The need for event-driven recall management in the automotive industry

The need for event-driven recall management in the automotive industry

As vehicle recalls continue to rise, with millions of cars on the road deemed too dangerous to drive, the automotive industry faces mounting pressure to manage these situations effectively. This trend is evident across North America and Europe, where the number of recalls is increasing due to various factors, including the growing complexity of vehicle technology and stricter regulatory scrutiny.

Understanding the recall landscape

Several factors contribute to the rising number of recalls:

Increased complexity​

Modern vehicles incorporate advanced technology, making them more prone to issues that can lead to recalls.

Regulatory pressure​

Agencies like NHTSA in the U.S. are vigilant in ensuring consumer safety, prompting recalls even from minor issues that could affect a vehicle’s operation.

Manufacturing challenges

The post-COVID environment has accelerated production, allowing for quicker delivery of vehicles. With effective cost-saving measures in place, manufacturers are providing operational vehicles to customers promptly, but some vehicles may require maintenance after purchase.

Supply chain issues

The ongoing chip shortage and other material constraints have also disrupted the production process, leading to defects that necessitate recalls.

These challenges, if managed properly, can turn recalls into an opportunity to strengthen customer relationships. By addressing these issues proactively, manufacturers can enhance customer trust and satisfaction.

Modular Recall Management: Ensuring cohesion and flexibility

MSX Recall Management offers a comprehensive solution for navigating the complexities of recalls. The orchestration of recall management involves a modular approach, providing flexibility to support specific areas of the recall process while ensuring all stakeholders and actions are aligned.

Delivering speed, efficiency, and customer focus

By performing repairs as quickly as possible, we aim to minimize any inconvenience to our customers. Our approach offers the most cost-effective solutions, setting up the team and the program rollout, balancing costs, resources availability, and time for the execution.

The execution of the recall can take various forms, such as enhanced dealer capacity and on-site events designed to provide consistent, efficient, and scalable recall solutions. These events could take place at locations like mall parking lots, stadiums, or amusement parks. To reach older vehicles, it can be beneficial to include reconditioning or auction centers in the strategy.

Event-driven recall ensures excellence and efficiency

Our event-driven recall process is meticulously designed to ensure maximum execution and customer satisfaction. Upon arrival, with or without appointment, customers are greeted and provided with refreshments while their vehicle undergoes the necessary recall repairs. Once the repair is complete, the vehicle is promptly returned to the customer, ensuring a seamless and pleasant experience.

MSX oversees the entire deployment of the recall event, from program management to securing permits and insurance. Our dedicated team thoroughly prepares for each event, understanding the types of vehicles expected, the tools required, and the number of participants. We handle everything from location identification and logistics to staff selection and facility management, ensuring a comfortable environment with amenities such as food, heating/AC, medical assistance, and security. Additionally, we manage customer outreach, including contact and booking, to ensure a smooth process from start to finish.

Effective event management requires an experienced team to handle complex preparations and planning. Coordination across various departments is crucial, involving sales for new vehicles, parts departments for recall shipments, marketing and social media for awareness, and field operations for on-site support. Each event demands constant effort and precise planning to meet deadlines, often followed by another event in a different city, necessitating a well-organized plan to maintain efficiency and success.

Advantages of outsourcing recall management

By leveraging MSX expertise for event-driven recall management, manufacturers can benefit from specialized expertise in planning and executing recall events. This includes:

Experienced teams handle logistics, permitting, staffing, and customer outreach, ensuring a smooth execution without burdening the manufacturer’s existing workforce.

Agencies like NHTSA in the U.S. are vigilant in ensuring consumer safety, prompting recalls even from minor issues that could affect a vehicle’s operation.

With a focus on customer satisfaction, MSX teams can create welcoming environments that foster trust and goodwill.

Turning recalls into opportunities

As the automotive industry continues to grapple with the rising tide of recalls, event-driven recall management presents a compelling solution. By embracing a strategic approach that prioritizes customer experience and operational efficiency, manufacturers can not only navigate the complexities of recalls but also turn them into opportunities for building lasting relationships with their customers.

Contact the Author

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Pasquale Aloi

Global Solutions Leader, Warranty and Repair Efficiency

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Pasquale Aloi

Global Solutions Leader, Warranty and Repair Efficiency

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Five success factors to transforming your executive training program: Bridging the training gap in the mobility industry

Five success factors to transforming your executive training program: Bridging the training gap in the mobility industry

Bridging the training gap in the mobility industry

In today’s rapidly evolving mobility industry, standard training programs often fall short of meeting the complex and dynamic needs of professionals. The demand for continuous learning and adaptation has never been higher, especially for those in leadership roles within dealerships and OEMs. While traditional training methods offer foundational knowledge, they fall short of fully preparing leaders with the necessary tools and insights to excel in their specific environments.

In this report, we uncover how tailored executive management programs not only fill this gap but are also customized to the industry and designed to drive real world application and tangible business outcomes.

 

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Life-long loyalty starts here: Service bookings double with effective lead management

Life-long loyalty starts here: Service bookings double with effective lead management

Fast facts

Leading European national sales company

Improve vehicle servicing process and increase bookings

Europe

MSX’s end-to-end Service Lead Management solution includes web-based service booking technology, fully integrated with an omnichannel management system empowering agents to reach out to customers for dealers.

Initiating the conversation

Today’s automotive businesses are working harder to drive new or lost customers back to their service networks by revising their strategies to compete with the growing number of independent competitors.

Despite their endeavors, some of the world’s most successful OEMs continue to seek support in minimizing a decline in their customer retention figures.

The European national sales company of a leading brand was keen to improve its vehicle servicing process and increase the number of customers booking service appointments. The company’s customer relationship management system was designed to forecast vehicle servicing requirements and dispatch notifications to owners. However, the booking process relied only on customer-initiated contact.

MSX’s Service Lead Management solution almost doubled visits, achieving 90,000 bookings.

Building stronger connections

The European NSC partnered with MSX to deploy a Service Lead Management solution, which comprises a contact center whose professional agents contact customers on behalf of dealers.

The end-to-end solution implemented by MSX offers full transparency of interactions and progress. Using a modern omnichannel management system, contact center agents connect directly with customers who have failed to book a service within a set timeframe. Combining people, process and a web-based service booking technology, the solution optimizes appointment bookings and provides a comprehensive system for efficient customer service and appointment scheduling, including replacement cars.

By tracking the coverage rate (proportion of contacts called), conversion rate (contacted numbers that translate to bookings) and visit rate (bookings that translate to visits), the European NSC can monitor dealer performance and support those whose strategies need adjusting.

The MSX customer service team analyzes the contact center feedback including the reasons customers provide for not booking a service. They also examine variables like car line, car size, vehicle age, and registration details. Using these customer insights, the team can develop targeted services and special offers for dealerships or customers.

Driving up revenue

Since its first year of deployment, MSX’s Service Lead Management solution almost doubled the number of service visits, achieving 90,000 bookings, of which 85% converted to visits, generating significant additional revenue.

During the first three years, the percentage of contacted customer visits increased from 13% to 23%.

The solution has also helped the organization recover and retain customers, and in some dealerships, the additional business has yielded a return on investment of 12:1.

Upholding brand promises

The deployment of this program has proven to be transformative, empowering the brand to expand its new modular approach from a local to a global initiative.

Data gathered by MSX helps gather from national campaigns and promotions provides the OEM with valuable insight. Figures from early in the project revealed that customers are more interested in fixed prices than discounts, inspiring the brand to deploy fixed-price services to suit each dealer. The organization has since rolled out national fixed pricing and can promote all its services in line with the overall brand promise. OEM provides customers with seamless, transparent, and convenience-led offerings such home collection, which help encourage satisfaction and loyalty.

MSX continues to manage bookings and customer visits, communicating in relevant languages and using local knowledge to adapt to regional needs. The service reassures the OEM that its offers are promoted and delivered consistently and on brand. Dealers are better supported in their roles and have more time to focus on the sale of additional products while providing customers with a more personalized and efficient service.

ROI
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increase in bookings from year 1
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Customer visits increase
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Real-time personalized marketing

MSX continues to partner with the brand, utilizing connected vehicle data to provide tailored marketing strategies in real time that foster customer loyalty through efficient and proactive support.

MSX also supports projects that deliver personalized marketing strategies that incorporate connected vehicle data. Vehicle information will deliver more accurate assessments on vehicle health, including recommended service timings, to retailers. Services such as these not only help to minimize the time, effort and intrusion of unnecessary phone calls, but also provide safe and efficient monitoring of vehicles, helping to keep them on the road longer while better supporting customers and inspiring their loyalty.

Find out more about how MSX Service Lead Management solutions can help your business.

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Outside-the-box learning: New ecosystem boosts engagement by 30%

Outside-the-box learning: New ecosystem boosts engagement by 30%

Fast facts

Luxury brand with a global presence

The OEM focused on sales figures and customer satisfaction for gauging performance success, neglecting essential factors such as learner engagement.

Asia Pacific (including Australia, New Zealand, Japan and Korea)

As part of a broader initiative to improve the brand’s learning capabilities, MSX helped it refocus on learner engagement to measure ROI on learning spend.

Focus on engagement

Automotive retail networks often prioritize sales figures and customer satisfaction as key metrics for assessing their performance, yet many overlook learner engagement as a critical factor when evaluating their business impact.

MSX helped a luxury automotive brand organization with a presence in 18 global markets to implement a strategic initiative aimed at improving the OEM’s overall learning capabilities. MSX helped the OEM to redirect its focus towards learner engagement as a primary way of measuring return on investment on its learning spend.

MSX created a new learning ecosystem as part of the Regional Learning Academy, with a mission to revitalize educational initiatives across the region’s retail network.

The program boosted engagement by 30%, its highest level in the brand’s history.

Weed out inefficiencies

The global OEM’s existing solutions did not meet the needs of its retail network, with less than 7% of the content under two years old.

MSX assessed the existing e-learning framework, identifying opportunities for refinement and optimization, by applying a comprehensive scoring system. The system determines a program’s engagement adequacy, aiming for a minimum of 6 or 7 out of 10. The client‘s latest program scored a mere 2 out of 10.

In addition, the system wasn’t accessible via mobile devices, with further access issues across regions. Consequently, some markets created their own content using a different LMS altogether. The inconsistent approach across a broad geographical area was detrimental to learning engagement within the organization.

Make learning easier

MSX tapped into the organization’s existing learning program, creating a learning ecosystem with versatile mobile capabilities and scalable opportunities for continuous improvement.

The new solution enables employees to engage with learning content via their mobile devices and, through a single sign on, access multiple platforms, such as peer-to-peer learning.

Build in the rewards

The business can identify knowledge gaps and better support employees as they learn in the flow of work, driving engagement through personal achievement and motivation.

The peer-to-peer learning tool acts as a live needs analysis of the business, allowing MSX to identify knowledge gaps from the questions being asked. A resource library – linked to quizzes – also allows learners to access material and learn in the flow of work.

The Centrical platform links to business KPIs and has the capability to extract, edit, and condense portions of e-learning content from the existing LMS, crafting concise microlearning modules. In addition, gamified learning and data-driven video scenarios enable MSX to offer a diverse array of training interventions through the rapid authoring component within the platform.

The platform also drives engagement through recognition of personal achievements, offering rewards embedded within a virtual classroom broadcasting tool. It allows users to track their own performance, see how they’re impacting directly on KPIs, and monitor their performance against their peers, motivating them to learn more.

The single LMS also provides MSX with access to data that can be extracted and used to offer additional, more personalized, or relevant content, and build personalized learning pathways for each individual employee.

 

Fix-it-right-first-time rates have risen by 23%, and service satisfaction has grown.

Watch engagement soar

Increased learner engagement has directly influenced fix-it-first-time rates, service satisfaction and employee retention, which have risen significantly.

The program has boosted overall learner engagement by 30% across the region, reaching its highest level in the history of the organization. It was found that in the lowest performing markets, learner engagement has grown from 17% to 67% in three months. Technicians and service personnel are more engaged, and their overall performance has dramatically improved. Fix-it-right-first-time rates have risen by 23% and consequently service satisfaction has gone up. The brand has also seen vehicle and accessory sales increase, resulting in a rise in sales satisfaction.

Follow-up surveys have revealed a rise in employee satisfaction and staff retention. Technician retention is also up by 16%, which is particularly important to the client’s success.

In a quote from the client’s Network Development Director, he claims that “By adopting MSX’s suggested approach, the impact on our business has been quite profound. By actively measuring and focusing on learning engagement, we continue to realize a range of positive impacts in all of our core business KPI’s as well as our employee and customer experience. As a business this has us now approaching the future with a much higher degree of confidence.”

Rethink long-term learning

After crafting a competence development strategy, MSX successfully redirected the OEM‘s focus towards future needs, pinpointing fresh roles within the evolving agency model.

This encompassed transforming its signature sites into digital platforms, meticulously evaluating the delivery and implementation of new technologies, and gradually preparing the brand for a successful future.

Increase in learner engagement
0 %
Rise in service satisfaction
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Improvement in sales satisfaction
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Rise in Net Promoter Score
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