The Recall Superpower

Dealerships today have a mission to complete: to find customers and keep them. They want to bring former customers back to the service lane, attract new ones, and create an opportunity to build longer-term relationships. With 70% of consumers servicing at independent repair centers, this is a bigger problem than ever.

There are several forces at play that influence the wayward customer pipeline. With a steady rise of new-car prices, consumers are responding by holding on longer to their current vehicle; the average age of a vehicle on the road today has risen to over 13 years and those vehicles need a lot of work that represents a treasure trove of customer pay revenue opportunity. Meanwhile, contact information becomes stale, and customers may have migrated to independent providers. That’s when your service lane gets a little too quiet.

This is where recalls come in to save the day. Open recalls offer Fixed Ops leaders a powerful reason to reconnect with vehicle owners and earn back their loyalty.

KNOW WHO YOU ARE SAVING

So you have a VIN for an open recall. The next step is to ensure that you can contact the vehicle owner. While this sounds straightforward, Recall Masters analyzed data from over a dozen sources and discovered:

DMS records maintain accurate information for only 25% of the market population.
Over 20% of pre-owned vehicles change hands every year
And 40% of contact information changes: Names, phone numbers, and addresses are all at risk of aging out.

People don’t stand still over the course of a decade, and neither does their data. The reality is that unpredictable customer movement can leave behind missing addresses, duplicate records, and dummy emails and phones sitting dormant in your system.

OEM data has limitations as well. While OEMs have the ability to capture large quantities of data, the data is also susceptible to expiring over the average vehicle owner’s lifespan. And following the initial vehicle sale, OEMs ability to track 2nd, 3rd, 4th owners and beyond is increasingly difficult.

Fortunately, reliable data sources can help fill in the gaps, including registration and other permissible vehicle-owner information such as insurance and lending data.

Consider a James Smith in your DMS with an old address and no mobile number, while another source lists a Jim R. Smith with current contact information tied to the same VIN. By cross-referencing responsible-party information, you can confirm that you are indeed dealing with the same James Smith and that you have a complete contact record across mailing address, phone, and email.

Resolving fragmented customer identities is the first step forward in developing an effective recall outreach strategy.

STILL DON’T BELIEVE IN SUPERHEROES?

Just ask General Manager, Stewart Benjamin at McPeek’s Chrysler Jeep Dodge Ram of Anaheim, CA who reported that he was “amazed to find that 80% of the customer data in our DMS was inaccurate or incomplete and that we had only serviced 40% of eligible vehicle owners in our area. Recall Masters was able to more than double the communicable audience in our local market and correct/enrich over 85% of our recent and lost customer data to form a complete record.”

SENDING THE BAT SIGNAL: A RECALL COMMUNICATION PROGRAM

Once you have resolved customer identity, it is time to develop a recall communications program. Instead of treating outbound communication as a marketing campaign, a more calculated approach is required to maximize response:

1. Offer a Solution, Not a Sale

At its core, recall communications inform customers of a problem on their hands and a solution provided at no cost. There is a legitimate reason the dealership is trying to reach them.

Since only authorized OEM dealerships are legally permitted to address recalls and receive reimbursement, this gives dealerships a powerful advantage in drawing back customers who have migrated to independent rooftops.

2. Invest in Recall Notifications

Recall notices are a fantastic way to recapture a lost customer or establish a new relationship. These days, fewer customers are walking through the front door to buy a new vehicle, making the service lane an even more influential place to build and maintain customer relationships.

As the service lane becomes a larger part of the customer pipeline, dealers should also consider whether the balance of their advertising dollars between new-car sales and fixed ops should shift with it.

3. Activate Every Communication Channel

When building a recall communications program, dealers should take a coordinated, multichannel approach using text, email, phone, direct mail, and follow-up. Done well, recall communications programs can generate 15–20% response rates, a high engagement rate compared to a traditional marketing campaign.

THE HERO MOMENT

After turning fragmented data into actionable information and implementing a successful recall communications program, the customer finally walks through the door. Treat them like a customer you’re genuinely committed to helping and provide a luxury experience that only a factory-certified dealership can offer.

Make a strong first impression with an efficient check-in
Offer complimentary transportation or a loaner when appropriate
Conduct a multi-point inspection to identify any legitimate maintenance or repair needs
Go the extra mile with thoughtful touches, such as returning the vehicle freshly washed
When recommending maintenance or repairs, keep the conversation helpful, not sales-driven
Incentivize returns with loyalty programs or gift cards

It is also important to prepare for the increased demand on your Fixed Ops team. I have seen this one before: service lanes gain momentum and flourish, but inevitably crack due to the volume of new appointments. The last thing you want to have happen is an underprepared team falling apart at the seams due to a sudden influx of open recall visits.

When team preparation and customer experience strategies combine forces, dealerships can turn an everyday recall visit into a heroic customer experience.

WIN THE SEQUEL

Teams must remember to close the loop. This is when the focus can shift towards earning the customer’s next service visit, and ultimately, customer-pay business. Invite the customer back for scheduled maintenance. Communicate to the customer that you are available to continue solving any problems that arise in their vehicle. You have done it before and now have a proven track record.

THE SUPERPOWER OF SUPERIOR SERVICE

Vice President/General Manager Alan Moznett at Toyota of Orange, a consecutively top ten Toyota dealer nationally, understands the power of service: “The Toyota owners Recall Masters has consistently verified and driven into our service department have returned for repeat services at an astounding rate of 55%, generating over 13,000 repair orders which are above and beyond the initial response. Additionally, we saw 8,500 new Toyota service customers who were previously servicing elsewhere or had not been back for any service since we delivered their new Toyota in well over a year or longer. From that group of first-time service customers, 30% showed service loyalty with repeat visits that equated to almost $6 million in service revenue, along with adding 650 new Toyota vehicle sales.”

USE YOUR POWERS WISELY

Open recalls are a tried and true entry point into cultivating a strong customer relationship. Begin with evaluating your customer database. It is essential to know who actually owns the vehicles in your market and fill in the gaps your DMS may be missing.

From there, build a coordinated recall communications program. And before you send the Bat Signal, make sure your team is ready to answer it. Outreach, appointment scheduling, the service-lane experience, and follow-up all need to work together.

Every dealership has access to the recall superpower. Time to put on your cape and answer the call.

Chris Miller is the founder and chairman of Recall Masters, a leading automotive technology company focused on recall management, service retention, and customer engagement solutions for dealerships and OEMs. With more than 20 years of experience in automotive marketing technology and communications, Miller has worked with major brands including Mercedes-Benz USA, BMW/MINI North America, Volvo, and JP Morgan Chase. Widely recognized as an innovator in automotive fixed operations, he is passionate about using technology and data to improve vehicle safety, strengthen dealership profitability, and reconnect consumers with critical recall repairs and long-term service relationships.

Media Contact:

Laurie Halter
Charisma! Communications
503-816-2474
Laurie@CharismaCommunications.com

Erik Nuber
Recall Masters
888-651-4480
erik.nuber@recallmasters.com