3 Steps to Build Customer Loyalty through Proactive Recall Communications

by automotiveMastermind

In 2022, there were 932 open vehicle safety recalls, affecting 30.8 million vehicles in the U.S., according to the National Highway Traffic Association. That’s more than a 60% increase compared to 2012.

With a growing number of opportunities to communicate with customers and build relationships, how is your dealership handling open recalls?

By promptly addressing recalls and proactively engaging customers with personalized communications, dealers can help ensure customer safety and satisfaction, supporting loyalty and retention efforts.

In this blog post, we’ll explore how dealers can build customer loyalty through proactive recall communications in three steps:

Step 1: Establishing a Strong Foundation

It may seem obvious, but it is crucial dealerships understand and cater to the needs of customers to retain their business. Actively helping customers ensure their vehicles are continuously safe and operational enables dealers to foster a sense of trust and loyalty with buyers that extends far beyond the initial purchase.

Proactively communicating with buyers about recalls enables dealers to demonstrate their continued commitment to their customers. By helping ensure their continued safety and satisfaction, these communications help build a base for customer loyalty, generating long-term customer relationships that often lead to repeat business.

While manufacturers send recall notices to vehicle owners, as buyers move, sell and trade in their vehicles, OEMs may not have access to the most up-to-date information. This is where dealers can play a pivotal role.

By integrating data from their DRM, CMS, CDP and dealership sales platform with high-quality, third-party data, dealers can locate and engage current vehicle owners and support manufacturer recall communications. This personalized approach not only helps resolve recalls but also establishes a strong foundation for long-term customer loyalty.

Step 2: Effectively Engaging Recall Customers

Proactive recall communications are most effective in fostering dealership retention when they lead to a positive customer experience during the subsequent service visit. To provide an excellent dealership experience in the service drive, dealers need a comprehensive plan for handling customer recalls.

This plan needs to clear communication protocols and strategies aimed at minimizing inconvenience to customers. By preparing your dealership to handle the unexpected and ensuring customers are well-informed and supported throughout the process, you can create a seamless recall experience.

When a recall occurs, swift action is crucial to properly assist customers. The first step is promptly identifying and notifying affected customers. Leveraging automated sales and marketing technology like Mastermind to automatically identify and engage customers with an open recall, dealers can quickly disseminate key information, improve responsiveness and ultimately help their customers reduce potential risks.

In fact, Mastermind dealer partners with Recall Connect reported a 10% increase in recalls completed, based on initial results.

Clear and transparent communication is vital throughout the recall process. Providing specific details about the issue and potential risks helps customers understand the severity and urgency of the recall and explaining the necessary steps customers need to take to address the recall helps instill confidence and clarity in what can often be a confusing process.

Step 3: Consistent Customer Communications

In addition to proactive communication, offering additional support and incentives during and after the inconvenience caused by a recall is instrumental in nurturing customer loyalty. Following up with customers after servicing a recall, regardless of the scale of the issue, presents dealers with a valuable opportunity to engage and express gratitude for their cooperation throughout the process.

This act of acknowledgment not only supports customer retention but also reinforces the dealership’s unwavering commitment to customer satisfaction. By following up on the service visit, dealers can address any remaining concerns and foster a sense of transparency and goodwill, layering on their foundation for future customer loyalty.

By leveraging technology like Mastermind, dealers can automatically maintain consistent customer communication throughout the entire recall process. This sort of efficient, consistent and personalized approach is key to helping dealers boost customer loyalty by becoming trusted advisors to their customers.

The Impact of Proactive Recalls on Customer Loyalty and Retention

By promptly identifying customers with an open recall, providing clear recall details and offering additional support and incentives, auto dealers can showcase their commitment to customer safety and satisfaction. This sort of proactive approach enables dealers to build trust and loyalty with customers by ensuring they are thrilled with their vehicles for the duration of their ownership.

Want to learn how Mastermind can help your dealership create service and sales revenue opportunities by identifying and targeting open recalls with compelling, personalized messaging? Contact us for a free demo.