Delivering Happiness: From E-Commerce to Travel | September 9, 2016 | Mandalay Bay, Las Vegas | Zappos.com (part of the Amazon family), a US-based industry leader in e-commerce customer satisfaction, is renowned for its company culture and innovative management practices. What can the travel sector learn from Zappos, and how would Zappos redefine the end-to-end passenger experience given the chance?

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Delivering Happiness: From E-Commerce to Travel
Tyler Williams, Maggie Hsu
Future Travel Experience
September 9th, 2016

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VIDEO
ZAPPOS BAGGAGE CLAIM GAME
https://youtu.be/o3C0AFTk150

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Acquired by Amazon in 2009 for $1.2BN
Online shoe & clothing retailer founded in 1999
1,500 employees
CEO Tony Hsieh
Culture & 10 core values
Longest recorded call was almost 11 hours
Company History

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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
Core Values

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Brand Persona
• Humorous
• Unique
• Irreverent
• No scripts

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1. Time to answer
2. Was the customer
“Wow”ed?
Simple Metrics
1. Length of call
2. After call work time
3. First call resolution
4. Schedule adherence
5. Abandonment rate

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Customer Stories
Photo: James Pratt

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Customer Stories

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Pawlidayz
• 6,300 animals adopted
• 108M Twitter impressions
(95% organic, 143 celeb
re-tweets)

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1. Greater customer loyalty over time
2. Greater share of wallet
3. Lower employee turnover
4. Higher employee happiness and
engagement
Results
“Just when I didn't
think I could love
Zappos any more; you
go and do Pawlidayz!
If I were a corporation,
I would want to merge
with you!” - customer

11. New Business Lines
The Zappos corporate strategy team is looking to identify areas
where its focus on a great customer experience could help
Zappos disrupt and dominate a new market.
The team has brainstormed entering classic service industries, with
something like a Zappos hotel or airline. And it has explored,
seemingly in some depth, “even crazy stuff, like porta-potties,”
Hsieh said.
Tony Hsieh
Washington Post Interview
December 2015

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Zappos “Porta-Party”

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VIDEO
ZAPPOS PORTA PARTY

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• Living on the go
Our Customer
• Time is super valuable
• They let us - and others -
know when something
is wrong
• Price sensitive

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We believe there are low cost, high impact, and easily
executable solutions to enhance traveler happiness at
all stages of the travel journey
Our Approach to Aviation

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Departure In the Air Arrival
Safety
Being on time / no delays
• Transportation
• Security lines
• Shopping/services
• Navigation &
wayfinding
• Somewhere to wait
• Baggage claim
• Transportation
Entertainment
Food & beverage options
• Physical comfort
Flying Experience
TABLE
STAKES

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Departure In the Air Arrival
Safety
Being on time / no delays
• Transportation
• Security lines
• Shopping/services
• Navigation &
wayfinding
• Somewhere to wait
• Baggage claim
• Transportation
Entertainment
Food & beverage options
• Physical comfort
Flying Experience

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ü Low cost
ü Design-focused
ü Low tech
ü Service-focused
Our Approach

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Examples
• Baggage claim game
• Portable chargers
• Restaurant and restroom
design for luggage
• Comfort animals
• Drink cart for delayed planes
• Insurance – paid out for every
minute on runway

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Holacracy

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Sam
Brand Partnerships Director Graphic DesignEmployee Engagement

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Obligation to Sense “Tensions”
Examples include…
Office snack selection
Diversity Initiative
Process improvement
Volunteer opportunities
Collaboration tool
New business line

25. “Research shows that every time
the size of a city doubles,
innovation or productivity per
residence increases by 15
percent. But when companies
get bigger, innovation or
productivity per employee goes
down. So we’re trying to figure
out how to structure Zappos
more like a city, and less like a
bureaucratic corporation. In a
city, people and businesses are
self-organizing.”
Tony Hsieh, CEO Zappos.com

26. “Clouds form and then go away because atmospheric
conditions, temperatures, and humidity cause
molecules of water to either condense or vaporize.
Organizations should be the same; structures need to
appear and disappear based on the forces that are
acting in the organization. When people are free to act,
they’re able to sense those forces and act in ways that
best fit with reality.”
Chris Rufer, Founder & CEO, Morning Star

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We are looking for partners to reimagine
the travel experience with

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Tyler Williams
TylWilliams@Zappos.com
Maggie Hsu
MHsu@zappos.com