How Tony Hsieh Changed The Way, We Do Business
Tony Hsieh a Taiwanese- American entrepreneur who revolutionized the way business is conducted by putting employee morale as the priority. Tony took the concept of selling the experience and the product to a new level. Link Exchange was the first business venture where Hsieh sold online banners as a way for companies to advertise products and services. Tony eventually sold the company and invested in Zappos.
Zappos is one of the largest online retailers on the internet. Tony had created a culture within the office and distribution center.
“Everyone is a little weird. We want people’s [employees] shine.” Tony Hsieh CEO of Zappos
Hsieh focused on customer service and employee happiness. His philosophy is that if you do what it takes to make the employees happy, they will put in hard work to please the customers. The company’s primary focus is to work culture.
When Zappos hires employees, they hire to add the person to the culture of the company. The trainees spend five weeks in training. During the first week of training, the trainee would be offered $2,000 to quit plus their weekly salary. The offer increases weekly while trainees are still in the training program. The recommendations are because the company wants to invest in employees who want to work for the company instead of collecting a paycheck.
Tony has taken the idea of instead of focusing on advertising but putting a spotlight on customer service. Instead of putting money on advertising Hsieh has put it towards employee events and employee morale. The word-of-mouth technique is a more powerful way to build credibility by treating each customer call as a branding opportunity. If one customer is pleased, they will share their experience with a friend.
“ You may not remember the day of the week, but you will remember how you felt .” Tony Hsieh
75% of Zappos sales are repeat customers, and over 20% are referrals from past customers when training employees, Hsieh encourage employees to ask themselves the following questions.
What do customers expect?
What did the customer experience?
What emotions did the customer feel?
What stories will the customer tell their friends about the experience?
The employee’s self asset and allow them to create positive changes to improve customer service.
Employees at Zappos not only enjoy the casual culture in the building but free food and healthcare. The employees are the heart of Zappos and the brand. Forbes magazine has been awarded multiple times for “Best Place to Work.” Over the years, Hsieh’s branding theory has repeatedly proven that the company's culture and customer service create profits and repeat customers. (Hsieh, 2004)
