment? Congratulations guys. Zappos is a reall winner.

    franbr2 11:42:42 PM Aug 01 2009

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    ZAPPO'S...U KIDDIN'....MARKETING SELS/SOLD ZAPPOS,MOST UNCOMFORTABLE SHOE. MOSTLY AT WALMART...REAL CHEAPOS:(

    asleep1020 08:43:04 AM Jul 19 2009

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    Oh this is great....AOL tellin me how great a shoe companay is. Like thats news and not an advertisment? And five thousand wanna be entrepreneurs gettin free advertising for "Creep" shoes.

    jmillardmorris 04:11:51 PM Jul 18 2009

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    THESE ARE SHOES? PLEASE! GO BUY A PAIR OF ALLEN-EDMUNDS OR JOHNSTON AND MURPHY AND OWN A REAL PAIR OF QUALITY FOOTWEAR.

    sevenpalmtreezz 12:43:38 PM Jul 15 2009

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    I did enjoy ZAPPOS until I left a comment/rating about shoes that I had 2 pairs of. I really like the shoes but did have a small flaw that would bother some people, my comment was edited to only tell the part where I raved about the shoes (DANSKO) and not the helpful tips I added, so I don't bother reading any of those comments, they may as well all been written by ZAPPOS themselves.

    shbliss 05:13:07 PM Jul 10 2009

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    Even as bad as it is , You can get good deals at http://shapauls.com

    plewis1114 04:54:24 PM Jul 10 2009

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    THE MOST PLEASANT ON-LINE PURCHASING EXPERIENCE I HAVE EVER HAD WAS WITH ZAPPOS. I WOULD RECOMMEND THEM WITHOUT RESERVATION.

    tmdv21 04:14:37 PM Jul 10 2009

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    Make money from home!www.earnincomenow.com/msubia

    richh0501 11:29:32 AM Jul 10 2009

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    Zappo's is a pleasure to do business with, hell there are times I feel guilty about returning shoes (fit, style, etc) because their customer service people go to such extremes to make things right..............I would never think of buying shoes (dress, casual, excersize) from anywhere else, why would I? Folks there just aren't too many companies you can say that about..............

    kscherman 11:27:14 AM Jun 25 2009

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    I LOVE SHOES, I LOVE CLOTHING, LOVE HAPPINESS, AND I HAVE GIVEN MANY SPEECHES. He is so correct.....who wants to hear about a product that one is selling because the first thing that pops into most of our subconscious minds is that of a sneaky salesperson only trying to make money. So, TOM, if you have a job I have the experience but most importantly the passion for design and new ideas. I love opinionated people who are honest regarding design and this is the crux of your business. I have also been told I am talented in this area so I will attend your training and being of a rare type I will forego the $2k just to listen even if I walk out the door. AND I LOVE VEGAS because of the culture and it's scenery. One can make up so many ideas just looking at the signs on the billboards. Here is an example of my thoughts...anything that is not washable to remove odors is not worth selling and if you can wash the item then there is a HUGE market for these items whatever they may be. PL

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