INCREASING FAILURE to rectify recalled vehicles suggests ‘systemic breakdown’ in customer engagement strategy across the industry, data experts ADS have warned.
The problem not only exposes franchise dealers to reputational damage, it represents a massive missed financial opportunity, ADS says.
ADS (Auto Data Solutions) recently revealed that more than 3.2 million recalled – and potentially unsafe – cars have not been rectified.
And the figures obtained by ADS under the Freedom Of Information Act, show that the trend is rising.
2018 – 729,876 of a total 4,117,940 recalls
2019 – 422,729 of a total 2,191,143 recalls
2020 – 467,345 of a total 2,130,692 recalls
2021 – 498,381 of a total 2,856,141 recalls
2022 – 739,705 of a total 2,211,061 recalls
2023 – 394,660 of a total 1,373,258 recalls
The figures reveal that while the total number of safety recalls has remained relatively stable since 2018, the rate of rectification has declined, especially in the most recent two years.
ADS argues that poor customer database maintenance, gaps in OEM support for franchise dealers, disconnected data systems and a cultural blind spot in associating more workshop appointments with headline business growth are at the root of the problem.
It means that dealers are missing millions in revenue opportunities at a time when workshops are already seeing fewer cars, due to lengthening service intervals and the growing share of EVs which need less routine servicing.
But ADS emphasises that recalls are an ideal opportunity to secure additional workshop business, such as servicing and MOT, while presenting opportunities for sales staff to discuss the customer’s future purchasing intentions.
ADS is consulting with dealers to identify areas of friction in the recall process and identifying ways to smooth the way for maximising efficiency and opportunities presented by safety recalls.
Although franchise dealers are the customer’s main point of contact for recall rectification, some of the frictions and inefficiencies they face represent a systemic failure in the wider industry’s appreciation of customer engagement and retention
Franchise dealers are ideally equipped to establish contact and take them through the process – but it’s happening less as time goes on.
The risk of an unrectified vehicle leading to tragic consequences affects brands as well as their dealers, threatening relationships with customers throughout the industry.
Failing to protect customer safety while missing revenue opportunities is a lose-lose mindset that must change so that dealers can boost their approach to building long-term loyalty.
ADS also recently warned that dealers could also face new problems in the event of a missed recall becoming an MOT failure criteria. This would risk reputational damage if dealer workshops were unable to handle a sudden avalanche of unhappy customers, stranded without their cars.
ADS analysis of multiple large dealers reveals that a recall appointment nets an average £309 in additional business. This suggests that in 2023 alone, missed recalls represented more than £120 million in missed revenue.
As recalls increase and EVs reduce routine workshop visits, this issue will only escalate. Dealers and OEMs who take the lead now, using improved data and better-connected systems, will be the ones who keep customers and revenue coming back
Published Coverage
This industry wide issue has been highlighted in several leading industry publications:
Am Online: Missed recalls point to failures in customer contact strategies
Motor Trade News: Rising number of missed recalls signals breakdown in automotive customer engagement
Auto Express: Rise in missed car recalls sparks safety concerns with dealers blamed
Drive Spark: ADS Warns Of Systemic Breakdown In Automotive Customer Engagement Strategy
Bodyshop Magazine: Missed recalls represent a ‘systematic failure’ – ADS