5 Ingredients For Saving Toyota’s Brand

Toyota’s recall and the way that it has handled the problems so far has certainly eroded consumer trust in Toyota. Does this mean that the Toyota brand is dead? Not necessarily; it depends on how the company responds to this crisis going forward.

While there will definitely be a lot of negative sentiment in the short-term, Toyota can come out of this period with renewed strength in its brand if it delivers on the five elements of my C.A.R.E.S. model for service recovery: communication, accountability, responsiveness, empathy, and solution.

There will be twists and turns to Toyota’s brand perception over the next several weeks, but the long-term impact won’t be seen for at least several months. If Toyota can get passing marks for how it C.A.R.E.S. through this period, then it should be able to save its brand. But if it doesn’t, then…

The bottom line: During a crisis, intensify your focus on customers

About Bruce Temkin
I am a customer experience transformist, helping large organizations improve business results by changing how they deal with customers. As part of this focus, I examine strategy, marketing, interaction design, customer service, and leadership practices. I am also a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Simply put, I am passionate about spotting emerging best practices and helping companies master them. And, as many people know, I love to speak about these topics in almost any forum. My “title” is Managing Partner of the Temkin Group, a customer experience research and consulting firm that helps organizations become more customer-centric. Our goal is simple: accelerate the path to delighting customers. I am also the co-founder and chair of the Customer Experience Professionals Association (CXPA.org), a non-profit organization dedicated to the success of CX professionals.

7 Responses to 5 Ingredients For Saving Toyota’s Brand

  1. P. Tsaldari says:

    The hour has arrived to show if they have the mettle. I believe they do have it. I truly want them to succeed for many reasons but mostly for their workforce to remain working. That heads will roll, they should since they were negligent. It is the price one pays in business. This should prove to be a fascinating story.
    PT

  2. I really enjoyed this – thank you! I would add one more thing here though it would ruin your acronym! I think some sort of checkpoint or asking “How am I doing?” every few months can go a long way to reinforce that Toyota accepts responsibility and empathizes with the customer. This would do two things; help to repair current relationships and show future customers that Toyota is a brand one can trust. It’s difficult operationally and also expensive but I think it’s required at this point.

    Regards,

    Parissa Behnia

  3. John Ely says:

    Great take on this pressing issue for Toyota. I love the acronym and with permission, will repeat it in my blog. I think they may have already missed the “R” as I’ve heard reports that State Farm Insurance reported the problem as early at 2007! This situation amplifies the need for attention to the customer experience, before, during and most importantly – after the sale!

  4. Aldi Armia says:

    Bruce, I couldn’t agree more, though in reality it’s not easy to implement. “CARES” must be internalized in the company culture and organization structure – and one cannot just wake up one day and decide to use CARES to keep their customers. Easy enough for Toyota to do it because of their established reputation for so many years. A lesser customer centric company would meet their demise the minute the news came out. While many companies are fully aware that winning a new customer is more expensive than keeping one, without mentioning any names, a few good brands seem to have forgotten that in today’s competitive environment a quality service should come as a standard (i.e. Star Bucks…err..there I said it!).

    My point, loyal customers are still very forgiving! From the outside, it may seem Toyota is burning money by doing a recall…the truth is, they’re really saying “we can’t thank you enough for believing in us, allow us to return a favor…please come again soon!”

  5. Bruce Temkin says:

    Hi everyone: Great comments on Toyota. I like Parissa’s checkpoint idea. Companies get so caught-up in what they’re doing (especially in a crisis situation like this for Toyota) that they forget to come up for air and find out if they’re on track with customers. Aldi also has a great point about culture, and I think it will help Toyota; especially with its keen focus on quality (which, from my vantage point, can only be truly measured by the overall customer experience).

  6. Its amazing tome that Toyota has accepted blame so openly and apologized. We just dont see that in our western culture. The genuine public apology, I believe, is key to getting Toyota’s customer experience and 200 year plan back on track. Great company.

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