May 6, 2019

Eliminating Pain Points in Today’s Automotive Dealerships (II) Recall Management

Today, many consumers remain unaware that the vehicle they drive to work every day may be harboring a critical and potentially deadly defect. For dealerships, this lack of awareness translates directly into increased liability and poor sales. Should a dealer unknowingly sell a car with an open recall which is later involved in a crash, that organization is open to litigation and bad press. Unresolved recalls present a clear and present danger to safety, dealership reputation, and ultimately the success of a franchise or brand. However, despite current mobility trends and ever increasing societal interconnectivity, recall announcements by and large continue to be sent via paper mailers. While OEMs have stepped up their efforts, research indicates that “vehicles that are 1 to 3 years old have average recall completion rates of 80 percent. For vehicles 6 to 10 years old, only 56 percent have the work performed.”

When it comes to automotive dealerships, success is tied not only to selling attractively marketed cars but also public trust and brand integrity. Our previous dealership blog delved into physical inventory struggles, noting that vehicle stock is currently at record levels. This being the case, it’s imperative that businesses are able to quickly identify vehicles in inventory that have open recalls and rectify the defects prior to sale. Should lazy processes allow an open recall to go unnoticed and sold to an unsuspecting consumer, the results could be disastrous.

Making matters more difficult, the prevalence of complicated infotainment and vehicle safety systems has increased recalls by 30% since 2013. “Overall, hundreds of recalls are issued every year—813 alone in 2017 (the most recent year with complete data), affecting 30.7 million cars, according to NHTSA. And only about two-thirds of recalls get fixed, according to the agency’s 2017 analysis of five model years.” As cars become rolling hotspots offering digital communication between owner and machine, so too must the businesses tasked with selling them.

Forget the days of playing phone tag with irate customers. Digital communication is now the go-to for most the population. It’s a quick, accessible, and simplified means of relaying information, unhindered by location. Safety should always be the top priority, but the benefits of real-time recall management for dealerships does not end there. Recalled parts require replacements, a boon for parts departments. Communication regarding routine maintenance leads to additional service, while increases in foot traffic expand upsell opportunities. Connecting to customers on their terms will drive brand loyalty and return business in a way that glossy mailers never could. Modern dealerships must not only sell a car, they must engage with their customers from initial purchase through the vehicles maintenance lifecycle. By leveraging technology to drive increasingly personalized experiences, businesses can eliminate the communication “black hole” that traditionally follows a vehicle purchase. Effective two-way communication between dealer and customer makes this possible.

As a company dedicated to leveraging technology to drive actionable connectivity throughout the automotive industry, SHIFTMobility is tackling the need for recall expediency by placing these critical alerts directly in the hands of dealerships and owners. Trusted by large dealership groups and independent stores, our Vehicle Passport app ensures that both dealerships and drivers are aware of critical recalls while simultaneously delivering real-time insight to OEMs and part manufacturers. The app, powered by SHIFTMobility’s Automotive Blockchain Platform, takes integration to another level by identifying active recalls in inventory and mapping the recalled parts to specific OE part numbers, allowing dealerships with connected inventory management systems to easily view replacement part and service appointment availability at their nearest location. Contact us to discover how SHIFTMobility solutions can benefit your business.

SHIFTMobility Inc.

 

Source: https://www.consumerreports.org/used-cars/hidden-risks-of-used-cars/

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