Digital Auto Care Factbook 2016 - (Page 62)

BODYSHOP BUSINESS INDUSTRY PROFILE: 2013-17 State of the Industry point of contact, offload of DRP administration, consistency of performance and product, KPI measurement capabilities (cycle time, touch time, CSI), etc. As Rex Green of BB&T Capital said in a talk addressing collision repairers, scale allows: Ⅲ Superior systems Ⅲ Superior purchasing Ⅲ Spending on consumer marketing Ⅲ Better customer experience and satisfaction Ⅲ Insurer benefit from national presence as costs go down and KPIs go up. "Consumers have proven that they assign value to national brands and the consistent service they imply," he said. But single-store independents still continue to be the largest segment of the industry and are holding their own against impending consolidators. One such shop is owned by Ben Krom, who defied naysayers by opening his own facility a little over a year ago and recently celebrated his oneyear anniversary, nearly doubling his sales goal by grossing $278,000. When asked what would happen if one of the mega consolidators moves onto their corner, most mom-and-pop shops and smaller MSOs don't quake in their boots. Rather, they take the attitude of, "As long we keep taking care of our customers, we will be fine." And perhaps they're right. As Marcy Tieger of Symphony Advisors said in an article on consolidation in BodyShop Business, small business owners often forge strong bonds in their communities, and their "independence" can be a selling point to consumers. "There will always be a place for small, independent businesses, even with industry consolidation," said Tieger. In the same article, an independent shop owner said, "Independents are not going away. If you build a relationship and do a good job, the customer will come back to you regardless of what choices the insurance companies give them." Customers It has always been important for shops to keep tabs on who their customer is and Reproduced with permission from Babcox Media. 62 2016 Digital Auto Care Factbook Copyright © 2015 Auto Care Association understand their demographics, but even more so today as the customer is changing. % We live in a time of instant communication, so everyone wants to be updated on the status of their vehicle via text or % email. Those shops that can "manage" the customer experience and their expectations from the time they come into the shop to after the delivery of the vehicle will have the highest CSI scores, a key metric by which insurers measure a shop's performance. More and more consumers want to interact with shops via the Internet - website, Facebook, Twitter, Google+, etc. Those shops not utilizing these free social media tools are losing potential business. Those who are can take advantage of customers who post on Facebook or tweet, "Hit a deer this morning! Need a quick estimate! Help!" With accidents not increasing, shops need to find business in every corner they can. Mark Claypool, an SEO expert deeply entrenched in the collision industry, estimates that 60 to 70 percent of shops are on Facebook, but only 15 to 25 percent are managing it effectively. Less than 10 percent have a Twitter account, and less than 25 percent have verified their Google+ pages. "These numbers are higher for shops doing over a million in sales," he says. This Web presence comes with a flip side, though: shops' continual need to manage their "online reputations" and know what people are saying about them online. Roughly 50 percent of consumers are accessing the Internet via their smartphones now, so shops need to have mobile versions of their websites available. They also need to make sure their websites can be found in the vast universe of the Internet through Search Engine Optimization (SEO) strategies. Millenials are prone to use websites that now exist where they can take a 40 57 photo of their vehicle damage, post it to the site and get instant bids from shops. Some will argue if this model helps or hurts the industry, but the fact is it exists and is a potential source of new business. Shops cannot ignore this important customer segment. Women are playing a more vital role in the repair decision of the family vehicle as well, forcing shops to reconsider the look and feel of the collision service experience. use social media to market services use a website Workforce As if there weren't enough challenges in the industry, shops are facing an aging workforce and not enough fresh faces to replace them. Some openly wonder if they're looking in the right places for the right people, while others feel training at vo-tech schools needs to improve so technicians are more "day one ready" and up-to-speed on today's technology - not an easy task in the face of declining enrollment and reduced funding or outright elimination of these programs. Shops are seeing the increasing need to get involved with their local vo-tech schools, and some, if lucky enough, are seeing the value in dedicating space in their operations for internal training and recruitment. With a lack of outside help, the bottom line seems that the industry needs to help itself if it plans on creating and maintaining a sustainable workforce. Conclusion The collision industry is not alone in the pressures it's facing. Many other industries are consolidating as well and forcing participants to rethink their strategies. It will ultimately come down to who can deliver the best quality product the fastest at the best price. It sounds like a tired old cliché, but those who plan for the future, embrace change and keep up with the latest trends in the industry will be best positioned for success today and down the road. Ⅲ

Table of Contents for the Digital Edition of Digital Auto Care Factbook 2016

Auto Care Association Market Intelligence Committee
Economic Indicators
Key Economic Indicators
National Debt
Aftermarket Dynamics
Industry Employment
Technician Employment and Wages
What Do Our Members Think?
BCI Summary
State of the Auto Care Industry
U.S. Motor Vehicle Auto Care Industry
Introduction to the Channel Forecast Model
2014 to 2018 Forecast Assumptions
U.S. Motor Vehicle Auto Care Industry
Auto Care Sales History and Forecast 2007 to 2018
Auto Care Sales by Distribution Channel
Auto Care Segmentation
Auto Care Service and Retail Outlets
Auto Care Service and Retail Outlet Analysis
Program Distribution Summary
Retail Distribution Summary
e-Tailing
Financial Benchmarks
Financial Profiles of Select Auto Care Companies
Select Auto Care Transactions
Auto Care Industry
Consumer Profile
Replacement Rates for Motor Vehicle Parts and Jobs
Top 10 Replacement Rate Categories By Vehicle Age
Auto Care Industry Segments
Medium And Heavy Duty Truck Industry
Sales of Replacement Tires
Tool and Equipment
Paint, Body and Equipment
BodyShop Business Industry Profile: 2013-14
Vehicle Registrations and Usage
U.S. New Motor Vehicle Registrations
Top 10 Light Vehicle Registrations
U.S. Total Motor Vehicle Population
Hybrid Vehicles
Vehicle Operating Costs
Miles Driven vs. Gasoline Affordability
Gasoline Affordability and Fuel Consumption
Crude Oil and Diesel Fuel Costs
State Summary Statistics
State Summary Statistics
Global Auto Care Industry
Global Economic and Automotive Data
U. S. Trade Data for Selected Motor Vehicle Products
U. S. Trade Data By Country
Canadian Auto Care Industry
Mexican Auto Care Industry
Chinese Auto Care Industry
Glossary and Reference
Glossary and Terms
NAICS Definitions
Auto Care Data Resources
Auto Care Data Resources
Auto Care Association Market Intelligence
Auto Care Association Market Intelligence
Auto Care Association – Lang Market Comparison
Harmonization of Auto Care Industry Data

Digital Auto Care Factbook 2016