There are several main challenges when it comes to product recall and the effect it will have on the brand. Handled well, a crisis can actually strengthen relationships with customers by improving the way they perceive a brand and enhancing a reputation for responsibility, accountability and transparency.
Most importantly, it is all about planning. Every business that provides a product or service must ensure that there is an established recall or crisis plan in place to mitigate any potential situation from spiralling out of control. But it isn’t good enough to leave this plan to gather dust on the bookshelf for years on end; instead, it must be fluid and updated regularly even if a situation has yet to emerge.
There must also be the realisation that responses to crises serve a purpose greater than just minimising the legal liability that a company will face from a faulty product. The challenge is to ensure that a product recall does not threaten the entire brand or company. To do this, a speedy and assertive crisis communications response is essential. Without this, the impact of negative news will be compounded further. Last, and by no means least, there needs to be an element of calmness and understanding that a product recall does not need to turn into a brand crisis.
Recalls can, in some instances, actually provide brands with an opportunity to reconnect with their customers – existing and prospective. If managed effectively and in a timely manner, brand damage can be avoided and opportunities can be taken advantage of to build even better brand advocacy. The key to a successful recall, irrespective of sector, is a quick response and the implementation of a cohesive communications programme, which keeps customers in the loop whilst ensuring they feel valued.
A mishandled public response can cause more issues and damage than the initial problem actually did. A well-managed response to a crisis, however, can create positive customer experiences. When Lexus launched its brand in the US, they immediately had to recall a faulty product. Its handling of this actually generated goodwill for the (now) automotive giant, but it could have meant a young death for the brand if the situation had been handled poorly.
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So, given the above, there are a number of strategies to turn a product recall into a positive branding opportunity. For a brand, it is vital at times of crisis to keep an open and clear dialogue with consumers and a consistent message across all channels. Keep the website updated, ensure that the customer service telephone line is manned appropriately and if social media is a platform that the brand engages on, then make sure that the support is there to man that touch. It is actually a channel that can be used to a brand’s advantage, but it is vital to ensure that the team in place is skilled enough to manage during a crisis situation – and that comes down to planning once again. Social media allows a brand to react in real time and correct any reported inaccuracies and, in today’s society, that is what consumers demand. But beware: Staying quiet when you have a social media presence is a bad idea as it infuriates consumers seeking immediate answers. Once a brand has invested in a social presence, times of crisis are absolutely not the right point for it to stick its head in the sand and ignore consumers.
The brand must also be humble enough to take responsibility. There is nothing a consumer despises more than a brand that apportions blame elsewhere during a time of crisis. By being compassionate and personal, there will be goodwill afforded to a brand that is clearly in a difficult situation. A simple, corporate press release will not suffice.
Our own consumer research has shown that almost three quarters of consumers will in fact consider a repeat purchase following a recall if they had a good brand experience. That is telling. However, if the operation is badly executed and poorly communicated, 70 per cent of customers would actively criticise a brand both online and through word-of-mouth. That can be hugely damaging, so these are statistics worth noting and being aware of.
To manage a product recall effectively and turn it into a positive branding opportunity, it is essential to have the right partner in place. Sometimes just handling crises from an internal position leads to poor errors of judgement, borne out of passion and heart rather than experience and intelligence. Using an outsourced provider, particularly one with a global footprint and experience across different territories, which is vital for brands nowadays, will help to turn the negative into a positive experience, creating the distance needed from a brand’s internal people, but with the personal touch and integration into the workings of an organisation that allow it to act in the best of interests but with a clear head.
Photo credit: ‘Done for the season’ by Andrew Morell Photography