Automotive Copywriter
How to Profit from Vehicle Recalls
It is evident recalls aren’t going away. The scourge of the Takata airbag inflator recalls is just the tip of the iceberg. No manufacturer is exempt from the issue, whether it’s BMW or Mazda, Ford or Nissan. In the past, the plight of the service department was simply to grin and bear it, pushing through recall work to get to the profitable customer-pay repairs, like a light at the end of the tunnel. But in the recent months and years, the tunnel just hasn’t ended.
It looks like recalls are the new normal. And that means the service industry needs to find a way to turn recalls into an advantage. It’s no easy feat to make vehicle recalls a positive thing for your customers; the recall notice in the mail has soured their taste, sometimes creating a disconnect with the car they once loved and the manufacturer to which they’ve been loyal.
It’s possible to turn recalls into a profitable business, if you’re up to the challenge. While it’s no simple thing to spin recalls into a positive light, you can make the most of your situation. As they say, “Make hay while the sun shines”.
Bring On the Vehicle Recalls
It’s tempting to simply wait until the recalled cars show up at your door, or wait for the scheduled appointments. But at that point, you’re leaving the customer’s attitude to chance. Will they be frustrated and irate or complacent about the recall? They certainly won’t be singing your praises – in fact, you’ll be cannon fodder for their anger.
You should have the ability to print lists of recalls for vehicles retailed at your store. Print them; all of them. Then, begin piling you schedule high with recall work.
Carefully script the calls to emphasize your store’s role in correcting the issue. And even though it’s not anyone’s fault at your store, own the recall. Apologize that it affects the customer. Then offer the correction – an appointment at a convenient time.
The goal is to create never-ending work for your shop, filling any gaps that may have been open in the service bay. Make hay, my friend, make hay.
Provide a Complimentary Service
A customer can go to any franchised dealer for their brand for their recalls. You must set yourself apart to capture the appointment, especially the customers who have defected or haven’t entered your doors in years. What do customers appreciate more than anything? Freebies.
Offer a complimentary service that benefits your customer and you. A car wash isn’t enough because it doesn’t do anything for your future business – it needs to be in the shop. Provide a complimentary multi-point inspection, as an example. It’s a service that can identify deficiencies in the vehicle and a platform from which you can sell. Which bring us to…
Upsell in the Service Department
It’s the penultimate purpose for bringing in all those recall customers. Dealers have reported increases of 33 percent in customer-pay revenue on the backs of recalls. Capturing those dollars can’t be a passive thing. It must be actively sold, which is why a complimentary multi-point inspection is so beneficial. From the proof – a checklist or estimate sheet – you can demonstrate why you have earned their business, all from actively seeking out their recall appointment.
It’s fundamental that service staff understand the importance of these upsells. Converting recall-only appointments is hard work and often ends in a $0-dollar CP RO. But it’s the customer who bites the baited hook and drops their money at your dealership that you want. You’ve proven to that customer that you’re worthy of their business, and you should expect repeat business from them also.
Convert into New Car Sales
The summit of the recall visit, should your dealership be able to climb the mountain successfully, is a new car sale. It results when the service staff understand the purpose isn’t just to sell CP service work but to capture a client for life. And it’s why the service-to-sales handoff is so critical.
Opening a dialog with the customer at the service desk, planting ideas about the benefits of trading up, and even walking them over to your sales counterpart is the holy grail of vehicle recalls. If you can achieve this with just one or two percent of recall customers, you’re doing fantastic.
Seldom will a recall customer buy a new car on the same visit as their recall appointment. However, planting that seed, establishing friendly faces across multiple departments, and starting the conversation builds the relationship towards that ultimate goal of future sales.
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2 Comments
David Zwick
RedCap
Jason, Good article. There is no doubt opportunity in recalls. In addition to what you suggested, we have found that offering to deliver a loaner and pick-up the customers car goes a long way in turning a negative into a positive. Even better, make every attempt to get that customer in the current model of the car they are driving with an eye towards putting them in a new car. By delivering a loaner, you have plenty of time with their car to not only fix the recall but also to appraise their car and find other items in need of repair. All of this can happen without taking ANY of the customers time.
Ujj Nath
myKaarma
and if I may add.. We use our platform and mine buyers who have bought and not returned + customers who have outstanding recalls , we send out individualized text messages with a description of the recalls (we scrub for unavailable parts) and the results are staggering:
1100 text messages
298 replies in 4 weeks
195 actual visits in 8 weeks
$70 K in CP dollars generated over and above the recall work..
I wholeheartedly endorse this approach!