Customer experience and standing out from the competition by excelling at customer satisfaction is still very much a good business practice today. Time is valuable for today's busy consumers, and many dislike the vehicle service experience at dealerships because of long wait times.

Loaner cars and shuttles help, but they can end up making it more challenging to contact customers for service recommendation approvals. This then leads to phone tag while the vehicle takes up a valuable service bay. If the customer is in your waiting area, you have easy access to the decisions you need to keep operations at an efficient pace.

On the other hand, if a customer stays at the dealership waiting for their vehicle, they tend to get antsy. The longer that they wait, the more irritable they get. This is human nature. Unfortunately, it can also lead to a lot of declines for additional service because the longer wait tests the customer's patience. Dealerships try to alleviate this with more efficient processes, increased service bays, better shop capacity management, and the strategic scheduling of appointments.

According to a recent article in Automotive News, one dealership has an interesting way of handling this problem – a playground. It may sound silly at first, but it keeps service customers at the dealership, which means easy access to discuss recommendations, leading to increased RO approvals.

A dealership in Wisconsin installed a playground between its two franchise stores. It resulted in more customers choosing to wait for full service rather than quick service. Service recommendation approval increased, which drove up service revenue and, as a bonus, improved customer experience, and satisfaction.

In today's highly competitive service market, standing out from the competition with a unique customer benefit helps your store differentiate itself from competing franchise dealers. It is even more critical when it comes to the competition from independent service facilities. While the "Jiffy Lubes" of the world rely on a selling proposition based on price and convenience, this dealership in Wisconsin has turned the table 180 degrees by elevating the customer experience. And at little expense.

No, I am not necessarily suggesting you run out and install a playground. But I do recommend finding some strong differentiator that makes your dealership's service department stand out from the rest. Promoting "FREE WIFI" is not going to cut it anymore.

Consider making your dealership a place where customers don't mind hanging out by providing the amenities they enjoy. Perhaps something such as an espresso bar, shared office workspace, private television monitors, reclining or lounge seating, connected tablets, foot massagers and a host of other conveniences. Make going to the dealership feel more like a day spa and less like a trip to the dentist. This can help negate the "time" advantage independents have ingrained into consumers through their positioning.

Effectively taking away your biggest competitor's one – and only – selling proposition is a pretty compelling advantage. Do that, and you could win customers' business now and for many years into the future.

A recent article in Wards Auto shares results from a study of 6,200 dealerships conducted by analytics company Marchex. According to the survey, dealerships who use active listening techniques and build rapport with customers on the initial calls are the top-performing 25 percent of dealerships in the study.

These top performers did the following things when communicating with customers: They requested the caller’s name 163% more than bottom performers; provided their direct contact information 40% more; used the words “please” and “thank you” 99% of the time; and laughed on half of the calls, which “kept the calls positive and relaxed the caller.

How effective do you think adopting these traits and practices in your BDC or service department would be, rather than the generic assembly-line processes that some dealerships employ in the service drive?

If you treat ALL service customers in the same manner that these top-performing dealers treat their sales customers, you just might achieve similar results. And, when it comes to warranty and recall customers, they are much more likely to call the dealership with a heightened sense of anxiety. By relaying more understanding and empathy, you’ll win over new service customers. You can also increase service revenue and build a relationship that extends past the service drive and into the sales department.

Recall customers tend to differ from regular service customers, and it helps to ensure excellent communication skills when interacting with them. Sales processes have changed in the last decade with the advent of new technology and enlightened and informed customers. However, service processes have primarily remained the same. Check them in, perform an MPI, contact the customer with any recommended service, complete the work, and then send them on their way.  It’s time to upgrade that approach

Perhaps a little empathy, understanding, and following the lead of these top-performing dealerships can elevate service revenue to the next level and win sales indirectly. Why wouldn't you want to treat your service customers with the same politeness, gratitude, and appreciation?

Winning customers is not solely a feat of the sales department. Dealerships have many more opportunities to accomplish that same goal in the service department than they will ever have in the sales department.

Take a look at your service department. Is it time to up your communication and listening skills and be more empathetic with your customers? Your customers will not only pay you a visit, but they will return for future visits.

Federal law currently prohibits dealerships from selling any new vehicle with an open safety recall to consumers. And now, Democratic Senators Richard Blumenthal (Democrat - Connecticut) and Edward Markey (Democrat - Minnesota) have reintroduced legislation that also prohibits the sale of used cars with open safety recalls, according to Automotive News.

If this legislation passes, it will have huge ramifications, not only for franchise and independent dealers but also for car shoppers. Whether you agree with this piece of legislation or are vehemently opposed to it, the industry’s practice of selling used cars with recalls has drawn the attention of lawmakers in recent years. Legislative analysts on Capitol Hill don't predict its passage. However, support could grow if there is a change in the administration or if voters rally their Congressional representatives.

Here is what I predict will happen over time:

1. Consumers will see less value for their off-brand vehicle trade-ins

Consumer opinion (and rightfully so) is that they should leave the dealership with not only a fair trade-in value but also a vehicle that is safe to drive. To date, dealerships have not been required to repair open safety recalls before selling a used vehicle. If this new legislation passes, any consumer whose vehicle has an open safety recall will find a lower trade-in value at an off-brand dealership than at a same-brand dealership. Because the off-brand dealership will have to hold onto the vehicle longer while they wait for the recall repair to be completed at what could be a competitor. Consumers, however, don’t care what the financial repercussions are for the dealership. They only care that they get a fair value for their trade and that the vehicle they are buying is safe.

2. Dealerships will find off-brand used vehicles more expensive to acquire

Front-line ready used vehicles at auction have become increasingly expensive. This legislation could easily segregate bidders and their strategies. A used Ford with an open safety recall will be more desirable to a Ford dealership than an off-brand vehicle for the simple reason that the Ford dealership can complete the open safety recall and recon it quickly. While the competing off-brand dealership is entirely reliant upon the speed at which the competitor can fix it. If you’re a Mazda dealership and a customer trades a used Toyota with an open safety recall, you may end up at the bottom of that dealership’s priority list, behind their loyal customers and even new customers who need recall repairs. The longer you have to hold on to that Toyota before selling it, the more expensive it is.

3. Dealerships will find same-make vehicles more attractive as trades and at auctions

The opposite is also true in that when presented with a customer who has a same-brand trade, dealerships will be more motivated to acquire that vehicle for their inventory than they would an off-brand trade. It has always been less expensive to take trades from existing customers than at auction and dealerships will become more aggressive with same-brand vehicle trades and at auctions than ever before.

There will be pockets of brands bidding on same brand vehicles, and it will become a part of the trade-in values/appraisals process and auction bidding prices. Because, while the winning bid price may be higher, the dealership knows it can repair the safety recall, recon the car and have it ready for sale faster than an off-brand dealership can.

4. Independents will struggle

Huge independents, including CarMax, will become entirely dependent upon franchise dealers to service any vehicles with an open recall that they buy or take on trade. Unlike franchise dealers, they can't "pick and choose" vehicles from customers. This legislation could completely change their business model. While the used car market has been hot, most independents are frustrated with the increased competition from franchised dealerships looking to acquire same-brand vehicles at auction. The increased demand for used cars has caused independents to drop prices to compete with franchised dealerships, which are perceived as more credible to the consumer.

This Blumenthal legislation is, of course, being lobbied aggressively by state ADAs and IADAs, along with just about everyone in the automotive industry. Consumers (the voters) will most definitely be in favor of it. And that is who politicians pay the most attention to. Aside from any political arguments, the need for open recall safety information will become increasingly crucial to all dealerships, both franchise, and independents. It’s hard to argue that consumer safety won’t win out in the long run, which should give all dealerships fair warning about what is to come.

The good news is that the endgame here is that vehicles, passengers, and the roads will be safer for everyone. And we're all for that outcome.

According to an article in Automotive News, dealerships are in a new car sales slump and have to increasingly rely on used car sales and service revenue to drive profits. Industry experts recognize that used cars are typically more profitable to a dealership than new.

Competing predominantly on price, dealerships moving new vehicles frequently end up with low front-end margins. However, when it comes used vehicle buying or trading, there is more opportunity to make a profit. But, due to increased demand for used vehicles, auction prices have risen, as have used vehicle values. Some dealers now have to travel longer distances to stock their inventory. In addition, many can no longer place as much emphasis on used vehicle acquisitions from customer trade-ins.

According to the article, the competition for used vehicles is so fierce that dealers are taking to classified ad platforms such as Craigslist to attract consumers looking to sell their used vehicles. This practice reduces industry competition for inventory and allows the dealer to hold more gross profit after reconditioning and detailing. This benefits customers in the market for a vehicle as they can buy a used car that has already been hit with a large depreciation, making it more affordable. Dealers win as well as these used cars, in general, provide higher front-end profit.

But there is a whole other way this used car sales trend benefits consumers… recalls!

Unlike a new car, it is illegal for a dealership to sell a used car with an open recall. Now, private sellers and dealers must consider whether vehicles plagued with open recalls run the risk of devaluation…Ouch! Because of this, dealers looking to purchase these vehicles have to factor in the costs involved with performing any needed recall repairs prior to sale.

If the used vehicle is of the same brand as the acquiring dealership, the recall can easily be repaired at the dealership with no additional cost, as the manufacturer pays for the labor and parts. It’s a strategy deployed at several dealerships nationwide, but primarily born out of reconditioning efficiencies.

Recalls add another layer complexity for dealerships looking to acquire off-brand vehicles. Profit margins can dramatically fall during the reconditioning process due to delays when repairs must be performed at a neighboring franchise dealership that is authorized to make such repairs.

The search for used car inventory could be right in your back yard in the form of recalls. Recall repairs are not only the right thing to do but may turn out to be a smart tactic for replenishing your used car inventory.

In addition, about 50% of consumers opt for additional repairs to keep their vehicle operating at an acceptable level of performance. The other 50% may be open to an offer to sell their vehicle to you. 

Those dealers who successfully acquire inventory through private parties will, more than likely, end up with a profitable sale. And there is the added benefit to society as we end up with vehicles sold by dealers that are safe for the consumer and their fellow drivers.

While a decline is new car sales is certainly not an event worthy of applause, perhaps the silver lining is that the rise in used car sales can assist in the overall recall repair completion rates and increase dealership profits. 

Drivers participating in the nation's most extensive ridesharing services are all independent contractors and, as such, are responsible for keeping their own vehicles maintained. After all, if they want to make money as a contracted driver, it seems perfectly reasonable to expect them to oversee vehicle maintenance, performance, and efficiency.

However, this includes self-monitoring for vehicle safety, and many of these contractors don’t have any immediate concern when it comes to dangerous recalls. There is no law mandating that rideshare companies or their contracted drivers safeguard against any danger their vehicles may present due to an existing recall.  And, depending on the specific type of recall, drivers could lose days, or perhaps weeks, of income waiting for parts to arrive to attend to the repair. Many drivers cannot afford to take that much time off.

According to an article by Consumer Reports, 1 in 6 Uber and Lyft vehicles have open safety recalls – and that’s only in New York City and Seattle – which accounts for 94,000 vehicle records! Can you imagine how many there are nationwide?

The problem is that these contracted drivers continue to pick up a multitude of passengers every day who could be riding in an unsafe vehicle – and the passenger has no idea. Most rideshare customers assume that these vehicles are safe and don’t fully recognize just how little concern many of the drivers have for vehicle safety. Imagine an Uber or Lyft vehicle arriving to pick you up with a sign in the window, stating, “This vehicle has five open safety recalls.” Would you get in?

Ridesharing has become a very popular mode of transportation. As a result of Uber and Lyft drivers circling cities in search of their next fare, there are now, in all probability, a more significant number of unsafe vehicles on the road traveling more miles, thus presenting an even more substantial risk to the driving public than if these services were not available. I'm not suggesting that ridesharing should be abolished. It’s clear that consumers love these models and that it may decrease congestion. My question is, shouldn’t these companies (and their drivers) ensure that all vehicles used to transport passengers are safe?

Currently, drivers are not required to provide proof of vehicle service, and completion of any safety recalls. All that is presently required is proof of registration and insurance. It is not difficult for these rideshare companies to then use this information to check for any outstanding recalls on the driver’s vehicles.

In my opinion, it would be a good idea for Uber and Lyft need to take a look at this situation and take steps to ensure the safety of their passengers through some sort of recall monitoring. They could then demand that any contracted drivers complete recall repairs before their vehicle is used to transport passengers.

Customers who utilize these ridesharing services don’t look at it as if they are hiring “John, the driver,” but, rather, perceive they are hiring Uber or Lyft. After all, access to these contracted drivers and their potentially unsafe vehicles is enabled by their ride-hailing apps. Not only that, the financial transactions themselves are between the unsuspecting consumer and these big businesses.

It is probably only a matter of time before the rideshare companies get sued, should a passenger be injured by something such as an exploding airbag – and no one wants that.

So, my hope is that these ridesharing companies rise to the challenge and institute a simple plan to monitor for any outstanding recalls and have their drivers fix them. It could even make for a great consumer campaign as a value-added benefit. Something else the consumer does not have to worry about!

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

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

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

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

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

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

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

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

In today’s society, time is a precious commodity. So much so that consumers make their buying decisions based on how long it takes to complete the transaction. If you had the choice between a $20 oil change that would take 4 hours to complete, or a $30 oil change that would take 30 minutes, which would you choose?

For the automotive industry, time is now front and center, and there is no better proof than the digital retailing movement that has been happening for some time.

At the Automotive News 2019 Automotive Forum, a panel of experts discussed the fact that “time is the enemy of car buying.” Among those sharing their opinions was Paul Walser, dealer principal of Walser Automotive Group and NADA’s current industry relations chairman. He stated that consumers want faster transactions and that it should only take about 25 minutes from the moment a consumer chooses a vehicle to when they leave with it. Currently, his dealership stands at an average of 42 minutes – a great feat in and of itself.

All of this data supports the flood of startups and disrupters that have popped up in the last few years whose sole message and goal is to make the car buying process simpler for consumers.

Does this sound familiar? It should because it’s merely history repeating itself.

So, what does this have to do with vehicle service?

Think back to the good old days when franchised dealerships were consumers’ only option for vehicle maintenance and repairs. Sure, there were always “mom and pop” and backyard mechanics, but it was only about 30 years or so ago that the Jiffy Lubes and large chain independent repair facilities started popping up with… the exact same marketing message digital retailing pushes today: “We’ll save you time.”

As service is the cash cow in most dealerships, how about taking that digital retailing message of saving customers time and also pushing it within your service department? Just as time is the enemy of car buying, it is equally, if not more so, in service. That’s why Jiffy Lubes exist.

While franchised dealers have cornered the market for warranty and recall work, there are rumblings at the legislative level about allowing independents to complete recall repairs. If that were to happen, it would be a severe blow to franchised dealers’ service bottom line.

I realize that keeping up with warranty as well as the millions of existing recalls while, at the same time, continuing to perform routine maintenance is an overwhelming job. But that is why it is so important to continually analyze and investigate ways to make your service department more efficient. This can help increase shop capacity, revenue and keep those loyal customers coming in.

The recent focus has been about making it faster for people to buy cars. But, in the end, consumers will service their vehicles much more often than they will buy them.

So, what can be done? Well, another interesting article in Automotive News covered its recent World Congress in January of this year, which reported that according to innovation experts, speed will make or break future relationships. According to the article, only 22 percent of consumers open email, for one example, but more than 98 percent open text messages. And there’s a vast influx of new data streams that can help the car industry do everything from creating more impactful advertising content to providing pinpoint services in connected cars.

Technology advances are upending every industry, says Howard A. Tullman, executive director of the Ed Kaplan Family Institute for Innovation and Tech Entrepreneurship at the Illinois Institute of Technology, and car dealers must take a broader view than 30-day sales cycles to stay relevant in the future.

“We’ve got an enormous flow of data and information, and we have to make it useful and meaningful,” Tullman said. “Businesses in the future will look at needs out there and build systems that are responsive. Make it easy for customers, or they won’t be there much longer.”

It is a good idea to ensure priorities are in alignment for both sales and service when researching ways to save your customers’ time and thereby increase CSI scores and profitability.

All businesses need good leaders who know what it takes to be profitable, but also how to retain employees who are valuable to the business. Employee retention is key to profitability, as replacing someone takes a significant amount of time and effort. It can also result in lost revenue as the dealership sacrifices the opportunity to connect with and foster long-term relationships with consumers.  

So, what makes for a good leader?

Well, I recently read a great article on SignalVoice that shares an interesting point: what leaders may THINK are good leadership traits aren’t necessarily what is most important to the team. Perhaps that is why, when it comes to retail employees, dealerships suffer up to 70% attrition, according to NADA.

The article shares a study which identifies that the key elements leaders think are needed to successfully lead are, in fact, the LEAST effective ways. According to the study, which focused on almost 600 employees and managers, the top three leadership traits were found to be as follows:

1. Vulnerability – In automotive retail, some managers tend to dictate orders such as, “Do what I say and don’t ask questions! Just do it!” 28 percent of the respondents in the study indicated that they want their managers to… well, be human, to express vulnerabilities openly with their employees; i.e., “I messed up. You were right,” etc. This builds trust and tends to motivate employees to be more willing to follow orders.

2. Communication – While “Just Do It!” may be a great slogan for Nike, to complete a task effectively, most people need to understand why a task is essential. And employees want good communication skills in a leader. In fact, 26 percent of respondents stated that making intentions behind your actions clear is the most effective way to build trust. It makes sense. If you explain the WHY in a way that can be clearly understood, employees are much more willing to follow those orders with purpose.

3. Commitment – 48 percent of employees thought their company was all talk; 28 percent felt that their manager was all talk; and, on the other side, 61 percent of managers believed that their employees were all talk. Amazing, right? A lot of employees and managers felt that most people were all talk… but no action.

In summary, employees want leaders who present themselves as ordinary people. Yes, they need to have authority to lead, but they should show an element of vulnerability, communicate well and follow up their advice with real actions. You can't tell a toddler not to touch the stove and then touch it in front of them. It will probably turn out badly for both of you. 

The automotive industry can certainly be stressful, and managers are often overwhelmed with reports, customer complaints and goals they don’t feel they can achieve, or that they shouldn’t have to do in the first place. As the pace of recalls continues to rise and frustrated owners inundate your dealership, you’ll need a team of employees who enjoy their job, respect and are willing to follow the leaders they work for, and who carry out excellent customer service in every interaction.  

The three traits revealed in this study are the traits that turn managers into leaders in the eyes of their employees and grease the wheels of successful team interaction throughout the dealership.

It’s a given that the more people willing to follow a manager as they believe in him or her, the more likely the dealership will be profitable, less stressful, run more efficiently and, in the end, turn a group of people from merely collecting paychecks, into a group that cares about each other and the success of the business. 

Automotive Recall Solutions Innovator Adds Industry and Technology Leader to its Executive Team

April 23, 2019, Laguna Hills, CA – Recall Masters, Inc., the leading provider of automotive recall news, data, training, and communications, today announced the appointment of John Dunning as President. In this position, Dunning oversees all day-to-day operations, including finance, investor relations, human resources, sales, marketing, technology development, and client services. The appointment comes at a time when the recall solutions provider is growing fast and has become a top vendor in the automotive industry.

Dunning has a track record of taking new ideas and creating and implementing plans that successfully bring them to life, boosting revenue. He brings more than two decades of experience to Recall Masters as an entrepreneur, investor, and operational executive. His expertise ranges from founding CEO at Confident Financial Services (now DigniFi), currently the leading auto repair financing solution, to serving as a critical team member in several San Francisco-based software start-ups, to working as a venture capitalist. He also founded and served as CEO of two Boulder, Colorado-based technology start-ups and has served as an advisor to several software businesses. 

Most recently, Dunning ran San Juan Vacation Ventures, LLC, the largest vacation rental management agency in the San Juan Islands, northwest of Seattle. Dunning possesses a B.A. from the University of Oregon, where he studied Economics, International Studies and Spanish, and an M.B.A. from the Thunderbird School of Global Management.

“I’m very honored and excited to join such an impressive team of individuals dedicated to vehicle safety,” Dunning stated. “This is a pivotal moment, not only for Recall Masters but also for the automotive industry, state and local government and consumers. While fingers point at who is to blame for the recall crisis, Recall Masters is procuring the most comprehensive knowledgebase of vehicle owners and recall data, developing innovative technology and deploying effective communications that engage consumers and compel recall compliance. We are beyond the point where blame plays any part in helping consumers and are focused on solutions.”

With more than 1 in 4 vehicles on US roads and highways having an open recall, and another year of record recalls for 2018, the recall crisis continues to grow. Recall Masters provides recall solutions directly, and through strategic partnerships, to more than 3,000 dealerships nationwide. Also, two auto manufacturers, BMW of North America (BMWNA) and Mazda North American Operations (MNAO), recently contracted with Recall Masters to assist with boosting recall completion rates for select dealerships in key US markets

“If we want vehicles to be safer, then we need the kind of transparency that encourages auto manufacturers and the government to work together at uncovering and disclosing potential dangers, and that seems to be working. The bigger challenge is locating the current owners of these recalled vehicles and helping them resolve it before tragedy strikes. Recall compliance is almost entirely a local issue. From the dealerships that have to perform the necessary repairs, to the consumers that need to bring their vehicles in, we have a serious disconnect from what law mandates and what the consumers and dealers need at the local level. We've bridged that gap and it is an exciting time to be here as we’re are doing amazing things,” Dunning explained.

About Recall Masters:

Recall Masters is the leading provider of automotive recall news, data, training, and communications, 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 recall management helps automakers protect their brand and build trusting relationships between automotive dealers, rental car agencies, auto auctions and consumers alike. Recall Masters is a privately-held company based in Laguna Hills, CA. To learn more about Recall Masters and comprehensive recall management, please call 888.651.4480, email info@recallmasters.com or visit www.recallmasters.com.

Media Contact:
Sean Reyes
Chief Marketing Officer
sean@recallmasters.com
949.246.6023

One of the biggest obstacles many dealership service departments encounter is contacting and communicating with their customers. This is not only a problem with recall customers, but with all service customers in general. And failure to communicate can easily cost your dealership service revenue through declined recommendations.

A recent survey by J.D. Power finds that modern service customers prefer digital communications over analog. If they do not recognize your number, today’s consumers just don’t answer their phones. However, relevant text messages are viewed and responded to quickly. Unfortunately, due to strict federal guidelines, dealerships are backing off of texts in favor of simple phone calls.  Still, if the consumer has opted in, your dealership does not have to fear communicating with consumers via text. Let me explain….

It’s illegal to send unsolicited commercial email messages to wireless devices, including cell phones and pagers, unless you get the consumer’s permission first. It’s also illegal to send unsolicited text messages from an auto-dialer — equipment that stores and dials phone numbers using a random or sequential number generator. 

However, if your dealership has legitimate business with that consumer (servicing their vehicle), you are allowed to contact the customer via text for acceptance of recommendations, or to update them on their vehicle’s status. When servicing vehicles speed is key. Customers want their vehicles back quickly, so you can’t afford to lose time playing phone tag, waiting to receive authorization to proceed with the necessary repairs. By the time you eventually connect with the customer, the opportunity may be lost. The consumer declines service because they cannot afford to wait any longer for their vehicle. And that means a loss of service revenue for your dealership.

34% of service customers – whether customer-pay, warranty or recall customers – prefer contact via text message. When asked, they’ll opt in. But, according to the study, dealerships only use this mode of communication 9% of the time!

Today, we all desire the convenience technology provides. According to the J.D. Power study, customers are slowly shifting their preferred method of scheduling service toward the internet and away from scheduling via phone. In 2015, the industry average preference for these two methods was 20% and 64%, respectively. This year, preferences are 28% and 59%, respectively.

And when it comes to the in-store experience, consumers also like personalized treatment, where they feel as if the service advisor cares about their individual safety and their vehicle’s needs. Dealerships that inform customers about the work being performed; know the vehicle’s history and keep the customer informed of their vehicle’s status at every step; build trust in their service advisors and the dealership.  It’s still astonishing to me that many dealerships service vehicles without first checking the VIN for open recalls. There is no better way to lose trust with the consumer than to expose them to danger. 

Franchise dealers would be wise to take note of the J.D. Power study’s findings that independent repair facilities are outpacing dealerships in customer satisfaction. In 2017, independent repair facilities improved by 22 points, while franchised dealers only improved by 17. Service quality has also experienced a shift towards independents; independents increased 23 points while franchise dealers increased by 17.

Franchised dealerships definitely have the edge when it comes to warranty and recall work. However, routine maintenance is a significant percentage of overall repair orders which lead to additional services --- and additional revenue. As vehicle sales revenue decreases, dealerships are relying more on service revenue that cannot be lost to independents.

My advice is to pay attention to technologies that make it easier for consumers to do business with you and also that make it easier for your dealership to effectively communicate with your customers.  Independents aren’t improving faster because they do better work, but because they adopt technologies that make for a better customer experience and facilitate easier transactions.

If you monitor and adopt the same technologies, you will see customers that prefer convenience and quality dealership service over independents. Quality will always trump quantity…

But convenience may easily trump them both.