Today one of five vehicles on the road are under recall. This year alone there have been 46 million vehicle owners notified of a recall; seven million of which are not related to the Takata airbag issue.

 

Recalls represent a significant revenue opportunity for dealership service departments. Whenever a customer comes in for a recall repair, there’s an opportunity to identify additional needed repair work. Our data shows that an average recall RO is $695, more than double the average RO amount of $335. Clearly that’s incentive to bring in recall customers.

 

Yet, the current completion rate for recalls is 75 percent. Manufacturers are not happy about it and dealers shouldn’t be either. As an industry we can do much better.

 

The primary reason consumers don’t bring their vehicles in for recall work is because they don’t know that a recall has been issued. This is proof enough that the current method for notifications is highly inadequate. Manufacturers are required to send first-class mail to vehicle owners within 60 days of notifying the NHTSA.

 

But addresses change frequently so many vehicle owners never receive their notifications. If they do, the mailer is set aside as non-urgent and soon forgotten.

 

Dealers can and should take a more proactive stance in marketing recalls to their own customer base. Our data shows that when recall messages are delivered across all channels; e.g. mail, email, social media, phone and display ads, there’s a 5X better response rate.

 

Recall Marketing Best Practices

Dealers can find out about recalls as soon as the NHTSA is notified, which allows them to alert their customers ahead of the manufacturer notices. Here’s what we recommend:

 

Send the first email to your customers before they receive the manufacturer notice. Alert them to a recall, include a “save the date” message and encourage them to look for the recall notice in the mail.

 

Send a mailer. The manufacturer’s mailer won’t mention your dealership by name. Send your own mailer that does.

 

Send a second email. Wait a couple weeks until after your mailer goes out, then send a follow up email. Ratchet up the urgency and safety precautions.

 

Phone Calls. Recall notifications by phone are not regulated by the FTC in the same way as other types of phone solicitations. As long as there is no offer and you’re simply trying to get the customer to schedule an appointment for their recall, these calls are allowed.

 

Social Media. Drop recall notice reminders into the news feeds of your customers on Facebook and Instagram. When they log in, they will see a notice with your dealership name and phone number on it, or they can click directly on the post and be taken to your online scheduler. This is a very cost-effective method of delivery because only the vehicle owners with recalls are notified.

 

Display Ads. Create visual display ads with a recall notice reminder that will follow recall customers around the Internet. Again, very cost effective because you’re only advertising to a small percentage of your customer database with a specific need.

 

The Right Offer

Another reason why customers don’t bring in their vehicles for recall repairs is because the issue is non-urgent. The inconvenience factor for most people is huge. Bundling a recall repair with another offer is an effective way of overcoming this obstacle. According to our data:

 

  • 52% of loyal customers say they would come in for a recall if it was bundled with another service
  • 51% of lost and older customers say they would come in for a recall if it was bundled with an oil change

 

Not all manufacturers allow offers in your recall notices, however, so check guidelines.

 

It also helps to set customer expectations in your messaging. Let them know how long it will take to complete the service. If you have a pick-up/drop-off service for their vehicles so they can stay at home or work, let them know. Promote your waiting room amenities such as free WiFi and refreshments.

 

If you decide to conduct a recall marketing event, keep in mind that the average response time is 45 to 90 days. Don’t measure the campaign’s effectiveness in one month; wait 90 days to calculate your ROI. Dealers that follow these recall marketing recommendations can expect to see a $17 ROI for every dollar spent.

Views: 24

Comment

You need to be a member of DealerELITE.net to add comments!

Join DealerELITE.net

Latest Activity

Walter McNulty posted a status
"We will be heading up North for 9 days making a long road trip. I hope to stop in and see some new clients."
23 hours ago
Dave Anderson's blog post was featured

How to Play a Poor Hand Well w/ Thomas Bryant

We can all get dealt a poor hand from time to time, but how you respond and choose to play it will…See More
yesterday
Walter McNulty posted a video

DigniFi

If you have a Automobile, RV or Motorcycle dealership you should have DigniFi. Call for more information.
yesterday
Dave Anderson posted a blog post

We're there!

Wherever you listen to podcasts, The Game Changer Life is there for you. Subscribe today and get…See More
yesterday
Bill Wittenmyer posted a video

Freebie Friday: Nurturing vs Closing

Bill Wittenmyer shares the difference between nurturing and closing in this episode of Freebie Friday.
Friday
Cory Mosley posted videos
Friday
Scot Eisenfelder posted a video

Why People Defect in Service

CEO & Executive Chairman Scot Eisenfelder explains why customers defect in service in this video blog.
Friday
Jim Flint posted a blog post

Now Part of a Now Business

Jim Flint explains how Local Search Group got its start in terms of being the "Now" Part of the…See More
Friday
Mike theCarGuy Correra posted a blog post

Why I work for DealerBuilt...

When I am asked why I work for DealerBuilt the first thing that usually comes to mind is the review…See More
Thursday
Michael Trasatti posted a video

Don't Let Customers Get Lost

DealerBuilt CEO Mike Trasatti explains why dealers need to ensure that customers aren't in the dark when things go wrong. DealerBuilt’s mission is to make a ...
Thursday
Stephen Coambes posted a blog post
Thursday
Damian Boudreaux posted a blog post

Carlos Huerta’s First Week

Welcome back to our new video series,…See More
Thursday
Sally Whitesell's blog post was featured
Wednesday
Cory Mosley posted a video

Jeff Clark of SOCIALDEALER

One of the first guys to raise his hand and support me back in 2005 when we started our 1-day workshop The Online Sales Success Workshop was Jeffery Clark, s...
Wednesday
Walter McNulty posted videos
Wednesday
Walter McNulty posted a status
"More work for Flawless Auto Mall"
Wednesday
Dave Anderson posted a blog post

How to Play a Poor Hand Well w/ Thomas Bryant

We can all get dealt a poor hand from time to time, but how you respond and choose to play it will…See More
Tuesday
Jim Flint posted a blog post
Tuesday
Terrel Watkins posted a blog post
Tuesday
Harris Scott posted a blog post
Tuesday

Get Newsletter

© 2019   Created by DealerELITE.   Powered by

Badges  |  Report an Issue  |  Terms of Service