Reddit AMA with REI CEO spirals out of control with questions over membership tactics

Reddit AMA with REI CEO spirals out of control with questions over membership tactics

REI made headlines a number of weeks in the past when it announced that it could be closed on Black Friday, historically the largest procuring day of the 12 months for brick-and-mortar shops, and inspired everybody to go outdoors.

Whereas that was extensively thought to be a daring, constructive transfer for the outside retailer, a Reddit Ask Me Something (AMA) chat this week with REI’s CEO Jerry Strizke had a number of individuals calling into query the corporate’s gross sales practices. The thread shortly spiraled right into a collection of complaints, with each former staff and prospects weighing in.

As noted by Gizmodo, the thread began out innocently sufficient:

“Hello Reddit. I’m Jerry Strizke, CEO of REI. You may need heard about us just lately once we introduced that we might be closing all of our shops on Black Friday this 12 months. We’re paying our 12,000 staff to take the break day and we’re encouraging them to choose out of the Black Friday insanity and spend the day outside with family members…Ask me something!”

When Strizke logged off, there have been about “300 feedback,” as he notes in a comply with up. However the AMA hit a nerve — or a number of thousand nerves — as Redditors took to the stream. Greater than 3,700 feedback have been posted since, many of which embrace complaints from former staff that REI is just not such a terrific place to work.

Essentially the most upvoted comment, from Redditor annonemp, questioned the heavy push on membership gross sales: “I’m questioning why there may be such an obsessive emphasis on membership gross sales? Why aren’t staff incentivised [sic] to promote memberships, however slightly penalized for failing to take action?”

“With this in thoughts,” the previous worker added. “I attempted to strike a stability between offering distinctive service to pre-existing members and giving genuine membership pitches. Some days I’d promote tons of memberships, some days I wouldn’t promote any, and most days I’d promote a number of.”

In brief, in accordance with the thread, the worker labored exhausting, realized the ins and outs of all the things REI, cross-trained throughout each division, skilled new staff, and obtained “prime marks in my check-ins” — however was finally penalized with fewer hours of work, and never employed in a brand new metropolis after the worker’s membership gross sales “stagnated.”

“I absolutely perceive the necessity to maintain staff to a excessive customary, however why is the method so unbalanced?” the previous worker continued. “How is it in the perfect curiosity of the co-op to focus so completely on a efficiency metric that has no direct profit for patrons who’re already members?”

That query began, as they are saying, a shitstorm of feedback.

From wartsnall1985: “Product information, customer support expertise, total work ethic are value ZERO in case you are not promoting x quantity of memberships per shift.”

From whatisyournamemike: “I used to be capable of preserve my job simply paying for peoples memberships, didn’t must promote something, but the raises and promotions stored coming in!”

It bought variety of nasty from there, with even prospects getting in on the thread.

From Gazorp: “As an REI buyer, it’s extremely irritating to be continuously pushed to purchase a membership by each worker I encounter. A checkout worker laughed in my face yesterday after I instructed him I didn’t have a membership. Makes me not ever need a membership, and makes me not need to store at REI.”

Strizke posted an update to Reddit straight addressing the unique remark from annonemp. Right here is an edited model of his prolonged response:

“I’m actually involved about your expertise and to listen to others specific the identical. Our members and prospects are our first precedence and offering them with educated insights is crucial factor we do. I imagine that this experience and a shared ardour for the outside are our overwhelming strengths as a corporation and am very proud of the women and men carrying inexperienced vests in our shops.

“I’ve to confess the emphasis on membership gross sales was a shock to me after I joined the co-op two years in the past. Provided that I used to be new, I wished to have a greater understanding of the co-op construction and a few of the whys behind our actions. There isn’t a doubt that the co-op construction is targeted on the idea of membership and there may be lengthy institutional reminiscence reinforcing the concept that we should always encourage as many individuals to hitch the co-op as doable – we imagine within the mission and objective of the co-op.

“Having stated that, we might have misplaced sight of the larger image. The reality is that we should always have been doing a greater job sharing what makes the co-op particular. We should always have a ‘pull’ mannequin (individuals need to be part of as a result of they imagine in our mission and so they love the expertise), not a ‘push’ mannequin with regards to the co-op. And crucial factor is that our staff in our shops know that their ability, deep outside information and customer support are the issues that matter above all the things. To be clear, that’s how our individuals ought to be measured.

“I really feel like your story represents a measure of particular person efficiency taken to an excessive and I’m dedicated to understanding what occurred. I recognize you sharing your story and I guarantee you that we’re trying into how we’re utilizing this measure. Good dialog.”

We’ve reached out to REI to see if there are any extra updates.

Replace: REI supplied us the beneath remark through e mail from CEO Jerry Strizke:

“I loved being on Reddit. It’s an extremely passionate and engaged group. I worth and encourage transparency from the individuals who work with me and the individuals whose lives we contact. We do an enormous quantity of issues at REI to interact with staff and drive transparency and so discussing issues like what it means to be a membership group are regular apply. That’s important as a result of our members are literally the homeowners of REI.

“Concerning the Reddit thread particularly – this can be a fully legit dialog (how we invite individuals to hitch the co-op and the way we measure worker efficiency). It’s a difficulty we’re at the moment centered on and so I plan to dig into the query extra deeply. We can have a collective dialog about this subject. This may embrace conversations in our shops. If I’m not joyful with what we discover, we’ll make a change.

“Backside line, although, an open and clear dialog is one thing CEOs shouldn’t be afraid of. I, for one, welcome it.”

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