Having to announce a recall can be one of any business’ nightmares. Not only does it bring you a mob of angry consumers, it can also be a cause of immense stress in your staff, and potentially push away hopeful clients who are trying to stay safe.

According to many marketing experts, there are numerous reasons why product recalls are damaging to a company’s reputation. In order to understand this, we need to try to place ourselves in a “consumer mindset”. Here are some of the reasons why you need to handle your recalls carefully:

  • Recalls can give an impression that your product quality is subpar – people will always place quality as a top priority when purchasing products. They want the best value for the best price. Having a recall means they felt that they were using a subpar product that doesn’t meet quality standards.
  • Recalls can turn off potential clients – some people, including those who may be interested in your business, may come across the news of a product recall. In these instances, they might be hesitant to purchase your product because of a recent recall. This gives the risk of losing the trust that your new clients may place in your business.
  • Recalls can be difficult to manage – as much as possible, businesses should avoid having recalls. However, in unavoidable circumstances, you need to prepare your whole team for the influx of clients making inquiries, approaching your business, or making complaints on your support hotline.

How do you handle a recall without damaging your company’s reputation? In this article, we will be looking into smart ways to make that happen.

Give full refunds and an incentive whenever possible

Customers often have the notion that they traded their resources–both time and money, to approach your business and get the value they deserve. In this situation, you need to make them feel like they did not lose anything with the recall, so it is important to give a full refund when possible. If your business standing can handle it financially, you may want to offer incentives to these clients as well. For them, a refund may still be a loss. In a consumer’s mindset, they still went out of their way to undergo the process of purchasing something from your business. Similar to the Depuy Attune recall, you must be able to give full refunds or even extra compensation when it is possible.

Have a business team ready to approach clients personally

TV or print ad announcements can be helpful to maximize the safety of your clients getting a recall, but it can be detrimental as you cannot choose the people who will see your commercials. If you only have a small group of people who are candidates for recall, you might as well assign the task to a team of experts who can approach these specific clients personally, such as through a phone call, e-mail, or a private letter. This way, it can minimize the spill-over of informing those who may not be even aware of the story.

Make the refund process as smooth as possible

People don’t like the fact that you inconvenienced them–and they will be all the more angry if you keep the process complicated and difficult. You should be able to find the quickest way to give refunds or incentives to your clients. As much as possible, keep your verification process to a minimum, and the payment options as varied as possible. Make sure that people don’t have to go to your head office to do the claiming. Offer them convenience as a way to apologize for the hassle they were put through. With the Depuy Attune recall, patients were required to undergo knee revision surgery but were able to do so at the nearest hospital in their area.

Customer service should be your main priority

At this point, expect that many consumers will be bombarding your phone lines asking for steps on how to pursue a recall. Some of them will even be airing their frustrations and even profanities, which is expected at this point, depending on the severity of the case. This is where your customer service team should be armed and ready. Keep your hotline open and be ready to prepare an answer for all possible inquiries that your customers may face. An open line of communication for customers will make them feel secure that you are not just planning a way to escape. In this scenario, it is better to face the storm than to run away from it.

Always be prepared

Your first product recall will be a lesson learned–but this doesn’t mean that it won’t happen again. Always be prepared for such instances, and do not overpromise to your clients. It is better to err and be on the safe side, rather than overpromise and experience a lawsuit. Place product label disclaimers when necessary.