Delivering Happiness

Today sees the official publication of Delivering Happiness, Tony Hsieh's story of the growth and ultimate success of Zappos (arguably the world's most successful clothing e-tailer). It's an easy read, as its written in a relaxed non-business tone; and traces a line from Tony's early childhood attempts at being an entrepreneur through to the point where Zappos are 2 weeks from going under, and to their ultimate successs.

This book represents the next stage in Zappos efforts to share the culture of their business with the world. Interestingly they seem to be doing this not only because they understand the commercial benefits it brings them (it is very rare to talk to anyone who, once they are exposed to the Zappos culture, does not spontaneously fall for the brand - many wishing out loud that they worked there - i.e. it generates enormously positive WOM about the brand), but also because they genuinely believe that it is a business model that could be successfully followed by others.

Probably the most intersting aspects of the book is the humble style in which it is written. It seems pretty transparent about the issues/crises they faced, the mistakes they made and the luck they had. Tony identifies as one of his key influences as being Good to Great by Jim Collins which, as he says, highlights "...that great companies have a greater purpose and bigger vision beyond just making money and being number one in the market". That this come up in a conversation with one of his partners whilst discussing a customer email praising them for upgrading his delivery for free, (and as they are approaching the real crunch time for the business), and that over lunch they turn this thought into a strategy of delivering the very best customer service, is perhaps a little overstated. Though it does add to the mytholgy around the brand. Whatever the circumstances, maybe even the Zappos folk were surprised at the impact this had on their business from a repeat sales and recommendation perspective. This, allied to the decision to stock and deliver all their merchandise was the catalyst that changed things around.

Undeniably one of Zappos biggest achievements has been to recognise the importance of the culture within the company. The now famous 10 core values started off as 37 core values which over a year were whittled down to 10. Both these and the annual Culture Book were built from within after input from employees.


Again, as part of spreading their culture the Culture Book is free to request from Zappos.

The culture and the passion that exists and seems to perpetuate in within Zappos is exemplified by the inclusion of their individual examples or interpretations of each of the values towards the end of the book. This is when the story really comes to life.

What can other companies learn from reading this book

That there is another way to commercial success seems obvious, but the Zappos way is very challenging to most companies. Here are some other, perhaps more attainable, lessons.

1 In the brave new world of empowered and ever more demanding consumers, service is likely to play an ever more crucial role. It is unlikely to be sufficient to compare or compete on service levels within your market sector, even if that is discount or low cost. Consumers will not differentiate between service levels across sectors, if they ever did, particularly when companies such as Zappos are raising the bar for everyone. How long before free delivery becomes the norm in online shopping?

2 Much has been written about the demands that Social Media is putting on brands to be authentic, human, transparent etc. Arguably Zappos could be singled out as the example par excellence of this approach, from both a content viewpoint and the extent to which it opens the company culture to scritiny. Crucially what they also are fun and 'a little weird', which makes it all the more likely that people want to engage with them.
Obviously this approach will not suit all brands. It will frighten the life out of the majority! What is important though is that Zappos has a crystal clear sense of who it is and what it stands for. Yes, this has always ben the hallmark of great brands (when they are consistent with it), but it is becoming ever more important. God knows how many brands have entered the Facebook arena, for example, but what we do know is that the overwhelming majority are bland, pale and nigh on invisible because they don't have a viewpoint or anything interesting and engaging to say.

3 I find that one of the most useful concepts for explaining how social networks, and hence social media work, is that of Social Objects, which Hugh Mcleod explains well here. This is clearly a concept that Zappos have a perfect grasp of. Whether its their Culture Book, the whole Delivering happiness initiative, of which the book is just a part, their company tours, their multiple blogs and twitter accounts, the often times zany videos of the goings on within the company, their weekly live streaming of their "happyhours", they are continually making social gestures and owning the conversations that they have decided define who they are.

Finally, what is very obvious about the Zappos culture is that everyone is highly motivated to deliver on the core purpose. This video from RSA Animation helps clarify why that is, and is well worth taking 10 minutes to watch. It may help you be a little braver in the way you approach business.



Oh, and you can buy it here .

Is the iPad really a game changer?

The Wall Street Journal's annual conference - 'D - All Things Digital ' was held at the beginning of this month. This year it was D8 .Speakers included Steve Balmer of Microsoft, John Donahoe of eBay, Ron Garret from Dell, and topping the bill - Steve Jobs (you know where he is from!).

The conference coincided with the recent announcement that Apple had overtaken Microsoft, in terms of its market capitalisation, in part due to the sale of 2m iPads in less than 2 months. Not surprisingly therefore much of the discussion was around the iPad, where it fits in the market, and what the future holds. In the following video clips you'll see the above gentlemen expressing their views.

Steve Jobs is his usual confident and (seemingly) open self (who wouldn't be in his position), and talks here of how the iPhone actually arose out of work being done around a brief to develop a tablet computer.
Interestingly he sees tablets as heralding the end of the PC era, and sees them as being more like 'trucks' (presumably vs. more nimble and numerous cars). His response to the final question as to how long the post PC era will take to arrive suggests that he, like many, sees the iPad as a game changer. Steve Jobs makes some interesting observations about how he thinks the iPad can act as a positive stimulus for publishers, particularly in the magazine industry.




John Donahoe (CEO of eBay) certainly indicates here that he believes smart phones and tablet computers (more specifically here the iPhone and iPad) have prompted eBay to look at how their website is structured and how content is provided.



It is also interesting to see the reaction of Steve Balmer (of Microsoft) to the iPad. Whilst he may have a point that a tablet computer is another form of PC, it does come across as being particularly defensive, and maybe points to a further flaw in the strategy behind the 'I'm a PC’. It's never a good idea to let a competitor's strategy define your own, particularly when you are tying yourself to a technology form, which will eventually be usurped by others. If Microsoft = PC, and vice versa, what happens when the technology or the vocabulary changes. We will have to wait and see.




A glimpse of this may be seen in Dell's launch of it's 5" tablet - The Dell Streak, using the android OS. But then again, I think not.
This device seems particularly utilitarian, when compared to the concept of the iPad, particularly when you bear in mind if you buy it unsubsidised from Dell.Com it would be the same prices as the entry level iPad. One could be forgiven for thinking that in trying to create something that's as portable as an phone, but as legible as an iPad, Dell have created something that does neither job well. Watch the reaction, when Ron Garrett puts it to his ear. And it doesn't bode well when asked what they call (categorise) it, Dell say they'll 'let the market decide' or when pushed Ron gives it the catchy name "an internet device you can put in your pocket" - where's the 'wow' in that?



If we accept at the fact that (according to Gartner forecasts), mobile phones will overtake PCs as the most common Web access device worldwide by 2013, and that already our ability to create information has far exceeded our ability to manage it; it's not difficult to foresee that we will adapt new ways of interacting with the web. And it's this perspective that makes the launch of the iPad particularly interesting.

Sarah Rotman Epps, a Forrester Analyst, it this way:

"There is something very significant about the iPad beyond how many units it will sell: it's changing how we think about the PC. The iPad creates a use case for a device that doesn't do everything your laptop does, targeted at a consumer that uses devices more for consumption than production. The iPad ushers in a new era of personal computing that we call "Curated Computing"—a mode of computing where choice is constrained to deliver less complex, more relevant experiences. Let me repeat that, because it's the essence of the Curated Computing experience: less choice; more relevance".

See Sarah's full article.
This raises a number of points:

> 1 The iPad is the best example so far, and surely there will be better to come from both Apple and others, of a device that helps us experience the web, and these devices are likely to be distinct from those that help us manage it.

> 2 Too much (and an ever increasing) choice, is something that, in the developed world, we are all struggling to deal with. The web helps us manage those choices, but also feeds their proliferation. Branding has always been about creating something that audiences will choose, increasingly in a cross category context. If particular devices and environments are developed that encourage us to access particular types of content on the web, it stands to reason that different types of content that are relevant to those environments and user experiences, will be necessary. I don't think its as simple producing a website and a range of apps. It's probable that brands that see themselves as multi-faceted (in John Grant's brand molecules sense) and are already developing a variety of social media content across a range of platforms are going to be best placed to adapt to this scenario.

> 3 Many agencies are struggling to define their role in this post-digital world, and it’s likely that developing apps for the iPad will be there next immediate step. Without doubt such skills will be a basic requirement and offer the opportunity for developing alternative revenue models. There is also an opportunity to take a strategic stance. The iPad represents a new technical platform, which is very exciting in itself. But the value for clients will come from an understanding of how its appearance will change consumers web behaviour - how they access and interact with it differently. Time taken to understand this relationship and the iPad's role will pay dividends.

Throwing streamers at revolutionaries

The Guardian opens up access to its content

I am a bit late to this (well 3 and a bit weeks - though there seems to have been surprisingly little coverage in the Marketing and media press). Particularly bearing in mind I could lean out of one of the agency windows, and even with my useless throwing arm, hit the windows of the Guardian's offices. Not with a stone you understand, but perhaps more appropriately a streamer.

Rupert Murdoch's pay-wall approach to online newspapers, particularly bearing in mind his comment in 2006 in Wired, seems even more Luddite in the context of this Guardian initiative.

"To find something comparable , you have to go back 500 years to the printing press, the birth of mass media....technology is shifting power away from the editors, the publishers, the establishment, the media elite. Now it's the people who are taking control".

After 18 months of development and experimentation, the Guardian are doing the complete opposite to News International - opening up their content for anyone to use. The Guardian are the first major news site to offer all content to developers / the public at large through APIs and the new Open Platform frees Guardian content from the limits of the main Guardian site.

The Guardian's Open Platform is open for business

View more presentations from The Guardian Open Platform.

This follows on the back of their success at harnessing user power to decipher the MPs expenses files, and numerous examples of where the willingness of readers to and collaborate in the editorial process has resulted in innovative story angles.
Add to this the track record of the iPhone and Facebook (to name just 2 examples) when they opened up their API, and it seems that the Guardian might be more in tune with where things are headed. The opportunity for the Guardian's content and hence its brand to spread across the web, particularly when others are walling theirs in, should also work in their favour. Who knows, just as Mr Cameron and his colleagues have been able to take on some liberal values, maybe some of the readers of Rupert's quality brands may find themselves warming to the Guardian, particularly with its wider visibility to them.

For more detail go to the Guardian's Open Platform site, and there's a blog post about the launch from Matt McAlister the projects lead developer here and a range of comments and perspectives here and here.

The opportunity is now for clients and agencies (and particularly creative agencies) to grasp this nettle (because it's bound to get a bit itchy for some).

Push-me Pull-you Pt 2

One of my earlier posts referenced Mark Earls and his observation that Social networks are not best understood as channels down which folk send things; social networks are webs from which members pull down learning (from each other). (My emphasis not his).

In this post, Neil Perkin references JP Rangawamis post that the current (push)business models, that many are trying to maintain, are premised for the desire for predictability. From his (JPR's) analysis of the The Power of Pull, he lists a number of assumptions on which (let's call them) traditional (push) ways of doing business are based

• There's not enough to go around
• Elites do the deciding
• Organisations must be hierarchical
• People must be molded
• Bigger is better
• Resources can be allocated centrally
• Demand can be forecast
• Demand can be met

He (NP) observes that in their attempt to maintain predictability, businesses sacrifice what one might argue is one of the fundamental requirements in this brave new world we find ourselves in - agility.

We have all heard of how in the past we have used previous technologies to frame new ones (TV is radio with pictures etc.) and we look like being equally guilty of framing the new demands on marketing and communications in similar terms - scaling a new solution born of the same thinking - as Sir Ken Robinson says in this TED talk on the need for a new type of education.

As he says (actually is quoting Abraham Lincoln) in regard to developing new ways to educate, the challenge is to 'dis-enthrall' ourselves from the old ways of thinking in order to rise 'with' (not 'to') the new challenges we are facing.

The challenge is huge, particularly when you bear in mind that there are few marketers around that have the breadth of experience, perspective and skills required to evolve strategies that at least for now will combine old and new practice, and increasingly span areas of a business that were outside of the Marketing Director's remit. . In this Social Media Today post Adam Vicenzini lists just a few of the skills that today's marketers need to implement SM successfully:



As he asks - how many people do you know that

a) have experience in all these areas, and
b) have managed aggressive agencies
c) can pull people together internally whilst massaging considerable egos
d) have the technical appreciation for what is involved
e) can handle a crisis competently
f) can be forward thinking enough to sell creative concepts across the business
g) have the time management skills to pull this all together?

Clearly brand owners and agencies alike are faced with many significant challenges, and as we know, it will require us all to learn as we go - often from the consumer who at this stage at least is showing us the way from an agility perspective.

Returning to Sir Ken's TED talk, perhaps one way to view the challenges is to think more in terms of an agricultural/organic approach, rather than the industrialised/linear one to which many brands are still bound.

(To spread this blog a little wider I am just pasting in a little link - mitchado.gooruze.com)