One of the largest hurdles to overcoming the vehicle recall crisis facing automakers, dealers and even consumers, is low recall completion rates. There are a multitude of reasons including a lack of parts, overwhelmed shops and, yes, even consumers who don’t want to be bothered with taking their vehicle into a dealership.  

Here’s a startling fact that might surprise you about how the issue is addressed across the pond. The United Kingdom is making sure its vehicle owners take recalls seriously. How seriously? An article in The Sun reports that failure to get a recall repaired can land a consumer with a £2,500 pound fine (approximately $3,300) and will invalidate the consumer’s auto insurance! A stiff penalty, indeed. Apparently, UK lawmakers value the public’s safety and are willing to put some teeth behind failure to repair a recall.  

At a glance, it appears the UK acknowledges that some of the responsibility needs to fall onto the consumer.  After all, the consumer is in possession of the vehicle requiring the recall repair and, in all probability, has the greatest control over when the repair can be performed.   

The manufacturer and dealer perform the same tasks as US-based dealerships.  This UK measure is all about including the consumer as part of the solution.  Does that sound reasonable and will a similar measure come to the United States? I don’t know. What I do know is that legislators from all areas the United States are getting frustrated with low compliance rates. These completion rates make a bad situation worse as vehicles get older and exchange hands multiple times.  The severity of the recalls are also more lethal, beginning with the Takata air bags, and extending to a range of recalls that make our roads and highways a risk to every life on the road.   

US legislators acknowledge that things are getting worse, not better.  Many legislative ideas are being explored, including prohibiting dealers from selling any used vehicle with an open recall. This legislation, spearheaded by Democratic lawmakers, is opposed by both NADA and NIADA.  Both automotive industry organizations dislike the fact that this legislation applies to all recalls – not just safety recalls. In addition, consumers get hurt by lowered trade values, while dealers are hurt by having to ground cars.  

The point is, this is only one of many conversations happening in legislative circles. Lawmakers could very easily start to eye this UK program to judge its effectiveness. Certainly, increasing recall compliance will require cooperation from everyone – manufacturers, dealers and consumers. However, right now, all the pressure and consequences are aimed at the pre-sale side of the transaction. Perhaps this concept of holding consumers accountable for their vehicles and giving them consequences for failure to get the recall repaired could help increase recall completion rates.  

In my opinion,this is a team effort that requires everyone working together in order to resolve. It will undoubtedly continue for decades to come. As long as recall completion rates remain low, there will continue to be legislative efforts to improve the situation for the safety of everyone.

One challenge in many dealerships is building an environment where teamwork thrives. Salespeople are focused on their own individual commissions, not the stores; technicians are focused on the billable hours they produce, not the departments; and F&I managers want their penetration and back-end gross to be high. Aside from management, there’s a simple reason to explain why departmental self-interest reigns supreme at most dealerships - there is no incentive for them to promote the brand as a whole. Even the best company culture can suffer with these dynamics.  

To that very point, a recent article in Automotive News tells the story of a dealer in Florida who embraced an OEM initiative that suggested technicians work in pairs. Initially, the initiative probably seemed like a bad idea to the technicians, as each job’s billable hours would be split amongst the two techs. On the surface, it may have looked like this method would lead to less money for each tech… but they were wrong.  

Since Bozard Ford-Lincoln began this initiative, their service department has doubled its productivity from an average of 1,500 ROs per month (prior to their Quick Lube opening), to 3,000 ROs per month. The dealership is now processing an average of 5,600 ROs per month! Technicians discovered, that by working in pairs, they can be more efficient and increase production. So, even though they split each job, they end up making more money.  

With two technicians working on the same vehicle, there was an inherent checks and balances built into the system. More conducive to the technician, the oversight was in a peer-to-peer environment, rather than from a supervisor or some other heavy-handed measure. It also allowed individuals to learn from one another and share their strengths. One technician might be very adept at brakes, while another could offer insights on a radiator flush. This environment offers employees a chance to teach, as well as learn, as part of career fulfillment.   

Bozard’s success is an overall win for the dealership and its customers. Prior to the team implementation customers waited 2-3 hours for an oil change. The dealership now considers it has done a poor job if that time exceeds an hour – from the time that customer arrives until they drive off in their nicely washed vehicle. In addition to an increase in CSI, turnover in service has decreased (from 20% prior to the program to just 3%); service bays have opened up, allowing increased shop capacity; and company culture has improved due to a tighter sense of camaraderie.  

Turnover is a huge problem in dealerships. While the sales department gets the spotlight in the industry with a 70%+ turnover rate, as recall work increases, demand for qualified technicians will also increase. This will cause dealerships to start wooing technicians from competitors, contributing to an increase in turnover.  

And let’s not forget the most important asset to the dealership – its customers. This turnover not only affects company culture, but also customer experience and satisfaction. Who doesn’t like to see a familiar friendly face when they visit a business they frequent? It’s like the song from the classic TV show “Cheers” -- “You want to go where everybody knows your name.”   

It appears that Ford’s model provides benefits that do not take shape often enough in a dealership’s service department. Today, many customers are left with less than ideal outcomes.  As dealerships increasingly compete with independent repair shops, a team-based approach might yield the kind of service experience that overcomes the negative perception today’s average consumer has of a dealership service department.  In fact, teamwork might prove to provide a level of customer service independent repair shops can rarely attain. It’s this differentiation dealerships are searching for in today’s highly competitive service landscape.   

If teamwork and good processes can make such a drastic difference in the service department, what effects could it have in other departments? It seems that Ford may be onto something.

According to an article posted on Ford Authority, Takata has taken a massive hit to the tune of a $1 billion settlement in the US, $25 million criminal fine, $125 million dollars to compensate victims and $850 million to compensate automakers. As a result, Takata has filed for bankruptcy and has to rely on an infusion of capital from another company to cover these costs.  

Despite all this, Takata still manufactures airbags – the same airbags, using the same inflation chemicals that degrade over time. Manufacturers continue to use these airbags on their assembly lines for new vehicles, with full knowledge that these airbags will need to be replaced within the next 5 to 7 years.  

The NHTSA recently recalled another 2.7 million vehicles with Takata airbags that pose a risk to consumers -- adding to the 42 million already recalled. To date, these faulty airbags have been responsible for 17 deaths and 180 injuries worldwide.  

While the Takata crisis remains in play, surprisingly, one manufacturer seeks reversal of a recent recall – a recall of a recall, so to speak. Ford Motor Company has taken exception to the latest recall, which includes more than 2 million Ford vehicles, and plans to fight the recall. Apparently, Ford does not believe that all the vehicles involved in the recall are affected, based on random field testing of these vehicles.  

Of course, there are always mechanisms in place for manufacturers to appeal NHTSA recall decisions. While the data Ford has presented is not yet public knowledge, the choice to dispute NHTSA’s decision is a risky move. The Takata airbag recall is the largest recall in history and, with several deaths attributed to this recall, it has become a highly sensitive and volatile issue in the public domain. The fact is that there’s no reason to believe that ANY Takata airbags are safe for consumers – past or current.  

Is NHTSA being hyper-cautious in the case of Takata airbags? Or does Ford have a right to seek more evidence in the matter? That debate has yet to be determined. However, in any recall of this size, the manufacturer’s reputation is damaged – especially when they have to notify consumers that their vehicles could potentially be unsafe and have to be taken into their dealership for repairs.  

This is not the first time a manufacturer has appealed a recall. I don’t know whether Ford’s data is compelling enough to lift the current recall. What I do know is that consumer safety is of utmost importance. Based on the high-profile recall involved, it’s highly unlikely that Ford will win its appeal – but what if it turns out that Ford was right about this matter? What if 1,999,999 of the 2 million vehicles are without defect?  

Well, what if that single vehicle places its driver and passengers at risk?  

I believe that saving a single life is worth the cost and expense -- regardless of the recall, Takata or otherwise. The NHTSA knows the cost and expense of issuing a recall -- it’s a decision they don’t take lightly.  

On the other side, Ford’s appeal involves the most dangerous airbag in history, yet claims that affected vehicles are in fact safe. I hope they’re correct. 

No matter what happens manufacturers, legislators and dealers should keep recalls front and center when choosing whether or not to place these vehicles in the hands of consumers. Based on Takata’s deadly missteps and tragic consequences, it’s better to error on the side of consumer safety. 

According to the Los Angeles Times, Honda recently released a statement detailing how a Takata airbag killed a Florida man who was working on his 2001 Honda Accord. The vehicle was not being driven at the time and the report states that the man removed the center console while working on something unrelated to the airbag. For some unknown reason, the airbag suddenly exploded, causing shrapnel to kill him. The report indicates that the vehicle ignition was on, but it is unclear why the air bag deployed without having been in a collision.  

This tragic event brings to light another set of dangers associated with Takata airbags. First, any do-it-yourself vehicle owner tinkering with a vehicle that has an airbag recall should ensure their airbag is replaced prior to performing any repairs. However, the bigger issue is the risk this represents to technicians from multiple industries that work on vehicles.  

Many independent repair facilities and other specialized repair shops do not check for airbag recalls prior to working on them -- nor would they even think about it. What about that Best Buy car stereo installer who must remove the center console to install a new deck or speakers? Or that mechanic who performs a small repair at an independent repair shop or franchised dealership? Unless these technicians are educated and trained in the proper way to disengage an airbag it is possible that another life could be lost. That business could also be liable for damages. And let’s not forget what’s at stake in service departments everywhere as far as employee safety.  

Not one individual in the automotive industry should feel separated from the responsibility of cleaning up the Takata airbag mess. It’s clear that Takata airbags present an even greater danger to consumers and businesses than previously thought – and that danger was already known to be lethal, expensive and damaging to consumer confidence!   

It is more important than ever to ensure that consumers are reached and made aware of the danger if they have a vehicle with an open Takata airbag recall. What I’m requesting is that we, in the industry, remain vigilant about the dangers of Takata airbags and that we elevate our state of awareness. Not only should dealerships monitor all the vehicles in their inventory daily for open recalls, but also check with unsuspecting consumers in their service departments and local communities whose vehicles may have had their original airbags replaced with Takata airbags.   

Take a look at your process and do what you can to provide this information at every possible touchpoint – phone, email, direct mail and on your website. Have signs in your service waiting area, at the cashier and at your service advisor desks.  

While some dealers may feel that educating consumers on the dangers of open recalls borders on creating unnecessary panic, even if it prevents just one incident from occurring, the mission is worth it.   

If anything, the dealerships who stand up and acknowledge these dangers communicate something very comforting to consumers – the fact that someone cares about their safety. We are fast approaching an era where consumers accept vehicle recalls as an inadvertent offspring to vehicle ownership. In taking a stand against recalls and in favor of consumer safety, your dealership combats complacency and takes a responsible role in finding a solution.  

Vehicles can easily change hands multiple times over their lifetime. When a recall occurs, it then becomes increasingly difficult for manufacturers and dealerships to notify the current owners, which compounds the problem of low recall compliance. For many vehicle owners, it’s not that they don’t want the recall fixed, it’s simply that they don’t even know about the recall in the first place!  

Sure, there are OEM campaigns sent out via mail. However, sadly direct mail pieces are quite often trashed because the person who receives the recall notice no longer owns the vehicle. It could literally have been years since the vehicle changed hands and the original owner may not even know who owns it at that point in time. So, the recall notification gets thrown away with the junk mail and some owner out there continues to unknowingly drive an unsafe vehicle.  

Consumers continue to keep their vehicles longer and as those same vehicles can change hands multiple times this issue of older vehicles on the road then becomes especially noteworthy. Recalls increase in number and OEMs and dealers attempt to contact customers to get their recall repairs completed -- all while the NHTSA and legislators breathe down their necks. 

Let’s face it - many of the owners of these older vehicles patronize independent repair shops. Because the independents cannot repair these problems they have little incentive to make any effort to identify any recalls and certainly don’t want to risk losing business by referring customers to a franchised dealership. This means that between government, OEM and dealership records, as a group, we need to do everything we can to identify these 2nd, 3rd and even 4th (or more) generation owners to inform them that they are driving unsafe vehicles. It is important that we all do our utmost to compel them to come into the dealership and get the repairs completed. 

Some state DMV agencies are considering recall notification as part of the vehicle registration process. In Pennsylvania, legislation has been proposed that will require independent repair shops to notify owners of open recalls as part of the annual safety inspection. Until these reforms takes shape for consumers it’s up to the collective automotive industry to do what we can. 

Within the dealership community there is a unique opportunity to find these customers in your local market, notify them and gain their trust AND potential future business. I think it’s safe to say that nobody wants to put themselves or their families in danger by driving around in an unsafe vehicle. The entity that reaches them first with a recall notification and then services them well will be remembered. This is especially true for those that make it easy for the customer and provide an outstanding experience. There are many dealerships exploring ways to work with independent repair shops to create such an environment of trust when it comes to consumer safety.    

I am sure your dealership spends a lot of money on customer acquisition in both sales and service. Effective recall management and a comprehensive approach to owner identification make for the easiest and least expensive way to acquire service customers. You are also performing a valuable service for your local community.  

Yes, it’s a complicated puzzle that takes effort but, in the end, it’s worth it. 

By now, everyone has heard of the fiasco that is the Takata airbag recall. With millions of vehicles affected, many consumers have either had their airbag replaced, or are awaiting parts to do so. These anxious consumers simply want to know that the vehicle is safe to drive.  

Many of these consumers visit informational websites such as MotorSafety.org and plug in their VIN number to see if their vehicle has a recall. Some do not find out until they visit their local franchised dealer and, with a recall that poses such a threat to consumer safety, it’s almost presumed by all that the repairs are made without delay …well, not so fast! 

A recent news article details how some recalled airbags are slipping through the cracks and consumers are driving vehicles they think have good airbags when, in fact, their vehicle has airbags with an outstanding recall.  

This can occur in a couple different ways.  

1. A consumer buys a used vehicle that was in a past accident where the original airbag was deployed and was subsequently replaced with an airbag that has a recall on it. 

2.  The consumer’s airbag deploys and it gets replaced.  

In both scenarios, according to the article, these airbags tend to be replaced with recovered airbags from junkyards, because it costs considerably less than a new airbag. The problem is that most consumers and shops don’t think to check the replaced airbags for recalls. They are installed in the vehicle and the consumer drives home with a false sense of security. However, the replaced airbag could easily have a safety recall, which means that the consumer would be driving around – or buying – a vehicle with a dangerous airbag. Because these replaced airbags aren’t being tracked by anyone, there are probably tens of thousands of Takata airbags installed in vehicles that may never be identified and replaced with safe airbags.  

Let’s circle back around to what this tangled mess means to you. Simply stated, if you want to really make an impression on your customers, consider training your service staff and instituting a process where it’s assumed that every customer’s vehicle has a recall. Most customers buy their vehicle without asking questions about whether an airbag has been swapped out – they just don’t know. But that’s where a good service advisor can help identify a huge risk that is completely hidden from the consumer at present.  

Want to win a customer’s loyalty? Be proactive and ensure that their vehicle is safe. Imagine being able to identify a swapped airbag and informing the customer who had no idea. They would probably be appreciative that the dealership cared enough to check without being asked.  

Elevate your service advisor’s recall senses. This will help ensure that you have good inventory acquisitions, build customer trust and loyalty, and keep dangerous vehicles off the road that would otherwise never be identified, making the roads safer for everyone.   

A few seconds to ask the consumer whether the vehicle has been in an accident could save a life and create a loyal customer. If the customer is unaware of the vehicle’s history, then let them know that you’d like to provide them with peace of mind, given the potential hazard.   

The recall crisis has now reached the point that your service team’s assumption should be that the vehicle has a recall which may be hidden from view. Isn’t it better to be safe than sorry?  That’s our duty as an industry – to clean this mess up and to restore the consumer’s trust.

I’ve written a lot about recall awareness and how dealers can position themselves to be champions in their communities by treating recall customers differently -- applauding those who simply won’t sell a used vehicle with an open safety recall. I’ve also warned several times in past blogs that the NHTSA is not happy with recall compliance rates and that, eventually, legislators would be taking action to resolve the matter.  

Well, it looks like some state legislatures are now getting into the recall muck, starting with New York.  

A recent article in Automotive News reported that the New York Attorney General reached legal settlements with 104 dealerships that sold used cars with open recalls without disclosing this to their customers prior to the sale. 

While it may be a financial burden to sit on used vehicles with open recalls for months awaiting a repair, if the outcome of the settlement in New York spreads to other states, and/or is adopted by them, selling these used vehicles is going to become a lot harder.  

Here are the consequences these 104 dealerships agreed to in the settlement: 

1. Dealers must include enough information about their vehicles for sale online so that a consumer can check websites and information providers to identify if the vehicle has any open recalls.  

2. If the dealer advertises “in print or other media,” it must disclose in the ad that the vehicle has open recalls.  

3. Dealers must place decals on the windows of vehicles for sale on their lot which indicate the existence of any open recall and provide directions to consumers on how to check the vehicle’s status online.  

4. TWO DAYS BEFORE the dealership sells a car with an open safety recall, it must provide the consumer with a written recall status report and obtain “written acknowledgment” from the consumer.  

5. Dealers must notify any customer who purchased a vehicle with a still unrepaired safety recall from January 2016 to present. Franchised dealers also need to pay for up to 5 days in a loaner car should the repair take longer than a day.  

Think about these rules for a minute and let them sink in -- they may startle you. Remember – dealers AGREED to these rules!  

How much harder will it be to sell a used vehicle with an open recall and gain the customer’s confidence in the quality of used vehicles being sold? Without a doubt, used vehicles with open recalls will be much harder to sell to consumers. However, with the dealer’s reputation at stake, purposefully misleading consumers by not fully disclosing those open recalls is far more damaging to the long-term sustainability of a dealership. Trust is difficult to win back once lost. 

Imagine reading a newspaper ad full of used car disclaimers with open recalls. What about having to insert the fact vehicles have open recalls into your radio ads? Or what will it be like simply watching your customers’ faces when they walk onto your lot and see recall window decal notifications? 

Even if the customer is fine with all of this (which many won’t be), you still can’t sell them a car they want RIGHT NOW for TWO DAYS! I’m pretty sure that, even if you are adhering to all of the notification rules, the one thing that will hurt sales the most immediately is forcing the customer to wait two days. If they leave, we all know they are going to visit another dealership and probably buy a car there.  

These rules, in all practicality, force these 104 dealerships to essentially stop selling used cars with open recalls. Or, at the very minimum, cease advertising them on ANY MEDIUM (which includes the Internet).  

The writing is on the wall - legislation on both state and federal levels is coming. If the rules the Attorney General of New York got these dealerships to agree to are any indication of what is to come, you should be prepared for an increasingly difficult road in future sales of used cars with open safety recalls. The time to take a proactive stance on recall management is now.  Don’t wait for laws to be passed before your systems and staff are ready to effectively manage open recalls.   

There are currently more than 63 million recalled vehicles still on US roads and highways, which is surprising when you consider that recall repairs are at no cost to the consumer. So, why are consumers so apprehensive about bringing you their recalled vehicles? Do consumers hate going to the dealership that much? 

A recent survey by the University of Michigan found that 38% of consumers fail to complete recall repairs because they are fearful the dealership will pressure them into additional repairs or services. And, 37% don’t take their vehicles in for recall repairs because of the difficulty involved in giving up their vehicles. Finally, 36% felt the repair would take too long. It doesn’t appear that we’ve done a good enough job of persuading consumers that America’s dealerships are here to help.

These consumer fears seem to track well with the huge amount of recalled vehicles on our roads, versus the relatively small percentage of consumers who actually bring their vehicles in to get an outstanding recall repaired.

To overcome these challenges, one thing you can do is make it very clear in your messaging that your dealership is there to help vehicle owners. That you are only interested in completing the recall repair. In addition, ensure that your service department is set up to handle this unique customer when they do come in.

Yes, I know, service departments are designed to optimize revenue from every customer. And these recall customers can, in fact, be rather profitable due to additional repairs that are needed. But don’t lead with that. These customers have been inconvenienced with a faulty product they now have to bring in to get fixed. Some recalls come with a threat of danger if left unrepaired, which can be very upsetting to the customer. So, make sure everyone - from the receptionist to the service advisor - is trained in correctly handling this customer.

The best start is to simply apologize for any inconvenience the recall may have caused them. Remember, to the customer, your dealership is simply an extension of the OEM. Be smart about scheduling and make sure you have the parts in stock before scheduling the service appointment. If parts are simply not available, have a good explanation ready to sooth your customer. There’s nothing more frustrating to a consumer than to come to the dealership in attempt to get their recall repaired only to be told the parts are unavailable. Make sure that whoever schedules appointments knows which recall work has limited parts availability so they can coordinate with both parts and the service advisor to avoid irritating a customer.

If the recall repair will take a bit of time, provide loaner cars to recall repair customers, if possible. Loaner vehicles can give you a competitive advantage to help in winning that recall repair business. In fact, if your dealership has this service available, it would be wise to start including that messaging in all of your marketing and digital properties. You may be surprised at how far people are willing to drive to get their recall work done with you. Most consumers want their vehicles to be safe. If you can solve this difficulty for them, you could start conquesting your competitor’s service customers.

On the flip side, the survey also asked what would make these customers come in for a recall repair. 52% of respondents replied the ability to bundle a recall repair with regularly scheduled maintenance. And 51% said that a free oil change or tank of gas would be enough.

Perhaps you should consider identifying recall repairs that are lucrative enough to include an oil change or tank of gas and use that in your marketing, and/or identify customers that need recall repairs who are also due for maintenance, and reach out to them.

While vehicle owners are in possession of the recalled vehicles, it is in fact dealerships and the manufacturers who own the problem and the massive risk that each recalled vehicle presents.  There should be no debate about how important recall repairs are. This is a problem that extends beyond the billions of dollars in product liability lawsuits – it is about saving lives and restoring consumers’ perception of the automotive industry.

It’s up to all of us to create the kind of conditions and incentives that compel consumers to bring those recalled vehicles into dealerships.  Whatever the investment your dealership makes in a comprehensive recall program, it is likely falling short of the estimated opportunity. Are you getting your share of the 63 million recalled vehicles in your service lane? If not, then it’s time to sharpen those pencils again.

Auto Dealer Service Departments can now Access Real-Time Vehicle Recall Information During Appointment Scheduling, Vehicle Check-In and Inspection Process

CLEARWATER, FL and Laguna Hills, CA– May 16, 2016 –AutoLoop, LLC, a leading provider of auto industry marketing and customer relationship management solutions that successfully drive the Sell, Service, Repeat cycle, today announced a new partnership with Recall Masters, Inc., a leading provider of automotive recall news, data, training, and communications. Recall Masters will now be integrated into AutoLoop’s Fixed Ops Suite—the industry’s first, and only, totally integrated, end-to-end service platform. This will enable real-time recall lookup of vehicles during service appointment scheduling, as well as during the vehicle check-in and inspection process.

“Since the start of 2014, there have been more than 100 million vehicle recalls in the United States, just shy of half of all vehicles on the road today. Most of these affected vehicles have yet to be repaired and these open recalls represent a unique market opportunity to grow sales and service revenue, drive up each dealership’s CSI and restore the brand’s integrity in the eyes of the consumer,” said AutoLoop Chief Operating Officer Matt Rodeghero. “Recall Masters has been revolutionizing the auto dealer recall process for years and promises to be an invaluable addition to our comprehensive Fixed Ops Suite.”

The AutoLoop Fixed Ops Suite allows dealers to immediately present precise, all-inclusive quotes to customers who are scheduling online or over the phone, or who are being checked in on the service drive. And at every point along the way, the system alerts dealers to all possible profit opportunities—now including real-time recall lookup of vehicles from Recall Masters.

“Getting a customer to accept the work depends entirely on the service team having the right information at the right moment—both manufacturers and dealers realize how critical this is,” said Rodeghero. “But due to technology limitations, there were just too many service systems in use and too much invaluable data being overlooked. By bringing these systems together, AutoLoop and Recall Masters plan to help manufacturers bridge that critical gap, improving access to information by making technology truly work for the dealerships.”

As a result of another recent partnership with global technology provider Infomedia™, AutoLoop’s Fixed Ops Suite is now the most comprehensive in the industry. It delivers multiple dealer advantages, including automatically updated VIN and OEM pricing data, instant parts availability and cost, exact-price quoting and real-time RO status updates, along with many of the industry’s foremost service solutions; Book™, a 24/7 online customer scheduling system; SmartLane™, a robust, wireless check-in and walk-around tool; and Contact two-way SMS messaging.

Recall Masters is a leading provider of automotive recall news, data, training, and communications. The company is dedicated to helping automakers and their dealers expedite the repair of recalled vehicles and make the roadways safer for everyone. Greater recall awareness and proactive management helps automakers protect their brand and build trusting relationships between automotive dealers, rental car agencies, auto auctions and consumers alike.

“AutoLoop’s Fixed Ops Suite is a complete, end-to-end platform that streamlines and expedites each step of the service process. With the unprecedented level of vehicle recalls, reaching out to and informing customers of any that affect their vehicle can be a major pain point for most auto dealers. Customers don’t typically enjoy having to take their vehicle in for service in the first place. Having to stay even longer for a surprise recall repair is not exactly great for customer relations,” said Christopher Miller, President of Recall Masters. “Our relationship with AutoLoop ensures that the dealer’s customers know about any open recall in real-time while scheduling their appointment or during the check-in and inspection process, which builds trust and strengthens relationships between automotive dealers and their customers.”

To learn more about Recall Masters complete beginning-to-end solution, schedule a demo or receive a free trial call: 888-651-4480; email info@recallmasters.com; or visit: http://www.recallmasters.com. Dealers interested in finding out more about how to optimize the Sell, Service, Repeat cycle though AutoLoop’s full customer engagement suite, can call: 877-850-2010, or visit: AutoLoop.com.

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About Recall Masters:

Recall Masters is a leading provider of automotive recall news, data, training, and communications. The company is dedicated to helping automakers and their dealers expedite the repair of recalled vehicles and make the roadways safer for everyone. Greater recall awareness and proactive management helps automakers protect their brand and build trusting relationships between automotive dealers, rental car agencies, auto auctions and consumers alike.  Recall Masters is privately held and based in the San Francisco Bay Area. www.recallmasters.com  

About AutoLoop:

Since 2005, AutoLoop has helped automotive dealerships nationwide increase sales, improve client retention and achieve overall higher customer satisfaction ratings throughout the Sell, Service, Repeat cycle. With the AutoLoop Customer Engagement Suite -- an all-encompassing platform that includes everything from CRM and automated messaging to equity mining, service scheduling and more -- AutoLoop is the industry’s first and only single-vendor, end-to-end marketing and engagement solution. An Inc. 500 company with nearly 50 million names in its database and over a billion individual communications initiated, AutoLoop is passionate about being America's best customer retention partner for progressive dealerships.

There’s no better story about the perils of loyalty than that which played out in the summer of 2010. At the time, Lebron James was the most desired free agent in all of basketball. For the prior two seasons, he had been pressured by fans to announce whether he would stay with the Cavaliers, or leave for another team. Cavalier fans were intensely loyal to James, who was a first-round pick in 2003. He proceeded to showcase his talent over the course of seven years in Cleveland by making six all-star teams and brought the Cavaliers to their first ever NBA Finals.

In early July 2010, Lebron made his decision. With a great amount of publicity, including his own nationally televised special named “The Decision,” Lebron broke the hearts of Cavalier fans and the city of Cleveland when he announced that he was joining Dwayne Wade and Chris Bosh with the Miami Heat. Fans labelled him as selfish and the owner of the Cavaliers issued a scathing public announcement. Fans expressed their feelings of anger and betrayal to such an extent that police had to be deployed to keep the peace. James, however, set out to accomplish the one thing he had not yet done, but wanted most of all -- to win a championship. He felt he had a better chance to do that in Miami.

And he did. Two of them, in fact, in his 4 seasons with the Miami Heat.

This season, Lebron returned to Cleveland. His explanation was simple: Cleveland was his home. And he told this to the fans in an essay published in Sports Illustrated, explaining his love for Northeast Ohio, it’s people and his desire to bring them the trophy they’ve never had. He didn’t promise he could deliver. In fact, he told them to be patient and that it probably wouldn’t happen this year. And fans forgave him.

As we all know, he then led the Cavaliers to the NBA Finals and Lebron was on the verge of delivering on that promise in his first year back. His fans have left behind the vehemence and animosity they harbored for the 4 years they spent watching their hometown hero bring championships to the Miami Heat. Lebron is debatably one of the best professional basketball players… ever. And was on the precipice of delivering that elusive championship to Cleveland a year earlier than promised.

This story perfectly illustrates the fragility of customer loyalty. These fans were extremely loyal from the time Lebron was drafted -- all the way up until they felt betrayed by his decision to leave. They needed a hero and Lebron was it. The minute he gave up on them (which is how many fans interpreted his decision), they gave up on him. I doubt that anybody would have predicted that Lebron would ever be welcomed back. But a little humility and some maturing saw him thoughtfully apologize and endear himself once again to his fans.

I thought this example provides great food for thought for those situations in our retail automotive industry where we have unhappy customers. The current recall crisis is a prime example --- there are literally thousands of inconvenienced drivers, many of whom, I am sure, are rightfully upset.

People are human and hopefully these customers understand that other people (and companies) make mistakes. They will forgive you if they believe you are sincere in your apology. They will however need to see that your business is making a real and effective effort to rectify any error.

The next time you have a disgruntled customer, approach the situation with sincerity and show the customer through your actions that your apology is sincere. You might just be given a second chance.