In , a year in which the average turnover at call centers was percent, turnover at Zappos was 39 percent including turnover owing to promotions. Managers attribute the loyalty to a culture that cultivates the passion, purpose, and humanity of its employees. But it's not just management that gets it. The conviction that culture is key is embraced throughout the ranks at Zappos. It's so central to the company's belief system, in fact, that the company publishes the Zappos Culture Book , which is updated regularly and contains hundreds of unscripted comments and essays written by Zappos employees and vendors about the company's culture, why it matters, and how it affects what they do every day.
It was conceived as a training tool for new hires and partners, but consumption of the book has gone way beyond that internal circle. Ringing in at pages in the edition, it's a moving and persuasive testament to the power of employee engagement "happiness" in Zappos-speak , and the role of culture in eliciting it. We recommend buying it and just paging through. Here's a taste, from Abbie "Abster" M. I hear so many horror stories from friends about the places they work and it only makes me feel that much more fortunate to be a part of the Zappos family.
I can't imagine my life without Zappos, and the amazing people that I work with. The quote that moved us most was from Ryan A. At Zappos being yourself is the best thing you can do. Tony Hsieh ended up one by one selling off all of his apartments to fund the growth of Zappos. All this was happening at a bad time.
The year was , and it was pretty much impossible for Zappos to raise any money from VCs. The dot com bubble had just popped and even if someone wanted to raise money as an internet company. The last thing anyone wanted to do was to invest in an online shoe company. Who would want to buy shoes online people thought? Zappos was burning cash and running out of money, and they quickly needed to turn round their fortunes and find a way to get to profitability fast.
By , Zappos was running out of runway. Zappos had to worry about short profitability and long term growth. Tony Hsieh decided they needed a bigger purpose than just making money. He ordered a pair of shoes that we had in our warehouse, and we surprised him with a shipping upgrade, so he got his order in two days instead of our original promise of a week.
He said he loved our customer service and would tell his family and friends about us. He even said we should one day start Zappos Airlines. It was later decided that the Zappos brand should be about the very best customer service. For the next decade, they lived and breathed customer experience. So how did they become the most customer-obsessed brand in the world?
Surprisingly, it had nothing to do with shoes. If you get the culture right, then a lot of really amazing things happen on their own. Today Zappos is world renowned for its culture. Zappos offers tours of their headquarters in Las Vegas to the general public.
People who study company culture come from all over the world to visit the Zappos offices to see how the company operates. To provide the best customer service, Tony Hsieh knew the culture was paramount to success. Each Zappos employee needed to understand that customer experience is a priority for the whole company, not just a department.
Before Zappos, Tony Hsieh learnt a hard lesson. After 2. Someone in the audience asked Tony if he had any productivity tips for us. When I interviewed John King, he told me that he studied Zappos and watched people who loved their jobs so much that they were dancing at work. Send me an email or add it to the comments. Toggle navigation Mixergy. The full program This is an audio program. Who should we feature on Mixergy? By adding that investment to a unique business strategy, the company grew.
They tried to set the company apart by doing things other companies might not have been willing to do to satisfy the customer. Another big question was how to handle customer service. Would agents be in-house or outsourced?
At one point, Zappos spoke with outsourcers in the Philippines and India but decided that they would keep everything in-house. That is a genuine concern for companies in the United States. There are only two countries nearby that can boast a cultural similarity, Mexico and Canada. Many people travel or relocate from Mexico to the U. Ultimately, the customer service team was to be staffed with Zappos employees. So what made Zappos into a highly successful brand and a coveted employer?
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