In a typical year, between 20-30 million vehiclesin the US areaffected by recalls.The way an automaker deals with recallscan have a lastingimpact oncustomer loyalty, brand, andpublic relations.Failure tocomply with NHTSArecallrequirementscan also put automakers at risk ofsignificantfines.Every recall campaign needs to be tailored to the specifics ofthe issue itself, but all should have the goal of maximizing completion rateswhile providing a seamless customer experience.
Challenges for Recall Managers
Automakers must overcomemultiplehurdles as theyexecute recall campaigns.They are requiredtoquicklynotify car ownersof the recall, but resourcescan belimitedandthecampaignsaretypically unforeseen,restrictingtheir ability to scale uprapidly.Hiring a dedicated team of recall support agentsiscostly, as volatility inrecallvolumescan resultin periods ofspikes followed by periods oflowresourceutilization.
AccordingtoAuto Alliance,while 83% of new vehicles complete recall repairs,this drops toonly 44% ofvehicles 5-10 years old, and29% for vehicles over 10 years old.For older vehicles, finding thecurrent vehicle owner itself is a challenge,sincevehicles can change hands several timesover their lifecycle.
Oncecurrent owners areidentifiedandnotified,they must be motivated to bring their car to a dealership for repair.Ifthe correct replacementparts are not available, or if the owner mustleave their car at the dealership foran extendedperiod, thelikelihood of completion diminishes.
Automakersmust navigatethese complexities while complying with NHTSA regulations and tryingto stay ahead of any negative press.Recall managersface the critical task of developing innovative recall solutions thatmeetcompanyobjectivesand regulatory requirementsin a resourceful way.
Optimizing Recall Completion Rate with Holistic Case Management
With the rightprogram structure in place, recall teams can achieve superiorcompletion ratesand enhance the customer experience.A holistic case managementapproachenables automakersto consider each recalled vehicleon a case by casebasis, andexecute a strategy that maximizes their likelihood ofcompleting the recall.Here are a few best practices:
Build in agility.Leverage a solution that enables you to ramp up quickly, but also provides flexibility toadapt andmanage costs as demand fluctuates.Digital platforms tailored tomanage recallscanoffer configurabilitywithout coding and IT support, whilethird-party contact centerscanscale up and down depending on the need.
Contact the right customer.ValidateVINand customerinformation with multiple data sources to ensure you arecontacting the current owner of the vehicle.
Useomnichannel communication.Contactcustomers through a variety of channels and atthe time of daywhen they are mostlikely to beavailable to improve yourreachrate.
Streamline the repair process.Make it as easy as possiblefor customersto get their cars fixed. Follow upas parts become availableat dealerships, pick up the vehicle from the owner’s home,andoffer loaner carsor alternative transportationtomakethe processas painless as possible.
Track metrics in real time.Immediateavailability of program data down to the VIN level enables you to identifyproblem points and make quickdecisionsto improve outcomes. Real-time NPS and customer satisfaction feedback also helpstodetectpotential issues with customer engagement.
Partner withautomotive experts.Third party recall solution providers withdeep knowledgeof the automotive spacecan provide valuable insightson how to configure your programand which channels to prioritize, so that youdo not need to figure it out from scratch.
Automotive recallmanagersface thedifficultresponsibility offinding and repairing vehicles affected by recalls, whileminimizingcustomerdissatisfactionandmaintaining brandsupport.Digital solutions andexperiencedautomotive partnershelp to facilitate a cost-effectiverecall program, a seamless customer experience, and better outcomes for everybody.
Jason Peters is the Business Leader for Agero’s Consumer Affairs and Connected Vehicle line of business. Prior to joining Agero in 2017, Jason spent 6 years at CVS Health in strategic product development as well as 8 years in strategic consulting at Boston Consulting Group and The Parthenon Group. Jason is an active member of his community and can often be found coaching youth sports. Jason holds a bachelors in Government from Harvard University and an MBA from Wharton at the University of Pennsylvania.