A blog I wrote earlier this week was all about what you do in private, may end up in the public domain so you may as well encourage conversation as try to control them.

Well I came across this very interesting – if not challenging example of an organization ‘showing their stuff’ in public.

Zappos.com is the largest online shoe store in the world (they don’t deliver to Australia – I have tried… this site can meet any Imelda’s desire – 4 million pair of shoes – yes there are that many made). They have more than 1600 employees (big in the online space). More than 300 of them are corresponding via twitter.com (a public domain) social ‘what am I doing’ site.

Zappos has had massive sales growth (from $70 million five years ago to $1 billion today) by offering the following a big customer promise:

    *  Huge selection (4 million pairs of shoes)
    *  Fast delivery (promises 4 days, often delivers overnight)
    *  Free delivery (not to Australia)
    *  Free returns

Clearly Zappos success lies in how it engages its team to deliver amazing customer experiences. It has a highly engaged call centre team. This engagement is enhanced by ‘Trust’ in allowing employees a great deal of freedom in how they deal with customers. I know this from our own experience – see previous blog. Our pleasure relations team know that they can respond to any query, based on our values and they will be absolutely supported by our leadership team.

In addition Zappos back this trust value with 4 (paid) weeks of immersive training that focuses on strategy, culture and obsession with customers.  Now we don’t do this… something learned here. We talk extensively about the customer experience. And our team really get that… they know that what they say on the phone impacts how people experience our brand.

A large number (>300) of Zappo’s 1,600 employees are on Twitter. (We have not yet embraced this at RedBalloon). According to Zappo’s ‘For people unfamiliar with what can be accomplished with Twitter, this represents a huge presence in a community of customers and employees (and yes, competitors as well), talking and listening to each other about what’s working and what’s not, what’s hot and what’s not, and basically anything else that provides the “pulse” of the market.’

The CEO, Tony, Twitters away too.. (as the leadership team goes so goes the rest of the organization), further enhancing the Trust factor as well as providing him another insight into their market. He is able to keep tabs on customer sentiment very quickly.

Zappo’s takes employee engagement really seriously. It knows that its brand is only as good as the last twitter or phone conversation. How interesting then that after a week or so on the job, Zappos offers new employees in their call center the pay that they are owed plus $1000 to leave. This is because Zappos wants to really know if the employee is truly engaged and this provides a relatively inexpensive way to find out sooner rather than later. Zappo’s is taking very seriously the cost to its brand of a bad customer experience.

In addition, the $1000 option can be (and has been) adjusted as needed (it has grown from $100 to $500 to $1000). This offers a clear, tangible demonstration of the level (and value) of employee engagement (which is typically thought of as very intangible) and how it can be arrived at through measurements like this vs. relying solely on surveys, etc.

I have not yet tried this one…. We are a much smaller team of 43… If we ever give it a try I’ll let you know how it goes.

I was asked some questions for Kirsty Dunphey's newsletter so I thought I'd share some of them here too.

What 5 pieces of advice would you give to someone wanting to start their own business?

• Know the difference between a hobby and a business
• Love what you do and do what you love
• Systems will set you free (1% idea - 99% execution)
• Understand cashflow - (there is no business without cash in the bank - even if you are making a profit on paper)
• Have a clear vision…and stick to it - you've got to know where you are going to make the first step

'SUCCESS is all the more satisfying when it is shared, Sydney entrepreneur Naomi Simson believes. And there are plenty celebrating her success. Thanks to her flourishing gift-giving company RedBalloon Days, Ms Simson has effectively empowered 900 small businesses in Australia and New Zealand. The firm, which sells adventure and experience oriented gift vouchers, is now one of 22 finalists for the 2007 Telstra NSW Business Awards announced yesterday.

Gift ideas in RedBalloon Days' extensive catalogue range from te adventurous quad biking, kayaking, abseiling and horse riding, to the more tranquil chocolate tasting, dance lessons, spa retreats and even cooking classes.

"We are a gift-giving business, but we don't just give gifts, we give experience vouchers to allow people to do something they've always wanted to do." Ms Simson said, adding that her firm provides 900-odd affiliated businesses a global shop-front.

The Pyrmont-based company will sell close to 80,000 gift vouchers this year - double last year's total - but it has not all been easy since the firm was launched three weeks after September 11 2001.

"Honestly we thought we were never going to sell anything. I had managed to invest my savings into what was apparently the ugliest website on the planet and I didn't know the first thing about online marketing," she said.

The winners of the 2007 Telstra Business Awards will be announced at a gala dinner on July 27.'

This acknowledgment is for all the wonderful suppliers who are a part of our RedBalloon community. Because you do what you do every day - we get to do what we do. Thank you

We are excited to be finalists in the Telstra awards on your behalf - representing a diverse and growing segment of the Australian economy. Thanks guys. This is just the beginning of what we have planned over the next few years.

I love the fact that big organizations ask me to speak to their people about innovation and leadership. This is where I came from. I love sharing the journey, and creating the future. Daring to imagine what could be possible if only we let ourselves dream.

I drive my team spare, I want to do before I think. I get into trouble regularly for being a bull at a gate, impatient, passionate – and often foot in mouth.

This poem touched me... it reminded me that business is just a game – and to ask myself 'Did I have fun today?'. If the answer is no – what am I going to do about it?

I share with permission from the author - if you want more go to TheBigmoo.com

They Say I'm Extreme

They say 'I'm extreme'.
I say 'I'm a realist'.

They say 'I demand too much'.
I say 'they accept mediocrity and continuous improvement too readily'.

They say, 'We can't handle this much change'.
I say 'Your job and career are in jeopardy; what other options do you have?'

They say, 'what's wrong with a 'good product'?'
I say 'Wal-mart or China or both are about to eat your lunch. Why can't you provide instead a fabulous experience?'

They say 'Take a deep breath, be calm.'
I say 'Tell it to Wal-Mart. Tell it to China. Tell it to India. Tell it to Dell. Tell it to Microsoft.'

They say 'the Web is a useful tool'.
I say 'the Web changes everything - Now'.

They say, 'we need an initiative'.
I say 'We need a dream, and dreamers'.

They say 'great design is 'nice'.'
I say 'great design is necessary'.

They say 'Effective governance is important'.
I say 'bold, brash boards that are representative of the market, served more than a token woman or two and an empty seat for the 'forthcoming Hispanic' – are an imperative – Now'.

They say 'Plan it'.
I say 'Do it'.



[More]

I shared a few months ago about how disastrous RedBalloon Days first website was. But version 2.0 of redballoondays.com.au was not that much better. I remember at the time I thought it was ground breaking!

Development is a journey not a destination.

Oh how little we knew. It is just on five years since we launched the first site, and this site is about four and a half years since it was launched.

Sam,

I read with interest 'The gift that keeps giving' article by William Kestin. Well that is one mans opinion based on how he sees the world (given he is the CEO of the Australasian Promotional Products Association of course promotional products would be the hero in the story). Whilst I agree with much of his sentiment regarding retail gift vouchers having little lasting value towards the brand that gave it, one cannot lump experiential vouchers into the same lot. But I do not speak alone – and clearly RedBalloon Days own success has clearly been caused by the lasting value of one person telling another what a great experience they had. But let me share the opinions of others rather than just my own opinion.

“Experiential purchases or life experiences make people happier than material purchases. The initial thrill of a possession wears off quickly but memories last forever. A person’s life is the sum of their experiences, not their goods. Experiences have greater social value in their connectivity.”
Gilovich T, Cornell University & Van Boven, L, University of Colorado.
(December 2003) US Journal of Personality and Social Psychology.

“We enjoy talking about our experiences much more than our possessions. Talking about our experiences – including our shared experiences – is the stock in trade of our relationships... Good relationships are strongly associated with happiness.”
Gittins, R (2004, February 18). Activity is the goods for true satisfaction.
The Sydney Morning Herald.

“For more than 56% of all respondents, the best reward that an employer could give for a job well done is a fun thing to do, with a dinner for two (at over 17%) trailing far behind in second place. The five least popular rewards were in order: desk accessories (0.1%), flowers (0.4%), CD/DVD vouchers (1.4%), movie vouchers (1.6%) and food hampers (1.7%).”
The Summer 2003 Pleasure Survey (4000 respondents)
To get a copy from www.redballoondays.com.au/go/pleasure

Promotional products have a place – but they are an advertising medium, not a gift. Gifting is about the intent of the giver and about the desires of the receiver. Gifting is about generosity – not trying to get someone to advertise on your behalf. Keep promotional products in the advertising budget please.
Regards

Naomi

I was asked these questions for a sales and marketing column. I thought I'd share what was asked. In fact I have been at three different events over the past few days - Lot's of questions were asked - so I will answer them in separate entries depending on the topic.

Having a clear vision in business will allow you to … Know why you get out of bed every day. Having a purpose has made all the difference to what I do in a day. When I worked out it is just about giving people a good time that really lit me up. Now I’m fundamentally changing gifting forever...I’m up for the challenge 10% of Australian and New Zealanders will have had a RedBalloon Day by 2015. Having a vision is infection for others too. They can see how they can add to the game, how they can contribute, shared vision has created RedBalloon into what it is.

Don’t be afraid to take risks …be dead scared instead;) There is not a day that goes by that I don’t ask myself, ‘what if?’. And I have never forgotten the early days when I would look on our website and say ‘no customers today – maybe tomorrow.’ I embrace the fear and say what is the worst thing that can happen. Did anyone get hurt? Did we have fun? Did we make a difference? Then it is all worth it. Being afraid is part of growing a business, not being ruled by fear is what makes us entrepreneurs.

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Online gift retailer RedBalloon Days has been chosen as one of the 22 NSW finalists in the Telstra Business Awards.

Founded it 2001, RedBalloon Days sells experiences on the internet. It could be a wine tasting in the Hunter Valley. It might be a thrilling ride in a high-powered jetboat across Sydney Harbour. Or it could be any of the other 1500-plus experiences the website has to offer.

The business provides gift vouchers to individuals, as well as corporate organisations who use vouchers for incentive programs, reward and recognition initiatives, as well as long-term service and various customer loyalty programs.

The business is the brainchild of Naomi Simson, who based it on a British business with similar model.

Ms Simson won Westpac's Entrepreneur Award in the 2005 NSW Champion of Champion business awards.

RedBalloon which also operates in New Zealand, has won acclaim in fastest growing start-up business categories and was the 2004 & 2005 winner of the Hitwise award for the most online visitors in the gift and flowers category.

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MY BIGGEST investment was starting my business in 2001.

It began from home and I never really had any intention of working anywhere else. It soon became nine people crammed into my front room which had its limitations.

But in the early days, it kept overheads low which meant that we could spend precious dollars on marketing activities. Marketing my business correctly has been one of my best investments.

My best investment has also been my worst – Telstra shares. I definitely have learnt that it is all a matter of timing. Really, I have had little to no success in the sharemarket.

I tried years ago and they are worth less now. The most success I have had is in businesses that I really know.

There are no investments that I missed out on and regret. Regret is an odd word. It implies sorrow or sadness and there is nothing sad about the choices I have made.

Some financial advisers I trust, others I don't. I trust my husband, accountants and bankers. I don't necessarily trust my stock broker. I think he has forgotten my name.

The best financial advice I have been given was to invest in the worst house in the best street and then make it the best house. About 10 years ago, investing in residential property was really working for us, but I think now it is a lot harder.

I now get my greatest leverage in investing in my business. Careful selection and understanding true return on investment of marketing and other spends can return a lot more than passive investments.

For this reason, if I had a windfall of $50,000, it would go directly into the business. I would recruit either a ColdFusion programmer or a salesperson – then by the time that 50k was used up they would be productive and producing a lot more than that.

I'm not that across laws surrounding investments, that's why I have a great accountant.

However, I do firmly believe that any type of unethical investment is not acceptable to me or anything done for the implied tax break.

I also question the restrictions on superannuation and capital gains – should we not be encouraged to save as much as we can whilst we are young and earning?

I consider myself very wealthy – I have a fabulous husband, two creative, gorgeous children and every day I love each minute of what I do as chief experience officer at RedBalloon (well, maybe there are a few minutes every day when I am at the end of my tether).

It all depends on how you define rich. Health, happiness and harmony are what it means to me.

Financial success means that I could walk into a shop and buy a pair of shoes without looking at the price tag. I don't necessarily do that very often, but it's nice to think I could.

My key to achieving this success is to never ever give up. Believe in yourself and your ideas, always act with integrity and get great advice. I firmly believe in attending educational events, where you can learn from industry leaders – we should never stop learning.

I would say that my biggest financial flaw is not keeping up to date or staying informed. That is why my best investment is the running and direction of RedBalloon. I know the return I get from any dollar (or hour) invested.

My biggest financial extravagance is not owning a car. I just get cabs everywhere and never have to worry about parking or traffic, because I can continue to work in the cab!

This is proving quite handy at the moment whilst juggling work commitments and trying to write a fabulous speech for the marketing summit.

Despite this taxi extravagance, my household budget stays under control- if you don't have one then it is in control!

I am a long way off retiring – I still have at least 25 more years before I start to hang back.

School fees and HECS fees will finish about half way through that so it should then be smooth sailing.

Q.Tom McKaskill - Partners and Spouses – How do they react to what you do as an entrepreneur?

My husband thinks that I am a great marketer but totally irresponsible financially. Both of us have had careers in corporate life. But my husband has created and sold several other businesses. At some point after he sold one and I was up to my neck in contracts and compliance at RedBalloon Days I asked him to assist – could he review this, check that, what about trademarks. Having a husband with a strong accounting/finance background was invaluable. Then after a period of 6 months or so...it became obvious that I needed him full time.

That was when the fun really started. I wanted to spend $15k on a trade show...My accountant husband pointed out that at current earnings that was 15 months revenue and wasn’t I being slightly foolish to spend that amount of money....Ooh did we have a huge fight over that one. He finally said to me ‘Well it’s your money honey’...now of course with that sort of drama there was no way that I was not going to make this event the most successful in the history of marketing. I followed up every detail, every lead, every idea of an opportunity. Ultimately we won $500k worth of business over the next 12 months from the event – and we still get regular business from those that we first met at that tradeshow.

What my husband does is challenge me – push me to greatness, never let me sit on my hands. Whilst now he totally trusts my marketing judgment – marketing (or any other) spend is never taken for granted. Now he is the CEO of GoDo..sister company to RedBalloon Days the real time booking engine of activities that takes our work through distribution channels to the tourism market. I would have to say that there is plenty of friendly rivalry between the two businesses which share many resources...we push each other to the next level. I never knew our relationship could be so profound and fabulous. And in a million years for the first 10 years of our marriage I never ever ever ever thought that we could work together, let alone be a powerful partnership.