Zappos Races Ahead

Tony Hsieh, the 36-year-old CEO of Zappos.com, the popular online shoe seller, likes to share a story that illuminates the essence of the company’s vaunted customer service. A couple of years ago, he and some fellow Zappos executives were attending a Skechers sales conference in Santa Monica, Calif. Zappos has established cordial relationships with a number of hip shoe companies like Skechers, and socializing with vendors is not uncommon in building business relationships. After the meetings ended, Hsieh and his Zappos colleagues went out with several Skechers sales executives and after a long night of barhopping the group made its way to the hotel where the Skechers crew was staying. Up in one of the executive’s suites, a member of the group suggested ordering a pepperoni pizza, which she had seen on the room service menu. But it was 3 a.m., and room service no longer delivered hot food.

“She was pretty disappointed,” Hsieh recounted. “So I dared her to call the Zappos toll-free number. We all thought it would be pretty funny and a good test of our customer service.” The young woman dialed Zappos on speakerphone, as the group listened in. When the Zappos call-center rep answered, the hungry Skechers manager explained her plight without mentioning the Zappos executives sitting next to her. The Zappos rep replied, “Please hold on.” And within two minutes, she came back on the line with the names of fi ve pizza places in Santa Monica that were still open and would deliver pizza. The Skechers people were astounded. Hsieh was pleased but hardly surprised. What transpired was not an anomaly — it was a perfect illustration of the Zappos culture at work.