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Tag Archive: Manufacture Recalls

Lycia Jedlicki

From NCM’s 20 Groups: 5 Best Practices to Survive the Viral Recall Epidemic

recall

It doesn’t matter what franchise you have; recalls are having a major impact on our day-to-day operations.  In every 20 Group meeting I’ve had this year, recalls have been a hot topic, and each dealer is coping with them differently.

Common recall worries

Although responses vary, without a doubt our 20 Group members share similar concerns about recalls. I often field such questions as:

  • How do we go about our day-to-day operations with the least amount of turbulence?
  • How can I ensure that we are complying with the factory and government standards?
  • Do we have the correct technicians performing the recall?
  • How do we make sure that recalls are not negatively impacting our “Customer Pay” work in our service departments?
  • Where should we store and dispose the impacted parts?
  • Where and how are we supposed to store these vehicles?
  • Do we put recall customers in a rental/loaner vehicle?

Treating the Recall Virus

Over the last few months, 20 Group members and I have been working together to develop best practice to address this growing scourge. Here’s what we’ve adopted:

  1. Check for open recalls when appraising and delivering a sold vehicle using the safercar.gov website; require the customer to sign, too. Many of our dealers also check their inventories multiple times a week for open recalls
  2. Schedule or perform recalls at non-peak times such as afternoons, if possible.
  3. Check with other dealers/companies/rental agencies for increased business.
  4. Perform multi-point inspections looking for additional services to recommend now or in the near future.
  5. Discover your opportunity. One of the big questions is can I sell a vehicle with an open recall?  This opinion varies among many dealers, legal councils and manufactures, whichever policy your dealership adopts, please make sure everyone is aware how to handle these vehicles.

Recovering from recalls

Recalls aren’t likely to go away anytime soon, so the best thing you can do is develop a better attitude towards them.

My 20 Groups like to focus on the positive side: all the incremental business recalls bring to our Service Departments. Seize the opportunity—it’s up us to retain these new clients and turn them into “Customers for Life”.

What practices has your dealership started to deal with the viral spread of recalls? Tell us below.

Permanent link to this article: http://blog.ncm20.com/2016/06/from-ncms-20-groups-5-best-practices-to-survive-the-viral-recall-epidemic/

Wayne George

More Manufacturer Recalls Are Coming: Here’s Your Checklist to Make the Most of Them

recall

Experts believe that we’ll see more frequent and larger automotive recalls in the future, as regulatory agencies increase their scrutiny of the automotive industry. After a record-breaking number of recalls in the last few years—and today’s highly publicized emissions concerns—it looks like that is a safe bet.

Fortunately for dealers, though, owners report that they are pleased with service during recalls. The J.D. Power 2015 U.S. Customer Service Index Study found that “overall satisfaction among customers who take their vehicle to a dealer for recall-related work improved to 789 on a 1,000-point scale, up from 777 in 2014.”

It’s clear that while recalls may strain the service department, they present a great business opportunity for your dealership. Here’s my checklist to help your dealership get the most out of manufacturer recalls.

First, the basics:

  • The primary goal of every recall should be to retain all your current customers by providing them with exceptional customer service.
  • The second goal is to “WOW” any first time or former customers during this visit in order to make them or recapture them as service clients.
  • Every recall comes with problems, so get your team together and create plans that address anticipated issues.
  • Make sure every vehicle serviced is handled as you would a customer pay repair.

Now, how you can make a stellar impression and secure more customers:

  • Make sure your team has a plan in place that assures an email address is captured or verified for every recall customer that comes into the shop.
  • Specifically identify any new customers or former customers. These are people new to your area, customers that have never returned for service or customers you once serviced that have not been in during the last 6 months.
  • Have a promotional package of “Welcome” or “Welcome Back” materials that will bring these customers back to you for future maintenance. Do not sell any repairs or maintenance during this visit. Only complete the recall repair unless something is specifically requested by the customer, or if you discover a problem with a safety related item.
  • Be sure that your Service Manager (not a clerk or an advisor) contacts every one of these “newly found” customers after their visit. We want to know how the repair visit went and also want to take the opportunity to welcome them back for future service.

Have manufacturer recalls positively or negatively impacted your business? What steps have you taken to ensure you’re getting the most from these opportunities? Tell us below.

Permanent link to this article: http://blog.ncm20.com/2015/11/more-manufacturer-recalls-are-coming-heres-your-checklist-to-make-the-most-of-them/