Carfax, the vehicle history report giant, has announced that nearly one in five vehicles operating in the U.S. has an open recall outstanding. Considering there are nearly 260 million vehicles in use on the roads currently, that means there are more than 47 million cars affected. That number has increased 27 percent over the previous year as well, according to Carfax.
Larry Gamache, communications director at Carfax, said, “Our data shows there’s still much hard work to be done in addressing recalls. Many people still are unnecessarily risking their lives by not staying informed or taking action when their vehicle is under a recall. It’s one of the many reasons family-oriented vehicles, including one in four minivans, are the most-highly impacted.”
In 2015, more than 51 million vehicles had new recalls issued, and Gamache expects millions more will be added in 2016. The U.S. National Highway Traffic Safety Administration (NHTSA) says its data shows that roughly 25 percent of recalled vehicles never get recall repairs completed.
What does that mean for your dealership?
Recalls are going to make up a significant part of your business if they don’t already. As a service manager, you have dealt with your share of recall customers already. Whether your manufacturer has been directly or indirectly affected by the Takata air bag recall, the GM ignition recall, or the Volkswagen diesel emissions scandal, you are aware that recalls aren’t slowing anytime soon.
Let’s acknowledge a couple of things about recalls:
– You won’t satisfy every recall customer that comes through your door. Some of your customers will be overly passionate about their vehicle and the safety of their passengers and may have unrealistic demands for repairs, even including replacement vehicles. Work with them completely, doing as much as you are able within the confines of your manufacturer’s rules. As much as you do for them, though, they might still be unhappy.
– Recalls aren’t your technicians’ favorite kind of work. There’s a balancing act getting your flat-rate technicians on board when you take action to reduce the number of outstanding recalls. Recalls pay at a lower rate than your customer pay work, and technicians know it. Make them aware that the goal is to increase your customer base, thus generating more work for your technicians long-term.
If you’re serious about customer service, you’ll want to get ahead of the recall situation in your area. You can turn a major industry problem into a plus not only for your service department but for your dealer. Your actions can have an impact on your customers’ perception of the brand image.Attract new customers to your service department. The number of vehicles with outstanding recalls on the streets in your neighborhoods reflects the rate at which car buyers abandon the dealership’s service department. You need to draw them through your doors again. While many may come simply to repair the recall, you can capture their information for follow-up and perhaps even upsell work on the same visit.
- Attract new customers to your service department. The number of vehicles with outstanding recalls on the streets in your neighborhoods reflects the rate at which car buyers abandon the dealership’s service department. You need to draw them through your doors again. While many may come simply to repair the recall, you can capture their information for follow-up and perhaps even upsell work on the same visit.
- Present recalls as a value-added service. When you discover a recall for a customer, present it to them as, “Great news, Mr. Customer! There’s an update for your car that will enhance its safety in so-and-so area. We can perform that for you today!” A positive outlook on a recall can shape the way your customer perceives the brand quality and can have a major impact on their next buying decision.
- Update your customer’s information with the manufacturer. Recall notices are sent directly to you customers from the manufacturer IF they have the right information. When you confirm your customer’s address during their service visit, update any changes with your manufacturer as well.
- Make recall repairs an efficient process. Set your service department up to be able to handle the influx of recall repairs. These customers are just as important as your current clients, and you have the ability to turn a potentially negative experience into a positive first impression by handling their recall professionally and expediently. Make sure your parts manager is on board to stock recall parts in the appropriate supply. Emphasize the importance of recall work to your frontline service staff and your technicians.
How do you get them in your door?
Your advertising needs to be direct. People with outstanding recalls on their vehicle either don’t know their car is affected or don’t believe it’s an urgent or safety issue. Without creating fear, you need to encourage those two types of clientele to come to you.
- Send direct mailers to your customers. Mail is a more formal notice and is more likely to encourage a response than an email campaign. Provide clear instructions on how to contact the service department. Provide information encouraging prompt action without provoking a fear response.
- Call affected customers in your CRM as well as from manufacturer-generated lists. A direct phone call from your dealership will give you the ability to create rapport with the customer before their arrival and allows you to guide them into your shop instead of letting them choose a service department of their own.
- Send an email blast to your whole customer database. Use data collected by your sales department and your service staff to contact customers who may have never purchased anything or supplied a VIN number or physical address. In the email, encourage them to contact you to check if they have a recall outstanding on their vehicle. Make sure your email blast contains a proper call-to-action with an easy response method such as a “Click Here” button.
Recalls are an excellent way of bolstering your service department’s slow times with steady work for your staff. It’s an opportunity for increasing your revenue and repairing potentially unsafe vehicles. Turn the negative view on recalls into a positive for your service department and dealership.
