This is a post by Dan Burgess, Senior Vice President, Director, Public Relations at Doe-Anderson.
Do you know specifically what the reputation of your company is worth? A silly question, perhaps, but Toyota is in the midst of finding out what the answer is for them. The automaker’s “unintended acceleration” nightmare is costing the company an enormous amount of money not only in lost sales and undermined customer loyalty, but also the hard, tangible costs of everything from replacement parts and dealer installation time to extensive advertising and public relations counsel.
Eventually, the company will be able to look back and tally up a grand total of everything spent directly on the gas-pedal problem. It will be a very large number. And they will consider every nickel a good investment toward repairing their reputation.
Beyond money, however, two other factors are critical for Toyota to regain its credibility: great customer service, and time.
With millions of Toyota owners descending upon local dealerships for their replacement accelerator assemblies, each encounter is an opportunity for Toyota to shine – or to stumble. If dealers can consistently make each customer feel as if he or she is the most important person they’ve seen during the recall, they will take giant strides toward reviving consumer confidence. And as Doe-Anderson consistently preaches, turning those customers into engaged, vocal brand enthusiasts is the best investment a company can make.
Still, it’s going to take time for Toyota to complete its recovery. Clients often want a quick, effective public relations strategy to address a problem and emerge on the other side, none the worse for wear. Doing and saying the right things quickly is, indeed, a critical part of the solution, but then the company must gradually earn back the trust of its audiences by remaining consistent, over time, in delivering on its promises.
In a sense, this crisis of reputation can be seen as a tremendous opportunity for Toyota. If the company can get through a business catastrophe of this magnitude by responding honestly, quickly, effectively, and humbly – and avoid further problems for the foreseeable future – the company may ultimately win the public’s admiration and respect at an even more meaningful level than before.
