Thursday, August 16, 2007

Handling Product recall - The Toyota Way

This happened in the very first year of introduction of Lexus in the US market. I will quote from the book "The Marketing Mavens" by Noel Capon.

"We had a couple of quality issues. So we were tested pretty quickly as to how we were going to deal with warranty and recalls. We went beyond what any other car manufacturer and dealer had ever done, and we set a new benchmark. We took back every car. In some cases we went to the customer's home. We checked the whole car and gave the car back, we washed it and filled the tank. Minor things, maybe. But they blew people away, and they motivated tremendous word of mouth. Lexus owners were boasting about us and our service to their friends, 'You know, they just don't talk about standing up for their product- they actually back up their comments.'"

-Steve Strum, Toyota's Vice President Marketing

No wonder Lexus went on to become the best selling luxury car in the US, selling 2.7 times all the three models of Merc together. Lexus has been topping the JD power ranking for years.

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