INSPIRE EMPLOYEE HAPPINESS AND ENGAGEMENT TO WOW YOUR CUSTOMERS 1 A LITTLE ABOUT ME… „ BA in History from Santa Clara University „ Never worked in a call center before Zappos „ Joined Zappos in SF in January 2004 to answer customer calls (Approx. 30-40 members in CLT) „ Moved to Vegas in June 2004 to help grow the Customer Loyalty Team (call center) to the 600 seats it is now. 2 A LITTLE ABOUT TONY CEO OF ZAPPOS.COM, INC… „ 1994-1995: Pizza business in college „ 1996-1998: LinkExchange (online advertising) Sold to Microsoft for $265 millon „ 1999: Venture Frogs, LLC (angel investment fund) 20/20 – Invested about $20M in about 20 companies/ Invested in Zappos.com, Inc. „ 1999-Today: Zappos.com, Inc. 3 THE ZAPPOS FAMILY OUR BACKGROUND AT A GLANCE Founded in 1999 1400 Employees in Las Vegas #23 in FORTUNE MAGAZINE’s “100 Best Companies To Work For” 2009 #15, #6, and #11 in FORTUNE “100 Best Companies To Work For” 2010, 2011, 2012 Zappos “Powered by Service” •Providing the best online shopping experienc e possible. * •Fast, Free Shipping. 365-day return policy.* •Fast, friendly & expert customer service. * Z A P P O S . C O M W E B S I T E I S O P E R A T E D B Y Z A P P O S D E V E L O P M E N T , I N C . * * F U L FI L L E D B Y Z A P P O S F C , I N C . 4 The Power of WOW Gross Sales $MM $1,000 800 600 400 200 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 What Customers See First What Customers Experience What We Do Internally 6 CUSTOMER SERVICE: FIRST IMPRESSIONS ARE IMPORTANT! „24/7 1-800 number on every page of the Zappos.com Website „Free shipping „Free return shipping „365-day return policy 7 CUSTOMER SERVICE: IT’S ALL ABOUT THE EXPERIENCE! „ Surprise your customers • Create WOW, PEC „ Friendly, helpful “above and beyond” customer service „ Don’t have it? Assist them with finding it elsewhere 8 9 CUSTOMER SERVICE: INSIDE MESSAGE NEEDS TO MATCH THE OUTSIDE MESSAGE • No call times „ The telephone is one of the best branding devices available „ No sales-based performance goals for reps „ Run warehouse 24/7 „ Inventory all product (no drop-shipping) „ 4 weeks of culture, core values, customer service training for everyone! „ 3 additional weeks of “on the job” training and coaching for members of CLT „ We’ll pay you $3000 to quit „ Zappos Family Culture Book „ Interviews are 50% based on core values & culture fit „ Twitter/Facebook/YouTube/Blogs help build culture 10 CULTURE THE #1 PRIORITY ZAPPOS IN HENDERSON http://media.glassdoor.com/m/7b/2c/00/f6/entrance-to-the-zappos-com-headquarter-office-in-henderson-nv-photo-by.jpg LAS VEGAS CITY HALL http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg NEW ZAPPOS HEADQUARTERS Defining Your Culture 15 CULTURE: ESTABLISH COMMITTABLE CORE VALUES EVERY EMPLOYEE IS ASKED TO LIVE & BREATHE THE ZAPPOS FAMILY CORE VALUES AND INSPIRE THE CULTURE IN OTHERS. 16 ZAPPOS FAMILY 10 CORE VALUES 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 17 HIRING FOR CULTURE „ 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 18 ACTIVELY MANAGE YOUR CULTURE BASED ON YOUR CORE VALUES MAKE CULTURE A PART OF EVERYONE’S PERFORMANCE REVIEW 19 BUILDING TEAMS AND RELATIONSHIPS “If you want to go quickly, go alone. If you want to go far, go together.” 20 TEAMS AND RELATIONSHIPS „ Relationships „ Socialize with co-workers „ Activity/Interest Clubs „ Twitter „ Manager’s Role: „ Drive the culture „ Build their team (Team Building) „ Inspire new ideas and creative thinking „ Help employees find their calling, reach their peak „ Recognition 21 TRUST AND TRANSPARENCY • Employee Happiness Surveys • Zappos Family Culture Book • Zappos Family OCM Notes (Sr. Leadership Meetings) • Zappos.com Sales Reports • Ask Anything „ Twitter „ Distribution Lists „ Holacracy Meeting Notes/Projects/Outputs “Be real and you have nothing to fear.” 22 CREATE AN EMPOWERED WORKFORCE „ The Learning Center, CLT Academy „ The Journey Guide - Progression „ Coaching and Feedback, focus on growth and learning „ Connecting with your Team „ Personal Accountability „ Ztopia “Trust men and they will be true to you; treat them greatly, and they will show themselves great.” 23 WHAT DO YOU MEASURE? 24 4 ELEMENTS OF PERFORMANCE „ Availability - Attendance/PSL /Handle Time „ Quality of Service - Call reviews/self evals/ NPS „ Culture Assessments - Based on CVs „ Progression/Roles/Holacracy - Pursuit of Growth and Learning 25 LEADERSHIP DEVELOPMENT „Toolbox – Leadership Training „Surveys „Skip Meetings „Team Performance „Culture Assessments „Be an Entrepreneur! 26 Everyone has a voice Inspires employee happiness & engagement Meetings are more focused on the work Instills a sense of ownership & pride Creates a workforce who make business decisions based on our core values A team who is willing to do what’s right for our customers and our company 27 What if instead of forecasting and shift bidding, people were able to just work whenever they wanted? And if they worked when our customers needed them the most (high wait times) they would be rewarded! That could be the open market! 50 % Set 50% Flex Schedule Capacitor On Feb 12, 2015, CLT abolished it’s attendance policy. Each circle is empowered to create its own policy if they decide to have one at all. Flex Points = Bonuses, prizes or additional Flex time Our goal is to get the Flex Capacitor at 0, which means 100% schedule flexibility O.M. allows our A-Wowers to spend 20% of their time doing something other than their primary role 28 CUSTOMER CONNECTIONS: PEC IN ACTION „ “She went above and beyond…” „ “What a gem of an employee…” „ “I feel like a made a friend…” „ “Kind hearted, genuine, and sincere…” „ “The epitome of what customer service is…” „ “Treated me like royalty…” „ “Engaging, wonderfully pleasant…” „ “Funny, a person that I have never met and probably never will, touched my life in a lasting way.” 29 DOING WHAT THE CUSTOMER ASKS: FRIENDLY, HELPFUL, FUN… „ You are now chatting with Jonathan Jonathan: Hello Timmy. How can I help you? Timmy: do you know how wide the G-Shock Atomic Solar AWG101 SKU #7403774 is? Timmy: i mean, how big a wrist it would fit? Timmy: Timmy has a big fat wrist Timmy: Timmy need watch grande Jonathan: I'll see what I can find out for Timmy. Timmy: awesome. and can we please continue to talk about Timmy in the 3rd person? Timmy likes to boost Timmy's ego by talking about Timmy that way Jonathan: Jonathan would be happy to neglect the use of pronouns for the duration of this conversation. Timmy: Jonathan and Timmy shall get along just fine Jonathan: Will Timmy be able to measure Timmy's wrist? Timmy: Timmy's wrist is big, but not Biggie-Smalls big. Timmy doesn't have the required measurement instruments. 30 QUESTIONS???? Thank you for allowing me to be here!!! „ Email me – rsiefker@zappos.com „ Come visit our offices – tours.zappos.com 31