MEMPHIS,
Tenn., July 18, 2024 /PRNewswire/ --
First-of-its-kind report offers manufacturers and retailers an
analysis of consumer attitudes and behaviors to product safety. The
release of its first ever consumer product safety pulse report by
Sedgwick's Brand Protection division is backed by a comprehensive
survey of over 2,000 consumers across North America and Europe and offers insights on consumer
attitudes, expectations, behavior and perception related to product
safety.
The consumer product safety pulse report highlights
communication biases and motivators for consumer response to recall
events as well as the potential reputational impact to brands.
While the survey primarily focused on consumer products, the
lessons derived are applicable across industries to help
manufacturers and retailers enhance the effectiveness of product
safety communications, recall strategies and customer retention.
The report also provides valuable insights into the likelihood of
different demographic cohorts to repurchase or switch to another
brand following a recall event. This critical knowledge equips
companies to better position themselves in the market and safeguard
future sales.
Among its findings, the report revealed a conflicting narrative
between consumer attitudes and behaviors towards product safety.
While many consumers say they respond to recall notifications, a
significant proportion do not prioritize product safety measures
beforehand:
- Pre-recall safety practices: Over 40% of consumers claim
to not read safety information before using a product for the first
time.
- Lack of registration: Just over a quarter (25.9%) of
respondents report that they do not register products under any
circumstances, but more than half (51.3%) claim that the presence
of an extended warranty would influence their decision to register
a product with the manufacturer.
- Generational divide in attitudes towards recalls:
Younger consumers exhibit greater vigilance and caution regarding
product safety issues, with nearly two-thirds (62%) of
18-to-24-year-olds claiming to read safety instructions prior to
using a product.
- Communicating recall strategies: More than half of all
respondents (53.6%) prefer to receive recall notifications via
email or postal mail, making it the number one choice among all age
groups.
- Varying motivators to respond to recalls: The primary
motivator, cited by 57.4% of consumers, is the prospect of
receiving a new replacement product, closely followed by having the
knowledge that the product in their possession presents a safety
risk (56.2%) and receiving cash back (48.3%).
- Post-recall safety behavior: Nearly 20% of consumers
acknowledge that they knowingly buy, sell or donate recalled
products.
A consumer's disregard for recall notices, along with their lack
of engagement with safety instructions, presents a significant
challenge for both manufacturers and regulatory bodies. These
findings, coupled with other data points, lead to several key
takeaways which are further explored in sections of the report,
including:
- Addressing consumer behavior: It is essential for
organizations to understand that consumer behavior is the foremost
challenge.
- Proactive customer engagement: Achieving effective
recall outcomes relies heavily on engaging customers well before a
hazard is identified.
- Managing recall and brand reputation: Effective recall
management involves addressing the immediate issue and reinforcing
the brand's commitment to safety.
As recall events increase in frequency and scale across sectors,
and as consumer expectations and communication preferences evolve,
the report maps out strategies manufacturers and retailers must
consider to enhance their recall effectiveness. This includes
understanding the recall landscape, keeping up with consumers'
evolving expectations and communication preferences, and
effectively tailoring manufacturers' individual recall strategies.
Manufacturers and retailers cannot take a one-size-fits-all
approach, but rather focus on demographic variances and preferences
to individualize recall strategies and optimize operations to help
achieve regulatory compliance.
"In an era where product recalls have become commonplace and
regulatory scrutiny is intensifying, it is crucial for companies to
grasp the intricacies of consumer expectations, behavior, and
perceptions related to product safety," said Chris Harvey, Senior Vice President of Brand
Protection for Sedgwick. "Sedgwick Brand Protection seeks to
understand these factors to help empower manufacturers and
retailers to engage more effectively with their customers, from
disseminating information about safe product use to ensuring
compliance when potential hazards are identified. We encourage them
to consider how these recommendations can be applied to their
business's unique risk profiles and challenges."
To download the consumer product safety pulse report, visit
Sedgwick Consumer Product Safety Pulse Report.
For more information on Sedgwick Brand Protection visit
www.sedgwick.com/brandprotection.
About Sedgwick
Sedgwick is a leading global provider
of claims management, loss adjusting and technology-enabled
business solutions. The company provides a broad range of resources
tailored to clients' specific needs in casualty, property, marine,
benefits, brand protection and other lines. At Sedgwick, caring
counts; through the dedication and expertise of 33,000 colleagues
across 80 countries, the company takes care of people and
organizations by mitigating and reducing risks and losses,
promoting health and productivity, protecting brand reputations,
and containing costs that can impact performance. Sedgwick's
majority shareholder is The Carlyle Group; Stone Point Capital LLC,
Caisse de dépôt et placement du Québec (CDPQ), Onex and other
management investors are minority shareholders. For more, see
sedgwick.com.
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SOURCE Sedgwick Claims Management Services, Inc.