As a car dealer strategizing revenue growth, it’s easy to overlook the unique contributions of recalls. Recall jobs create opportunities to reconnect with lapsed customers, support additional service work, and open the door to trade-in or upgrade conversations. When recall execution is efficient and well-timed, it can reinforce trust and strengthen the customer relationship beyond the immediate repair.
That’s where AI for car dealerships is changing the game. Advanced AI helps you optimize operations by automating inventory management, personalized marketing campaigns, and scheduling. BizzyCar is a software platform that revolutionizes recall management, turning it into a scalable profit center powered by AI technology. Here’s how car dealership AI could benefit your bottom line.
Why You Should Pay More Attention to Recalls
The current auto dealer landscape is challenging. Per Cox Automotive, franchise dealerships have lost 12% of repair work to aftermarket competitors since 2018. At the same time, drivers are hanging on to their vehicles longer than ever before, limiting new vehicle sales. Maintenance and sales are the lifeblood of the dealer business model, and both are under pressure.
Fortunately, dealerships have one major advantage: recall work. Manufacturers assign recall work exclusively to their network dealerships, providing your service department with a captive audience. Our data shows the average recall customer hasn’t visited the dealer for 600 days. The recall touchpoint reminds them why you should be their first choice whenever their vehicle needs repairs.
Recalls also provide a legal workaround to do-not-call (DNC) lists and marketing opt-outs. Normally, you aren't allowed to contact anyone who has asked to be removed from your list. Recalls are an exception due to safety concerns, allowing you to re-engage with lost customers.
The fact that manufacturers pay for recalls also removes a significant barrier to customers bringing vehicles to your shop. Once there, your team can perform a multi-point inspection to identify other issues such as worn brakes, tire replacements, and overdue maintenance. These upsell opportunities can generate more revenue than the recall, and they wouldn’t be captured without it. On average, 25% of recalls have customer-pay work added in.
How AI for Car Dealerships Leverages Recalls to Help Dealers Connect with Lapsed Customers
Recalls are a revenue opportunity that’s long been difficult to capitalize on. Roughly 60% of vehicles leave the shop with unaddressed recall concerns. Matching VINs to large recall databases manually is a massive time sink that most dealerships lack the capacity for. Likewise, vehicle owners become frustrated when they bring their car in only to discover the dealership lacks the part they need or the capacity to address it immediately.
AI can save 10-15 hours per week by automating these common issues. BizzyCar’s Recall Outreach identifies vehicles with open recalls automatically. The system verifies that all necessary parts are in stock, and then handles customer interaction via SMS to book an appointment. Booked appointments are sent directly to your scheduler and DMS, and automated reminders reduce costly no-shows.
Recalls can also increase revenue from existing appointments. BizzyCar’s Recall Scout identifies open recalls for upcoming appointments up to 30 days in advance and notifies the customer. Once approved, you’ll collect more money from the existing appointment.
Alternatively, owners may decide their vehicle is too old to maintain. If they’re already in your dealership, you can discuss trade-in options and potentially sell them a new car. Your technicians will already be equipped to address the recall on the older vehicle, improving its resale value.
BizzyCar offers mobile service to optimize routes, dispatch technicians, and track real-time progress from an intuitive central hub. This service enables you to meet customers where they are, reducing hassle while providing an exceptional experience. You also save valuable bay space for more complicated jobs.
Advanced AI Facilitates Personalized Marketing Campaigns
Traditional recall notices are sent via mail, meaning they arrive weeks after the defect is discovered and are often discarded as junk mail. AI tools like BizzyCar promote engagement by contacting vehicle owners through SMS, email, and push notifications. Your lead will appreciate your concern for their vehicle’s safety, making them more likely to address the recall and choose your dealership for subsequent repair work.
Automated messages are also customizable, ensuring your pitch addresses the customer’s needs. For instance, a faulty engine demands immediate attention while a glitch in the sound system isn’t as pressing. Messages will also refer to the customer by name and identify the year and model of their vehicle, establishing a personal connection that wouldn’t be possible if communication were handled manually.
As automobiles rely on increasingly complex electronics, servicing them becomes more profitable over time. Customer retention is crucial for maximizing revenue, and personalized communication plays a key role in fostering brand loyalty and ensuring steady income.
Dealership AI Delivers Demonstrable Results
All of these AI benefits sound nice, but will they have an appreciable impact on your business? The answer is yes. BizzyCar guarantees an ROI of at least 4:1 over the life of your contract, with many dealerships seeing numbers as high as 10:1.
BizzyCar's partners have generated over $250 million by servicing more than 600,000 unique VINs, and this figure is set to grow as there are currently 73 million vehicles with open recalls in the U.S.
Our AI software can also enhance your dealership's customer satisfaction index (CSI) score and net promoter score (NPS), driving better customer experiences. You’re proactively reaching out to customers to ensure their safety and streamlining the scheduling process, and repeat business is the natural result.
Discover What Makes BizzyCar the Best Car Dealership AI Tool
Recalls allow dealerships to improve their revenue and foster brand loyalty. They can also present challenges, but recall management doesn’t have to be a logistical headache. Instead, you can use AI software like BizzyCar to drive revenue without creating more administrative work for your team.
Book a 20-minute demo today and discover for yourself the difference AI can make.