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This edition of CultureBuzz discusses the rise of online retailer Zappos.com from fledgling company to industry giant, thanks to a belief that corporate culture affects the customer experience and, ultimately, the bottom line.
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Create Raving Fans
After four weeks of paid training, “the offer” is made: $2000 to quit, in addition to money already earned. Sounds like a dicey move, but as it turns out, less than 1% of new hires take the money. It’s a surefire way for Zappos.com, the world’s largest online shoe retailer, to weed out anyone just looking for a paycheck.
In just eight years, Zappos has grown gross merchandise sales from $1.6 million in 2000 to $1 billion in 2008 by introducing the internet to good old-fashioned customer service.
The Zappos story began in 1999 when founder Nick Swinmurn and then investor/now CEO Tony Hsieh (pronounced “shay”) joined forces to build “a service company that just happens to sell shoes.” Other 25-year-old entrepreneurs might have focused on building the most efficient online sales model, but Hsieh and Swinmurn decided to build their brand by first building their culture.
Hsieh believed that making employees raving fans of Zappos would directly impact the customer’s experience with the brand.
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“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. We believe that your company's culture and your company's brand are really just two sides of the same coin.” (excerpt from Hsieh’s blog)
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The hunt for the perfect “Zapponian” begins with an interview process that places as much importance on culture fit as it does on the candidate’s resume. All new hires, from developers to lawyers to accountants, go through customer loyalty training that involves taking calls at the Las Vegas-based call center and getting to know Zappos customers. (The company considers the telephone a unique and oft-overlooked branding opportunity.)
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The focus on culture doesn’t end with the initial training stage. Zappos, which employs 1500+ people, retains top talent with regular events like themed dress-up days and office parades to help promote an atmosphere of “fun and a little weirdness” and keep the lines of communication open between team members. During a recent wacky event, Zapponians piled on as much Zappos branded gear as they could manage. During the holidays, employees sleuth around like kids at Christmas to try and guess the secret Zappos gift. (Watch the video of enthusiastic Zapponians lining up to receive their mystery present!)
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Get your own branded bag »
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All of these measures are a testament to the Zappos core values, a list of 10 well-defined guiding principles, such as “Deliver WOW Through Service” “Create Fun and A Little Weirdness” or Hsieh’s favorite, “Be Passionate and Determined.”
Zappos has even compiled a culture book filled with firsthand stories from employees about what makes the company so unique. You can view the book details here.
Hsieh’s and Swinmurn’s commitment to culture is paying off. In 2009 the company celebrated its tenth anniversary, Forbes ranked Zappos as the No. 23 best place to work in the nation, and sales are expected to be over a billion dollars, with the Zappos brand now extended beyond shoes to handbags, clothing and accessories. Hsieh has personally developed one of the largest followings on Twitter (@zappos) with over 600,000 “tweeps” keeping up with his nearly daily updates on the company and his many travels. Keep an eye on Zappos as it continues to reap the benefits of building a strong brand on a strong company culture.
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