A study by the Relational Capital Group revealed that 87 percent of consumers say they’ll stick with a brand after a recall if the company handles it well. People understand that mistakes happen, but they also prefer brands that demonstrate honesty and responsibility when dealing with those mistakes.
Of course, the scope of the fallout of a product recall depends on the nature of the error itself. A single faulty part requires significantly less damage control than a software bug that affects every user. In some cases, a product recall can even mean losing millions of dollars.
However, if a problem isn’t a critical function of your business, you can easily turn it into an opportunity. Even when dealing with a more widespread issue, acceptin...