Recall Masters
Is In-Vehicle Technology Outpacing Itself?
Many vehicle manufacturers and vendors are developing autonomous technology and incorporating it into the latest vehicles. The key factor here is that this technology has to be tested. And not only tested but tested in real-world driving conditions including the many variables it could encounter. Other passenger vehicles, pedestrians, bicyclists, motorcyclists, and any number of obstacles that a normal driver could encounter.
Autonomous vehicle manufacturers need permission from each state to do these tests in real-world environments and they need to clock miles in the millions to show that the vehicles are safe. They do have operators present in the vehicle in case something goes awry. Think of it like the old driver’s education cars with a steering wheel, gas, and brake pedal on the passenger side in case the instructor had to take over control.
In some cases, however, just like staring at white lines forever on a road trip, things can get a little dicey. Maybe attention lapsed for a moment. Maybe it's the bumps on the sides of the roads designed to get your attention should you drift. Maybe the vehicle has a lane-deviation warning feature. No human (or apparently, vehicle) can respond in less than .2 seconds.
An article in Wired magazine proves this point. To summarize, “The Uber driving system—which had been in full control of the car for 19 minutes at that point—registered a vehicle ahead that was 5.6 seconds away, but it delivered no alert to her. The computer then nixed its initial assessment; it didn’t know what the object was. Then it switched the classification back to a vehicle, then waffled between vehicle and ‘other.’ At 2.6 seconds from the object, the system identified it as a 'bicycle.’ At 1.5 seconds, it switched back to considering it ‘other.’ Then back to ‘bicycle’ again. The system generated a plan to try to steer around whatever it was but decided it couldn't. Then, at 0.2 seconds to impact, the car let out a sound to alert Vasquez that the vehicle was going to slow down. At two hundredths of a second before impact, traveling at 39 mph, Vasquez grabbed the steering wheel, which wrested the car out of autonomy and into manual mode. It was too late. The smashed bike scraped a 25-foot wake on the pavement. A person lay crumpled in the road.”
Do you know how long the time difference is between 2/10th of a second and 2/100ths? It took you longer to read this sentence. The car hit the bicyclist and they died. It is important to point out that this is not an “anti-Uber” blog. This is simply an example of the point I am making about this technology.
Now we get down to the nitty-gritty. Who is at fault? The autonomous vehicle? Or the operator? The operator had been trained to pretty much “let the car do its own thing” while the car had been programmed to recognize and act. This is exactly the type of incidents that automakers have been telling people that autonomous cars will prevent. Yet, in this case (and in many others), it didn't. While it was this person's profession to monitor and let the vehicle do its thing, many consumers are buying vehicles with this technology simply based on the ooh-aah factor.
Ultimately, it Is tough to sue a car. Someone got killed by an autonomous car. It had an operator charged with monitoring what it did. Do you blame the car for its 2/10th of a second notification -- or the driver? These are questions that will continue to come up and I guarantee that one of these days, a court is going to decide. And that could change the history – or at least extend its adoption – of new technology well into our future, despite how enticing it seems to be.
Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.
Recall Masters
The Modern-Day Donner Party - When the Power Runs Out!
During the winter of 1846-1847, the Donner Party found themselves stranded in the Sierra Nevada mountains. Of course, they didn’t have the advanced technology we have these days, so things went from bad to worse rather quickly. If you’re familiar with the story, you’ll know the ending. It wasn’t the zombie apocalypse, but it was close. What does this story of tragedy and bad decision-making have to do with the automotive industry? More than you know.
Fast forward to modern days. I’ve seen power grids in California go down because of excessive use of air conditioners during times of extreme heat. There have also been, though more rarely, situations where the heat was cut off. That’s life on the west coast. It’s probably no different from ice storms in the East that pull power lines down to the ground. However, we're on the brink of massive migration to electric vehicles. What would the driver of an electric vehicle do if the power grid went down in California or on the East Coast and they found themselves stranded?
Living on the West Coast, I am familiar with power outages and how they affect people. But what I haven’t thought about is the possible consequences of extremely cold weather. It’s just a weather pattern I’m not particularly familiar with. That’s exactly how stories like the Donner Party make their journey from generation to generation – tales of such historic misfortune amidst conditions that appear so preventable by modern-day conditions. We've learned, haven't we? Maybe not.
Consider the recent event on I-95 in Virginia. According to an article by the Washington Post, a 48-mile traffic jam happened in 19-degree cold weather. The vehicles stranded were a mixture of big rig trucks, ICE (Internal Combustible Engine) vehicles, Hybrids, and Electric vehicles. Many of these drivers were unprepared for these conditions (or this traffic jam) and relied on the heat from their vehicles to stay warm.
With a gas-powered vehicle, you can simply take a container and get some gas. Even if that means walking to the nearest gas station. On the other side of the spectrum, electric vehicles require charging stations. If those charging stations aren’t immediately available, it’s only a matter of time before your source of heat perishes. If the battery dies (which happens much faster in cold weather), the driver has no simple way to recharge the vehicle and it then blocks the way for other vehicles to proceed. There is no easy solution, as you cannot simply drive into a 48-mile traffic jam to recharge your EV. If you could, there wouldn’t be a traffic jam!
This brings me to the meat and potatoes of this blog.
The Federal government is creating legislation mandating that auto manufacturers phase out ICE vehicles altogether, leaving US consumers the choice to purchase only EVs. What would happen if every single one of the vehicles in the 48-mile traffic jam in 19-degree temperatures was electric?
Is this something that the NHTSA should get involved in? Again, if a vehicle fails to safeguard consumers, it’s considered a candidate for a recall. In this case, there’s no malfunction, as would be the case if an ICE vehicle ran out of gas.
Still, are we failing to heed the warning issued on I-95? What can we learn from this event? The tragedy was averted thanks to the goodwill of fellow drivers, but what happens when we're all driving EVs? There's nowhere to run.
Should a continued push on this legislation also be accompanied by a comprehensive plan for charging stations along every highway or road? If so, who does that? The state or Federal government?
There's a crack in the EV infrastructure that could be deadly. We're all just unsuspecting travelers on a journey toward grave circumstances – a modern-day Donner Party if you will.
Something has to change to prevent this type of cold-weather situation that includes EVs getting stuck due to a lack of charging stations. The mid-1800 conditions which seemed so avoidable have come back around to haunt us in the form of an infrastructure that is clearly not in place. We can’t pretend Virginia didn’t happen. The only question that remains is whether we intend to do something about it.
Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.
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Recall Masters
Used Car Calamity: The Safety Sink Hole Growing Beneath Our Industry
Despite the pandemic, consumers are still in-market for vehicles. Manufacturers, at one point, were forced to slow production due to local and state regulations. As a result, some dealers have been struggling to maintain a full inventory of vehicles to offer car shoppers. Of course, dealerships cannot control when (or how many) new vehicles they receive from their OEM, so, increasingly, many dealers are turning to the acquisition of pre-owned vehicles.
In the past, dealers had a plethora of options to acquire these including trade-ins. But now, dealers are forced to focus on auctions for vehicle acquisition. At the same time, consumers are currently setting their sights on used vehicles, which causes a whirlwind of supply and demand.
The current situation: There are plenty of used vehicles and not so many new ones. And, it seems, used vehicles have become more attractive to consumers, which forces dealers to acquire more of them to meet demand and to generate sales revenue.
This “perfect storm” has forced dealers to overpay for used vehicles at online auction sites which, of course, drives higher prices. It is so bad that in some cases larger dealer groups are literally bidding for the same vehicles against themselves! Nowadays, it is not uncommon to see a CarMax, Carvana, or other large dealer group outbidding one another, while smaller dealers have to put the brakes on in frustration. When a dealer does acquire a vehicle at auction, just as it has always been, they are forced to sell that vehicle as quickly as possible to avoid an increase in the cost of the vehicle because of floorplan interest.
And therein lies the problem.
Dealerships need to stay in business and the only way they can do that is through two main revenue sources: sales and service.
Let's focus first on sales. Because dealers need to have an ample pre-owned inventory supply and are overpaying for those vehicles, they are forced to sell those vehicles quickly. Some dealerships sell those vehicles as fast as they get them. While that is great as a revenue stream, it may not be so great for the consumer. If dealers are selling pre-owned vehicles within days of getting them, they most likely do not have the time to repair any open recalls before the sale. This means consumers are buying and leaving the lot with unsafe vehicles that are potentially deadly. While no law prevents dealers from selling a used vehicle with an open safety recall, dealers are being forced to sell the car FIRST and then invite the customer back to get the recall repair completed. Yes, it is legal. However, at the state level selling a used car with an open recall is a legal liability under unsafe product laws, should that unrepaired recall lead to an accident.
When it comes to service, dealerships also have a difficult (albeit different) path. Service revenue is not only produced by regular maintenance and normal warranty issues but also recall repairs. Currently, 48 states mandate the OEM reimburse the dealership at retail rates. That is good money! While most service departments currently enjoy plenty of business, many are missing out on revenue that is guaranteed by the manufacturer due to the sales department selling vehicles faster than they can repair them. There is no guarantee that a consumer who purchases a vehicle with an open safety recall will return to the dealership to have the safety recall repaired. These consumers may have it repaired at a more convenient competitor or, even worse, never.
The potential of a used car calamity is akin to a snowball rolling down a hill. The further it travels, the more snow it gains and the faster it goes, exacerbating the issues. We are already seeing recall repair completion rates decrease at a time when the numbers of recalls are increasing. That can only be attributed to the accelerated demand for used vehicles. If this continues, we’ll simply see more unsafe cars on the road. And that is precisely what our mission is to avoid.
Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.
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Recall Masters
Cadillac Dealers Betting Big on EV or Taking the Chips Off the Table
As the nation attempts to further reduce emissions, many states have begun initiatives to phase our gas-powered vehicles. At the moment, multiple problems exist if someone were to snap their fingers and make every vehicle electric. On the vehicle and infrastructure side, there is a lack of charging stations and range is limited. While these are increasing (and will certainly continue to do so), many current electric vehicle owners are forced to plan their routes based on charging station locations. On the dealership side, EVs account for a small percentage of their overall inventory and an insignificant stream of revenue on the service side. Dealers need to stay in business and, to do that, have to sell and service cars. Also, many dealers are not equipped to service EVs at a decent capacity due to a lack of trained technicians.
So, some pretty significant challenges exist for both consumers and dealers.
However, according to an article on EnGadget, the Cadillac brand is pretty much forcing its dealers to invest heavily in selling and servicing electric vehicles in the near future. That GM mandate, of course, comes with a significant dealership investment (roughly $200,000) to upgrade facilities. Cadillac is so committed that it has offered buyouts to dealerships that would rather not commit to necessary upgrades. According to the Wall Street Journal, 150 Cadillac dealers have already accepted buyouts, effectively reducing the number of Cadillac dealerships by 17%. It was not that long ago that some dealerships gave up their Cadillac franchises as low volume stores were forced to ONLY sell new Cadillacs when inventory was low and hard to acquire.
Dealers are being forced to either invest in Cadillac’s vision of the brand’s future via a large investment, or bail on the brand. And can you blame them for exiting the brand? They have money on the table right now from Cadillac (anywhere from $300,000 to $1 million) to exit the brand as a dealership. But who knows how long that offer will be on the table?
According to Automotive News, GMC stated that it has no plans to offer buyouts to its non-EV dealers. One could make an argument that this is an A/B test on a large scale, with GM pushing its lower volume dealers to comply with this new mandate, while telling its higher-volume brands that there will be no buyouts. Many GM dealers are watching this scenario unfold and wondering whether the manufacturer could force their hand without compensation. And, thus far, policies like this have been limited to GM and the Cadillac brand. What, if anything, are other manufacturers considering? Perhaps they are waiting to see how this scenario plays out.
One thing we do know is that California has banned the sale of new gas-powered vehicles starting in 2035. That might seem like a long way off, but it is not. And perhaps more importantly, how does it affect consumers? Every dealer that closes its doors forces its service customers to find a new dealership for their maintenance and recall work. Those dealerships could be at locations inconvenient to the consumer, which could easily result in a decrease in safety recall and other major repairs.
We have already been fighting alongside NHTSA to increase safety recall compliance. By making it even harder for consumers to get those repairs achieved due to further inconvenience and lack of technician training, we could sadly see the progress that has been made go backward.
Recall repair completions have long been an uphill battle. Now we have to add to that equation less authorized service centers for consumers to get them done, a longer wait time, and a lack of trained technicians, as well as future recalls added. All I can anticipate is the recall completion rate going backward instead of the continued progress we have been enjoying. Only time will tell.
Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.
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Recall Masters
Is Your Intention Better Retention? Well, Prove it!
Customer retention can be tough. Independent repair shops lure customers away in droves with coupons or offers that promise low routine maintenance pricing. However, winning consumers on price alone is a short-term victory compared to winning over their loyalty for the long haul with quality work, certified technicians, and impeccable service. Luring them back is easier than you think. Ditch the discounting and invite consumers to the dealership by looking out for their safety while showcasing your dealership -- without charging the customer. How? Recalls.
Consumers will come into a franchised dealer if there is a recall… maybe… that is if they know about it. But what happens then? The customer could easily return to the local Jiffy Lube or other convenient places to resume that regular maintenance once the recall work is completed.
Franchise dealers have always had the edge when it comes to the health and safety of a vehicle. Dealers have access to diagnostic equipment, factory-trained technicians, and software that independents don’t have. AND independents can’t complete those recall repairs. If they do have access to diagnose or identify a recall, all they can do is perform the routine maintenance then send the customer on their way to their local franchise dealer to get it repaired. That sounds pretty inefficient to me.
One thing that has not changed despite the pandemic is that consumers value time. Imagine going into a grocery store that promises low prices, finding some of the items on their shopping list but then having to go to a different grocery store to get the remainder of the ingredients needed. That would be pretty annoying, right? Well, that is exactly what is happening daily when it comes to vehicle repair.
Also, those technicians at some shops that perform routine maintenance on a consumer’s car have little training. Just check the employment advertisements. Some independents are soliciting employees for quick service for $8-$10 per hour with “no experience necessary.” Is that someone a consumer should have ensuring that their vehicle is safe?
I know that dealerships are often faced with a quandary. They can join the race to the bottom to compete with the local independents, or they can convince the customer that the dealership is the best solution. That the dealership will service them well and are the one-stop-shop for all of their vehicle needs. Dealerships can also ensure that their vehicle is serviced by factory-trained technicians that can handle all the repair work AND any recalls that may exist – safety-related or otherwise.
Similar to sales, in service the competition for business seems to be all about price – but it doesn’t have to be. Prove your value to your customers through quality work and time-saving benefits. It is sure to help in customer retention. By showing customers that your dealership intends to ensure that their vehicle is always maintained properly and that you can handle all maintenance and repairs with quality workmanship by factory-trained techs, your dealership has an extreme advantage over any independent in existence. Sadly, many dealerships do not take advantage of this value proposition or don’t communicate it to their customers effectively, if at all!.
If your dealership took the time to explain to all customers AND promoted widely why you are more valuable to them than an independent, many customers would understand that even if the dealership service may cost a little more, the quality of work and time saved will outweigh the small savings that they get at an independent.
Show your customers that you intend to ensure their vehicle is safe, is repaired by trained OEM professionals, that you can save them time, and can, in the long run, save them money by preserving their vehicle asset. You can win over service customers and retain them, stealing that business away from independents.
Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.
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Recall Masters
To Go or Not to Go? That is the Question.
One thing that the holidays usually bring is travel. Families want to celebrate the holidays with loved ones and, this year, even during the COVID-19 pandemic, traveling is still happening. The difference right now is that a LOT more people are choosing to drive rather than fly, according to CNN. People feel better making these trips in the comfort of their vehicle simply because they see it as safer than air travel; in their own space with other members of their family, versus in a metal tube with hundreds of unknown people 35,000 feet in the air.
While Holiday travel during a pandemic is a personal choice (regardless of the method of travel), as far as the risk of COVID-19, there is another risk– and that is the health of their vehicle.
In the past, it was a common practice for consumers planning long-distance travel to have their vehicle checked out and serviced before traveling. Some vehicle owners still continue that tradition. However, while the pandemic continues, for many families, anything other than routine maintenance – especially those repairs that could put their vehicles out of commission for indeterminate amounts of time – may be put off with the thought process perhaps being, "We'll be alright and get that repair done when we return."
Because of this, there will probably be a larger percentage of potentially unsafe vehicles on the road this Holiday season. While COVID-19 is absolutely a risk that people should consider when deciding to travel, they should also consider the safety of their vehicle if planning a road trip instead. Road safety is just as important – if not more so – during the Holidays because of the added number of road travelers. Now is a good time to reach out to your service customers and get them in for a Holiday vehicle safety check and any recalls that you have parts availability to complete.
Everyone should be able to enjoy the holidays with their families -- but 2020 has been filled with party spoilers. Don't let your customers end up in a position where their holiday travels are ruined by car trouble, much less a pandemic. This double whammy safety concern should be top of mind for everyone. To protect consumers and their families safety should always be first. Anybody choosing to drive versus fly out of the concern of a pandemic should be equally concerned about the safety of their vehicle.
Have a great holiday season and my hope is that everyone stays safe!
Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.
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Recall Masters
Thanks for Calling. Please Hold.
One of the fears dealerships have regarding digital innovations in the automotive industry is that the internet will replace phones. However, it is a well-known fact that phone leads close significantly faster than internet and social leads combined. And guess what -- fixed operations generates many of them. As a result, dealerships are placing a priority on the phone, especially when it comes to fixed operations.
Some dealers have that one salesperson who has been in the business for 20-plus years and just cannot wrap their heads around the internet in general, refusing to use it. More than likely, this person still manages to outperform all the internet savvy salespeople every month. How? They are doing it with the phone. Salespeople who favor the phone do so because they can make a better personal connection than via email or text. They then use that connection to encourage the customer to visit. The same goes for a service advisor when a customer calls in with a service question or to schedule an appointment.
While it is important to be on top of advancing technology and offer all forms of communication from email to text and even live video -- many consumers still favor phone contact – for an immediate solution. Most customers will call into the dealership first rather than use the service appointment scheduling widget on a dealership’s website.
Car shoppers ask questions over the phone as a test to see if the dealership is willing to answer them. If your strategy is to throw up roadblocks in the customer's chosen form of communication to force people into the dealership, you will be ruled out (in sales) or leave a customer frustrated and maybe even looking for another solution (in service).
Customers want human connection before they visit a dealership, and it can benefit your bottom line significantly if you make the most of those phone calls IF you answer the phone. Consumers also use their phone experience with the dealership to gauge the dealer's attention to service and personalization. In short, are they going to be treated with the respect they deserve, or are they nameless, faceless transactions?
Closing ratios (for both sales and service) rise when phone contact is made with customers but 60% of service calls end without an appointment set. Why? Because nobody answers the phone, or the customers get frustrated by a phone tree. Here are a few other eye-opening stats on phone support that ought to awaken your team:
- The average dealership misses 8 service appointment calls per day (RightNow Customer Experience Impact Report)
- If answered and converted, those called would generate $48K/month in revenue
- 23% of incoming calls never connect with a live agent (CallRevu)
- 31.6% of answered calls result in an appointment. (DialogTech)
- Caller retention rate is 28% higher than web lead retention rate (Forrester)
It can be hard for your customers to connect and do business with you when it seems like the dealership is purposefully avoiding phone contact. Building that connection via a live connection with a customer is the fastest way to reassure them your dealership cares and is ready and willing to help them.
The recent pandemic has pushed record numbers of shoppers onto the internet over the past nine months. While internet leads and sales have been skyrocketing, many consumers still consider the phone an important step in the car shopping, purchase, and servicing process.
When it comes to sales, technology is not meant to replace people. It simply allows them to expand their audience and to do what they do best: generating revenue through providing a great customer experience.
Stop sending your customers into phone trees if no one is prepared to pick up the phone when they make a department selection. Unless you have a sophisticated solution that can manage the inquiry without a live agent. Still, those don’t seem to meet the satisfaction of most consumers anyway. And do not force your customers to sit on hold so long that they hang up. By so doing, you might not just miss an oil change, but perhaps a more lucrative customer-pay RO or a sale. And, in these times, I am sure you don’t want to miss either.
Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.
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Recall Masters
Do You Treat Your Team Like your Customers? You Should!
The retail auto business is stressful for all departments. In normal times, employees work 50+ hours per week simply to keep up with the demand from both customers and management. However, during the current pandemic, all departments are working harder than before to not only make a living but also to keep up with the expectations of their managers.
Front-line employees reflect your business as a whole. If those employees are stressed out over money or overtaxed by management’s expectations, this can easily spill over into the customer’s experience and affect their perception of the dealership.
So, what can be done? Here are a couple of simple points I have found that successful dealerships apply rigorously. And, best of all, they do not cost any money, but yield a huge ROI! These simple things can help lighten the mood for your team, which can translate into an exceptional experience for your customers.
1. Recognition – Not everyone is motivated by money. But don’t misunderstand me; of course, the reason employees work in the first place is for that paycheck. However, that $50 spiff may not be as important as being recognized for their work, either personally, or as part of a team. Many people are working from home, or in a limited capacity. Be sure to make it a point to let all of your employees know that you appreciate them.
2. Compassion and Flexibility – During these difficult times, you may find that your employees are experiencing stress in their personal lives as well. They may have kids at home and have trouble juggling schedules and childcare duties as babysitters can be harder to come by. Hopefully, your employees have found suitable solutions but, if they have not, work with them and let your team know that you understand. Show them that your dealership cares about them and their family. This small investment of time will make employees more invested in your business.
3. Performance Metrics – I am sure you are familiar with the “hero to zero” phrase. Every month starts over. If you are holding your employees to the same performance metrics as you were before, but your business has gone down, you might want to reconsider what a “good job” is right now. For example, let’s take a salesperson who averaged 12 cars per month pre-COVID. If your traffic or leads have dropped 25% because of the pandemic, it may be unfair to hold your employees to the same metrics as before when considering job performance. This not only applies to sales but also to service. And if your business is doing better, as it is in some states, then perhaps you need to reevaluate up!
The point is that we are living in abnormal times. It is more important than ever to treat your employees just like you would your customers – or perhaps even better! Thank them for their business (work), show them that you care about them (compassion), and reevaluate what you are expecting them to do about how your business is currently affected. It is often said that your employees will treat your customers only as well as they are treated as employees. How do you want your staff to treat customers when you're not looking?
I hope these simple tips are of some help. These are just a few ways to maintain a great company culture and keep your employees engaged with your business. They can help encourage your employees to be more invested in your business and that will translate into a better customer experience.
Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.
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Recall Masters
The Ramifications of Price Increases
Dealerships are having a tough time acquiring used vehicle inventory at competitive prices right now. Due to recent OEM shutdowns, new car models are sparse. And, even with large rebates, incentives, and low interest rates, consumers are being especially careful with their finances in these tumultuous times and are shopping for used vehicles more than ever before.
To compound the problem, dealers find themselves overpaying for inventory through traditional auctions and then have to pass those high prices and the various auction fees that go along with them onto the consumer. Not only that, but they also have to trust the vehicle’s condition as it is presented to them – all in the name of having a healthy volume of inventory available for those consumers who are shopping.
A recent article, based on research published by the Department of Labor, indicates that the cost of living has increased and credits “used car prices for the increase.” While the market dictates supply and demand, as it would at any time, right now the market is increasingly challenging for both dealers and consumers. On the one side, you have dealers trying to keep a well-stocked inventory. And on the other, consumers are finding used cars more expensive than ever before.
Dealers are forced to trust auction inspectors to accurately represent the vehicle condition. I heard about a dealer who recently purchased a vehicle for their front-line inventory from a well-known auction company. In the pictures and description, it looked like a desirable vehicle. However, when the dealer received it there was a Confederate flag etched into the rear window. Not a sticker, mind you but etched into the glass. This dealer would have to replace the whole rear window to make it desirable at a considerable expense.
Dealers are turning inventory faster than ever for the simple fact that there is less inventory. Even with the cost of used car prices being blamed for cost of living increases, the fact remains that there are plenty of consumers out there that not only want new (or new to them) vehicles but may actually NEED them.
The Catch-22 here is that some dealers may be so focused on inventory turn they might neglect safety issues before selling the vehicle, especially in the current climate where they are paying higher than normal values simply to have inventory on their lots.
We are certainly in difficult times. Dealers – just like any other business – have the right, but also the need to be profitable. Consumers still need vehicles and want to buy them. But there is an ethical dilemma this situation presents. Do you flip a car quickly that may be unsafe for the buyer or ensure that all vehicles sold are safe? Remember, selling a pre-owned vehicle with an open recall, while legal, does not protect a dealer from state product liability laws and a wrongful death lawsuit should an accident occur as a direct result of the defect.
Gross profit is vital, but so is the safety of the consumer. Finding a balance between the two in these times will enhance your dealership’s reputation, customer confidence, and, ultimately, earn loyalty and return business. As well as protect your dealership from those costly lawsuits.
Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.
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Recall Masters
Should Safety Technology be Standard, Regardless of Trim?
Safety technology – a necessity or a luxury? While safety technology is susceptible to flaws because of its recent introduction, it is certainly better to have new vehicles equipped with it than not.
Blind spot-awareness, lane-departure warning systems, cameras, automatic emergency braking, and other in-vehicle safety features have helped drivers be more aware of the roads and fellow drivers. Also, in some cases, it makes them better drivers altogether. As technology continues to improve, vehicles will be safer, better protecting the driver and any passengers. So why aren’t OEMs installing these systems as a standard option in all models?
A recent article in Automotive News points out a flaw in the installation of this technology. Many advanced safety features are not standard, but, rather, are add-ons or only available in expensive packages that can cost upwards of $12,000 on top of the vehicle price. This can easily put those safety features out of reach for the average consumer, regardless of how desirable they may be. The article states that these safety features come standard on only three of the fifteen top-selling models in the United States.
Not too long ago, manufacturers conformed to standard safety features largely mandated by the US government. Many car salespeople used these features when doing walkarounds to sell the vehicle. And that was a good thing. However, over time, it turned out that the features and benefits, if available on all models, didn’t offer much in the way of differentiation but added to the vehicle’s production cost. But safety was in demand by consumers. It still is. The glaring difference in this modern-day version of safety is that it is significantly more expensive -- at a cost that OEMs cannot simply waive, and consumers can't easily absorb.
In my opinion, the more vehicles we can get on the roads with advanced safety technology, the better. I am not sure that technology needs to be “packaged” in with sunroofs and sound systems. Over time, perhaps the costs will come down. As was the case with passenger-side airbags, shatter-resistant windshields, and three-point seatbelts, the advancements became standard features.
Safety all starts with the vehicle itself – the manufacturing quality as well as safety features. The higher the quality and dependability, the safer the vehicle is for the consumer. Will there be hiccups and recalls along the way? Yes, as technology is constantly changing and developing. Especially with software and electronics, we can expect bugs, patches, and updates – tomorrow’s vehicle technologies are tomorrow’s recalls. But recalls have never stopped us from innovation nor widespread inclusion.
So, here is the question, can vehicles be mass-produced with advanced safety features that already exist to improve the safety of the roads for everyone, not just those that can afford an extra $150+ per month to get them? Regardless of if consumers perceive the value of these safety technologies or are attracted to them (such as a sunroof packaged into the deal), safety for all drivers on the road should take precedence.
Is it right to require that consumers pay tens of thousands of dollars extra to have their vehicles equipped with the latest safety technology? Is there a better solution? What do you think?
All vehicles should be safe, especially when new. Nothing is perfect but the safer to begin with, the safer it will always be. Stay safe out there!
Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean’s experience spans more than 25 years of business development and strategic marketing experience, having worked in the automotive, healthcare, finance and technology industries to serve customers like American Express, Toshiba, Western Digital, Cox Communications, Gateway, Novartis, Microsoft, IBM, Compaq, HP, Confident Financial Solutions, MyCustomerData, Toyota of Orange, and Fletcher Jones Mercedes Benz. While he has an accomplished portfolio of design, production and coding skills, his strength is in “go-to-market” business modeling and digital marketing strategies. Sean spends his free time with his family, hiking, kayaking, playing guitar and going to concerts with his kids.
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