Chris Miller

Company: RecallMasters.com

Chris Miller Blog
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Chris Miller

RecallMasters.com

Apr 4, 2015

The Recall Crisis: To a Scared Customer, an Apology can go a Long Way

3477657f146fec737d860eeeb47ea8ec.jpg?t=1

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. 

Chris Miller

RecallMasters.com

CEO & Co-Founder

3246

2 Comments

Denim Simkins

DrivingSales

Apr 4, 2015  

My experience in the past is you have a few "extremist" that want and demand things due to the open recall on their vehicle. For a majority of the people that do come in are mostly appreciative and thankful the recall is being taken care of. With that being said there are so many that just do not connect the dots and realize that their vehicle has a recall . Looking at the NADA numbers from last year the warranty parts and labor sales year over year was a $2.7 B increase and this represents an average increase of close to $165K per dealership. Chris you are right there is an incredible opportunity. My thought is we need to get our staff in line to handle these customers correctly and who knows they may just come back for another visit later.

Chris Miller

RecallMasters.com

Apr 4, 2015  

Hi Denim, I'm glad you also recognize that taking care of the consumer and the vehicle repair should be the first priority. Indeed we've found the most valuable change we can make within the industry is to give dealer personnel training on how to best serve these customers. Besides the angry/extremist consumers you described, we more typically find scared consumers that simply need reassurance that we are putting their safety first and that we want to bring them in to have their vehicles repaired free of charge. And that's why we take the apology first approach toward owning the problem and beginning the process of winning over a customer for life.

Chris Miller

RecallMasters.com

Apr 4, 2015

The Recall Crisis: To a Scared Customer, an Apology can go a Long Way

3477657f146fec737d860eeeb47ea8ec.jpg?t=1

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. 

Chris Miller

RecallMasters.com

CEO & Co-Founder

3246

2 Comments

Denim Simkins

DrivingSales

Apr 4, 2015  

My experience in the past is you have a few "extremist" that want and demand things due to the open recall on their vehicle. For a majority of the people that do come in are mostly appreciative and thankful the recall is being taken care of. With that being said there are so many that just do not connect the dots and realize that their vehicle has a recall . Looking at the NADA numbers from last year the warranty parts and labor sales year over year was a $2.7 B increase and this represents an average increase of close to $165K per dealership. Chris you are right there is an incredible opportunity. My thought is we need to get our staff in line to handle these customers correctly and who knows they may just come back for another visit later.

Chris Miller

RecallMasters.com

Apr 4, 2015  

Hi Denim, I'm glad you also recognize that taking care of the consumer and the vehicle repair should be the first priority. Indeed we've found the most valuable change we can make within the industry is to give dealer personnel training on how to best serve these customers. Besides the angry/extremist consumers you described, we more typically find scared consumers that simply need reassurance that we are putting their safety first and that we want to bring them in to have their vehicles repaired free of charge. And that's why we take the apology first approach toward owning the problem and beginning the process of winning over a customer for life.

Chris Miller

RecallMasters.com

Apr 4, 2015

Senate Bill Could Force Recall Repairs & How You Can Capture More of That Work

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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. 

Chris Miller

RecallMasters.com

CEO & Co-Founder

3327

2 Comments

David Nathanson

motormindz

Apr 4, 2015  

There are minimal solutions for dealers to manage vehicle recalls, especially with inventory and more so with off brand, There is a small company out of Beaverton, OR that has developed a dealer solution that, on a daily basis, identifies vehicles that may have fallen into "open recall" status, after NHSTA issues the order and often prior to the OEM getting the info to the dealership, It is www.Autoap.com and they are providing this for both single point and large dealer groups.

Chris Miller

RecallMasters.com

Apr 4, 2015  

Thanks David! Yes, it is certainly an early and emerging opportunity for smart start-ups to bridge the gap between the OEM/NHTSA and what is occurring at the local, dealer-level. I'm glad to see companies like AutoAp are being innovative and using the latest technologies available to assist in identifying and getting these vehicles repaired.

Chris Miller

RecallMasters.com

Apr 4, 2015

Senate Bill Could Force Recall Repairs & How You Can Capture More of That Work

a853050bceed4e9a26301ec660944571.jpg?t=1

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. 

Chris Miller

RecallMasters.com

CEO & Co-Founder

3327

2 Comments

David Nathanson

motormindz

Apr 4, 2015  

There are minimal solutions for dealers to manage vehicle recalls, especially with inventory and more so with off brand, There is a small company out of Beaverton, OR that has developed a dealer solution that, on a daily basis, identifies vehicles that may have fallen into "open recall" status, after NHSTA issues the order and often prior to the OEM getting the info to the dealership, It is www.Autoap.com and they are providing this for both single point and large dealer groups.

Chris Miller

RecallMasters.com

Apr 4, 2015  

Thanks David! Yes, it is certainly an early and emerging opportunity for smart start-ups to bridge the gap between the OEM/NHTSA and what is occurring at the local, dealer-level. I'm glad to see companies like AutoAp are being innovative and using the latest technologies available to assist in identifying and getting these vehicles repaired.

Chris Miller

RecallMasters.com

Apr 4, 2015

Recalls: A Great Profit Opportunity for your Dealership

 

While recalls have in the past caused great adversity, they can in fact be turned into a great opportunity -- if your dealership gears up and correctly handles the traffic.

According to CARFAX’s new annual research, more than 46 million cars nationwide have at least one safety recall that’s never been fixed. That’s a tremendous amount of opportunity – and not just for service revenue, but for vehicle sales as well.

In effect, the OEM is delivering sales and service prospects to your door. In many cases, these are customers that have not been in for quite some time, or new customers you have never seen before. It provides your dealership with an opportunity to inspect the customer’s car at no cost to the customer. This frequently leads to more repair business, and, in more cases than you may think -- a vehicle sale.  In fact, GM stated last year that it sold 6,600 cars to customers who traded in vehicles with defective ignition switches.

The danger comes if you fail to give good service, or if parts are not obtained in a timely manner. So, it is key to be prepared to do a really good job of servicing these customers. Here’s a great opportunity to wow a customer with the level of your service. If the customer is very concerned about a recall, put them in a loaner that very moment until their car is repaired. In some cases the cost of the loaner is even covered by your OEM.

A point to consider however, is that while 46 million cars with an open recall represents a lot of opportunity – the sheer volume also means that many of these consumers could be suffering from “recall fatigue.” They may have seen so many recall notices that they no longer pay attention to any of these OEM messages.

So, it is time to get creative in your marketing to capture the attention of the many consumers with open recalls in your marketplace. Develop a marketing strategy to reach out and contact these customers -- there is certainly a lot of gold out there to be mined.

Approach a recall as an opportunity and plan accordingly … they can be a great opportunity to establish new customer relationships and increase revenue.1cdef85295231c7bc7bc4e383e2f084f.jpg?t=1

Chris Miller

RecallMasters.com

CEO & Co-Founder

3931

2 Comments

Denim Simkins

DrivingSales

Apr 4, 2015  

Chris you are right I think "most" consumers might be a little blind to the open recalls due to the sheer volume of them lately. Even so this still is a great source of revenue for service and parts. It is also a prime opportunity for you to have a vehicle in for service that you might not have seen for quite sometime. However, I see too many times where service staff does not see this as an opportunity.

Chris Miller

RecallMasters.com

Apr 4, 2015  

Hi Denim, thank you so much for your comment. Believe it or not I spend my Friday nights listening to inbound phone calls to dealerships and, at times, it pains me to hear the way these customers are treated. Recalled vehicle owners are an opportunity to present both the OEM and the dealership in a favorable manner. And turn what could be a negative into a tremendously positive experience for the consumer to make them a customer for life, upsell additional service revenue, and eventually get them into a new vehicle. Indeed, in recent months we've learned that the best service we can provide to a dealership, beyond the recall data and campaigns, is actually TRAINING on how to handle consumers. Starting with a simple apology to own the recall problems has a great impact in setting the tone for the rest of the call as the dealers settle into an advisory role for the consumers and eventually are able to create lifelong relationships.

Chris Miller

RecallMasters.com

Apr 4, 2015

Recalls: A Great Profit Opportunity for your Dealership

 

While recalls have in the past caused great adversity, they can in fact be turned into a great opportunity -- if your dealership gears up and correctly handles the traffic.

According to CARFAX’s new annual research, more than 46 million cars nationwide have at least one safety recall that’s never been fixed. That’s a tremendous amount of opportunity – and not just for service revenue, but for vehicle sales as well.

In effect, the OEM is delivering sales and service prospects to your door. In many cases, these are customers that have not been in for quite some time, or new customers you have never seen before. It provides your dealership with an opportunity to inspect the customer’s car at no cost to the customer. This frequently leads to more repair business, and, in more cases than you may think -- a vehicle sale.  In fact, GM stated last year that it sold 6,600 cars to customers who traded in vehicles with defective ignition switches.

The danger comes if you fail to give good service, or if parts are not obtained in a timely manner. So, it is key to be prepared to do a really good job of servicing these customers. Here’s a great opportunity to wow a customer with the level of your service. If the customer is very concerned about a recall, put them in a loaner that very moment until their car is repaired. In some cases the cost of the loaner is even covered by your OEM.

A point to consider however, is that while 46 million cars with an open recall represents a lot of opportunity – the sheer volume also means that many of these consumers could be suffering from “recall fatigue.” They may have seen so many recall notices that they no longer pay attention to any of these OEM messages.

So, it is time to get creative in your marketing to capture the attention of the many consumers with open recalls in your marketplace. Develop a marketing strategy to reach out and contact these customers -- there is certainly a lot of gold out there to be mined.

Approach a recall as an opportunity and plan accordingly … they can be a great opportunity to establish new customer relationships and increase revenue.1cdef85295231c7bc7bc4e383e2f084f.jpg?t=1

Chris Miller

RecallMasters.com

CEO & Co-Founder

3931

2 Comments

Denim Simkins

DrivingSales

Apr 4, 2015  

Chris you are right I think "most" consumers might be a little blind to the open recalls due to the sheer volume of them lately. Even so this still is a great source of revenue for service and parts. It is also a prime opportunity for you to have a vehicle in for service that you might not have seen for quite sometime. However, I see too many times where service staff does not see this as an opportunity.

Chris Miller

RecallMasters.com

Apr 4, 2015  

Hi Denim, thank you so much for your comment. Believe it or not I spend my Friday nights listening to inbound phone calls to dealerships and, at times, it pains me to hear the way these customers are treated. Recalled vehicle owners are an opportunity to present both the OEM and the dealership in a favorable manner. And turn what could be a negative into a tremendously positive experience for the consumer to make them a customer for life, upsell additional service revenue, and eventually get them into a new vehicle. Indeed, in recent months we've learned that the best service we can provide to a dealership, beyond the recall data and campaigns, is actually TRAINING on how to handle consumers. Starting with a simple apology to own the recall problems has a great impact in setting the tone for the rest of the call as the dealers settle into an advisory role for the consumers and eventually are able to create lifelong relationships.

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