DTC luggage company Away replaced Steph Korey as CEO just days after a PR trainwreck of an article by The Verge exposed its punitive work culture. Korey will be kicked upstairs to take an Executive Chairman post and former Lululemon executive Stuart Haselden will step into her old position.
To be clear, Haselden’s hire must have been planned before the “toxic PR” generated by the Verge story. But it’s a perfect time for fresh leadership, and a good way for Korey to be sent packing as a public face of the brand. It didn’t have to be that way.
There’s a lot to sort out here. Yet my first take on the Away reputation mess wasn’t just that workplace culture impacts brand reputation, although that’s true. It’s not only that muzzling workplace dissent is a terrible idea and often backfires, though it does. Or that Korey’s apology was inadequate. Or even that warp-speed growth goals and cult branding pervert work culture — though they often do.
The entire episode tells us something else, too. It’s about one of the key departments Korey oversaw – customer service – and its seemingly impossible standards.
PR, CX and ever-higher expectations
These days, customer relations is public relations, especially for high-growth DTC brands. You can tell a lot about a company by how it handles customer complaints. Businesses spend millions on brand reputation and community service. They hire high-powered PR agencies. But a reputation can unravel quickly when a public-facing employee mistreats a customer, and the customer takes the case to the social mob. In many ways PR and customer relations are two sides of the same coin.
Even more, the Away fiasco shows how brutally hard it is to maintain the CX standard that most of us have come to expect. It’s a standard largely set by Amazon. Lydia Polgreen said it well when she tweeted that “the CX expectations set by behemoths like Amazon are impossible to meet in a humane way and yet set the standard for any DTC business.”
It probably hit me then because I was in the midst of a 9-day effort to cancel, then return, an incorrect Black Friday order from National Grid Marketplace. (National Grid is a company that may be great at getting your gas turned back on after a storm but comically inept when it comes to e-commerce.) My experience involved seven real-time chats with different customer service reps, 14 emails, three phone calls and 29 minutes of phone waiting time. To top it off, each interaction triggered an automatic customer service survey, but no one addressed the actual problem.
That CX experience was objectively terrible, but most companies are not terrible. Most are even pretty good. Yet given customer expectations, they’re hard pressed to meet an Amazon-like level of customer service.
Remember the New York Times piece that peeled back the wrapper on Amazon’s own cutthroat, exploitive work culture?
(Employees) are told to forget the “poor habits” they learned at previous jobs, one employee recalled. When they “hit the wall” from the unrelenting pace, there is only one solution: “Climb the wall,” others reported. To be the best Amazonians they can be, they should be guided by the leadership principles, 14 rules inscribed on handy laminated cards. When quizzed days later, those with perfect scores earn a virtual award proclaiming, “I’m Peculiar” — the company’s proud phrase for overturning workplace conventions.
At Amazon, workers are encouraged to tear apart one another’s ideas in meetings, toil long and late (emails arrive past midnight, followed by text messages asking why they were not answered), and held to standards that the company boasts are “unreasonably high.” The internal phone directory instructs colleagues on how to send secret feedback to one another’s bosses. Employees say it is frequently used to sabotage others. (The tool offers sample texts, including this: “I felt concerned about his inflexibility and openly complaining about minor tasks.”)
Sounds like the Verge article. This is not to excuse Korey’s creepy, abusive cult-leader-like tone or her use of “empowerment” language and “brand values” to manipulate employees into working around the clock. Yet we assume that businesses, especially retailers, will strive for an Amazon-like level of customer service because it’s the only way to compete today. That comes at a cost, even for well-funded DTC companies like Away. Especially for those companies, because they’re slavishly following the model. For high-growth businesses who need to hit their goals, the customer service bar is forever rising and the only way to balance it with growth demands is to push workers harder and harder. There is a model, and the model is Amazon. Give them part of the credit, and some of the blame, too.« Can Big Business Save America? | The PR Losers Of 2019 »