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Jason Dalrymply & Kim Pendergrass. Who is Zappos.com?. Founded in 1999 Name stems from Zapatos Originally shoesite.com CEO Tony Hsieh Sold Internet advertiser LinkExchange, to Microsoft for $265 million Invested in showsite.com On-line Retailer Amazon.com subsidiary
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Who is Zappos.com? • Founded in 1999 • Name stems from Zapatos • Originally shoesite.com • CEO Tony Hsieh • Sold Internet advertiser LinkExchange, to Microsoft for $265 million • Invested in showsite.com • On-line Retailer • Amazon.com subsidiary • Largest online shoe retailer • Warehouse runs 24/7 • No more drop shipping
Family Core Values • Deliver WOW Through Service • Embrace and Drive Change • Create Fun and A Little Weirdness • Be Adventurous, Creative, and Open-Minded • Pursue Growth and Learning • Build Open and Honest Relationships With Communication • Build a Positive Team and Family Spirit • Do More With Less • Be Passionate and Determined • Be Humble
Powered by service • Zappos has a history of going above and beyond for their customers • 75% of customers are repeat buyers • Competitive Advantage • Loyalty Business Model • Relationship Marketing • 24/7 hotline for customer service • Free shipping both ways • A 365-day return policy • 4 day guaranteed shipping • Surprised upgraded over night shipping • Should Zappos ship international?
Fortune says yes • Ranked 15th in 2010 for Fortune’s Top 100 companies to work for • Up from 23rd in 2009 • Employee Benefits : • Free lunches • No charge vending machines • Free health care • Nap room • Encouraged to embrace their “individualism” • Free kindles and %40 of current salary bonus when acquired
Bribing People to Quit • 33 open positions in 2009 and 26,000 applicants • Two interviews – One for professionalism and the other for personality • 4-week customer loyalty training course • 2 weeks spent at the call center • After a few weeks, new hires are offered $2,000 to quit • 97% of people turn down the offer • What do you think about bribing people to quit?
Social Media Geniuses • There is an app for that! • Multiple view photos and videos • Tweeting and more • No promos • Directly tweet to customers • Transparency and peer level • Blogs • YouTube • Facebook
Advertisements • Started out word of mouth • Minimal advertising costs • Innovative marketing campaigns • Taking advantage of shoeless people • Television spots
Sources • http://tech.fortune.cnn.com/2011/04/15/googles-ordeal-in-china/ • http://tech.fortune.cnn.com/2011/04/15/googles-ordeal-in-china/ • http://www.inc.com/magazine/20060901/hidi-hsieh.html • http://about.zappos.com/press-center/media-coverage/zappos-milestone-customer-service • http://money.cnn.com/magazines/fortune/bestcompanies/2010/snapshots/15.html • http://www.businessweek.com/magazine/content/10_23/b4181088591033.htm