Brand Crisis Management

Based on the information you provided, here's a strategic plan for managing this crisis:

Acknowledge the issue publicly:
The first step is to acknowledge the problem across all your social media platforms where your customers are active. Assure them you are aware of the problem and are working swiftly to identify and rectify the defect. Remember to stay consistent with your brand's voice and maintain transparency.
Detailed Investigation:
Simultaneously, your internal team should be investigating the cause of the defect. Once you understand the issue, you'll be able to propose a solution more effectively.
Keep Stakeholders Informed:
Inform key stakeholders about the situation, what measures you're taking to rectify it, and how it might impact them. This includes investors, suppliers, and any other parties closely involved with your business.
Offer a Solution:
Once you've identified the issue and formulated a solution, share this with your customers. Based on your previous experience, a product recall seems a viable option. Make sure to explain the recall process clearly and assure customers that you'll bear any costs involved.
Improve Customer Service:
Address complaints about poor customer service. Enhance your customer service response to handle the increased volume of inquiries. Consider additional training for your customer service team to manage upset customers effectively.
Apology and Reassurance:
Apologize sincerely to your customers and reassure them that quality and customer satisfaction are your top priorities. Commit to preventing such issues in the future.
Recovery Plan:
After addressing the immediate crisis, consider a recovery plan. This could include discounts on future purchases, an extended warranty, or a special offer on the improved product.
Follow-up Communications:
Keep customers updated on the progress of the recall and replacement process, as well as any measures you're taking to prevent future defects. This follow-up communication shows your commitment to resolving the issue and rebuilding trust.

Remember, how you handle this crisis will significantly impact your brand image. Be proactive, transparent, empathetic, and, most importantly, customer-centric in your approach.