Handling pharma recalls — a test of strength for the customer-brand relationship

About the blogger: Farzad Henareh is European managing director at Stericycle ExpertSOLUTIONS, a business unit of Stericycle that specialises in product recalls, retrievals, returns, audits and sustainability services to aid companies in protecting and enhancing their brands.

Pharmaceutical products and medical devices are among the most highly regulated and most thoroughly tested products in the world. In the UK, the MHRA (Medicines and Healthcare Products Regulatory Agency) is responsible for ensuring that all medicines and medical devices work correctly and are safe for consumption.

Despite thorough testing, there is always a chance that issues can develop and the health and safety of customers can be called into question. In this case, recalls become a necessity. In addition to this, customers are now more discerning than ever before, resulting in companies choosing a more cautionary approach and withdrawing products before they are required to do so by public demand or national bodies. Companies are now looking further ahead and pre-empting mandatory action, complying with regulations, removing immediate dangers and protecting their valuable customer relationships.

Not only is the customer-brand relationship more fragile than ever before, but brand loyalty is also declining significantly. A less stable customer-brand-relationship leads companies to focus on enhancing brand image and the overall customer experience. In addition to that, more complex supply chains make it difficult for manufacturers to ensure continuously high quality standards.

So, what should a company do if there is a problem with a product and the concerned product must be removed from the market as quickly and efficiently as possible? In case of pharmaceutical recalls, preparation is key. This means either having an internal plan ready or having an external provider on standby.

As a first step in the recall process, all relevant channels and stakeholders need to be informed, including the local health authorities. Depending on the nature of the recall, the public needs to be made aware of the reasons and consequences of the recall as well as any harm associated with the product. Establishing lines of communication and assigning responsibilities beforehand ensures an efficient and comprehensive operation.

A particular challenge in recalling pharmaceutical products is the administrative and logistical element. As up to 100% effectiveness can be required, accurate and detailed documentation of production, testing, distribution and partners is key. This can save a lot of time and ultimately money, as a recall will only then be deemed complete if the authorities are convinced that all regulations have been followed and all threats to public health and safety have been eliminated. Rigorous preparation, comprehensive documents and attention to detail help keep the possible negative implications of recall to a minimum.

A company failing to handle a recall successfully risks damaging the brand. However, companies that are prepared and offer a comprehensive end-to-end solution will ultimately emerge stronger. In the end, effective recall management has one goal — protecting the public and the brand.

Providing a positive customer experience, taking their concerns into account and showing commitment to resolving the situation can, in fact, help increase brand loyalty. It is the way the situation is handled by the company that can make or break a customer relationship.