Remembering Tony Hsieh

COURTESY OF ZAPPOS.COM

“I believe that getting the culture right is the most important thing a company can do.”

Tony Hsieh

I was saddened to learn of the passing of entrepreneur and former Zappos CEO Tony Hsieh last month. Back in 2013, I had an opportunity to meet Tony, and I remember him as a reserved, thoughtful man, one you might not expect to be the CEO of Amazon’s billion-dollar acquisition. When I reflect on how his work inspired me, I think of a man who believed true success happens when a company’s culture puts people first, not profits.

Tony Hsieh’s legacy shines in how he built the Zappos brand from the inside out. Prior to starting Zappos, Hsieh built a successful internet ad network, LinkExchange during the first dot com boom. The company soon outgrew its humble beginnings, and the developing toxic culture drove him to seek a better way to practice business. 

After selling the business to Microsoft in 1998, he took that experience and the lessons learned, and Zappos was born.

Building Culture from the Inside Out

Zappos is legendary for its customer service, and for good reason. Tony saw it as “a customer service company that just happens to sell shoes.” In the early days, he was personally involved in every new hire interview, seeking not just competent workers, but people who aligned with Zappos’ values and culture. The team was soon filled with people who understood the company’s DNA, from top executives to call center representatives.

By investing in service over advertising, they built a culture of putting people first. Their phone-based service model prioritizes warmth and human connection, and every representative is empowered to do what it takes to make the customer happy. The result is a devoted customer base -- so devoted that 75% are repeat buyers. Even though Amazon acquired the company 10 years ago, that above-and-beyond culture continues to raise the bar in customer service.

Photos from my first visit to the Downtown Project in 2013

This focus on “delivering happiness,” as Tony’s autobiography is named, became his legacy and leadership brand. It’s the leadership that focused on building a vision-aligned team, delivering happiness internally so they are empowered to deliver happiness externally. That leadership philosophy extended to his Downtown Project, an effort to revitalize a neglected corner of Las Vegas. I had the chance to experience this first hand during several visits to Downtown Vegas, visiting the Zappos headquarters, and hanging out with Tony Hsieh and his team.

The Human Touch: David’s Story

We have long used Zappos as a branding case study. When telling their customer-centric story, I often share the experience my colleague David Barnum and his wife had with Zappos. About a decade ago, David was diagnosed with Stage 4 cancer. Thankfully, aggressive treatment helped him beat the disease (he is still in remission and doing well today), but soon after they received the good news, his wife discovered a pair of boots she had bought over a year ago and forgotten to return.

Zappos already offers a more than generous 365 day return policy. Even though her purchase was well past that time, she decided it wouldn’t hurt to call customer service. The worst they could do is say no, after all.

While talking with the representative, she explained the story about David’s cancer and the forgotten shoes. Without hesitation or putting her on hold, the representative said, “Don’t worry about it. I’ll send you some shipping labels and you can return those boots.”

That in itself is a great story, and a reflection of how their customer service team is empowered, but it’s not the end. The next day, their doorbell rang. It was a delivery of flowers with a note from Zappos, congratulating David on beating cancer.

The Legacy

These are the little human touches that make all the difference, and I think that tells you everything you need to know about the brand Tony Hsieh built. It’s not just about having values, but how his organization operationalizes those values from top to bottom. And this is how one of their lowest ranked employees could have the power to make on-brand decisions simply to delight their customers. This is Tony Hsieh’s legacy, one that will inspire us for many years to come.