Following tremendous pressure from the NHTSA, Takata has expanded the recall on its faulty airbags. In fact, it just doubled the number of vehicles that are subject to recall to 34 million – that’s one in seven vehicles on the road today – and the largest recall in automotive history. Since then, consumers have been flooding the NHTSA website, searching to see whether their vehicles are affected. In fact, according to an article in Automotive News, daily website traffic increased by 62 times -- to an incredible 598,000 searches, up from 9,662 per day. Consumers want answers and, once they get them, they’ll be looking to dealers to help them.

Be prepared for a large surge in recall-related questions and ensure that you have answers for your customers. Due to the incredible volume and the reported shortage of parts, there is not much dealers can do to expedite parts orders to handle these issues. But, most consumers will want their vehicles fixed as soon as possible, perhaps fearing for the safety of themselves and their loved ones.

That being said, apparently it is going to take years to handle all the vehicles involved in this recall. I am sure there will be many customers unwilling to drive a vehicle that has a faulty airbag for months, let alone years. They will therefore search for an alternative – namely, a new vehicle.

When recalls happen, it is certainly wise for dealers to reach out to every customer in their market to inform, educate and try to earn the recall work. However, when repairs are in short supply and a dealership knows it won’t be able to accommodate customers, that dealership may want to consider offering solutions that are designed to replace the customer’s existing vehicle with a new one.

Conquest marketing is certainly not a new thing. Many dealers, however, don’t consider open recalls as an opportunity to generate vehicle sales, only one in which to acquire additional service business. These two things don’t have to be mutually exclusive. A properly designed and executed recall marketing strategy can be an effective sales tool. Targeting vehicle owners affected by recalls that are known to have a parts shortage can be an effective marketing campaign. This is the perfect opportunity for an aggressive dealer to present options to these customers on how they can trade-in their existing vehicles.

The bottom line is that if a consumer is unwilling to wait for their vehicle to be repaired, they will most likely have started searching for a new vehicle. By marketing to these consumers, chances are that your dealership will be the first to reach out and contact them on this matter. This could give you a head start on your competition.

A recent article in Auto Remarketing reports how Penske Automotive Group is using recalls to increase their service business through recall work, but also as an opportunity to sell more vehicles. “I think recall business is good,” Penske Chairman Roger Penske, stated. “We welcome it. I think that’s why we’ve committed to the large fixed operations that we have in order to be able to handle it as it comes in. And I think it also gives us the chance — think about this one — it gives us the chance many times to see vehicles which we haven’t seen. So, it gives us the chance to connect with a customer with an older vehicle and in many cases we’re converting those into used-car or new-car sales.”

Penske makes a great point. However, the very first thing to get an effective handle on is how to connect with these recall customers in the first place. How do you get through to them and inform them of the recall so that you can connect and get their service business? With the incredible amount of recalls over recent months/years, it has become somewhat of a challenge to get the consumer’s attention. Many dealers send out bulk mail notices to customers in their DMS. Oftentimes, these notices are assumed to be solicitations and never read. How many times have you trashed a letter simply because it had a bulk mail symbol?

What has been found effective in reaching these recall customers and driving them into the service department is a multi-pronged marketing approach. Consider using telephone, email and direct mail.

For your direct mail don’t just send a bulk mail piece. Send recall communications via first class mail. Yes, it’s a little more expensive, but it’s also more likely to be read. Make sure that envelope it’s mailed in is designed to brand the dealership and the OEM, and that it is very clear that it’s about a recall. In addition, be sure that the envelope is NHTSA and Department of Transportation compliant. Lastly, consider that the more eye-catching the envelope is, and the greater sense of urgency it portrays, the more likely it will be opened and acted upon.

Once the letter has been sent follow up with an email communication. Reinforce the message from the mail piece. Ensure that the actual content of the e-mail leans more towards the educational side. Don’t simply state there is an open recall and ask them to make an appointment. Educate them about the recall and how it could affect the safety of their vehicle. Be specific and stress the importance of completing the work.

As far as the telephone is concerned, make sure your staff are trained in how best to handle these customers. Many can be upset or worried about the safety of their vehicle. Remember that to the customer, your dealership is an extension of the OEM. Be empathetic, apologize to the customer for any inconvenience the recall may have caused them. Be sure to set them at ease by providing all the information they need.  And do please schedule them efficiently. Make sure their parts arrive in a timely manner and that that their work is completed as promised. Or, if there is a shortage of parts due to a high volume recall, be sure to communicate appropriately so the customer understands the situation.

And let’s not forget the fact that recalls can provide opportunities in the sales department as well as your service department. Effective recall notifications can act as an excellent form of marketing to boost your bottom line in both sales and service. The trick is to make sure that the customer feels like you’re helping them, not trying to sell them anything. Get that across and you’ll generate more opportunities than you can handle.

A recent article in Auto Remarketing reports how Penske Automotive Group is using recalls to increase their service business through recall work, but also as an opportunity to sell more vehicles. “I think recall business is good,” Penske Chairman Roger Penske, stated. “We welcome it. I think that’s why we’ve committed to the large fixed operations that we have in order to be able to handle it as it comes in. And I think it also gives us the chance — think about this one — it gives us the chance many times to see vehicles which we haven’t seen. So, it gives us the chance to connect with a customer with an older vehicle and in many cases we’re converting those into used-car or new-car sales.”

Penske makes a great point. However, the very first thing to get an effective handle on is how to connect with these recall customers in the first place. How do you get through to them and inform them of the recall so that you can connect and get their service business? With the incredible amount of recalls over recent months/years, it has become somewhat of a challenge to get the consumer’s attention. Many dealers send out bulk mail notices to customers in their DMS. Oftentimes, these notices are assumed to be solicitations and never read. How many times have you trashed a letter simply because it had a bulk mail symbol?

What has been found effective in reaching these recall customers and driving them into the service department is a multi-pronged marketing approach. Consider using telephone, email and direct mail.

For your direct mail don’t just send a bulk mail piece. Send recall communications via first class mail. Yes, it’s a little more expensive, but it’s also more likely to be read. Make sure that envelope it’s mailed in is designed to brand the dealership and the OEM, and that it is very clear that it’s about a recall. In addition, be sure that the envelope is NHTSA and Department of Transportation compliant. Lastly, consider that the more eye-catching the envelope is, and the greater sense of urgency it portrays, the more likely it will be opened and acted upon.

Once the letter has been sent follow up with an email communication. Reinforce the message from the mail piece. Ensure that the actual content of the e-mail leans more towards the educational side. Don’t simply state there is an open recall and ask them to make an appointment. Educate them about the recall and how it could affect the safety of their vehicle. Be specific and stress the importance of completing the work.

As far as the telephone is concerned, make sure your staff are trained in how best to handle these customers. Many can be upset or worried about the safety of their vehicle. Remember that to the customer, your dealership is an extension of the OEM. Be empathetic, apologize to the customer for any inconvenience the recall may have caused them. Be sure to set them at ease by providing all the information they need.  And do please schedule them efficiently. Make sure their parts arrive in a timely manner and that that their work is completed as promised. Or, if there is a shortage of parts due to a high volume recall, be sure to communicate appropriately so the customer understands the situation.

And let’s not forget the fact that recalls can provide opportunities in the sales department as well as your service department. Effective recall notifications can act as an excellent form of marketing to boost your bottom line in both sales and service. The trick is to make sure that the customer feels like you’re helping them, not trying to sell them anything. Get that across and you’ll generate more opportunities than you can handle.

A recent article on The Hill.com detailed how the Alliance of Automobile Manufacturers is teaming up with a Republican pollster to survey Americans on why they don’t bring in their vehicles for recall repairs. These actions are in advance of the NHTSA’s forum on the same issues. According to the article, recall repair completion rates are at 75 percent with that number dropping to 15 percent for vehicles older than 10 years. It goes on to say that this is especially worrisome, because the average age of vehicles on the road is currently 11.4 years.

The newer a vehicle is, the more likely recall notices will be received and complied with. As vehicle’s age, the likelihood that they have changed hands increases. As does the likelihood those new owners will not receive the notices. Each time a vehicle changes hands, the percentage of people receiving notices drops.

Recall repairs are important, not only for the safety of our roads, but also as a revenue streams for dealers. Many dealers limit recall repair notifications to vehicles/owners within their DMS, as well as notices sent out by the manufacturer. This is incredibly limiting as far as reaching the huge audience of recall customers in each dealer’s DMA.  However, there are several ways to obtain information and capitalize on increased recall repair work.

To find consumers in your areas with open recalls begin by looking in DMV and insurance records. Once this information is obtained, look through the data specifically for owners of vehicles with open recalls that have not previously done business with you. The older the vehicle is, the less likely it will be that the person is the original owner. And the more likely that they did not receive a recall notice, especially if they have been using independents for service.

Prioritize which customers to contact by which recalls are the most dangerous. Do a little research and see which recalls you can handle in volume. Figure out which parts are available and order them. Ensure that service technicians are trained on the recalls. Also spend time internally to ensure that front-line employees are informed and know how to handle incoming calls regarding the recall after you start notifying these vehicle owners.

It might take a little coordination, but consider the benefits. You are likely to pick up recall repair work that you wouldn’t normally get. The vehicle owner will be grateful for the notification and your dealership gets an opportunity to pick up a new customer and future work. Regardless of the outcome, both the dealership and community benefit in this win-win situation.

A recent article on The Hill.com detailed how the Alliance of Automobile Manufacturers is teaming up with a Republican pollster to survey Americans on why they don’t bring in their vehicles for recall repairs. These actions are in advance of the NHTSA’s forum on the same issues. According to the article, recall repair completion rates are at 75 percent with that number dropping to 15 percent for vehicles older than 10 years. It goes on to say that this is especially worrisome, because the average age of vehicles on the road is currently 11.4 years.

The newer a vehicle is, the more likely recall notices will be received and complied with. As vehicle’s age, the likelihood that they have changed hands increases. As does the likelihood those new owners will not receive the notices. Each time a vehicle changes hands, the percentage of people receiving notices drops.

Recall repairs are important, not only for the safety of our roads, but also as a revenue streams for dealers. Many dealers limit recall repair notifications to vehicles/owners within their DMS, as well as notices sent out by the manufacturer. This is incredibly limiting as far as reaching the huge audience of recall customers in each dealer’s DMA.  However, there are several ways to obtain information and capitalize on increased recall repair work.

To find consumers in your areas with open recalls begin by looking in DMV and insurance records. Once this information is obtained, look through the data specifically for owners of vehicles with open recalls that have not previously done business with you. The older the vehicle is, the less likely it will be that the person is the original owner. And the more likely that they did not receive a recall notice, especially if they have been using independents for service.

Prioritize which customers to contact by which recalls are the most dangerous. Do a little research and see which recalls you can handle in volume. Figure out which parts are available and order them. Ensure that service technicians are trained on the recalls. Also spend time internally to ensure that front-line employees are informed and know how to handle incoming calls regarding the recall after you start notifying these vehicle owners.

It might take a little coordination, but consider the benefits. You are likely to pick up recall repair work that you wouldn’t normally get. The vehicle owner will be grateful for the notification and your dealership gets an opportunity to pick up a new customer and future work. Regardless of the outcome, both the dealership and community benefit in this win-win situation.

For many consumers, cars are a necessity. They rely on them to get to work so that they can feed their family. They take their children to soccer practice and their spouses out for nights on the town. Throw in an occasional long-distance road trip to visit a relative or take a vacation, and it’s easy to see how much consumers rely on them. Manufacturers integrate safety messages into their branding. The government tests the vehicles. Consumer agencies review them. And consumers use this data to choose which manufacturer they want to do business with.

Time passes. Consumers go about their daily lives with a plethora of concerns that, for the most part, don’t involve their vehicles. Then, a recall happens. 

Consumers and dealers alike are still reeling from the huge amount of recalls last year. It was in fact an all-time record. In 2014 about 62 million U.S. vehicles were recalled.  If you were to look at this in terms of vehicle sales – it’s about four years’ worth of vehicle sales -- or approximately one out of every four cars on the road today.  Several recalls made huge headlines, and were very much hyped up by the media -- including those for defective ignition switches in General Motors cars that have been linked to at least 50 deaths, and faulty Takata air bags, installed in Hondas and other brands, said to be responsible for at least five deaths and 64 injuries.

This can cause quite an emotional impact with consumers – your customers.

While these concerns may not be as dire or present as the customer may perceive, to the customer faced with the concerns, they most certainly are. I am sure many dealerships have experienced phones ringing off the hook shortly after a recall announcement with customers concerned about their personal safety, as well as that of their families.

Dealers aren’t crisis hotlines and, for the most part, aren’t trained to assuage fears such as these. However, if you take the time to handle recall repair requests with empathy and understanding, it can go a long way towards earning the trust and loyalty of these customers.

When a major recall is announced and the phone starts ringing, consider training the receptionists and service advisors in how to correctly handle these calls. It needs a gentle and understanding touch. Keep in mind that in the eyes of the consumer your dealership is, for all intents and purposes, an extension of the manufacturer.  The first thing any recall repair request should begin with is an apology. Be sure to let the customer know their safety is your number one concern when you invite them into the dealership to get their vehicle repaired. Be prepared to answer their questions such as “Should I get a rental car?” or “Is my car going to explode?” with a calm and reassuring voice. And give advice that has been coordinated and approved by management. Ensure that the entire dealership is briefed on how to handle these situations to avoid confusing consumers with mixed messages.

Recall work can bring incredible opportunity. But it is very important to recognize that customers tend to be uneducated about these recalls. Most have only seen the news reports and perhaps the hyped-up media coverage about people being killed. A little sympathy and compassion will go a long way towards earning and keeping your consumer’s trust. And it will assist you in capturing more of the available recall work. 

For many consumers, cars are a necessity. They rely on them to get to work so that they can feed their family. They take their children to soccer practice and their spouses out for nights on the town. Throw in an occasional long-distance road trip to visit a relative or take a vacation, and it’s easy to see how much consumers rely on them. Manufacturers integrate safety messages into their branding. The government tests the vehicles. Consumer agencies review them. And consumers use this data to choose which manufacturer they want to do business with.

Time passes. Consumers go about their daily lives with a plethora of concerns that, for the most part, don’t involve their vehicles. Then, a recall happens. 

Consumers and dealers alike are still reeling from the huge amount of recalls last year. It was in fact an all-time record. In 2014 about 62 million U.S. vehicles were recalled.  If you were to look at this in terms of vehicle sales – it’s about four years’ worth of vehicle sales -- or approximately one out of every four cars on the road today.  Several recalls made huge headlines, and were very much hyped up by the media -- including those for defective ignition switches in General Motors cars that have been linked to at least 50 deaths, and faulty Takata air bags, installed in Hondas and other brands, said to be responsible for at least five deaths and 64 injuries.

This can cause quite an emotional impact with consumers – your customers.

While these concerns may not be as dire or present as the customer may perceive, to the customer faced with the concerns, they most certainly are. I am sure many dealerships have experienced phones ringing off the hook shortly after a recall announcement with customers concerned about their personal safety, as well as that of their families.

Dealers aren’t crisis hotlines and, for the most part, aren’t trained to assuage fears such as these. However, if you take the time to handle recall repair requests with empathy and understanding, it can go a long way towards earning the trust and loyalty of these customers.

When a major recall is announced and the phone starts ringing, consider training the receptionists and service advisors in how to correctly handle these calls. It needs a gentle and understanding touch. Keep in mind that in the eyes of the consumer your dealership is, for all intents and purposes, an extension of the manufacturer.  The first thing any recall repair request should begin with is an apology. Be sure to let the customer know their safety is your number one concern when you invite them into the dealership to get their vehicle repaired. Be prepared to answer their questions such as “Should I get a rental car?” or “Is my car going to explode?” with a calm and reassuring voice. And give advice that has been coordinated and approved by management. Ensure that the entire dealership is briefed on how to handle these situations to avoid confusing consumers with mixed messages.

Recall work can bring incredible opportunity. But it is very important to recognize that customers tend to be uneducated about these recalls. Most have only seen the news reports and perhaps the hyped-up media coverage about people being killed. A little sympathy and compassion will go a long way towards earning and keeping your consumer’s trust. And it will assist you in capturing more of the available recall work. 

Recalls can be lucrative service work for dealerships. However, when recalls are announced, most consumers aren’t informed that their vehicle is subject to a recall. As a result, an estimated “46 million cars with unfixed flaws” are currently driving around, according to a recent article in Automotive News. A new bill proposed in the Senate would mandate that states require recall work be completed before an owner can register their vehicle. This bill will assist in informing consumers that their vehicle is subject to a recall and also force the consumer to take action. The article also mentions a “separate initiative, backed by the Transportation Department, to prohibit the sale of used vehicles that have open recalls.” Something that is already mandatory in new vehicle sales.

With the massive number of recalls our industry is currently experiencing, surely dealers want to capture as much of this work as possible. The additional scrutiny and legislation being enacted and proposed should impact the percentage of customers who are aware that their vehicles need service. The most cited reason for incomplete recall work is that the consumer is unaware that the recall exists.  Even when dealers or OEMs do reach out to consumers, oftentimes consumers mistake the mailing as junk or solicitous, without even bothering to read it. As consumers become more informed – whether that is due to a more impactful design on the recall notice from the manufacturer; a dealer mailing;  or perhaps by being prevented from registering their vehicle; it would be wise to capitalize on this by doing everything you can to capture this business. Customers may be mandated to fix their vehicles, but there won’t be anything mandating that they fix it with YOU.

How does a dealership best position itself to persuade a consumer to choose their dealership over their competitor? By beating everyone to the punch.

It’s quite common for dealers to start the notification process too late, because of concerns about being overwhelmed and lack of parts availability. While these concerns are certainly valid, dealers that take a proactive approach to inform customers; and that create a more efficient scheduling and parts ordering process; will capture more than their fair share.

This begs the question – “If the mailers being sent are being discarded by consumers without reading them, how can I get more consumers in my market to read them?”

Make your recall notices more eye-catching and consider sending them via First-Class Mail so they stand out from the other “junk” mailers. Ensure that they clearly educate the consumer and include a call to action to schedule an appointment at your dealership. And don’t just leave it at that – follow up with a phone call.

Get ready for this upcoming influx of service work – reach out to, engage, upsell, and satisfy recalled vehicle owners to keep them coming back. 

Recalls can be lucrative service work for dealerships. However, when recalls are announced, most consumers aren’t informed that their vehicle is subject to a recall. As a result, an estimated “46 million cars with unfixed flaws” are currently driving around, according to a recent article in Automotive News. A new bill proposed in the Senate would mandate that states require recall work be completed before an owner can register their vehicle. This bill will assist in informing consumers that their vehicle is subject to a recall and also force the consumer to take action. The article also mentions a “separate initiative, backed by the Transportation Department, to prohibit the sale of used vehicles that have open recalls.” Something that is already mandatory in new vehicle sales.

With the massive number of recalls our industry is currently experiencing, surely dealers want to capture as much of this work as possible. The additional scrutiny and legislation being enacted and proposed should impact the percentage of customers who are aware that their vehicles need service. The most cited reason for incomplete recall work is that the consumer is unaware that the recall exists.  Even when dealers or OEMs do reach out to consumers, oftentimes consumers mistake the mailing as junk or solicitous, without even bothering to read it. As consumers become more informed – whether that is due to a more impactful design on the recall notice from the manufacturer; a dealer mailing;  or perhaps by being prevented from registering their vehicle; it would be wise to capitalize on this by doing everything you can to capture this business. Customers may be mandated to fix their vehicles, but there won’t be anything mandating that they fix it with YOU.

How does a dealership best position itself to persuade a consumer to choose their dealership over their competitor? By beating everyone to the punch.

It’s quite common for dealers to start the notification process too late, because of concerns about being overwhelmed and lack of parts availability. While these concerns are certainly valid, dealers that take a proactive approach to inform customers; and that create a more efficient scheduling and parts ordering process; will capture more than their fair share.

This begs the question – “If the mailers being sent are being discarded by consumers without reading them, how can I get more consumers in my market to read them?”

Make your recall notices more eye-catching and consider sending them via First-Class Mail so they stand out from the other “junk” mailers. Ensure that they clearly educate the consumer and include a call to action to schedule an appointment at your dealership. And don’t just leave it at that – follow up with a phone call.

Get ready for this upcoming influx of service work – reach out to, engage, upsell, and satisfy recalled vehicle owners to keep them coming back.