Alumni Profile: Naomi Simson
Degree: Bachelor of Commerce 1988
Current Position: Founder and Chief Experience Office of RedBalloon online gift experience service
National Winner of the 2008 Nokia Business Innovation Award
NAOMI Simson started RedBalloon as a small home business in 2001, and has since expanded it to a thriving online company with 46 staff in Australia and New Zealand. The company offers gifts of experience, and has 900 suppliers in Australia and 700 in New Zealand. Ms Simson recently won the 2008 Telstra Business Women’s Award for Business Innovation, which she says acknowledges those who are prepared to take a risk and do something different. She shares the story behind RedBalloon in an interview with Melbourne Alumni e-news.
Can you please tell us the story of how it all began. Where did the idea come from?
Before starting RedBalloon I worked as a corporate marketer for IBM, KPMG, Apple and Ansett Airlines. In 1997 I decided to leave corporate life after becoming a mum and start my own business ‘Bright Marketing’, and following that RedBalloon in 2001.
I wanted to start a business that had a ‘yes’ culture, that listened to its customers, encouraged innovation from its people and used feedback to evolve and develop and enhance the product and therefore the customer experience.
My purpose was not always so clear… when I started my career I thought it was all about getting somewhere. ‘When I finally make marketing manager then I will be happy’ ‘When I am married then I will be happy…’. Life is a journey and each day adds a little bit more. My purpose came to me about 15 months into starting RedBalloon, once I saw the difference I was making to other peoples businesses. As it unfolded bit by bit, I then realised that all I had done before had added a small piece to what was needed to fulfil my dream.
Our purpose is to change gifting in Australia forever- and this goal keeps me focused. People around me understand that I cannot stand the waste that is caused by unwanted gifts and that giving a gift is an intimate activity that can either enhance or break a relationship.
What inspired you to pursue this idea?
I really saw the difference I was making to other people’s businesses. We have 900 suppliers in Australia - that’s 900 small businesses we’re supporting, who before partnering with us would have had very little online presence. We have around 700 suppliers in NZ whom we also support.
Simply seeing the joy in people’s faces when they talk about their RedBalloon experience, or what their friend or loved one chose to do – we’re giving people a good time and people love talking about their shared experiences rather than possessions – the foundations of happy relationships.
RedBalloon started out as a home business in 2001 and has grown into a successful business with 46 staff, offering experiences in Australia and New Zealand. What did it take to get you where you are today?
I think it’s a combination of several factors all working together.
People - I wouldn’t be where I am today without a great support network and a great team of committed employees who share the same vision, and my husband Peter has been my greatest supporter.
Passion and perspective - something that I hear regularly from people is ‘she is so amazingly passionate’. Even in a one minute conversation with someone, they will often comment ‘you clearly love what you do’. Passion cannot be manufactured – it comes from having a clear purpose and seeing the results of what you’re doing. I have also surrounded myself with great people at RedBalloon who can take an objective view of the world, which offers a great balance. The people I surround myself with keep me focussed and look at all the various outcomes of a given idea.
Persistence – my motto is ‘if it’s meant to be it’s up to me’ – it’s about never giving up and being a believer. It’s like being a little dog with a big dog personality, and having the ability to be nimble and courageous, and also able to stand up for yourself and be heard.
Can you tell us about the challenges you faced?
I launched RedBalloon in October 2001, three weeks after September 11. This was not the most auspicious time to launch a new company, and even David Jones had closed down their online store. The world was in turmoil, there was nothing in the media but gloom and doom for months on end and no one was in the mood for fun and exciting experiences. To make matters more difficult, I had very little knowledge of the internet, and I took it upon myself to design my first website. I didn’t realise some of the technical requirements behind getting search engines to pick your site up to place it higher up the search listings. Consequently, it took our first customer about two months to stumble across us. I have since learnt that my initial website was used by a lecturer at UTS as an example of the “worst website” he had seen.
What do you enjoy most about your job?
Making a difference to other people’s lives, whether that be employees by watching them learn and grow, or customers getting amazing gifts they didn’t know were actually possible.
RedBalloon is in the experience game, our job is to make sure we give people a good time. One of the best parts about what I do is listening to the stories of what people did on their experiences such as the 80 year old woman who had tears in her eyes as she saw a butterfly released for every year of her life while she was surrounded by her immediate family at North Head, or the man who at the age of 60 got to fly an airplane and how he described butterflies in his stomach like a boy going to a birthday party.
What are your future goals for the business?
I have some pretty focused goals for my business. I want the brand to become synonymous with ‘experience’. Up until this point we have seen 486,702 people have a RedBalloon experience, and by 2015 I would like to see the figure at two million people. The overarching goals are that people will think of this business and immediately associate it with legendary service, top customer interaction, great systems, and a savviness around media and culture.
What does your recent win mean to you and your business?
I was nervous and excited – I was flattered and fearful. I wanted it for the team so much, who have worked tirelessly. This award was for all the people who share the vision to change gifting in Australia forever. It is for both past and present RedBallooners – the wonderful team who turned vision into reality. To win this award is to acknowledge all those who are prepared to take a risk – and do something different. It shows you can start with nothing (from the front room of your house – with second hand computers) and create a multi million dollar business that is globally recognized as best of class.
When you undertook a Commerce degree at the University of Melbourne, what did you intend to do with it?
I had no idea I would be running an internet business when I did my bachelor of commerce because the internet had not been invented!
How has your University of Melbourne experience helped you in your current role and career?
It taught me how to research, discover ideas and quite frankly it’s really useful to understand economics when there’s so much conversation in the media around it. I am glad to have that background, so that I know I can read a balance sheet.
What words of advice would you give to other young women wanting to start their own businesses?
There are three things that I think all business people need to know when starting out. Firstly define why you are going into business – be really clear about your purpose. Secondly, know business metrics, and understand no business can thrive without cash. Thirdly, surround yourself with people who you can learn from and give knowledge to. It is one of the reasons I write a blog naomisimson.com about what I have learned. It’s great for people to have a resource like this, but it is just as important for me to have a repository of all the things I have learned.
