5 Reasons Why Zappos Is Doing A Billion Dollars In Sales.
on Nov 21, 2008 - 6:00 AM PSTThe full program
This is an audio program. Listen and/or download here.
A few lessons from this program
I wasn’t allowed to record the talk that Tony Hsieh, CEO of Zappos, gave on Sunday. The group that invited him to speak wanted to keep the conversion intimate and private. In fact, I’m not sure I’m allowed to even tell you the group’s name. But we all took notes, and I’m happy to share mine.
They created missionaries.
A turning point for Zappos was when the company decided to be about more than selling shoes. Shoes was a sensible business, but creating a “wow” customer service experience became a mission. And once Zappos took on that mission, everyone from their suppliers to employees to customers became missionaries for the brand.
They pay new hires to quit.
Tony told us that he sold his previous company, LinkExchange, because he stopped enjoying going to work. As the company grew, no one paid attention to the culture and it stopped being a meaningful place to work. Now he’s relentless about hiring people who fit the Zappos culture. To ensure that the people he hired want to be a part of the Zappos culture, he offers every new hire $2,000 to quit. Hardly anyone takes the money.
They don’t write up elaborate rules.
Tony told us about a customer who forgot to take out her $150 before returning a wallet to Zappos. An employee found the money and sent it back. Tony explained the conventional way of avoiding employee theft is to write up rules or search employees as they leave work, but all of that is too cumbersome. Because Zappos nurtures its company culture, it doesn’t have to do any of that.
They spend less time looking for new customers.
Tony told us about a woman who bought shoes for her husband. While she waited for her husband to come home so she could surprise him with the shoes, he got into an accident. After she called Zappos for help returning the shoes, the rep she talked to sent her flowers. The way Zappos treats its existing customers ensures that they’ll recommend them to new customers.
They pursue a passion.
Someone in the audience asked Tony if he had any productivity tips for us. Tony’s answer was that if you’re passionate about your work, productivity will come naturally. You won’t be able to stop yourself from working. When I interviewed John King, he told me that he studied Zappos and watched people who loved their jobs so much that they were dancing at work.
If you’ve ever bought anything from Zappos, I’d love to hear your experience. Send me an email or add it to the comments.
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November 22nd, 2008 at 4:17 pm
This was an amazing interview. I really enjoyed the part at the end when you called Zappos. It just proved everything that Tony was discussing during the interview.
November 22nd, 2008 at 4:51 pm
lol, surprising the customer service rep was funny, but it proved that the company practices what they preach. great interview to understand the company’s culture and how focusing on customer service is the key to its great internet retailing success. A lot of people can sell shoes online, but zappos really takes the experience to a new level.
November 23rd, 2008 at 4:49 pm
I am a Zappos employee and I have to tell you that sometimes I feel like dancing at work. We routinely sing, tell jokes, participate in parades, throw potlucks, have nerf gun battles, birthday celebrations, carnivals, picnics, camping trips, happy hours, and on and on. I am in my late twenties and hope to retire from this company. This is, BY FAR, the most fantastic company I have ever worked for. I drank the kool aid and now I am in wonderland.
November 24th, 2008 at 4:37 pm
Efren & Deep: I couldn’t believe he was so calm about me calling up his people to test how good his customer service is.
Williams: I’m glad to hear that from someone who works at the company. I’m always worried that I’m buying into a company’s PR instead of picking up on the real lessons.
November 29th, 2008 at 10:51 pm
Andrew: I really enjoyed this one. As you know I am currently working on a startup that would retail fitness equipment online. Zappos is a role model for us. They did many things right: customer service, SEO, a solid brand… the list goes on. Its inspirational for anyone getting into online retail or for that matter any other business.
December 7th, 2008 at 4:05 pm
I needed a new pair of trail shoes, I wanted to support my local community and shop locally. I visited Arch & Sole on La Brea and selected a cool pair, but they didn’t have the color I wanted, so I placed an order, the shipment was due in a couple of days. Two weeks pass during which, I revisit the store twice and call twice to check up on the arrival of the shoes. They tell me any day now. My patience stretched, I went on line to Zappos. There were my shoes, available in the right size, right color and right price. Plus free regular shipping. I placed my order online, than got an email notifying me that I had received a free upgrade to overnight delivery. I was really impressed with Zappos, they deserve their success.
March 9th, 2009 at 10:33 pm
[...] more trustworthy employees than a majority of the companies out there. During an interview on Mixergy.com, the CEO from Zappos Tony Hsieh said that his company does over a billion dollars in sales a year [...]
March 14th, 2010 at 6:43 am
Awesome talk,
Thank you for all your brilliant interviews, Andrew.
You're doing a marvelous job !
March 14th, 2010 at 1:43 pm
Awesome talk,
Thank you for all your brilliant interviews, Andrew.
You're doing a marvelous job !
January 4th, 2012 at 11:33 am
[...] at something that costs customers nothing, Zappos was able to develop a business that saw more than $1 billion in sales by 2008, and is still pursuing their essential goal of ‘delivering happiness’ even after being [...]