Lessons from the Toyota Recall
Toyota’s current recall crisis is going to cost the company a lot. Replacing recalled parts, costs associated with regulatory compliance, and the hours spent managing the recall will be nothing compared to the significant brand damage that is being done every day. The slow dissemination of consumer notifications and confusion surrounding the company’s proposed recall remedy has left customers unsure when it will be safe to drive a Toyota again.
Toyota is now in the business of keeping customers safe, calming fears, and quickly coordinating repairs. That can be difficult when distributors and mechanics around the world become the face of your brand. In these situations, you must communicate early and communicate often with those individuals so they have the right messages to calm the fears of consumers. Recalls are inevitable and having a tested recall plan in place will help your company react with the speed necessary to avoid some of the most common missteps.
As I told AOL News, Legal Talk Network, and WDEL 1150 AM earlier this week, companies experiencing a recall must get out in front of the news. If your company is always playing catch up, someone else is dictating the narrative and putting the brand on the defensive. And if you aren’t working closely with regulators, they will write the narrative for you – and you may not like the outcome. Instead of demonstrating your company’s effectiveness and commitment to customers, a poorly executed recall plan will tarnish a reputation that took decades to build in a matter of days.
Before your company finds itself in Toyota’s shoes, develop and test a recall plan. Performing mock recalls will help your risk management and response teams rise to the occasion during a real event and could not only save the company money but also avoid risking consumer trust.
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.