Loyalty programs are a staple of modern retail. They help businesses understand customer behavior, drive repeat purchases, and build long-term relationships. Yet, despite the sophistication of these systems, most companies fail to use them for one of their most critical functions—recall communication.
When a recall happens, time is critical. The longer it takes for a consumer to learn that a product they purchased is unsafe, the greater the risk of harm. Yet the process of informing customers remains outdated and inefficient. Most companies still rely on methods that require customers to take the initiative—store signage, press releases, and government databases—rather than reaching out directly to those who purchased the recalled product.
Customer loyalty programs already collect the data that could solve this problem. When a customer scans their rewards card or enters their phone number at checkout, that purchase is logged and tied to their profile. This information is routinely used for targeted marketing, customized discounts, and product recommendations. So why isn’t it being used for recalls?
Retailers may worry that integrating recall notifications into their loyalty platforms would require significant investment or technical upgrades. In reality, many of these systems already track purchase data and send personalized communications. Adding a recall notification function would use the same basic framework as promotional offers. A customer loyalty program can provide instant, direct communication—an automated text, email, or app notification alerting affected customers with clear instructions on what to do next.
For small or independent retailers that don’t have digital loyalty systems, implementing purchase-based recall notifications is a greater challenge. But as technology providers continue to expand their offerings, solutions are becoming more accessible. Companies like AppCard are showing that even businesses without extensive IT infrastructure can modernize their customer communication.
There’s also a lingering hesitation about how customers will respond to recall alerts. Some companies worry that notifying a consumer about a recall will make them more likely to lose trust in the brand. But the opposite is true. Transparency and proactive communication build trust, not erode it. When a retailer or manufacturer reaches out directly about a recall, it sends a clear message: "We value your safety and want to ensure you have the right information to act quickly." That kind of trust is invaluable.
Beyond protecting consumers, loyalty programs also help protect a brand’s reputation. Direct notifications allow companies to control the scope of the recall and the messages that consumers receive. This targeted approach not only minimizes unnecessary alarm but also helps reduce food waste—an issue that strengthens brand perception as companies show they go above and beyond standard recall practices.
Integrating recall notifications into customer loyalty programs should be a no-brainer. The technology exists, the infrastructure is in place, and the consumer expectation for direct communication has never been higher. Ignoring that expectation isn’t just a missed opportunity, it’s a failure in responsibility.
The way a company handles a recall speaks volumes about how much it values customer safety and trust. The companies that make the shift now will set a new standard for consumer protection. The ones that don’t will find themselves explaining why they had the ability to act and chose not to.
