Consider a stark reality unearthed within the automotive sector: over 3.2 million recalled cars and vans remained non-rectified between 2018 and 2023. This is not a marginal oversight; it represents a significant failure in ensuring vehicle safety and highlights a critical vulnerability in customer data management. The data, obtained through a Freedom of Information Act request by Auto Data Solutions (ADS), further suggests that the actual number of missed recalls is likely far greater. 

This situation serves as a potent, albeit concerning, case study for decision-makers within various B2B original equipment manufacturers (OEMs) like transportation, medical devices & life science products, and military equipment, particularly those overseeing aftermarket and service domains. 

While the products differ, the underlying systemic weaknesses that allowed this to occur in the automotive industry could very well be present within the machinery manufacturing sector.

How confident are you that your organization possesses the robust data infrastructure necessary to effectively communicate critical safety or maintenance information throughout the lifecycle of your machinery? 

Could analogous data management deficiencies be silently undermining your ability to reach customers with essential updates or recall notices? The figures from the automotive realm paint a clear picture: between 2018 and 2023, a staggering 14.8 million vehicles were subject to 2,128 model recalls, yet a substantial portion remained unaddressed. Specifically, in 2018, 729,876 vehicles went unchecked, a figure that, while fluctuating, remained alarmingly high throughout the period, reaching 739,705 in 2022. The primary culprit identified by ADS is poor contact with customers after the initial sale, particularly when vehicles move outside the franchised dealer network or change ownership. 

This mirrors potential scenarios within the machinery manufacturing sector. Your equipment may be resold to different entities, managed by third-party maintenance providers, or operated for decades under evolving points of contact within your customer organizations. If your data infrastructure doesn’t meticulously track these changes, the dissemination of crucial information becomes a precarious endeavor.

Manufacturers in the automotive industry typically issue recall notices via postal mail. However, if customer address records are outdated or if the current owners are no longer engaging with the original dealer network for servicing, these notifications often fail to reach their intended recipients. 

Similarly, critical safety bulletins, software updates, or urgent maintenance advisories you dispatch may be lost in transit if your customer database is not continuously updated and accurately maintained. Furthermore, the practice of some dealers conducting safety checks only during routine service intervals – which can extend to two years or more for electric vehicles and some newer models – introduces further delays and increases the risk of unresolved issues. 

Poor Consumer Data Management – Consequences

In the B2B machinery context, where service intervals can be even longer, the potential for critical information to remain undelivered for extended periods is amplified.

The ramifications of such data management shortcomings extend far beyond mere inconvenience. For machinery OEMs, the potential consequences are significant:

• Compromised Safety and Increased Liability: Failure to effectively communicate critical safety information can lead to accidents, injuries, and substantial legal liabilities. Just as automotive manufacturers have a duty of care by notifying authorities and drivers to potential issues, so do machinery OEMs to their customers.
• Erosion of Customer Trust and Relationships: When customers miss vital updates due to inadequate data management, it can severely damage their trust in your organization and negatively impact long-term relationships. They have a right to know that their vehicle should be professionally checked, and by extension, that their machinery is operating safely and efficiently.
• Regulatory Non-Compliance: Depending on industry-specific regulations, there may be stringent requirements for manufacturers to disseminate safety information and manage recalls effectively. Deficiencies in data management can lead to non-compliance and potential penalties.
• Missed Aftermarket Revenue Opportunities: ADS astutely points out that improving database management would not only help ensure safety but also present a significant commercial opportunity. Accurate and up-to-date customer data enables proactive engagement, allowing you to offer relevant service contracts, upgrades, and preventative maintenance packages, thereby bolstering your aftermarket revenue streams.
• Exposure to Potential Future Regulatory Changes: The automotive industry is facing the prospect of unresolved safety recalls being treated as automatic MOT failures. While currently advisory items, a shift in regulations could overwhelm workshops and inconvenience millions of drivers. It is not unreasonable to anticipate similar regulatory scrutiny within the machinery sector in the future.

The lessons from the automotive experience are clear and demand proactive attention from transportation, medical devices & life science products, and military and other B2B OEMs. As Jon Sheard, operations director at ADS, emphasizes, 

“The fact that almost a quarter of safety recalls are never properly dealt with is the biggest wake-up call yet for dealers to begin taking the maintenance of customer databases more seriously”

This sentiment resonates directly with the challenges and opportunities facing your organization.

Strategies for Better Consumer Data Management:

To mitigate these risks and capitalize on the potential benefits, consider implementing the following strategic imperatives:

1. Elevate the Priority of Customer Data Maintenance: Recognize that maintaining accurate and up-to-date customer records is not a peripheral task but a fundamental pillar of safety, compliance, and aftermarket success.
2. Implement Rigorous Data Accuracy Monitoring: ADS analysis reveals that up to three quarters of customer records, in the typical dealer database that we analyse, contain inaccuracies. Establish consistent processes for data cleansing, verification, and updates.
3. Develop Comprehensive Post-Sale Communication Strategies: Go beyond initial sales interactions and implement strategies to maintain contact with customers throughout the entire lifecycle of your equipment, even across changes in ownership or service providers.
4. Leverage Technology for Enhanced Data Management: Explore the implementation or optimization of Installed Base Management systems, to improve data accuracy and facilitate targeted communication by acting as a “Single Source of Truth” for all your installed base data (integrating data from multiple sources – CRM, ERP, FSM, spreadsheets, etc.)
5. Acknowledge and Act on the Commercial Imperative: Understand that if dealers solved this problem it would benefit their customers, their manufacturer partners and themselves, simply by keeping track of customers properly4 . The same principle applies to machinery OEMs looking to strengthen customer relationships and drive aftermarket growth.

The automotive sector’s experience with missed safety recalls serves as a compelling reminder of the critical role that robust customer data management plays in ensuring safety, maintaining customer trust, and optimizing aftermarket operations for B2B-OEMS, especially in the transportation, medical devices & life science products, and military equipment sectors. 

By proactively addressing potential vulnerabilities in your own data infrastructure, you can mitigate significant risks and unlock substantial opportunities for enhanced customer engagement and business growth. The time to act and learn from the challenges faced by a related industry is now.