January 31, 2010

Toyota Product Recall a BE DiFFERENT Opportunity

Recently Toyota has announced they intend to recall millions of their vehicles as sticky gas pedals present a critical safety hazard.

If they understand the principle of Service Recovery they have the opportunity to turn a negative event into a loyalty building one.

Here’s my assessment of the situation through BE DiFFERENT lenses:
- the sticky brake problem is the result of a Core Service breakdown. Customers expect and deserve clean brakes. Somehow these vehicles escaped the quality control inspection. The Core Service process needs to be fixed and FAST.
- vehicle recall is a Service Recovery opportunity which if done well will actually result in more loyal customers than if the brake problem never happened in the first place.
- the recall process must have as its prime objective to nurture and deepen the relationship between Toyota and its customers.
- its not about fixing the problem (no accolades will come as a result of resolving an issue that never should have happened in the first place.
- fixing the problem is simply not good enough if you want the continued loyalty of these owners.
- it is about fixing the screw-up but placing the emphasis on doing what these owners don’t expect.
- successful Recovery will make these owners forget that the problem happened; they will fill the airwaves with their joy over how the company surprised them in the face of a product meltdown.
- time is of the essence. If you want Recovery to work to build loyalty the matter needs to be dealt with FAST. Trying to Dazzle an owner 12 months after the brake problem was uncovered will only convince them they need to move to Ford.

Here are some things that you, Toyota, could do to Dazzle these owners:
- act FAST and provide a time line declaring how and when the problem will be fixed for every car owner.
- be prepared to be flexible for those owners that have different needs than owners covered by your overall recall process. Each owner is different in some way and you must be prepared to be flexible and not try to enforce a process that doesn’t work for everyone.
- send a personal letter of apology from CEO to every owner.
- offer a credit on the next vehicle service as an atonement for their sins.
- or offer a small gift as a gesture that you care about the inconvenience you have caused and the quality trust you have broken.
- make it easy for owners to get car fixed. Overstaff the call centers and help the dealers deal with the increased work volume.
- DO NOT try and do the cost effective thing here. This is a time for trust renewal not cost control.
- over-communicate how the brake problem will be solved and how the recall process is proceeding. Emphasize how you are listening to your customers.

Lastly, Toyota, and indeed every business, needs to hard-wire a Service Recovery strategy as a critical component of their overall plan. There will always be surprise service breakdowns: people aren’t perfect nor is technology. Recognize the relationship-building and loyalty gains you will get by recovering well to these events and you will not only be better off, you will distinguish yourself from your competition who thinks the right thing to do is ‘fix the problem’.

Cheers, Roy

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Posted 1.31.10 at 09:57 am by Roy Osing | Read Comments (0) | Leave a Comment