Zappos Keynote at Future Travel Experience 2016

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Delivering Happiness: From E-Commerce to Travel Tyler Williams, Maggie Hsu Future Travel Experience September 9th, 2016

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VIDEO

ZAPPOS BAGGAGE CLAIM GAME https://youtu.be/o3C0AFTk150

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Acquired by Amazon in 2009 for $1.2BN

Online shoe & clothing retailer founded in 1999

1,500 employees

CEO Tony Hsieh

Culture & 10 core values

Longest recorded call was almost 11 hours

Company History

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1.  Deliver WOW Through Service 2.  Embrace and Drive Change 3.  Create Fun and A Little Weirdness 4.  Be Adventurous, Creative, and Open-Minded 5.  Pursue Growth and Learning 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

Core Values

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Brand Persona

•  Humorous •  Unique

•  Irreverent

•  No scripts

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1.  Time to answer 2.  Was the customer

“Wow”ed?

Simple Metrics

1.  Length of call 2.  After call work time 3.  First call resolution 4.  Schedule adherence 5.  Abandonment rate

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Customer Stories

Photo: James Pratt

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Customer Stories

9Pawlidayz

•  6,300 animals adopted •  108M Twitter impressions

(95% organic, 143 celeb re-tweets)

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1.  Greater customer loyalty over time 2.  Greater share of wallet 3.  Lower employee turnover 4.  Higher employee happiness and

engagement

Results

“Just when I didn't think I could love Zappos any more; you go and do Pawlidayz! If I were a corporation, I would want to merge with you!” - customer

New Business Lines

The Zappos corporate strategy team is looking to identify areas where its focus on a great customer experience could help Zappos disrupt and dominate a new market. The team has brainstormed entering classic service industries, with something like a Zappos hotel or airline. And it has explored, seemingly in some depth, “even crazy stuff, like porta-potties,” Hsieh said.

Tony Hsieh Washington Post Interview December 2015

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Zappos “Porta-Party”

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VIDEO

ZAPPOS PORTA PARTY

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•  Living on the go

Our Customer

•  Time is super valuable

•  They let us - and others - know when something is wrong

•  Price sensitive

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We believe there are low cost, high impact, and easily executable solutions to enhance traveler happiness at all stages of the travel journey

Our Approach to Aviation

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Departure In the Air Arrival

Safety

Being on time / no delays

•  Transportation •  Security lines •  Shopping/services •  Navigation &

wayfinding •  Somewhere to wait

•  Baggage claim •  Transportation

Entertainment

Food & beverage options

•  Physical comfort

Flying Experience

TABLE STAKES

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Departure In the Air Arrival

Safety

Being on time / no delays

•  Transportation •  Security lines •  Shopping/services •  Navigation &

wayfinding •  Somewhere to wait

•  Baggage claim •  Transportation

Entertainment

Food & beverage options

•  Physical comfort

Flying Experience

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ü  Low cost

ü  Design-focused

ü  Low tech ü  Service-focused

Our Approach

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Examples

•  Baggage claim game

•  Portable chargers

•  Restaurant and restroom design for luggage

•  Comfort animals

•  Drink cart for delayed planes

•  Insurance – paid out for every minute on runway

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Holacracy

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Sam

Brand Partnerships Director Graphic Design Employee Engagement

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Obligation to Sense “Tensions” Examples include…

Office snack selection

Diversity Initiative

Process improvement

Volunteer opportunities

Collaboration tool

New business line

“Research shows that every time the size of a city doubles, innovation or productivity per residence increases by 15 percent. But when companies get bigger, innovation or productivity per employee goes down. So we’re trying to figure out how to structure Zappos more like a city, and less like a bureaucratic corporation. In a city, people and businesses are self-organizing.”

Tony Hsieh, CEO Zappos.com

“Clouds form and then go away because atmospheric conditions, temperatures, and humidity cause molecules of water to either condense or vaporize. Organizations should be the same; structures need to appear and disappear based on the forces that are acting in the organization. When people are free to act, they’re able to sense those forces and act in ways that best fit with reality.”

Chris Rufer, Founder & CEO, Morning Star

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We are looking for partners to reimagine the travel experience with

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Tyler Williams TylWilliams@Zappos.com

Maggie Hsu

MHsu@zappos.com