White Paper - Turn OEM Recalls Into Revenue
Recall, one of the foulest words in the automotive vocabulary. The total amount of recalls, this year alone, has continued to exceed from last year's record recall numbers. To the consumer, that looks really bad—and it is—but you should learn how to spin it in an alternate direction to comfort the customer, not frighten them. This means being transparent and explaining what your dealership or OEM is doing to remedy the situation.
For instance, GM is offering $500 rebates to replace recall models in accordance to their faulty ignition switch. Talking to the customer about the situation and clearly stating the solution will help them feel at ease more than not. The recall market is an emerging market and it is here to stay. Are you being proactive when contacting customers on the open recall list?
The first step is to discover which customers are affected by the recalls. If you have a CRM, this might be one of the simpler steps. Through solutions such as List Builder—powered by DealerSocket—you will be able to meticulously select through a wide range of options from customers, vehicle information (year, make, and model), and service details. Solutions like List Builder make pinpointing your marketing efforts towards specific customers a walk in the park.
Once you have successfully constructed and grouped your customers from the open recall list, the next step is to reach out to them. This step is a little tricky compared to others. Why, you ask? Because it is rather difficult explaining to a loyal customer that their vehicle is affected by a mandatory recall.
There are also solutions for this step. One of the true values of utilizing a CRM is in its ability to create targeted, relevant, and robust marketing processes. So even though you have a customer that has a recall on their vehicle, they might be in a key position to purchase another vehicle. Using equity–mining solutions similar to RevenueRadar a stand–alone product by DealerSocket—help discover where on the customer lifecycle pertains to that specific customer.
For example, let's say your customer has a recall on their vehicle and they are also near the end of their term. When your service department contacts that customer about recall, it might be in your best interest to discuss your buy–back program. This is exactly what GM is doing with their recent recall issue.
This initiative helps your dealership in multiple ways. One, you're re–establishing contact with a lost customer. Two, you may receive a used car for your buy–back program. And three, you are also getting a sale out of it. In essence, this recall just increased your dealership's revenue and customer loyalty tenfold.
Being proactive and communicating to your customers about recalls might not turn out as negative as you may imagine. Using the correct marketing, sales, service, or equity–mining tools could turn uncomfortable conversations about recalls into a potential revenue generating opportunity.
To learn more about DealerSocket and RevenueRadar:contact 855–705–0469