Effective Recall Management Can Increase Consumer Loyalty
11-09-2010
By Mike Rozembajgier
We often talk about how effective recall management can actually create opportunities during a recall crisis. Now, the results of a new survey show how a recall can impact your brand and customer loyalty. In fact, the results of the survey show that customer loyalty actually can be strengthened if a company is able to show consumers that it is in control during a recall. At the same time, manufacturers can lose the opportunity to build their brand reputation if they try to sweep problems under the rug, hoping that customers won’t notice.
The survey, which was conducted as part of a collaboration between Princeton University and Relational Capital Group, polled 1,000 adults to examine customer beliefs about the way companies manage recalls. Of the respondents surveyed, 93 percent believe that product recalls offer customers an important inside glimpse into whether companies care more about their own profits than they do about customer safety. Likewise, 87 percent of respondents said that they are more likely to purchase products from companies that manage recalls in a “honest and responsible way.” More proof that companies would be well advised to be transparent and in control during a recall crisis.
During a recall, it is critical that consumers believe your company is transparent, competent and responsive to their concerns. By being open and transparent throughout the recall process, your company will be more successful in reassuring consumers that you are not hiding anything from them. When consumers perceive that your company’s recall management team is competent, they are more likely to believe that you are doing what is necessary to ensure their safety and trust that you are capable of identifying the problem and know how to fix it.
But perhaps most important, consumers must believe that companies managing recalls are responsive to their concerns. If your customer relations team or call center cannot answer every consumer call in a timely manner, or if your messages do not adequately address their fears, you will forfeit the opportunity to earn valuable consumer loyalty.
The results of this survey show once again the importance of recall preparedness and effective recall management in maintaining a loyal customer base. Manufacturers and retailers alike should revisit and test their recall plans and reverse logistics capabilities in order to put themselves in the best possible position to manage a recall. Recall preparedness, rapid response, transparency, and effective leadership are critical to ensuring an effective recall. And effective recall management can lead to increased consumer loyalty over the long term.
Stericycle ExpertRECALL™ is the industry leader in recall logistics and regulatory compliance for consumer product, pharmaceutical, medical device, juvenile product, and food and beverage recalls. ExpertRECALL’s professionals are experts in recall management who can help you streamline the entire product recall process.
One Response to “Effective Recall Management Can Increase Consumer Loyalty”
[...] and dealing with unwanted, negative public and media attention. But well-prepared companies can turn these risks into opportunities to showcase their concern for public safety. Recall risks can be mitigated when a company is completely transparent during the recall process [...]
