Building the Zappos' brand

Building a Brand that Matters

A little about me…

2

R&D

Community and Experience

Culture

A service company that just happens to

sell shoes, clothing, handbags,

accessories, housewares…

2009 #232010 #152011 #6

TOP 100 BEST COMPANIES TO WORK FOR

Headquarters: Downtown Las VegasFulfillment: 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

7

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

360 Culture Reviews

4 weeks of training

9

Customer Service:What we do internally

Pay to Quit

Culture Book

Interviews Based on Culture

10

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

15

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

16

DECIDE

Step #2

FIGURE OUT

VALUES & CULTURE

17

VALUES & CULTURE

• PERSONAL/COMPANY’S core values

• Start EARLY…

• It doesn’t MATTER what the values are.

• The most important thing is ALIGNMENT

18

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

19

Step #3

COMMIT TO

“Be real and you have nothing to fear”

Your culture is your brand

Don’t try to be someone you are not

20

Commitment to Transparency:Examples

“Ask Anything” newsletter

Extranet for vendors

Tours & reporter visits

21

Step #4

VISION

“Whatever you’re thinking, think bigger.”

Does the vision have meaning?

Chase the vision, not the money…

22

Evolution of the Zappos Vision

Deliver Happiness

Culture/Values

Best Customer Service

Best Selection of Shoes

23

ENTREPRENEURS:

What would you be passionate about doing for 10 years even if you never made a

dime?

24

EMPLOYEES:

What’s the larger vision and greater purpose in their work beyond money or

profits?

25

VISION

MOTIVATION

vs.

INSPIRATION

26

Step #5

BUILD RELATIONSHIPS

(not networking or marketing)

Be INTERESTED rather than trying to be INTERESTING

ZCN Clubs – PEC - Wishez

27

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.

30

Step #7

THINK LONG TERM

Repeat customers

Customer service

There is no “get rich quick” formula

“Overnight” successes are years in the making

(both personally and in business)

31

WHAT CULTURE CAN DO FOR A COMPANY

NOV ‘09 AMAZON ACQUIRES ZAPPOS

$1.2 BILLION SHARE VALUE AT THE TIME OF CLOSING

33

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!