The problem of how to increase recall completion rates has been a thorn in the side of both manufacturers and dealers for quite some time. Despite numerous attempts from several sources, a majority of consumers fail to pay attention to any notification because they discard the mailers, discount the severity of the recall or simply don’t have the time needed to visit the dealership in order to complete the repair.

Procrastination and lack of convenience are both huge factors that prevent consumers from getting the repair done. And that is just the vehicle owners that we know of. Add to this the huge amount of second and third generation owners that never get notified by the manufacturer and that is a whole other problem.

Well, perhaps there is good news on the horizon. Several manufacturers plan to implement software capabilities in new vehicle models which allow over-the-air (OTA) updates. In some cases, especially software-related recalls, consumers won’t have to do anything. Similar to how computers and smartphones update automatically, vehicles will soon have a similar process. Vehicles equipped with this technology could make software-related recall completion percentages a number that is unheard of – 100%!

According to an article in Automotive News, three automakers will adopt and install OTA update technology into their new and refreshed model vehicles. While, initially, these OTAs will be limited to vehicle infotainment systems, these automakers plan to extend updates to include recalls for safety-critical issues. Tesla has been doing this since its inception, so the technology exists. In fact, in the spirit of advancing vehicle technology, Tesla recently released all its patents, making them open-source for anyone to use

Assuming that manufacturers adopt OTA abilities in their vehicles, consumers will benefit in that they will no longer have to visit the dealership for software-related recall repairs. Imagine if you had to take your laptop into the Apple store to get software updates, that would be a major inconvenience.

Of course, this consumer convenience comes at a price for dealers – namely fewer opportunities to identify and/or sell additional repairs to customers. However, there will still be plenty of recall and other repairs that aren’t simple software updates, so dealers will still have opportunities… just not as many.

To prepare for the future, dealers would be wise to take a look at how they can provide even better service and build a higher level of trust with their customers at a faster pace in order to keep consumers coming in for regular maintenance.

As time goes on, it is inevitable that technology will increase. But there’s always a silver lining. So, start building those relationships now to be well prepared for any future. As solely focusing on the “now” tends to only last until “later” becomes a disruption in revenue.

Recall Masters' Dan Beres, Managing Partner, presents the State of Recalls at NADA 2020.

Consumers are notoriously difficult to reach when it comes to safety, needed repairs and attending to recalls. OEM and dealer methods include everything from phone calls, to text messages and direct mail. However, far too frequently, these notifications end up in the trash and are ignored.

Perhaps there is a new way to communicate with these customers, especially those second and third-generation owners. And that is social media.

While almost every dealer utilizes social media as a sales tool, many don't want to use it as a platform to educate consumers about recalls for fear they will shy away from the message and head over to the competition. Newsflash – no brand is free of recalls and dealers are missing the opportunity to deliver a message about safety through social media.

Billions of consumers all over the world use one social media platform or another, making it easier than ever to get in front of consumers with your message. In fact, one manufacturer has jumped on the opportunity and joined this new era of transparency, with great success. A recent article in Automotive News reports that at one of the premier consumer auto events of the year, the New York Auto Show, Honda featured a Civic which crashed during official testing. Honda also encouraged current owners to share their personal stories on social media. By no means is this a strategy OEMs traditionally use at these events, which are well attended by both the public and major media outlets. However, consumers applauded Honda for their efforts, sharing their stories with Honda and, by default, the world, to positive response.

Perhaps social media is something dealers should use to inform and educate their customers about recalls which could then lead to building trust with your community and, as a result, an increase in service revenue. Of course, I entirely understand many dealers’ hesitations to publicize faults and problems by announcing to consumers that their vehicles have some issues.

But think about all the manufacturers who had problems with Takata airbags. This wasn't a manufacturer or dealer issue. Instead, Takata was the premier (and majority) supplier of airbags for most manufacturers. When the avalanche of recalls came to light, many manufacturers decided to become more transparent in other areas. And consumers forgave them.

If you inform consumers about recalls over social media, you can establish trust with your consumers and open the lines of communication. It can be an excellent opportunity to gain more customers from consumers who run across your informative recall postings. I don't believe it will hurt sales, but rather increase consumer confidence in the dealership.

Take the recent example from Honda and consider adopting a new social strategy. In the end, it can help communicate vital information to consumers and illustrate that you are you willing to talk the talk, but also ready to walk the walk. And that goes a long way to building trust and securing loyalty.

In search of service revenue, dealerships turn to randomly scheduling service appointments regardless of shop capacity. Or they take everyone that drives up. This can easily overwhelm the service department. It leaves customers frustrated and causes a LOSS in service revenue from both new/drive-up customers and customers with appointments.

How many times have you heard about the customer that made an appointment for a quick service who had to wait hours for an oil change? Or the regular customer who showed up and nobody knew about their appointment? So, they also suffered a long wait. This can be quite maddening and can drive your most loyal customers to the independents.

The truth is, consumers would prefer to service with the dealership. A July 2019 survey of 16,000 consumers revealed that 3 out of 4 consumers would prefer to service at a franchised dealership even after their warranty expires. So, if they perceive dealerships as their destination of choice, why are franchised dealers losing loyal customers to independents? The answer to that question is tied to convenience. Consumers are tighter on time. For some, it’s about cost, but almost all consumers are pinched for time more than cash.

And, if you allow someone to cut in line, that is how your scheduled customers will view those who pull up unannounced. Ideally, the number of cars coming into the service department should be the number that it can support efficiently. However, many Service Advisors take all comers, even if they are overbooked with appointments and service pending from existing vehicles. What happens then? Traffic jams.

According to an article in Digital Dealer, the top 20% of a dealership’s customers account for 79% of its profits. And, by replacing just half of the bottom 20% with customers similar to the top 20%, a dealership can increase its profit by 40%!

It may be worth taking a look at the cost of overbooking and going beyond your shop capacity. Perhaps a better idea is to focus on efficiently completing existing work, even if that means turning away drive-ins. Yes, that’s hard to do. But, in the end, if you are transparent with a “walk-in” and explain you are turning them away for their convenience, you can win them over. You can also offer an incentive for returning with an appointment or rescheduling for a more convenient time. Then you stand a better chance of retaining a customer, keeping them happy, and continuing to earn their business. 

If you do not want to, or can’t afford to invest in expanding facilities, there are many solutions available that can help maximize your shop while keeping customers satisfied. They may also be worth investigating.

Recall completion percentages have been increasing, but despite increased communication attempts, that increase is hitting a plateau.

A recent trend reveals that many vehicle owners are very interested in mobile services. Currently, the percentage of independent repair shops that offer mobile services dramatically outweighs franchised dealers. Are dealers losing their customer service edge to independents who are willing to go the extra mile to win the business?

According to an article in Automotive News, the majority of services offered are valet services, where the dealer comes to the house, picks up the vehicle, completes the work, and then returns it. 28% of dealers offer valet service, while only 6% provide mobile service, which is performed at the customer's location, home, or work.  

However, a 2018 study by Cox Automotive reported that 39% of consumers prefer mobile service over valet services, which came in at 36%. While that disparity may not seem significant, when it comes to recalls, those numbers could be even higher.

Now, I can imagine what many of you are thinking; that it can be detrimental if the customer does not visit the dealership. They then fail to get the full experience that dealers work so hard to achieve. Or, perhaps you may feel you will be unable to upsell effectively when the customer is not at the store. You can also lose out on any equity mining opportunities to trade the customer into another vehicle. All can certainly be true. However, consumer demand does tend to be a driving factor. And, as demand for these type of services increase, it is certainly worth taking a look at to stay competitive. It is just a segment of your customers that desire this type of service.

Also, if you think that offering mobile services can be costly and that it would be impractical to perform recall work at a consumer’s location, according to the Automotive News article, that is not always the case. Many recalls can be completed at the consumer's location, similar to the ease of quick lubes. While any recall requiring a lift will need to be done at the dealership, dealers can fix many recalls, including airbags on site. Many OEMs are testing and implementing mobile service programs with their dealers, including Toyota, Ford, and BMW. 

Independents may currently have the lead when it comes to mobile service implementation, but it wouldn’t be that hard for a dealer to gain back market share rapidly. And the benefits are worth it. Today’s consumers are all about convenience, and independents can't perform recall repairs. Consider a customer in need of a recall repair who calls your dealership for mobile service. Is it that hard to imagine upselling them to have an oil change or other service done at the same time?

The most significant complaint from consumers regarding recall repair is that, while they want to have it done, they don't have time to come into the dealership. They are also nervous about losing access to their vehicles for some time. It is perhaps worth considering what services you could provide at the customer’s location and what recall repairs you can do off-site along with oil changes, tire replacements, and more. By offering these services in addition to a recall repair, your dealership could increase service revenue without having to upgrade facilities with additional service bays.

With mobile service, you could capture market share away from independents, and, at the same time, build a new customer base by conquesting customers from independent service repair facilities. In so doing, it can be possible to employ more technicians without needing more bays. You can also increase your customer base through conquest, increase recall and warranty work, and boost your recall completion rates.

Mobile services can offer your dealership a way to help solve the problems that have driven customers away from your store and towards an independent. And give you a competitive advantage that independents cannot combat. That would be an excellent way to recapture service business (especially routine maintenance) while showing the customer that service at your dealership can be just as convenient.

I realize it is probably not a practical solution for some of you. But according to the Automotive News article, it may at least be worth a look … it's always good to be ahead of the curve and on top of anything that can keep you winning in this highly competitive market!

With the increasing demand for service repairs, dealers are scrambling to recruit more technicians. At the same time, the pool of experienced technicians is dwindling, as not enough new technicians are entering the workforce -- and demand will only increase.

Regardless of how much money your dealership may spend to expand your facilities to accommodate more work, if there aren’t technicians in the bays to do it, it’s a losing proposition. In fact, many dealers are aggressively recruiting technicians from other dealerships, offering increased pay and better working conditions. But don’t throw in the towel just yet. Winning the war for talent could be within your reach, with a little thinking outside-the-box.

One way to increase technician availability is by recruiting inexperienced young people and providing them with on-the-job training. They can start with routine quick-service type ROs including tire rotation, changing out windshield wipers, checking fluids, and lamp replacements. While this can help provide more useful hands, it also takes years for a brand-new technician to gain enough knowledge to be on par with the already experienced technicians. And, as new technology continues to dominate vehicles, even the most experienced technicians can essentially be forced to go back to school to learn how to repair today’s highly advanced vehicles.

According to an article in Automotive News, there is perhaps a more practical way to access technicians who can immediately perform and increase service revenue. That is by recruiting military veterans. And that makes perfect sense.

Frequently, when businesses actively recruit military veterans, it is because they want to reward these patriots for their service to our country. However, let’s not forget that many military veterans simply did their four years of service, learned a trade, and left. Many were fixing multi-million-dollar aircraft, tanks, military transport vehicles, and other machinery that are, in fact, vehicles. These veterans leave the military with a skill set that may even surpass many dealership technicians, except for the OEM specific knowledge. This potential pool of candidates already has an extremely sophisticated knowledge-set, and it can be much easier (and quicker) to get them productive.

It might, at the very least, be good food for thought.

When people think of recalls, at least in our industry, most think about vehicles. For many consumers, merely contemplating spending their time at a dealership waiting for a recall to be repaired or losing the use of their car for some time, seems draining and inconvenient. But most consumers probably don’t consider the potential risks recalls can pose to their families.

A recent article in Consumer Reports reviews recalls related to child-safety seats and sleeping infants. While the report focused on the seats, it did mention proper installation. That installation typically involves the LATCH safety system installed by car manufacturers, which anchors the child safety seat to the vehicle's frame.

I’m willing to bet that upon hearing the news of a child safety seat recall, most parents would rush to the closest retailer to exchange it for a safe one. Would that be inconvenient? Absolutely. But they would do it because parental instinct and family preservation are ingrained in our DNA.

However, consider the consumer reaction should a vehicle's LATCH system have a recall. While the consumer may have the safest car seat in the market, without a properly operating anchor, the infant’s life safety is at risk. But would parents rush to their local car dealership to get that defective anchor repaired? My guess is that they would not. Is an anchor system explicitly designed to hold in and secure a child seat, even something that could be recalled? Absolutely! In 2018, Cadillac CT6 sedans were recalled for issues with the LATCH system, which made it harder to install a car seat correctly. Also, in 2018, 55,000 Volkswagen Atlas models were recalled for a design flaw with their LATCH system, which couldn't accommodate wider car seat bases. In 2016, almost 200,000 BMW X3s and X4s were recalled because the anchors could break while in use.

The point I am trying to get across here is that, no matter what the recall is, an unsafe vehicle is unsafe for everyone inside. It does, however, hit much closer to home and make it more real when a baby’s life is in danger.

Being more specific about the recall itself helps to create emotions that cause consumers to act. Generalities don't always motivate people, but start talking about injury to their child? Now they're listening.

How does all this apply to recalls in general?

Many dealerships do their best to reach out to and inform consumers in their PMA of any existing recalls, as do manufacturers. The problem is that far too often, these messages don’t get read because they are trashed or go into a spam folder. Our industry needs to deliver impactful messages to make an impact on recall completion rates, 

My point is that consumers not only NEED to know about existing recalls, but they sincerely WANT to, as long as they understand the impending dangers. It's easier to track down existing customers, but that second or third-generation vehicle owner is much more elusive. There are ways, of course. But sometimes it may seem too much of a project for a dealership to tackle due to costs and the investment of time.

However, spending the time and effort to track down same-make vehicle owners in your PMA, designing professional communications that relay WHY the recall needs to be repaired, and utilizing multiple channels of communications to reach them makes a huge difference. You stand a good chance of reaching these consumers and increasing service revenue through recall work and other services that may be discovered during the initial inspection. And you can develop a loyal and robust base of NEW service customers in your area.

It’s hard to imagine a mother (or father) being upset if a dealership were to tell them that the LATCH system on their vehicle could be faulty and could endanger a child, BUT they can quickly fix it at the dealership right now. I think the response would be quite the opposite-- one of gratitude. And I guarantee that they won’t find your service department or communications “inconvenient.”

Retention is vital for long-term profitability and health. Some dealers coast along thinking they have retention covered, when, in fact, nothing could be further from the truth. Sure, offering a great customer experience in service can head you in the right direction. However, it is not just free coffee, donuts, or wi-fi access that bring customers back. Customers come back to the dealership because they trust that their vehicle will be adequately serviced at a fair price and made safe for them to drive.

Customer retention is an activity that is taken to prevent defections (i.e., going to your competition). Retention marketing includes programs and strategies that focus on growth and retention of existing customers through incentives to lure them back into the dealership for subsequent transactions. These ongoing touchpoints prevent your dealership from losing customers to the competition and enable your dealership to save money otherwise spent on customer acquisition tactics. They also increase the likelihood that these retained customers buy their next car from you.

Retention marketing programs can not only help you stay in contact with customers but can also be used to deliver valuable information at the same time. Many dealerships subscribe to and deploy a variety of marketing services designed to keep them top of mind. However, many don’t leverage these to inform customers about recalls. Perhaps they think that recall information is too broad and won’t apply to everyone. I'm sure some perceive recall communication as highlighting a negative situation. The truth is, consumers view recalls as an extension of sound safety practices.  Consumers gravitate to organizations that look out for driver safety, have product integrity, and practice proactive problem resolution.

Also, recall awareness communications can elevate your dealership’s profile.  Consumers tend to appreciate the effort and reward your dealership by servicing with you.

Many dealerships have an e-newsletter they send to customers. These same e-newsletters can easily include information about existing recalls. They are a channel that dealerships already use to communicate with their customers. By using this existing medium to share information about recalls, you can reinforce your dealership’s commitment to vehicle safety and build consumer trust for your dealer and factory brand.

Another tool your dealership can deploy is an online scheduler. Most service schedulers require (or at least ask) a customer what vehicle they are bringing in. Nobody likes surprises in the service lane.  A Service Advisor or Director can quickly review which vehicles are scheduled for the next week or so, identify those with existing recalls and call, text, or email the customer this information prior to their visit. This also helps in scheduling the appointment properly since some recalls take time to fix which means setting up alternate transportation for the customer ahead of time. 

Imagine a consumer’s disappointment if your dealership failed to catch a recall during a recent visit, and the consumer then independently discovers its existence from another source.  These oversights can chip away at your credibility and the customer’s loyalty.

Provide your customers with valuable recall information that affects the safety of their vehicles. Offer them a convenient time to get the recall handled. And at the same time, offer those service coupons you already had planned. You can easily encourage the customer to allow you to do both. 

A few simple customer retention strategies in place can help prevent defection and build loyalty. This can also reduce customer churn without spending thousands of dollars every month in acquisition efforts to replace the customers lost the previous month.  Recalls are a unique opportunity to win over new customers, retain existing customers, and drive revenue without any need for discounting. 

Several manufacturers, including Tesla, have rolled out some “innovative” features that include self-driving technology. At first glance, consumers like this type of vehicle technology because it typically means that these vehicles are fuel-efficient, use advanced technologically and are, frankly, cool. However, there are hazards involved with this advanced technology and, sadly, plenty of accidents (and deaths) are reportedly associated — some caused by human error, and some by a person’s misunderstanding of the technology.

According to an article in Automotive News, some automakers and ride-sharing companies want to go even further. Not only do they want to create self-driving vehicles, but also plan to remove the very controls that allow a human to intervene when necessary – namely steering wheels and brake pedals! 

While self-driving cars are still in their infancy, auto manufacturers are in a race to be the first to market. Several states have limitations and regulations regarding how and if these vehicles can be tested. Most of them still have the infrastructure to allow drivers to take over if needed. The argument state and local governments have put before NHTSA is that the federal government should revise current regulations to ensure vehicles also allow human interaction. Many people want a more relaxing commute and are intrigued by this new technology. However, in removing the steering wheel and brake pedals, consumers are entirely at the mercy of a computer, with no chance to manually intervene. All you can do is watch and (like in the old days of emergencies) duck and cover.

Some of this early technology – even when the driver can interact and take over – is flawed. There are sure to be recalls and technology issues that create dangerous situations. Does any consumer want to put their lives in the hands of a computer? Some already do on a smaller scale. For example, while the world is telling drivers not to text or look at their phones while driving, Tesla has huge interactive screens in some vehicles that can be just as distracting!

By taking away the ABILITY for a person to control a vehicle, manufacturers force consumers to rely on self-driving vehicles to operate safely amongst conventional human-controlled cars. Also, you must admit, they are not always operated by the most safety-conscious drivers!

Yes, technology is cool. However, while this future of vehicle technology may look and sound desirable, there are many hidden safety issues inherent to these vehicles that we should consider. As a society, it may be a good idea to try not to find self-driving technologies quite so alluring – similar to how a mosquito is attracted to a bug-zapper. The warm glow might not be so comforting, after all. The proper balance is to evaluate what technology can do for us while looking at how fail-safe it is. Can we really endure another Takata disaster?

If we fail to proceed cautiously with vehicle safety at the forefront, we could quickly end up with road rage on a robotic level. With vehicles doing their own programmed, pre-determined tasks while each manufacturers’ vehicle has different priorities.

Perhaps not the nirvana of a pleasant commute, but one of helpless commuters staring out their vehicle’s windows helplessly wondering what to do. And that is a commute that is probably not as pleasant as expected. 

Have you ever seen a fellow motorist texting while driving? What about eating while driving? Putting on makeup? Turning around to yell at their kids? Yes, all of these happen (and more) daily. Sometimes, all it takes for an unfortunate accident to occur is for a driver to spill that boiling hot Starbucks on their lap while commuting.

Teen drivers follow the examples and lessons their parents and other authority figures teach them when it comes to driving. That driver’s education class can only teach them so much.

There are many dangers young drivers will experience once they get a license and are on their own to face the hazards of the road. In fact, according to the CDC, motor vehicle crashes are the leading cause of death for teenagers; causing six deaths per day for drivers between the ages of 16-19. And they are three times more likely to die in a fatal crash than drivers over the age of 21.

The eight most common causes for these accidents are driver inexperience; driving with teenage passengers; driving at night; failing to use seat belts; distracted driving (Starbucks anyone?); drowsy; and reckless and impaired driving.

In general, it appears that this generation of young drivers is easily distracted from the responsibilities of operating a vehicle.  The problem isn’t going away any time soon, but there may be something we can do about it. I’m sure you would agree - parents don’t want to get a phone call informing them that their teenager has been in an accident.

It struck me that, as dealers involved in the local community, perhaps there is something they could do to help with this problem

Many dealerships hold new car and service clinics regularly. Dealers do this because it allows customers to ask questions that they may have forgotten during the delivery process. It is also an excellent opportunity for the dealership to introduce these customers/potential customers to the service department personnel. There is time for a much more in-depth introduction than during the vehicle delivery process. Also, it helps the dealership continue to build that relationship with the community and work towards creating customer loyalty.

Here’s an idea -- How about adding a class on teenage driving safety? Get your customer’s involved. Tell them that they are welcome to bring their adolescent drivers with them. Blast it all over your social media.

You want to know what the best part is? The CDC has already laid out the entire course. They provide downloadable materials; content syndication; and an event planning guide for you to use through their "Parents Are the Key to Safe Teen Drivers” program!

It can be tough to get a lot of participation in a sales or service clinic. However, reaching out to your community and offering classes to teach them (and their teenage drivers) safe teen driving advice directly from the CDC, is an excellent service for your community and the next generation of car shoppers

If you help save their children from fatal car accidents? Now you have a customer for life.