The Product Recall: 6 Tips Companies Can Apply that Will Encourage the Consumer to Come Back and Buy

By Kipp Lanham and Danielle Blevins at Media & Communications Strategies

We have all read the headlines before: Product Recalled Due to FDA Investigation. 

How do companies encourage consumers to come back and buy again if their product or service is recalled?

1. Have a crisis plan. From a public relations perspective, companies who face crises such as product recalls need to have a crisis plan with a main focus to reassure consumers affected so they’ll come back and buy. Many companies do have such a plan. This allows for a swift response to react almost instantly which will lead to a quicker resolution to the product recall and signal to consumers that the company has the crisis under control. The consumer will regain confidence in the company and its product and thereby want to come back to buy.

But many companies do not have a crisis plan in place. Responding to a product recall without a crisis plan can result in chaos and disgruntled consumers. Market share could be lost as well as the bottom line of the company. Crisis = Disaster.

For all recalls, scenario planning is extremely crucial. Crises are expected for certain industries, such as the auto industry or grocery manufacturers industry, which are prone to experience some type of recall because of the type of potentially dangerous products the businesses manufacture. For others, problems might catch creators by surprise, and every industry must consider putting a crisis plan in place. Regardless, a recall is not always bad news. In fact, from a policy or consumer perspective, recalls can be good things if handled properly. Internally, a recall is a wake-up call for better business policies and production. Externally, a recall is never great but the focus on the business can be leveraged into building positive reputation if the recall and communication to publics are well handled. 

2. Abide by the law.  The company who recalls a product (mandatorily or voluntarily) has to explain the problem and what they’re doing to resolve the issue. In the courts, the fact that company voluntarily conducted a recall quickly and even created a crisis plan can actually help diminish legal liability.  

3. Demonstrate concern for consumer safety. A recall is good for consumer perception. Recalls enacted as soon as possible can demonstrate that companies take the well being of consumers and their families seriously. 

4. Tell the truth. Share as many of the facts available about the product recall as quickly as possible so the public can feel reassured about its safety and the product’s use. Speed and transparency result in credibility and consumer confidence. 

Transparency about what happened and what is being done to fix it will go a long way in restoring trust in the product, in your brand and whether faith will be restored after the recall. Recently, McCormick had to recall its oregano after the FDA found traces of salmonella during a routine testing. The FDA notified McCormick immediately, and McCormick encouraged all the distributors of the product and consumers who might have purchased it to dispose of the oregano. This quick response helped to prevent consumers from possibly contracting salmonella poisoning and risking serious illness and certainly helped mitigate the fallout of reputation after the crisis was recognized. 

5. Reimburse customers. Always consider compensating consumers for their loss or inconvenience caused by a recall.  McCormick, for example, quickly set up a hotline to address consumer concerns about its oregano recall and offered refunds. By immediately offering to pay them on the front end, it is a lot less likely a brand will have to pay out on the back end after lawsuits, judgments, or settlements.

6. Offer an alternative. If a company cannot reimburse the consumer, offer an alternative. Perhaps the company has another product or service to offer instead. Such proactive action can resonate with customers and will keep them respecting your brand and buying your products. 

If companies faced with product recalls use these six suggested tactics quickly and effectively, they are following a crisis plan that can encourage the consumer to come back and buy. Otherwise, you can lose consumer trust that will never be recovered. 

Kipp Lanham is a Senior Account Executive, and Danielle Blevins is an Account Associate at Media & Communications Strategies, Inc. a crisis public relations firm in Washington, D.C. and found member of PR Boutiques International, a consortium of public relations entities around the world.