Leveraging Vehicle Recalls to Build Trust and Drive Sales

Automotive dealerships in the United States face a competitive landscape where trust and customer loyalty are paramount. One of the most underutilized opportunities to build consumer trust and establish long-term relationships lies in assisting with vehicle recall repairs. Far from being an inconvenience, recall repairs present dealerships with a unique chance to showcase their expertise, enhance customer satisfaction, and foster loyalty. By capitalizing on recalls, dealerships can transform a potential negative into a strategic advantage that benefits both customers and the business.

The Scope of Vehicle Recalls in the U.S.

Vehicle recalls are a common occurrence in the automotive industry. In 2024 alone, the National Highway Traffic Safety Administration (NHTSA) reported more than 450 separate recall campaigns, affecting more than 28 million vehicles. Despite the scale, recall compliance rates are less than optimal. Data from the NHTSA indicates that only about 75% of recalled vehicles are repaired, leaving millions of vehicles on the road with unresolved safety issues.

For dealerships, this presents a significant opportunity. By proactively reaching out to vehicle owners with open recalls, dealerships can not only address these safety concerns but also position themselves as trusted allies in ensuring the safety and reliability of customers’ vehicles.

Building Trust Through Recall Repairs

1. Addressing Safety Concerns

When a vehicle is recalled, it is typically due to a safety-related defect. Customers are often anxious and eager to resolve these issues but may not know where to turn. Dealerships that communicate effectively about recalls and provide prompt, high-quality repairs demonstrate a commitment to customer safety. This proactive approach builds trust and reinforces the dealership’s reputation as a reliable partner.

2. Personalized Communication

One of the most effective ways to build trust is through personalized communication. Dealerships can leverage recall management platforms like Recall Masters to identify vehicle owners affected by recalls and send targeted notifications, managing inbound inquiries with live agents based in the United States. According to a study by Cox Automotive, 72% of consumers are more likely to engage with businesses that offer personalized communication. By reaching out with clear instructions on how to resolve recall issues, dealerships can strengthen their connection with customers.

3. Transparency and Convenience

Transparency is a cornerstone of trust. Dealerships that provide detailed explanations about recall repairs, including timelines and costs (if any), demonstrate honesty and professionalism. Offering convenient options such as online scheduling, extended service hours, and complimentary transportation or loaner vehicles can further enhance the customer experience.  Recall Masters works with clients to build a completely customize offering for consumers and will also oversee appointment scheduling.

The Link Between Recall Repairs and Service Loyalty

Addressing recalls is not just about resolving safety issues; it’s an opportunity to bring customers into the dealership and introduce them to additional services. Data from the J.D. Power 2023 Customer Service Index (CSI) Study shows that vehicle owners who visit dealerships for recall repairs are more likely to return for future maintenance and repairs. Here’s how recalls can foster long-term service loyalty:

1. Building Positive Experiences

A well-handled recall repair can serve as a “trial run” for customers who may not have previously used the dealership’s service department. A smooth, efficient, and professional recall experience can leave a lasting positive impression, increasing the likelihood that customers will return for routine maintenance.

2. Upselling Opportunities

While a customer’s vehicle is in for a recall repair, dealerships have the chance to perform complimentary vehicle inspections and identify additional maintenance needs. According to Recall Masters, 54% of customers who visit for recall repairs end up spending on additional services. By offering these services in a non-pushy, customer-focused manner, dealerships can boost revenue while enhancing the customer’s perception of value.

3. Strengthening Relationships

Frequent touchpoints with customers, such as those enabled by recall notifications and follow-ups, help maintain an ongoing relationship. Dealerships that stay in regular contact with customers are more likely to be top of mind when the customer considers purchasing a new vehicle or seeking additional services.

Trust and Its Role in New Vehicle Sales

Trust is a critical factor in the car-buying process. A 2022 study by Deloitte found that 71% of consumers rank trust as “very important” when choosing a dealership. By leveraging recall repairs as a trust-building tool, dealerships can improve their standing with customers, increasing the likelihood of future vehicle purchases. Recall Masters reports than 6-9% (depending on brand) of consumers who visit a dealership for a recall repair will go on to purchase their next vehicle from that servicing dealership.  Here’s how trust contributes to sales:

1. Establishing Expertise

Recall repairs are an opportunity for dealerships to showcase their technical expertise. When customers see that a dealership’s service department is knowledgeable and capable of resolving complex issues, they are more likely to trust the dealership as a whole, including its sales team.

2. Reinforcing Brand Loyalty

For customers driving vehicles under recall, resolving the issue quickly and effectively reinforces their confidence in the brand. This increased brand loyalty often translates into repeat purchases. According to a study by IHS Markit, brand loyalty rates among vehicle owners average 54.5%, but they are higher for customers who have positive service experiences.

3. Word-of-Mouth Marketing

Satisfied customers are more likely to share their positive experiences with friends and family. A survey by BrightLocal found that 88% of consumers trust online reviews and personal recommendations as much as they trust a personal recommendation. By delivering exceptional recall repair experiences, dealerships can encourage positive word-of-mouth, which can attract new customers.

Leveraging Technology for Recall Success

Technology plays a pivotal role in ensuring the success of recall campaigns. For its dealership clients, Recall Masters use the following tools to maximize their effectiveness:

1. Current Owner Data

With vehicles changing hands at such a rapid rate, it’s important to have up-to-date owner data.  Not only with this investment maximize the number of owners that can be notified of a recall, the effort will also reduce costs that would be wasted on reaching consumers who no longer own the vehicle. Automated notifications, personalized outreach, and follow-up reminders ensure that customers are informed and encouraged to take action.

2. Live-Agent, US-based Scheduling

Offering live-agent and online scheduling for recall repairs simplifies the process for customers. Dealerships that provide user-friendly scheduling tools are more likely to see higher recall repair compliance rates.  Through live agents that are based in the United States, Recall Masters also builds trust with vehicle owners who may be skeptical of recall notifications.

3. Data Analytics

By analyzing data on recall compliance rates, service revenue, parts availability, estimated reimbursement rates and estimated repair times, dealerships can identify trends and refine their strategies. For example, analytics might reveal that offering a complimentary car wash or discounted maintenance services alongside recall repairs increases customer retention.

Overcoming Common Challenges

While recall repairs present significant opportunities, they also come with challenges. Dealerships must navigate these hurdles to ensure success:

1. Limited Awareness

Many vehicle owners are unaware that their cars are subject to recalls. Dealerships can address this by using multiple communication channels, including email, text messages, phone calls, and social media, to spread awareness.

2. Perception of Inconvenience

Customers may perceive recall repairs as time-consuming or inconvenient. Offering flexible scheduling, efficient repair processes, and complimentary services can help mitigate these concerns.

3. High Repair Volumes

During major recalls, dealerships may face high volumes of repair requests. Investing in additional staffing, training, and equipment can help service departments manage the increased workload effectively.

The Road Ahead

Vehicle recalls, while often viewed as a challenge, represent a significant opportunity for automotive dealerships in the United States. By assisting customers with recall repairs, dealerships can build trust, foster long-term relationships, and drive both service and sales revenue. The key lies in proactive communication, exceptional service delivery, and leveraging technology to streamline the process.

In a market where trust is a critical differentiator, dealerships that embrace recalls as a trust-building tool will not only enhance their reputation but also position themselves for sustained success. As the automotive industry continues to evolve, recalls will remain a vital touchpoint for connecting with customers and demonstrating the value of dealership services. By turning a potential pain point into a strategic advantage, dealerships can create lasting customer loyalty and drive future growth.

About the Author

Sean Reyes Chief Marketing Officer sean@recallmasters.com

Sean Reyes oversees all marketing efforts at Recall Masters as Chief Marketing Officer. Sean also serves as the host of the FixedOps UX, a “minicast” that revolves around the fixed operations ecosystem and the tactics that build a better user experience for customers, dealership staff and other stakeholders. Sean’s experience spans more than 35 years of business development and strategic marketing experience, having developed go-to-market products and solutions for the automotive, healthcare, insurance, finance and technology industries to serve Fortune 1000 clients like American Express, Toshiba, Western Digital, Cox Communications, Novartis, Microsoft, IBM, Compaq, HP, National General Insurance, MyCustomer Data, DigniFi and several automotive affiliates and dealerships. Sean lives in Napa, CA with his wife Kathryn and spends his free time hiking, kayaking, playing guitar, going to concerts, rebuilding project cars and helping his kids embark on adulthood.