According to a recent article in Automotive News, consumers LOVE the idea of all of this new in-vehicle technology. The problem is that many of them don’t truly understand the intricate features and benefits. There is no way a salesperson can explain each and every technological feature on many of today’s cars succinctly, as is the case with any technology. For example, if you have ever had a problem connecting your phone to a Bluetooth speaker, well, then you have some idea as to the challenges the average consumer has when they get that new vehicle home. With all the electronic bells and whistles installed on today’s latest models, it's easy to see how owners can struggle with their operation.

So, who does the customer turn to for a quick refresher course when they opt out of that massive owner's manual? Chances are, consumers are looking to the friendly service advisor to guide them through the maze of new in-vehicle technology patiently. Only in instances of pure desperation do consumers turn to the owner's manual. If my parents struggled with the VCR, then they're for sure going to be at the advisor’s desk seeking assistance the day after the vehicle purchase…….

Some of the questions actually have nothing whatsoever to do with any maintenance or repair issues, but rather about how to work certain vehicle features such as Bluetooth connectivity, or any number of technology features that are now standard in new cars. As savvy as we've all become with technology, our nation's population is getting older, and they're going to need some help.

For the first few days or a week after purchase, the customer may call their salesperson. But, ultimately, they will rely on their service advisor to assist them when they come in for service.

With all this new technology, there is a lot of talk about the need for technicians and, more specifically, those that are trained in this new technology. But we don’t hear too much about the need for service advisors to be trained in these features.

If a service advisor isn’t knowledgeable about the vehicle itself, it may take valuable time for a dealership technician to teach the customer. If the service advisor were knowledgeable about the most common new features and technologies, the issue could be handled in the service drive, preserving valuable technician time for the dealership. While technicians are in short supply, every minute spent away from the service bay costs the dealership.

I realize this may be a bit of a balancing act as the service advisors are very busy. I have heard of some dealers that have a team of younger tech-savvy employees who are not a huge expense, know the tech inside out and can quickly educate vehicle owners. It is excellent for CSI and customer retention. And, on the luxury side, I see more and more tech support/sales people such as BMW Genius Everywhere reps, a great program that even has an app.

If you do not have an in-dealership or OEM program like this in place, training your service advisors on the new technology features or employing a couple of inexpensive tech-savvy kids who can educate your customers, may be a great idea to streamline owner education, keep customers happy, improve CSI and customer retention. Who knows? It could even help with upsells.  If you handle the customer's Bluetooth-synching issue, they may be more amenable to those recommended repairs that need to be done!

Hidden profit opportunities exist throughout most dealerships. Whether those opportunities present themselves through service customers migrating to sales or sales customers that become service customers, all can lead to increased revenue and building relationships with your customers. Many dealers, however, don't incentivize those handoffs, so these episodes become missed opportunities, especially when it comes to recalls.

According to an article in Automotive News, employees are motivated to work the pay plans they have been given within their department. These departments then operate as separate silos, making it hard for the dealership to act as a team.

The problem with these kinds of incentive plans is that most service advisors don’t consider a recall a “red flag” that would prompt them to handoff the customer to sales because recalls aren’t considered “large repairs,” as there is no cost to the consumer.

However, when it comes to recalls for late model vehicles, many vehicle owners face additional repairs that can be expensive and cost-prohibitive. These consumers need your guidance to walk them into a new car that is a more valid and attractive option.

Here’s how it works: A well-trained (and compensated) service advisor identifies a large RO and quickly advises the sales manager about this customer with a massive service bill. Sales then research the customer, review the RO for their vehicle and select a potential new car and, if it makes sense, approaches the customer with an offer to upgrade to a more modern vehicle at a similar payment. 

By following this practice, you can end up with front-line quality vehicles after the recall (that you have to have to fix anyway) for a lot less than acquiring this inventory at auction. It’s a win-win opportunity - revenue from a sold unit AND profits from the trade-in after the recall repair is fixed.

Sadly, however, while dealers are finally getting wind of equity mining and the benefits of those service-to-sales handoffs, customers coming in for recall repair work tend to get overlooked.

If you shift your gaze to include recall repairs, you can capture a significant additional revenue opportunity and do consumers a favor by ensuring those unsafe vehicles are no longer on the roads until they can receive the necessary repairs that make them safe to drive.

Life at a dealership is hectic. There are so many pieces moving simultaneously that it can seem as if you’re living in a real-life version of the classic video game “Frogger,” continuously ducking, dodging and weaving your way through the dealership -- just as everyone else is. Combine sales, service and customer activity, and that brings the risk to personal safety to a whole new level. And, sometimes, when in a hurry, things happen.

Take, for example, this dealership in Texas which Auto News reports is facing a wrongful death lawsuit because a salesperson backed up a car on the lot too fast and ran over a service customer. That split-second of “in a hurry” can translate into millions of dollars in liability.

There are also several recent examples of salespeople held hostage, or carjacked, on test drives. These are all examples of things that could have been avoided if the dealership protected its staff and customers by creating and enforcing safety precautions.

OSHA (the Occupational Safety and Hazard Administration) has strict guidelines, especially in the service department, that dealers and employees must follow. Workers who interact with caustic or otherwise dangerous material sit through training and acknowledge that they understand the risks, procedures and will take adequate cautions when dealing with these items.

Most dealerships have designated test-drive routes, collect photocopies of customer’s driver’s licenses and have other precautionary measures prior to a test drive. But, sometimes, things get busy and process steps get overlooked. Perhaps you can get that copy of the driver’s license after the test drive?

Life can be hectic in the service department-- plenty of accidents happen which leave employees injured, or worse. Whether that’s because the vehicle was placed incorrectly on the lift, a power tool was not used safely, or chemicals were incorrectly handled, these are all things no dealership wants to happen, but sadly they do. Sometimes people, naturally, are in such a hurry that critical pieces of the process get skipped, or shortcuts are taken.

Just as in any workplace, it’s the dealership’s responsibility to ensure safety precautions are put into place and enforced, not only for insurance requirements but, more importantly, for employee and customer safety. That’s why you see yellow tent signs on floors that read “Wet Floor” and that’s why McDonald’s coffee cups say “Danger! Liquid is hot!” Yes, it all may seem common sense but, in the end, the dealership is the one that could be liable when something goes awry.

You may want to consider sending someone to train to be a “Safety Officer” in your dealership. OSHA requires that all businesses have someone designated as such. But, knowing employee turnover, how many of them are trained properly? How many truly analyze processes, watch behavior and correct any mistakes which are against safety precautions?

Yes, it’s another thing to think about and concern yourself with. However, in the end, I’m pretty sure no dealership wants to be the one that not only has a dead or injured customer on their hands, and the media attention that goes along with it – to say nothing of the big check that will eventually need to be written.

In my past few blogs, I discussed the various areas in a dealership that are affected by the current recall epidemic, compared the differing viewpoints about recall repairs from dealers and consumers, discussed non-compliance in recall repairs on new and pre-owned cars and how that could open liability concerns for dealers. I also covered how vehicles in your service drive need your attention and that ensuring customers leave in safe cars can lead to increased loyalty and service revenue.

Hopefully, these policies and suggestions have been of some help as no vehicle should leave your lot with an open recall. All repairs should either be completed or scheduled, regardless of if those vehicles come through sales or service.

Currently, hundreds of millions of drivers are affected by recalls and vehicle safety is of prime concern to your customers. It’s rare for a day to pass without news of a new or expanded recall as manufacturers rush to identify any potential issues and seek to fix them.

It makes sense, is a smart public service and sound marketing strategy to ensure that no sales or service customer leaves with a vehicle that has an open recall.

There’s no doubt in my mind that if your dealership has gone through the extra effort to ensure that customer’s leave with safe vehicles and peace of mind, you will be rewarded in a number of ways. Chances are good that your efforts will prove fruitful in terms of additional traffic and sales, as well as new customers pulling into your service drive.

But only if you tell them!

Use this initiative as your unique selling proposition. It’s much more powerful than free car washes or oil changes. And now is the time to get ahead of the competition – I’ll bet that, as of right now, not too many of your competitors are making these efforts.

If you’ve already proven to your customers that you care about their safety, your customers will trust you more and that is the first step towards earning their loyalty. Trust is a huge factor with today’s customers in both sales and service – it certainly leads to increased acceptance of recommended services through your service drive.

So, climb up on top of that mountaintop and shout your efforts to everyone. Include messaging on every marketing piece, every television ad, every radio ad, your website, store signage and your website. Tag the cars on your lot with this message so that shoppers see that you take extra effort to ensure all your cars are safe. And be sure to inform your service customers during the consultation part of the service drive experience that you do this for them.

Don’t be shy. You’re doing your customers a service and also doing your part to make the roads safer for everyone. This naturally leads to increased business. And that’s a win-win for everyone.

In the largest buy back action in U.S. history, the National Highway Traffic Safety Administration (NHTSA) and Fiat-Chrysler America (FCA) have agreed that, in addition to paying a $105 million fine, FCA will offer to buy back 500,000 RAM pickup trucks from consumers. The value FCA has to pay consumers for their vehicles is extremely consumer friendly - the original purchase price plus 10 percent, minus depreciation. These values are likely more than the owner could get from a dealer in a standard trade-in valuation.

In looking at the models and years covered by this buyback, it seems that the ages of these vehicles eligible for buy backs range from 2008-2012. An example value provided by the Associated Press, is that “a 2010 Dodge Ram 1500… could fetch $20,000 in a dealer-trade-in, assuming the truck has 60,000 miles on it and is in ‘good condition.’” The article also states that if Chrysler had to buy back even a quarter of the trucks at issue, it could spend $2.5 billion.

There should be a flood of consumers hitting the market ready to take advantage of these terms and purchase new vehicles. The big question is, how many of these consumers will stay brand loyal, and how many will defect to other brands?

This is the biggest such action in history, and, with the severe penalties to the OEM and the mandatory buy back offers, it could cause consumers to consider switching brands. It will most certainly instill doubt in many consumer’s minds about the quality and safety of these vehicles.

The totality of these events creates the “perfect storm” of opportunity for off-brand dealers. There are 500,000 possible car/truck buyers out there for enterprising dealers to conquest. These consumers should be very willing to entertain and investigate other brands. The key is to recognize that this opportunity is on the horizon. Begin efforts to reach out to vehicle owners affected by this buy back offer with compelling reasons why the consumer should consider switching to your brand. As part of the agreement, FCA has agreed to notify owners of eligible vehicles. A well-timed offer, with a solid value proposition, could result in better than normal response rates and conquest sales above the norm.

One thing is for certain -- every FCA dealership presented with a vehicle owner initiating a buy back will do everything within their power to sell these consumers a new vehicle, rather than simply cut them a check and watch them leave. So, stay ahead of your competition -- begin formulating a strategy to identify these consumers and craft a compelling offer for the consumer to bring their business to your dealership. Buy backs on this scale aren’t going to happen very often. Take advantage of the opportunity to gain some conquest sales. With a potential 500,000 of them waiting to happen, there is plenty to go around.

In the largest buy back action in U.S. history, the National Highway Traffic Safety Administration (NHTSA) and Fiat-Chrysler America (FCA) have agreed that, in addition to paying a $105 million fine, FCA will offer to buy back 500,000 RAM pickup trucks from consumers. The value FCA has to pay consumers for their vehicles is extremely consumer friendly - the original purchase price plus 10 percent, minus depreciation. These values are likely more than the owner could get from a dealer in a standard trade-in valuation.

In looking at the models and years covered by this buyback, it seems that the ages of these vehicles eligible for buy backs range from 2008-2012. An example value provided by the Associated Press, is that “a 2010 Dodge Ram 1500… could fetch $20,000 in a dealer-trade-in, assuming the truck has 60,000 miles on it and is in ‘good condition.’” The article also states that if Chrysler had to buy back even a quarter of the trucks at issue, it could spend $2.5 billion.

There should be a flood of consumers hitting the market ready to take advantage of these terms and purchase new vehicles. The big question is, how many of these consumers will stay brand loyal, and how many will defect to other brands?

This is the biggest such action in history, and, with the severe penalties to the OEM and the mandatory buy back offers, it could cause consumers to consider switching brands. It will most certainly instill doubt in many consumer’s minds about the quality and safety of these vehicles.

The totality of these events creates the “perfect storm” of opportunity for off-brand dealers. There are 500,000 possible car/truck buyers out there for enterprising dealers to conquest. These consumers should be very willing to entertain and investigate other brands. The key is to recognize that this opportunity is on the horizon. Begin efforts to reach out to vehicle owners affected by this buy back offer with compelling reasons why the consumer should consider switching to your brand. As part of the agreement, FCA has agreed to notify owners of eligible vehicles. A well-timed offer, with a solid value proposition, could result in better than normal response rates and conquest sales above the norm.

One thing is for certain -- every FCA dealership presented with a vehicle owner initiating a buy back will do everything within their power to sell these consumers a new vehicle, rather than simply cut them a check and watch them leave. So, stay ahead of your competition -- begin formulating a strategy to identify these consumers and craft a compelling offer for the consumer to bring their business to your dealership. Buy backs on this scale aren’t going to happen very often. Take advantage of the opportunity to gain some conquest sales. With a potential 500,000 of them waiting to happen, there is plenty to go around.

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.

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.