Recalls pose strong opportunities for your service department
Apr 7, 2022
These days, it’s no surprise to learn that customers have options when it comes to servicing their vehicles.
But here’s a stat that may shock you: In just five years, more than 70% of your customers will switch to an independent service mechanic when their vehicle needs work.? That’s because some vehicle owners feel that a franchise dealership will cost them more money. But all is not lost, as there are ways to win back this business. And dealerships have possibilities for retention, specifically through recalls.
Why recalls are valuable
Recalls provide a strong service opportunity, which translates to an additional revenue stream for a dealership. First, because Warranty Pay work is often accompanied by Customer Pay. And secondly, because, quite simply, most customers in need of service are likely to return to the same dealership to purchase their next vehicle: a whopping 74% do so?. To ensure that you get the maximum value for your business, there are several things to note and implement.
How to win back lost service business through recalls
First, it’s imperative that your staff is properly trained to provide an outstanding customer experience. One great way to enact this is to start by having your employees stay current on all recalls for brands your dealership services. Then, staff appropriately for a potential upcoming surge in business that the industry has seen during the inventory shortage of the pandemic. Consider being open longer to accommodate customers, as offering a later shift for techs can be a win-win. As always, continue to service customers with courtesy, good communication, and timeliness. And of course, be sure to always stock up on service supplies, including floor mats, key tags, and any additional parts.
These steps will ensure customers have a good experience. Most importantly, you’ll give them reasons to return.
Look for additional opportunities, today and in the future
Remember: only the authorized dealer can perform inspection and repairs for recalls. Herein lies the strong potential for service traffic. And don’t forget that vehicle owners often have additional service work and / or inspections performed in the same visit. Lastly, a tech with a sharp eye may notice other, additional opportunities to increase sales and drive revenue even more.