Delivering Happiness is a book written by the CEO of Zapoos.com Mr. Tony Hsieh. This presentation try to deliver some of the key concepts shared in his book.

3. I AM
TONY
HSIEH
Cofounded
Zappos
And
Link
exchange
DELIVERING HAPPINESS

4. The Author- Tony Hseih

 Born to a typical Asian American parents
 Emigrated family from Taiwan to US
 A voracious attitude towards entrepreneurship
 An attitude to learn from mistakes, being creative and experiment
 A versatile-A Polyglot, Mastered 4 musical instruments
 Ambitious and Flexible

5. LINK EXCHANGE AND ZAPPOS
• Link exchange- A mediator between an online
company and the customers
• Zappos- An online shoe store, eventually sold
to Amazon for $1.2 billion

6. PATH OF THE JOURNEY
PROFITS
PROFITS AND PASSION
PROFITS,PASSION AND
PURPOSE
DELIVERING HAPPINESS

7. THE
JOURNEY
STARTS…….

8. The Tiny Businessman
 Worm Business
 Garage sales
 „Gobbler‟ operations
 Boys Life magazine
 Greeting cards
 Button Image business(0.25$ :075$)
 Videogame playing
 Programming
 Crowd sourcing

10. His Journey To The Corporate World
“ORACLE”
 Tony and Sanjay were software engineers.
 They were paid $40k per year.
 Gradually they felt the job was quite boring.

11. WEB
DESIGN
LINK
EXCHANGE
MICROSOFT
ACQUIRED
LE

12.  THOUGHT PROCESS PROVOKED: to create
web sites for other companies simultaneously
 Sanjay was the product and design guy and tony
lead the sales
 Tony and Sanjay “QUITS ORACLE”

13.  Link exchange is a
mediator between a
online company and a
customer
 When a website sign
up for free into link
exchange which in
turn show as a banner
add for customer

14. • Tony recruited most of
his friends as employees
• JERRY YANG cofounder
of yahoo
proposed to buy at $20
million,
but was rejected
Michael Moritz from
Sequoia capital invested
$3 million for
20% stake in the
company.

15. • Microsoft and Netscape offered to buy the company.
• Tony demanded for $250 million.
• Microsoft ended buying the company at $265 million at few
string attached.
 they wanted Sanjay, Ali and Tony to stay with them for
next 12 months else they will cut 20% of the amount.
• Deal was signed..

16. “He stopped CHASING MONEY AND
STARTED CHASING PASSION”

17.  Tony acquires a loft and creates a community
 Simultaneously Alfred and tony starts venture frogs
and raises $27 million and starts a restaurant
 A voice mail- Nick Swinmurn
 commenced shoesite.com

18.  Nick told Footwear is a $40 billion in US making up
to $2billion.
 Nick renamed shoe site as ZAPPOS a Spanish word
called shoes.
 ZAPPOS business idea was to form partnerships
with 100 of brands and each of the brands provide
Zappos with inventory feed in their warehouses.

19.  “Drop Ship” Relation Ship
entered in the era of shoe
business.
 As Zappos was progressing
hence tony and Alfred
invested in Zappos.
 Fred was official employee
of Zappos after venture
frogs investment.
 Tony got boredom with
investment
 business and discovered
“POKER”

22. MEANING
• Investing and
day- trading
INVESTMENTS
• Invested in
stock markets,
movies etc..
END OF
DABBLING
• He realized
investing in
industries or
companies you
don‟t understand
and people you
don‟t trust is
always non
benefial

23.  Introducing Zappos to sequoia and Tony & Alfred was
surprised to hear that sequoia was not interested to invest.
 High flying dot-com stocks started to crash in stock market-
shattered tony‟s dream of $100 million funding investment.
 End of investment business and entered to entrepreneurship.
“ TONY WAS PASSIONATE TO PROVE EVERYONE
WRONG”

24.  Tony & Alfred put additional investment into Zappos for their
survival.
 Cut the costs and maximize the profits of next 9 months and
layoff their employees.
 They addressed the remaining employees to take their big pay
cuts or work for free in exchange for equity in company.

25. • Employees residing in the lofts without
charging any rents.
• Tony started investing his personal cash into
Zappos.
• Started selling every property except for the
party loft he was living.
• Restaurant was not meeting its sales
projections.

26. • They believed in “ having right product at the
right time in right quantity and sales will take
care of them selves”
• Changing “Drop ship strategy to have their
own inventory of different brands” which
triple their sales- Fred.

27. STEPS TO IMPLEMENT “Their Own
Inventory”
 Build a new team to manage Inventory.
 Update software
 Need a warehouse to hold inventory.
 How to raise $2 million?
 Convince many brands to sell to their physical
store. Hiring of employees for this physical
stores.

28.  Fred was responsible to convince brands
 Tony was responsible to bring in cash of
$2 million for inventory

29. the strategy of having their own
inventory was successful. But
gradually it declined since they took
the help of E-logistics

30. End Of An Era
“Club BIO sold”
Got another six months of run way
“Even if Zappos failed, we would know we have
done everything we could to chase a dream we
believed in“

31. KENTUCKY
• Ends relationship with eLogistics
• Birth of WHISKY
Ware House Inventory System in Kentucky
Learning from eLogistics relationship
“We should never outsource our core
competency”

32. 2002
• $32 million gross merchandise sale, 4 times that of
2001
• Set a goal of $1 billion merchandise sales in 2010
• Realization that the biggest vision to be to build the
Zappos brand to be about the very best customer
service.
• Zappos brand and Zappos Library

33. 2003
• Projected the sales figure to double
• Handling the difficult time taking everyone in
trust
• Got a credit of $6 billion from Wells Fargo
• Relocated the head quarters to Las Vegas
including the Customer Loyalty Team (call
center)

34. The Zappos Culture
• Zappos Culture Book
• Ask anything

35. Branding through Customer Service
• Letting the customer do the marketing through
word of mouth
• 365 day return policy
• Displaying the customer care number at the
top of every single page

36. Branding through Customer Service
Call Center
– No AHT
– No Scripts
– PEC with customer in each call
“Pizza, Tony and Zappos call center”
Top 10 ways to instil customer service in
your company

37. Your culture is your brand
“At Zappos, our belief is that if you get the culture
right, most of the other stuff—like great customer
service, or building a great long-term brand, or
passionate employees and customers—will happen
naturally on its own.”
• Building a brand 50 year back and now is very
different
– Bald and Blue day
– Face game

38. PROFITS, PASSION, AND PURPOSE
Delivering Happiness- Tony Hsieh (CEO Zappos .com)

39. PR and Public Speaking
 Lots of Press
Attention
 Culture
 Improving Customer
Experience
 Paying Employees for
quitting the
organization

40. PR and Public Speaking
 Speaking request from
different Conferences
 Example
 Footwear News CEO
Summit in 2005
 Different People
represented
conferences
 No standard
presentations
 Opportunity to build
Relationships

41. PR and Public Speaking
 To Help Audience to
pursue Growth and
learning
 To Build Open and
Honest Relationships
 To change the world
not just by doing
things differently at
Zappos

42. Zappos Insights Program
 Video Subscription service and Zappos
insights live
 A two day immersion seminar
 Both Programs designed to help entrepreneurs
and established businesses improve their
companies

43. Three basic rules -Public speaking
1. Be passionate
2. Tell personal stories
3. Be real

44. Value Platforms
 Brand
 Culture
 Pipeline

45. Amazon Acquisition – October 31st , 2009
• $1.2 billion worth transaction
• Exchange of share for amazon Shares
• Run as independent entity
– Continue the culture and business
• A wholly own subsidiary
• Considered as a great marriage than a sales of
the company

46. Amazon Acquisition
Both Shares common approach “ Customer
Centric”

47. END GAME
Delivering Happiness- Tony Hsieh (CEO Zappos .com)

48. Delivering Happiness
• 1999—Largest Selection of Shoes
• 2003—Customer Service
• 2005—Culture and Core Values as Our
Platform
• 2007—Personal Emotional Connection
• 2009—Delivering Happiness

49. Happiness Framework 1

50. Happiness Framework 2
Chip Conley ’s book “Peak” Explains
How Maslow‟s Hierarchy can be
condensed to three levels for business
purposes and applied to customers,
employees, and investors

51. Customers
• Meets expectations Meets desires Meets
unrecognized needs
Employees
• Money Recognition Meaning
Investors
• Transaction A l i g n m e n t Relationship
Alignment Legacy

53. Happiness Framework 3
• Pleasure
• Passion
• Higher Purpose

54. Happiness Framework 3

55. Ask Right Question to be happy
• Are you working toward maximizing your
happiness each day ?
• What is the net effect of your existence on the
total amount of happiness in the world each
day ?
• What are your values?
• What are you passionate about?

56. Ask Right Question to be happy
• What in spires you ?
• What is your goal in life?
• What are your company‟s values?
• What is your company ‟ s higher purpose?
• What is your higher purpose?

58. OUR LEARNINGS
Zappos‟ competitive advantage is
mainly due to
• customer service
• culture for passion and unity
Delivering happiness culture
Culture book-10 core values of Zappos

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

60. 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
10
CORE
VALUES

61. Success mantras:
• Focus on core competence
• Team work
• Transparency
• Long term views

62. Gowtham
Sujana
Vivek
Agil
Vyshnavi
Prudhvi Charan
Happiness
delivered
by