Managing a product recall and your brand reputation

Product recalls are not just an operational headache. They can also have damaging effects on your brand`s reputation.

According to recent figures released by London law firm Reynolds Porter Chamberlain, product recalls in the UK are at an all-time high. There has been a 12% jump in recalls from 2009 to 2010. This is the second year in a row to see record breaking increases. The main sectors affected have been pharmaceutical products, food items and consumer goods.

There’s no substitute for quality-control standards on product design and manufacturing. However, when an incident does occur and a product recall is necessary, the key is to be prepared. A product recall plan, including details of how consumers will be compensated for their inconvenience is a necessity to ensure that your brand reputation is protected.

The benefits of offering affected customers a make-good in the form of a branded prepaid Visa card are the following:

  • Reinforce the message that the company stands behind their product or service
  • Reduce the potential for negative publicity
  • Circumvent potential legal action by consumers
  • Demonstrate the ability of the organization to react quickly and effectively when mistakes occur

By taking a proactive approach to managing product recalls, it demonstrates to consumers that you are prepared to accept full responsibility when things go wrong. By doing so, you protect not only your brand reputation but also in turn retain consumer brand loyalty.

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