Post Europe: Product recall - ignore social media at your peril

Facebook now has more than 500 million users and Germany, Italy, France and the UK consistently rank in the top ten in terms of global user numbers. Social media enthusiasts are keen to voice their opinions, turning this global platform into a modern communication tool reshaping interaction with key stakeholders.

While many big consumer brands have adopted social media as another marketing channel, smaller companies and own-label firms have tended to think it is not an area they need to consider. That is fine until these companies experience a product issue where social media becomes an important part of their crisis response.

"Social media becomes an important part of crisis response."

A global message
Social media channels are increasingly used as an amplifier for complaints, which can be especially damaging in the food and drink sector. This platform lets consumers in different countries interact and share information with others having a similar problem.

If a recall occurs in Germany and that same product is sold in France it will not take long for social networks to spring into action if the company does not address the safety of the product and its recall policy in France. With product problems now often being reported first in cyberspace, companies need to monitor social as well as traditional media to be ready to respond to emerging issues and protect their brand.

"It will not take long for social networks to spring into action."

Fact creation
Communications tools such as Twitter make ‘fact creation' or spreading of rumours a problem, especially if they fill a communication vacuum left by the company. Stories can get forwarded, posted on Facebook or retweeted many times around the world. Surveys also suggest that the vast majority of UK journalists use social media for their work, so companies may face calls from journalists wanting explanations on a story originating in the social media sphere.

Social media can also be used by companies for pro-active communication. Plum Organics used Facebook and Twitter to engage with and reassure consumers during its voluntary recall of apple & carrot baby food. The company drew Facebook users to their official recall site where they could respond to questions, concerns or rumours. Customers appreciated the accessible and transparent information, especially in the highly emotive area of baby food.

"Customers appreciated the accessible and transparent information."

If firms need to recall a product that could be injurious to health, they should consider how many consumers might get informed via social media. Even those deciding that social media marketing is not for them should make these communication channels a part of their risk mitigation and crisis management strategy, protecting the brand on and off-line.

Ed Mitchell is global practice leader for product recall at XL Insurance (in association with Julia Johnson, senior consultant at Razor)