I just returned this evening from Chicago and the annual Pet Food Forum. There, I moderated a panel on recall and traceability, which turned out to be quite a hot topic among attendees given the events of the last several weeks. In discussing the issues, several of the tips that surfaced struck me as relevant for any business.
1. Never rat out your customer. The distributor who imported the questionable products from China, ChemNutra, distributed a public letter,. that is also on their website, saying they “are appalled and distressed that Menu Foods took so long to recall its products…” While how they feel may be justified, putting it in a public letter and passing it out at the industry conference seems a little…well…risky. After all, would you want to work with a supplier that was ready to turn on you when the going gets tough? There is an ongoing investigation in which ChemNutra has likely been or will be involved, so do they not think the truth, whatever it is, will come out? I don’t know about you, but I would rather work with a partner that doesn’t publicly point fingers at me when the stuff hits the fan. In this case, I think silence or a discreet one-on-one campaign aimed at current and prospective customers may have been a more prident choice.
2. Do the right thing by your customer regardless of cost. The major pet food companies that were impacted whom I personally spoke with, Iams and Nutro, seem to be doing whatever they can for the consumer to take responsibility for this catastrophe without regard for the enormous potential price tag. I suspect the others with brand names on the line are doing the same. And they should. Even though this unfortunate event was outside their control, stepping up and owning their relationship with their customers is simply the right thing to do for the long-haul.
Southwest Airlines is the same way. Someone at their corporate office relayed that when a flight experiences a major delay for weather, the airline sends a note to the impacted travelers. They don’t have to – it wasn’t their fault – but they empathize with their customers and go that extra step. THAT type of behavior is what brings customers back.
A recently published book, Firms of Endearment: How World-Class Companies Profit from Passion and Purpose, talks about these behaviors as they are exhibited by the companies they’ve studied. They prove that creating value for all your stakeholders – employees, customers, partners (suppliers), investors, and society is the only path to long-term competitive advantage and financial success.
