Ep509 - Tony Hsieh | Delivering Happiness: A Path to Profits, Passion, and Purpose
Talks at Google
Deep Dive
Why did Tony Hsieh sell LinkExchange to Microsoft in 1999?
Tony Hsieh sold LinkExchange to Microsoft because the company culture went downhill as the company grew from 15-20 people to 100 people. He felt like he had lost control of the culture and started dreading going to the office, which made him realize it was time to sell.
Why did Zappos decide to remain independent after being acquired by Amazon?
Zappos decided to remain independent to continue growing its brand and culture in its own way, rather than being integrated into Amazon. This was a precondition for the acquisition, and Amazon has remained true to this promise.
Why does Zappos consider itself a service company rather than just a shoe retailer?
Zappos considers itself a service company because its primary goal is to provide the best customer service. This focus is reflected in its policies, such as free shipping both ways, 24/7 warehouse operations, and a 365-day return policy.
Why does Zappos offer a $2,000 to $3,000 bonus to quit after training?
Zappos offers this bonus to ensure that only employees who truly believe in the company's vision and culture stay. This helps weed out those who might leave or be fired within six to nine months, and it increases engagement and commitment among those who stay.
Why does Zappos emphasize company culture over customer service?
Zappos believes that a strong company culture naturally leads to great customer service. By prioritizing culture and hiring based on cultural fit, the company ensures that employees are passionate and aligned with the company’s values, which enhances customer service.
Why do Zappos employees go through extensive customer service training regardless of their role?
All Zappos employees, regardless of their role, go through extensive customer service training to ensure that customer service is not just a department but a company-wide commitment. This helps build a strong culture and ensures that everyone can contribute to the customer experience.
Why does Zappos encourage managers to spend time with their teams outside of work?
Zappos encourages managers to spend 10-20% of their time outside of work with their teams to build trust, improve communication, and foster true friendships. This can increase productivity by up to 100% and create a more cohesive and supportive working environment.
Why does Zappos focus on delivering happiness rather than just profits?
Zappos focuses on delivering happiness because research shows that companies with a higher purpose beyond just profits tend to generate more long-term profits. By aligning with employees' personal values and creating a positive work environment, Zappos has built a strong brand and loyal customer base.
Why does Zappos offer free shipping both ways and a 365-day return policy?
Zappos offers free shipping both ways and a 365-day return policy to create a frictionless customer experience. This encourages customers to try more products and build trust with the brand, ultimately leading to higher customer satisfaction and repeat business.
Why does Zappos believe that the telephone is one of the best branding devices?
Zappos believes the telephone is one of the best branding devices because it allows the company to have the customer's undivided attention for 5-10 minutes. By ensuring positive interactions, Zappos creates memorable experiences that customers are likely to share with others, enhancing the brand’s reputation.