With a recall or a crisis costing companies millions of dollars, the extent of business damage does't end with a financial hit. A recent survey conducted by Marketpoint Recall revealed that 85 percent of U.S. adults would get angry if a company has a crisis or issues a product recall. After the initial financial cost of a product recall or crisis, to what extent does the anger of the customer have on a company's brand reputation and future sales?
While recalls and crisis' can't necessarily be predicted or prevented, the survey conducted demonstrates that the way a company handles the problem can greatly vary the severity of customers reactions:
"Over 3 in 5 Americans say a slow response time from a company to correct the recall or a refusal to acknowledge that there is a crisis would make them angry (63 percent for both). Additionally, 60 percent of Americans said a lack of communication from the company to consumers would make them angry."
Would you be more forgiving if a company handled a recall to their best ability?
Markeptoint Recall specialise in industry best recall and crisis communications, helping companies facing disaster to communicate effectively internally and with customers, and in turn, reducing the impact a Product Recall or Crisis can have on a company and their lifeline, their customers.
Read on to see some of the publications the survey have been used in:
- Modern Restaurant Management
- Automatic Merchandiser and VendingMarketWatch.com
- Speciality Food Vending