How your business can outperform Toyota

Toyota is in trouble – with the owners of its vehicles. With a worldwide recall of over 8 million vehicles including Camry’s and Corolla’s, Toyota is scrambling to show the world that it is a responsible company that will do what it takes to make things right. At least that’s what you would believe if you bought into the official release from J.D. Power and Associates.
But the fact is that Toyota has had other problems that have also resulted in recalls. Between 2004 to 2007, Toyota recalled 9.3 million vehicles for various problems ranging from car mats and seatbelts to electronics.
And while automotive journalists from around the globe have been quick to pump out statistics showing how Toyota is no longer the benchmark company for quality, they have all missed one key point. The joy of ownership.
The fact is that every independent survey taken of vehicle owners has consistently had Toyota (and Lexus) at or near the top in customer satisfaction. According to the American Customer Satisfaction Index, Toyota ranked highest in consumer satisfaction, receiving 87 out of a possible 100 points. It also ranked the highest in positive responses from the question “How likely are you to purchase another vehicle from the same manufacturer”.
Here’s something else to keep in mind. Toyota does not make the pedals that are the cause of its current recall. Like many manufacturers, a great deal of the parts they integrate into their vehicles are made by third party companies. In this case, the pedals are made by Indiana based CTS Corporation, which also happens to make pedals for other auto manufacturers including Chrysler.
The fact is that Toyota still make great vehicles. They might be a little on the boring side, but they last. The problem is that when a specific part is used throughout many models manufactured all over the world, if that part should fail or be labelled as defective, there’s going to be a big mess to clean up.
As a business owner, it’s important for you to see how all of this is playing out. There’s a chance you may experience something similar at some point, of course on a much smaller scale. So you need to have a plan. Defective products can come from any industry at any time. And your ability to handle a mini crisis is key to not only making sure your clients are kept happy, but ensuring your long term success (or survival) at the same time.
Here are some key steps to follow if you should ever end up selling or producing a product that becomes labelled as defective:
- Assuming you did not actually manufacture the product, do not accept blame. But at the same time, do not blame others.
- If you did manufacture the product, take all the blame. Embrace it. Bask in it. It’s very hard to bag on a company or person that is openly admitting they were wrong
- Move quickly. Don’t wait for accidents to happen. Voluntary recalls or replacements are appreciated and only make you look good.
- Concentrate on the solution, not the problem. Complaining will not help anyone so just do what needs to be done.
- If need be, work with your suppliers to make things right. If they don’t share your passion for customer service, call up a competitive supplier and offer them the opportunity to earn the business of your clients.
- Go above and beyond. The rewards for spending a little extra now in order to make your clients happy will come back to you many times over.
- Follow up. Send an email, make a call, just do something to show your clients that you really care.
Print this article, keep it in a drawer and hope you never need to refer to it. If you should have to, and follow the steps, then you will be able to say that you provide better customer service than Toyota.
About the author
Marc Gordon is a professional speaker and marketing consultant based in Toronto, Canada. His firm, Fourword Marketing, specializes in helping companies create a strong corporate identity and develop effective marketing campaigns. Marc has worked with such companies as General Motors, Johnson & Johnson and Bally Total Fitness. However, his core client base is still startups and small business. To contact Marc, call him directly at (416) 238-7811 or visit www.marcgordon.ca
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