Product recalls due to safety issues are not just a hassle for the company, they create significant risk. Whether a recall is mandated by the government or voluntarily initiated by the company, there is a lot on the line for brands, from significant recall implementation costs to lingering reputational challenges. However, when recalls occur, there is also an opportunity to turn the negative into a positive and build a loyal customer base.
Contacting consumers about a safety recall not only demonstrates that a brand cares about them but also reaffirms its status as the expert service provider. However, convincing customers to respond to an inconvenient ask associated with a recall can be one of the biggest challenges for a brand. So, how can a company ensure that its product recall is successful? By offering incentives.
Role of Incentives in Driving Consumer Action
Rewarding customers for taking action on something that they view as an imposition works. According to a recent Harris Poll conducted by our client Urban Science, 80 percent of customers with outstanding car recalls stated that an incentive would drive them to act.
Incentives show that a brand cares about consumer safety, while acknowledging the inconvenience. Even better, once a recall consumer engages with the brand to address the recall, brands have the opportunity to communicate directly with the consumer, express concern, and earn their trust, leading to higher brand loyalty.
Determining the Right Incentives
The Urban Science Harris Poll also found that there’s one incentive that consumers say stands out above the rest: gift cards. Gift cards are versatile, handy, and may be used in a variety of situations. Customers have shown a greater willingness to respond to gift cards than to products, contributions, or other incentives.
Turning a Negative Into a Positive
To sum it up, if done right, product safety recalls present an opportunity to make good out of a bad situation. Here are a few ways to ensure success:
- Stay ahead of the curve. For example – Breaking your own news about the recall rather than letting others break it for you allows you to stay in control of the narrative
- Be empathetic. Nothing pushes a consumer away like a brand not caring about them. Acknowledge the inconvenience the recall has caused and assure them it is in their best interest to follow recall procedures
- Incentivize consumers for their time and effort. The best way to drive consumer action is to incentivize them via their preferred methods. Customers are hungry for convenience, and flexibility – and virtual gift cards provide them with both.
From Amazon to Virtual Visa reward cards, Virtual Incentives offers 1050+ brands, in 51 countries and 43 currencies of incentives to choose from for your customers. Contact VI to start your incentives journey today.