zappos presentation for 11th annual digital dealers conference oct 7, 2011

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Growing a Customer Focused Culture&

Inspiring Employee Happiness and Engagement to Wow your Customers

Jim CarrilloCustomer Loyalty Team Manager

Duke CajalaCustomer Loyalty Team Manager

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A little about us…Jim Carrillo, Manager, Zappos Customer Loyalty Team, Inc. Joined Zappos in 2006

Oversees “ToolBox”, leadership development, Live Chat Team & Work from Home departments along with several phones teams.

Spent 20+ years in the Jewelry Industryas a Regional Manager.

Happily married for over 23 years.

Originally from The SF Bay Area.

Duke Cajala, Manager , Zappos Customer Loyalty Team, Inc.

Joined Zappos in 2005

Oversees the on-boarding program, which emphasizes on identifying culture advocates and TLC Team which provides continuous training to our customer loyalty team members.

I am a highly trained Ninja and I am aware of the other aspiring Ninjas at Zappos because they are my apprentices =)

I was born and raised in Hawaii

J i m - >< - D u ke

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The Zappos Family Garden

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Zappos

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Zappos at a Glance Corporate Background

Founded in 1999

3000 employees (half in NV, half in KY)• #23 in

FORTUNE MAGAZINE’s “100 Best Companies To Work For” 2009

• #15 in FORTUNE MAGAZINE’s “100 Best Companies To Work For” 2010

• #6 in FORTUNE MAGAZINE’S “100 Best” in 2011

Zappos is “Powered by Service”• 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.

Selection• Over 1,000

brands, over 200,000 styles, over 900,000 unique UPCs.

• 5 million items in warehouse

• 100% of products inventoried (no drop ship).

Zappos is a service company that happens to sell clothing, handbags, shoes, accessories, housewares,….

Zappos Family Core Values

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1. Deliver WOW Through Service2. Embrace and Drive Change3. Create Fun and a Little Weirdness4. Be Adventurous, Creative and Open-Minded5. Pursue Growth and Learning6. Build Open and Honest Relationships With Communication7. Build a Positive Team and Family Spirit

8. Do More with Less9. Be Passionate and Determined

10. Be Humble

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Zappos

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Finding the Best Seeds

• The Application (Beyond the Basics)– If you entered a room and a theme song played, what would your

song be and why?– How lucky in life do you consider yourself to be on a scale from 1-10?

• The Tour• The Hiring Process

– Managers interview for technical fit and department culture fit.– Human Resources interviews for culture fit.– Must pass both in order to be hired.

• Hire slowly, Fire quickly

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Finding the Best Seeds

• The Application (Beyond the Basics)– If you entered a room and a theme song played, what would your

song be and why?– How lucky in life do you consider yourself to be on a scale from 1-10?

• The Tour• The Hiring Process

– Managers interview for technical fit and department culture fit.– Human Resources interviews for culture fit.– Must pass both in order to be hired.

• Hire slowly, Fire quickly

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Finding the Best Seeds

• The Application (Beyond the Basics)– If you entered a room and a theme song played, what would your

song be and why?– How lucky in life do you consider yourself to be on a scale from 1-10?

• The Tour• The Hiring Process

– Managers interview for technical fit and department culture fit.– Human Resources interviews for culture fit.– Must pass both in order to be hired.

• Hire slowly, Fire quickly

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Tyler’s Job Application

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Everyone is a Customer Service Representative!

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Planting in the Garden

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Cultivation!On-Boarding Experience

• 4 week new hire training class• The Offer• 1 week Kentucky Hero Academy• 3 weeks Incubation (ZCLT only)

ZCLT Progression Snapshot

Skill Sets•Specialty Teams•Mentoring•Ambassador program

Culture•Culture Clubs•Team Building•Building Relationships

GrowthAnd Learning

•Pipeline classes•Tech Seminars•Senior Rep. Program•Internships

Nurturing the Seeds

• Personalize the workspace• Create an environment of empowerment• Encourage connections• Focus on doing the right thing• Provide continuous feedback

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Tilling the Soil

3 fundamental things we’ve learned are necessary for WOW service online:

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What Customers See First

What Customers Experience

What We Do

Internally

Customer Service:What customers see first

• 24/7 1-800 number on every page• Free shipping• Free return shipping• 365-day return policy

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Customer Service:It’s all about the experience!

• Fast, accurate fulfillment• Surprise your customers

• Create WOW, PEC

• Friendly, helpful “above and beyond” customer service• Don’t have it? Assist them with finding it elsewhere

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Customer Service:Inside message needs to match the outside message

• No call times• The telephone is one of the best branding devices available• Longest Call was 8 hours & 28 minutes.

• No sales-based performance goals for reps

• Run warehouse 24/7

• Inventory all product (no drop-shipping)

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P.E.C.Personal Emotional Connection

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Zappos

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The Harvest

• Inspire employee happiness & engagement.• A sense of ownership and pride.• A workforce who make business decisions based on

our core vales.• A team who is willing to do what’s right for our

customers and our company.

Growing Customer Connections

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Phones7000+ Calls a day

Emails1300+ Emails resolved a day

Live Chat1500+ Live Chats per day

Twitter300+ Tweets per day

Social Sites1,100,000+ opportunities to interact per day and growing!

Customer experience extendsbeyond just our site… and so does our reputation!

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Time to figure out howto extend the experience!

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Zappos

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Jeanette’s Story

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Facebook

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Our Customers reward us by coming back…

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Customers come back…

On any given day, approx. 75% of purchases are from returning

customers

Customers come back, order more often…

Repeat customers order >2.5x per

year

Customers come back, order more often and

order more…

Repeat customers have higher avg. order size vs. 1st time customers

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Questions?

Thank you for allowing us to put a little Zappos happiness in your day!

Any Additional Questions or if you would like a tour of Zappos?

Please Email us: jcarrillo@zappos.comgcajala@zappos.com

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