The recent “Product Safety Pulse Report" from Sedgwick offers valuable insights into consumer attitudes toward recalls. The report offers an in-depth analysis of consumer attitudes and behaviors towards product safety with the aim to help manufacturers and retailers enhance the effectiveness of product safety communications, recall strategies, and customer retention.

As recall events grow in frequency and scale, and as consumer expectations and communication preferences change, manufacturers and retailers must take stock of their recall effectiveness. The report states that 58% of consumers are more likely to purchase from a company that handles recalls efficiently, highlighting the potential positive impact of effective recall management on consumer loyalty. 

Even beyond this, Sedgwick notes, “In our experience, customers typically remember recall events more for how they were treated, than for the recall itself. Armed with this insight, brands have an opportunity to transform a challenging situation into an opportunity to surprise and delight, potentially converting passive customers into loyal advocates.” Businesses that demonstrate competence and care in handling recalls can not only mitigate the immediate impacts of the recall but also strengthen their long-term customer relationships. 

Many of the take-aways highlight how communication practices affect consumer response to recall events, along with the potential reputational impact on brands. Central to the findings were sentiments surrounding how and what the recall company communicates to consumers. According to the report, 74% of consumers expect companies to notify them directly of a recall, underscoring the importance of proactive communication strategies. Businesses must prioritize direct and clear communication channels to ensure consumers are promptly informed of any recall events.

The report also highlights the significance of transparency, with 65% of consumers believing that companies should disclose the reasons for a recall. For businesses, this means including reason for the recall in the announcement, and steps being taken to resolve it.

One key recommendation is the use of multiple communication channels. The report notes that consumers prefer to receive recall notifications through email (62%), social media (45%), and company websites (38%). By leveraging these channels, businesses can reach a wider audience and ensure that recall information is disseminated effectively.

Other communication strategies include:

• Proactive Notifications: Prompt notifications can help contain the spread of recalled products and reassure consumers that the company is taking immediate action.
• Clear Information: Providing clear instructions for action can help to alleviate confusion and frustration.
• Robust Customer Support: Easy access to knowledgeable support can help alleviate consumer concerns and provide clear guidance on the next steps.
• Consistent Updates: Regular updates throughout the recall process demonstrates the company’s commitment to resolving the issue and keeping consumers informed.

By prioritizing better recall communication, businesses can not only navigate recall events more effectively but also build stronger, trust-based relationships with their consumers. As Sedgwick concludes, “These findings emphasize the importance of building and maintaining trust throughout a product’s lifecycle. Proactive and targeted communication strategies, especially during a recall event, are essential. When a strong foundation of trust is set and clear, transparent communication surrounding product safety exist, companies are better equipped to reassure consumers and retain their loyalty before, during and (long) after a recall event.”

The surprise is that consumer responses show the reputational risk and business impact of a product recall may be lower than imagined – but only when a recall is handled effectively. So the clear take-away is that handling recalls is not just about addressing an immediate issue – it’s about demonstrating an ongoing commitment to consumer safety and trust, which ultimately benefits both the consumer and the business in the long run.

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