Sedgwick Consumer Product Safety Pulse Report reveals essential insights on consumer recall behavior

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Sedgwick Claims Management Services, Inc.

Jul 18, 2024, 09:30 ET

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.

SOURCE Sedgwick Claims Management Services, Inc.