This document summarizes challenges facing the auto industry regarding vehicle recalls in the digital age. It notes that recalls are increasing in frequency and scale, with over 60 million vehicles recalled in the US in 2014 alone. While recalls are intended to get unsafe vehicles off the road, about 25% of recalled vehicles are never repaired. The document discusses how consumer notification and engagement preferences are shifting to digital channels like mobile apps and social media, forcing automakers to modernize their recall processes. It maintains that effective customer communication throughout the recall process can help mitigate potential negative impacts on brand image from recalls. The document proposes solutions from Teleperformance to help automakers improve recall management using social media monitoring, multi-channel engagement, and back-office case management

1. Auto Recall
Challenges
in the New
Digital World
White Paper
Transforming Passion into Excellence
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2. 2014 was a record-setting year for automakers, but
not in the way they would hope. Reports estimate
that more than 60 million vehicles in the United
States were recalled last year. What’s more, some
25 percent of cars recalled are never repaired.
When recalls are issued for reasons ranging from
defective airbags to faulty ignition switches, the
staggering percentage of unrepaired vehicles is
worrying. After all, a recall is only effective if it gets
faulty vehicles off the roads.
Indeed, the very nature of auto recall notifications
are changing. The National Highway Traffic Safety
Administration is updating their notification system
to include more accessible electronic notification
methods, including web-based searchable
databases, social media notifications and mobile
app updates. The NHTSA also recently established
new notification guidelines for manufacturers,
meaning they also must modernize and update
their practices to ensure more customers are recall
aware.
What’s also troubling is that brands can face
negative attention and potential damage to their
image during a recall. It’s no secret in this age of
social media that consumers deal with frustration
and confusion over the recall process and are vocal
about their dissatisfaction. When customers learn
of a new, sweeping recall, the tweets and phone
calls can come fast and furious. Meanwhile, the
auto industry is forced to reconsider whether their
crisis management solutions are getting them the
results they want: effective communication with
consumers and strategic processes that serve to
both protect their brand and empower consumers
to action.
Recalls Trending Up
Last year’s 60 million-plus vehicle recall in the USA was certainly massive, but it was anything but an
outlier. In fact, the enormous recall of 2014 was in line with a troublesome trend for automakers: an
uptick in frequency and reach of vehicle recalls. In 2013, more cars were recalled than were sold… by
nearly 45 percent. The previous record-breaking year for recalls was 2004, not that long ago, when more
than 30 million vehicles were recalled.
More and more, automakers are facing growing demands, more intense competition, and reliability issues
and recalls. They are also figuring out how to best handle increasingly public feedback from consumers
thanks to social media. About 15 brands have issued or been affected by recalls in recent years, according
to recent reports.¹
As recalls increase, so too does the potential for social media backlash. While some reports have stated
that recalls haven’t been found to create serious long-term brand damage, declining market share
represents a strong correlation. From 2003 to 2014, market share for some of the industry’s leading
manufacturers has remained stagnant or declined.2
1. Mediapost.com http://www.mediapost.com/publications/article/246416/recallsaffectperceptionbutnoprofoundeffect.html
2. Wards Auto Group
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White PaperAuto Recall Challenges in the New Digital World
Transforming Passion into Excellence

3. Maintaining Strong Relationships
through Tenuous Times
In this industry, trustworthiness and after-sales customer service are the two most
significant issues affecting customer satisfaction, according to the Teleperformance
Customer Experience Lab (CX Lab). The fact that only 35 percent of customers say
they are satisfied with manufactures’ after-sales services suggests there is room for
industry-wide improvement.
When trust is damaged, negativity can strike through the relationship with even the
brand’s most loyal advocates. A poor process could also further negatively impact those
image qualities that brands work hard to build. The good news is that even a situation
like a massive product recall offers an opportunity to slow declining brand advocacy via
relationship and process management.
A March 2015 study3
revealed that recalls can have relatively little impact on customers’
purchasing decisions, but that “the negative feedback lifecycle can last longer than six
months.” One interesting finding revealed that the size of the recall didn’t necessarily
dictate how severe the impact of the resulting negative attention would be to the
brand. In one case, an automaker’s poor handling of a relatively moderate-sized
recall likely caused a more severe negative reaction than did a larger recall by another
automaker.
A company’s decision on how to address recalls with customers has a significant impact
on customer perception of a brand’s quality, which ultimately has a significant impact
on loyalty.
According to Teleperformance CX Lab survey, 50 percent of OEM’s (Original Equipment
Manufacturers) customers said customer service was the most important attribute to
recommending a brand. The better the company’s customer service experience, the
greater the possibility that customers will endorse a particular brand. It again appears
that impeccable customer experience and communication throughout the recall process
can negate some of a recall’s brand-damaging impacts.
3. Conducted by Infegy and Phoenix Marketing International
Auto Recall Challenges in the New Digital World White Paper
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4. Customer Communication At the Pulse of Engagement
Automakers who have faced a recall are all too familiar with the social media firestorm
that can spark in real-time when customers are dissatisfied – with their automaker and
with its engagement efforts.
In our analysis conducted by Teleperformance CX Lab, we asked a number of industry
customer service agents how they would first contact consumers regarding a recall.
Across the board, a customer’s first engagement is via a mailed letter. Current
regulations may only require OEM’s to send a mailed letter, but it should come as no
surprise that customers’ expectations are neither exceeded, nor even met, when
automakers do the bare minimum.
To contact the manufacturer in return, customers are given the option of phone call, web
form or e-mail or, once again, paper mail. However, our study shows that paper mail is
not a preferred method of communication for consumers – regardless of their ages.
Customer engagement preferences are shifting, especially among the younger
generations. Voice communication is currently consumers’ most preferred engagement
channel. However, Internet-based channels including click-to-chat and e-mail are
growing increasingly popular. Younger generations of “digital natives” may appreciate
the always-available quality of click-to-chat and e-mail channels. Our survey results
indicate that those two options may soon surpass voice communication as the
preferred methods of engagement in the coming years.
Additionally, it’s important to note that the National Highway Traffic and Safety
Administration (NHTSA), the government agency that oversees federal recall standards
and regulations, is also moving toward more contemporary and digital-friendly recall
notification methods. As part of a larger effort to consider the efficacy and reach of
traditional (mailed) notifications, the agency has taken concrete steps to ensure that
both younger and older drivers are recall-aware. The NHTSA has instituted a web-
accessible database that allows car owners to search by their VIN4
number to find
out whether their vehicle, tires or equipment is involved in a recall, investigation, or
complaint. Consumers can follow the NHTSA on such social media platforms as Facebook
and Twitter to get up-to-date recall information. The agency also launched SaferCar,
a free mobile app for both Android and Apple devices, which allows users to register
their vehicle and receive notifications when a related safety issue has been discovered,
and also submit safety complaints directly to the agency. What’s more, the NHTSA also
decreed that traditional white-mailed notifications will now carry a new, distinct label
helping to ensure those consumers who still rely on paper mail clearly understand that
their vehicle is involved in a recall.
4. Vehicle Identification Number
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White PaperAuto Recall Challenges in the New Digital World
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5. These innovations further illustrate the changing tide in
notifications. As manufacturers are further pushed to adapt
to a changing consumer base, they must be ready to support
customers – in their channels of choice – through the next
steps of the recall process.
Auto Recall Challenges in the New Digital World White Paper
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6. As companies continue to be affected by the increasing
number of recalls, it’s more important than ever that
brands have the expertise they need to quickly turn
strategic communication into actionable results.
Teleperformance works directly with manufacturers to
design a custom crisis management plan. Via a multi-
pronged approach, automakers can protect their brand
and improve the overall recall process.
How canTeleperformance support OEMs to improve
their current auto recall process?
Social Media Solutions: Teleperformance can support companies in their efforts
to monitor social media response to the recall, and effectively communicate with
customers on their preferred social platforms.
More Engagement on More Channels: Teleperformance can also support
manufacturers to advance existing and adopt new technologies, enabling them
to connect to consumers on their preferred channels. Tools such as click-to-call
and click-to-chat can be integrated onto manufacturers’ websites and serviced by
Teleperformance. Engagement via click-to-chat can be live with a customer service
agent directly serving the customer; semi-automated, which improves agent speed
and efficiency; and automated, which provides automated answers based on text
analysis of their chats or e-mails. Click-to-call can function in two ways – VOIP, a
consumer-initiated voice interaction, and Call Me Back, where customers can request a
call or schedule a time when a specialized agent may reach them regarding auto recall
information. Customers may feel increased satisfaction knowing their questions were
answered and they’ve been made aware of things like recall updates and replacement
part availability, which can spur them to take action.
Multiplatform and Mobile: We can deliver these consumer-facing solutions via tablet,
mobile phone, desktop computer or laptop, helping to ensure consumers can reach the
manufacturer easily, and using the technology of their choice. We can also incorporate
our customer service experience via mobile apps.
Back-Office Case Management: Recalls don’t simply pose a problem for consumers
and brands, but also for the dealers and government. Our solutions can support OEM´s
optimizing their interaction with dealers and government. We also offer custom,
integrated solutions for maximizing internal efficiency while reducing mistakes and
minimizing financial impact. These systems increase follow through and ultimately,
case closure.
Teleperformance Recall
Solutions for Real-Time Crisis
Management
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White PaperAuto Recall Challenges in the New Digital World
Transforming Passion into Excellence

7. Teleperformance is the worldwide leader in multichannel customer experience
management and interacts with 35% of the world’s population each year.
Companies who utilize Teleperformance solutions will see immediate results
including the reduction in repeat calls by using highly qualified agents and
Teleperformance management processes, reduction in call volumes with
agents using self-service and internet products, reduction in bottlenecks in
processes, and improved customer satisfaction, loyalty and advocacy by
offering new channels. And Teleperformance delivers consistent customer
experience on any channel, and on any device allowing customers to
navigate through different channels seamlessly. It is important for companies
to implement an integrated multichannel strategy and prepare for a recall
crisis before it occurs. By incorporating a streamlined, yet multifaceted,
recall strategy, automakers can improve the most critical areas during a
recall crisis – consumer communication and relationships, as well as inter-
office operations. And when it comes to maintaining brand integrity, happy
advocates and safer drivers, that can make all the difference.
White PaperAuto Recall Challenges in the New Digital World
Transforming Passion into Excellence
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Teleperformance can support you to be
prepared for a recall crisis before it occurs.

8. AboutTeleperformance
Worldwide leader in Multichannel Customer Experience
We are a People company with a people-centric strategy, interacting with people all over the
world. It’s all about People. They are part of who we are and what we do. We analyze their
behaviors. We understand their wants and needs. That’s why we deliver outstanding customer
experiences through integrated multichannel solutions to enhance customer experience results for
our clients.
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