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Reward programs help maintain product quality

Product quality is an essential part of maintaining a strong brand image. Failing to deliver products that perform as expected will result in low customer retention and less revenue for companies.

Product quality is an essential part of maintaining a strong brand image. Failing to deliver products that perform as expected will result in low customer retention and less revenue for companies.

To protect their reputations, firms conduct thousands of recalls every year, and a new study shows that this is a critical step toward maintaining high standards in productivity. The American Marketing Association reviewed product recalls by automobile companies between 1995 and 2011 and found that they served as a catalyst for implementing better manufacturing processes.

Companies that want to ensure they maintain high standards for their products can use reward and recognition programs to stress the importance of eliminating any defective goods. They can reward teams for cutting the number of defects during a production run, or use rewards to reinforce new manufacturing techniques. These initiatives help build a work environment that places an emphasis on quality control and mitigates the chance that product issues make it to the end user.

Recall procedures can be an expensive process. Firms must dedicate resources to removing products from store shelves, and often see a dip in sales as a result of bad publicity. Reward programs allow companies to recognize workers who save them millions by spotting a problem or alerting supervisors to poor material quality.

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