Missed recalls represent a ‘systematic failure’ – ADS
More than three million missed recalls represents a ‘systematic failure’ in customer engagement, according to ADS (Auto Data Solutions).
A freedom of information request has revealed that there are 3.2 million vehicles on UK roads with recalls that have not been rectified.
Apart from risking road safety, the missed recalls are also costing the industry in missed revenues at a time when repairers and dealerships are facing unprecedented challenges.
While the total number of safety recalls has remained relatively stable since 2018, the rate of rectification has declined. ADS attributes this to poor customer database maintenance, gaps in OEM support for franchise dealers, and disconnected data systems.
Jon Sheard, operations director of ADS, said: “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.”
Revenues
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 mn missed revenue.
Sheard concluded:
“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.”
