Independents take top spot in servicing satisafaction survey

Published:  29 September, 2017

Independent garages are ahead of franchised dealers when it comes to winning customer hearts and minds according to a new survey.
The What Car? Servicing Satisfaction Survey 2017 heard from 8,300 new car customers, and found independents beat franchised dealers when it comes to value for money across servicing work, with an average customer satisfaction score of 89.8% compared to 79.4%.
On newer cars, customers gave independents 84.1% for satisfaction and 91.4% for value. In comparison, franchised outlets, who serviced the majority of younger cars in the survey, attained a customer satisfaction score of 80.9%.
On customer experience, independents scored 94.2% on average for attitude and politeness of staff compared to 91.1% for franchised dealers. Franchised workshops also scored less for the quality of work, with 88.5% of customers satisfied compared to 92.7% of those who used independents.

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  • Diesel from a different direction 

    I want to discuss diesel servicing from a totally different direction, compared with the usual angle. Let’s also start from a different angle, compared with the usual view. Consider this; Servicing is a failure prevention strategy.  Conducted in accordance with the operating environment there should theoretically be no failures. Please note my careful choice of words, operating environment. Manufacturers always have and are still marketing their vehicles with inappropriate servicing regimes.

    The political focus is one based on a relatively short warranty period and tailored to business or lease company requirements. In my opinion, service intervals should reflect the operating environment rather than fixed values such as time or distance.
    The very activities established as suitable by the VMs fall woefully short of actual requirements. Vehicle owners are, I believe, misled by a whole group of agencies with regards to vehicle ownership and responsibilities.

    I also think the possibility of cradle-to-grave ownership is closer than we like to acknowledge. You rent or lease a vehicle over a two-to-three year period with all maintenance inclusive. At the end of the rental period the vehicle is exchanged with a consecutive end to end contract. No responsibilities for repair or servicing.

    With this in mind, how should we approach diesel servicing given the problems with premature component failure and excessive emission issues?

    Detailed knowledge
    Let’s assume we have a new customer. Our first responsibility is to understand how they operate the vehicle and their aspirations and value of operating and investing in what is the Holy Grail, i.e. reliability.

    Detailed knowledge of driving style, traffic environment, driving distance, fuel quality, should have a direct influence on how servicing should be applied. This would be a unique profile for this customer.

  • Customer care in the garage business 

    Customer care is vital to the survival of most companies. Without customers we do not exist. This is extremely important in the independent repair sector as we are the
    service providers.
      
    In the face of ever-growing competition, it is very important for us to portray the image of a professional efficient business that cares about its customers. If you deal with customers and you represent your garage, it is vital that you look after all of your customers, all of the time.

    Positive relationships
    Without positive relationships with our customers no business can survive in today’s competitive marketplace. Just consider the number of customers you have had up until now, imagine what things would be like if they all disappeared overnight!
    Customer care has changed immensely over the years. Customers have become less tolerant and more demanding. It is a huge challenge for us to meet these demands. However, the answers are within us all.

    We all know that customers who are happy with the service we provide are more likely to purchase again and recommend us to others. You may even know that customers that are very impressed with our service rather than just satisfied are willing to pay higher prices for our service. You will certainly have awareness of the fact that when you treat customers in the correct way and display a positive and pleasant attitude, you will usually receive the same back from them.

    The best form of advertising
    Businesses that have developed an excellent level of customer service will usually find themselves in a situation where customers become advocates for their business. In many cases this becomes their best form of advertising. The alternative is a situation where customers feel they must let people know of their negative experience and are quick to do it. The implications of this can be extremely damaging and many businesses struggle to overcome the negative label.

    The basics of customer service are actually very simple. We know that being polite, smiling and making the customer feel good about themselves and their service/repair purchase is at the core of creating a good customer experience. However, tthese days that is no longer enough. Customers have become much more discerning, they have a much greater awareness of what is going on in the world, what they should expect from a garage and that it is very simple for them to take their business elsewhere when their high standards are not being met.

    Customer care breakdown   
    Customer care includes the following elements:

  • All the things YOU could do…  

    If you had a little money, how would you spend it to improve your business? Maybe you’d buy the latest ADAS calibration kit, or subscribe to an workshop management system?

    Okay, now let’s think bigger. If you were given all the money you had ever invested in your business and could start it again from scratch, how would you gear it up to attract customers and make it profitable? Would you build something like
    your current business, or would it be totally different?

    Why do I ask? Because the world changes quickly, which means our businesses are rarely set up exactly as we need or want, and we must make frequent spending decisions. We must work out how to prioritise our spending, to ensure we always offer the things of greatest worth to our customers; i.e. we maximise our value proposition.

    Last month, we sought to understand our typical customer (a private vehicle owner). We saw that they have functional, emotional and social tasks to complete (jobs). These jobs have either good results (gains), or bad outcomes, risks and obstacles, related to their undertaking or failure (pains). For example, taking a car to the workshop is an extreme pain for a typical customer because it makes it more difficult for them to complete their more important jobs (e.g. commute to work or navigate the school run).

    This month, we’ll use the things we learned about our customers to design our value proposition; We’ll use a repeatable technique to ensure our businesses offer the things our customers need and want. The result will be a value (proposition) map, or value map for short.

    Value mapping
    Anything that helps our customers get their jobs done will have value. Therefore, our products and services must aim to help them complete their jobs. If these products and services then eliminate a customer’s pains, they are pain relievers, or, if they produce gains, they become gain creators. By stating the ways in which our products and services create gains and relieve pains, we can communicate their potential benefit to our customers. Hence, by putting a list of our products and services together with the lists of their respective pain relievers and gain creators, we create a guide to the worth of our business to our customers. That is, we make a value map.

    Of course, not all our products and services, and their subsequent pain relievers and gain creators, are equally relevant to our customers; some are essential, whilst others are merely nice to have. We can use these differences to help our decision making: by ranking the items in our value map in their order of relevance to our customer, we can see which can be ignored, and which can be prioritised.

    Figure 1 shows example items that might be within an independent workshop’s value map, ranked in order of relevance to a private-vehicle-owning customer (a value map is targeted at a specific customer segment). As with the creation of a customer profile, there is no ‘right’ answer; this one is based on my half-thought-through assumptions, and previous business experiences. Yours might differ. Hence, we must derive and tweak our respective value maps accordingly. Ultimately, each of us would use business metrics (e.g. profit ratios and customer satisfaction ratings) to tune our value propositions to the max. But that’s a task for another time.

    Products and services
    We saw before that customers don’t like to waste time at a workshop; they want to go through their lives with the minimum of hassle. They crave convenience. Therefore, courtesy cars, a handy location (covered under ‘community-orientated’ services in Figure 1), extended opening-hours, while-you-wait servicing, or pick-up and returns (either vehicle or customer) all represent high value offerings. We don’t have to offer them all - they’re included in Figure 1 for reference. Likewise, online bookings and related management systems simplify engagement, bring convenience, and enhance value.

    Have you ever heard a customer say they like messy and dirty workshops and technicians? I haven’t. That’s because we attach value to our health and safety: If your premises and staff are well presented, they will project professionalism, and your customers will reach their desired emotional state of feeling safe. Even better, properly motivated, well-equipped and trained staff will increase the likelihood that your customers are safe and secure. As safety fears are powerful motivators and manipulators, we must use our expertise to help our customers assess and manage their exposure to risks. They will then be in control and feel in control of their safety.

    Not all customers will be seeking to cut costs all the time, but certainly all of them will want to control their costs. There are ways a business can help customers manage this aspect of their lives: clear terms of trade and fee structures; well-managed engagements with expert advice; warranted parts and labour; and a range of payment methods such as easy-pay solutions, touch-less, or credit card services.

    Surprisingly, some customers want to look after their vehicles. Primarily, this helps them feel safe and secure, minimises the risk of disruption to their lives (from breakdowns), and protects the value of their vehicles. A good service history represents monetary value in this sense. This means we should be offering, high quality parts and labour, and OE-aligned servicing and repairs.

    Pain relievers
    It might suit your ego to think all your customers visit your workshop because of your skill, expertise and professionalism, or your friendly welcome and great (i.e. free) coffee. However, pure convenience can be the decisive factor when some customers choose where to take their vehicles: you’re around the corner; you had a spare courtesy car; you’re open; you were prepared to look at it there and then; you had the part in stock etc. Whilst this reflects the significant value these pain relievers offer to all our customers, it is the case that some of those who value convenience above all else are not able to see the worth of your other products and services. If they don’t understand that your conveniences come at a cost, then point them elsewhere. You will never please them. Nothing has the potential to sour a relationship like an unexpected bill: When my head was buried in an absorbing diagnostic job, adequate communication was sometimes an issue for me. My ‘solution’ was to swallow the costs, to avoid upsetting the customer. This was neither a solution nor a sustainable business strategy. What I really needed was the best preventative medicine of all: Great communication.

    It should be no surprise that there are far more pains than gains in our value map: Servicing and repair workshops are all about pain relief; we are either trying to eliminate a current pain, through diagnostics and repairs, or carrying out preventative maintenance to avoid a future pain. Because this is our reason for being, customers find it intolerable to think our actions have caused them unnecessary inconvenience or costs. Nowhere is this more obvious than when we try to ‘help them out’ -  Every time we ever tried to help a customer to control costs (i.e cut costs), by fitting a cheaper part or trying a less expensive solution, it always backfired. Every single time. Can you guess who suffered the consequences? It always paid us better to ensure the car was fixed when it left the workshop. ‘Try it and see’ tends to translate into ‘you are going to be really cheesed off next time I see you’, It also counted that we supplied quality, parts and labour.

    Gain creators
    When properly delivered, our products and services will help our customers have the following: An easy-life; a car that holds its value and works properly; peace of mind; a sense of feeling special at our premises; and the information from our sound advice to make good decisions.

    However, for some of us, the ultimate convenience is to not have to engage our brain, so if we really want to take our value proposition to the next level, we must be highly proactive and perform our customers’ thinking for them: e.g. by sending MOT and service reminders, with easy to process ‘calls to action’ so that they are only a click away from being sorted. Then, at the allocated time, we would pick-up their vehicles from their homes to take them to the workshop, leaving a replacement vehicle in their place. I know plenty of businesses that do this. And they are successful.

    Money, money, money
    There are many servicing and repair options available to private vehicles owners: Independent workshops, fast-fit chains, main-dealer workshops, mobile technicians, chancers, etc. Next time we’ll see how other business types deliberately tweak their offerings (value maps) to fit specific customer segments. We need to learn to be equally deliberate and well-informed about our investment decisions. What if we don’t? Well, we might waste all our money, and lose all our customers. Which isn’t always funny, even in a rich man’s world.


    https://automotiveanalytics.net

  • Subscription versus submission? Preparing for the on-demand future 

    “Nothing is ever going to change, and everything is going to be alright forever” is usually the last thing said by a business owner, just before their enterprise becomes completely irrelevant. Customers sometimes take a little while to realise that something has happened that is affecting their behaviour, but once they notice they are doing something differently, it is probably too late. Then again, why should they go back? While the customers of our oblivious service provider have happily moved on, he or she is watching their life’s work quietly slip away.
        
    This has happened to many businesses across a wide range of industries. If there is a new offering that is a serious disruptor to the status quo, only those who are adaptable and open to change will survive. Keep doing what you have always done and you will go under. Think it won’t happen to you? Then maybe it already has.

    Subscription
    Alright, let’s take a step back from the brink for a second and think about what could be coming around the corner to change our world. Actually, maybe it is already here. I am sure most of you are aware of subscription-based services, and probably use one or two in your private time i.e. Netflix or Spotify. The principle applies to the automotive sector too. There are quite a few car-sharing services and car clubs. These tend to be on-off options that users will activate when they need a vehicle.
        
    Vehicle leasing is probably a better example. This is not a new concept, but it has become much more common and accepted by motorists, particularly in a world where people are becoming increasingly comfortable with using a vehicle without the need to actually own the vehicle.
        
    The big issue with motorists not owning the vehicle from our perspective is this: If they don’t own it, who does, and where does that owner expect to get the vehicle serviced? Because, if it is not at an independent garage, or if legislation does not keep up and shuts out independents until amendments are made, you are not going to see any of that business.
        
    Let’s get back to subscriptions. We read something interesting recently from Syncron, the provider of cloud-based after-sales service solutions. The company recently released research that highlighted increasing consumer interest in subscription-based services, and the company believes this is forcing vehicle manufacturers to redefine their dealer service operations. If manufacturers look to change the rules of the game, it is always a good idea to make sure independents are still allowed play.
        
    As Syncron pointed out, vehicle subscription services are a way for people to access what are euphemistically called ‘mobility services’ as an alternative to traditional car ownership. Through mobility services, a provider’s customer pays a flat monthly fee to a manufacturer or third-party provider in return for on-demand access to several vehicle models. The fee covers insurance, maintenance and roadside assistance. As with music or on-demand TV, this can be turned off or on at will. OEMs already employing these models worldwide include BMW, Volvo, Jaguar Land Rover, Lexus, Mercedes-Benz and Audi.

    Submission
    As you might already be imagining, in this model where the customer picks up and drops off a car when they feel like they need it, or not, there is not much need for the customer to source servicing or repairs. Where’s the convenience in that? It would be like having Netflix, and having watched the film, deciding to go outside, up the road to Blockbuster to take the tape back. What tape? Also, how can you take the tape back to Blockbuster since it is not there anymore. Aha, but there is always the independent video store…no I can’t get to the end of that sentence either. Can you see where the logical end of all this might go? Motorists that do not own their vehicles do not need to have a vehicle serviced. Neither will they be looking for servicing or repairs on a price point, as again it is not their responsibility. Where does this leave independent repairers?  Should you just chuck in the towel? Actually, things might not be as bad as you think.  

    Upside
    As far as Syncron is concerned, there could be an upside for service providers like the automotive aftermarket. The change in attitudes brought on by the subscription economy, as far as they are concerned puts the most pressure on vehicle manufacturers in their traditional core business area, i.e. vehicle production. With less impetus to buy vehicles, there will be less vehicles sold. That means they need to derive income from the other end of the chain – namely servicing and repairs. This means manufacturers would need to look to their dealer networks to generate income for them.
        
    As some you may have already realised, in many ways servicing and repairs is not where the primary strength of many franchised dealers lies. This is despite the fact that most of them generate more profit from this end of the business than from new car sales. Part of the issue may be that for dealer workshops, most of the work they do will be on cars below three years old, mainly focused on servicing and warranty work. While they do try to keep as much metal from escaping as possible once the standard three years is up, for the most part their workshops do not need to perform the more challenging diagnostic work that many independents will see day-in-day-out.
        
    Given the right circumstances, and if vehicles were owned by a third party rather than by VMs themselves, or if consumers still had the same level of choice as if they were the owner within certain parameters, independent repairers could offer a more rounded care offering that would fit with the needs required. There is some good news right there.

    Reactive
    Overall, servicing aside, vehicle care is often reactive, with vehicles being repaired after something has gone wrong. Syncron posits that in this model, franchised dealers will need to be armed with enough information coming in from vehicles so they can pre-empt failures, effectively repairing the vehicle before it goes wrong.

    Experience
    Syncron looked into what consumers get from the dealer experience, in a survey of 500 vehicle owners from across Europe and the U.S. The findings were featured in a report; shifting Gears from Reactive to Proactive: How Customers’ Rising Interest in the Subscription Economy is Revolutionizing the Automotive Dealer Service Experience.
        
    We are talking about vehicle subscriptions as if motorists are chucking their cars away left and right. However, the report found that awareness was relatively low, with more than 60% of respondents not aware of the concept. Not so much to worry about then perhaps, we can get agitated about this idea further down the line when we have got our heads around EVs and hybrids? Afraid not. Once they did hear about the idea, 57% said they were very interested in the idea. You might need to think about your business model after all.

    According to Syncron, additional findings from the research report include the following:

    Customers are satisfied with the dealer service experience as it stands today
    Nearly 60% of vehicle owners indicated that they use their dealer for maintenance and repairs today, with more than 90% describing their most recent dealer service experience positively.

    Interest in subscription services is high, but awareness is low
    Around 60% of respondents indicated fixed monthly cost and included maintenance and repairs as the biggest advantages of vehicle subscription services. More than 40% of respondents also indicated they would be willing to pay a premium price for a subscription-based model.

    Automotive OEMs must invest in service today to prepare for the future
    More than half of survey respondents lack loyalty to a particular automotive brand when making final vehicle purchasing decisions. And, with nearly 40% of these vehicle owners indicating that a negative dealer service experience would sway their perception of a brand, the customer experience at the dealer level is more important than ever.

    Game-changer
    According to Gary Brooks, CMO of Syncron, subscription services could be a game-changer: “In the coming months and years, automotive manufacturers must optimise their current infrastructure to lay the foundation for a successful future. It’s not so much a matter of if, but when, customers will overwhelmingly demand subscription-based services. Automotive OEMs must begin equipping their dealers today to prepare for a proactive service model where vehicles are repaired before they ever fail. In this new research report, we aim to inspire and motivate automotive manufacturers to do just this as they navigate today’s ever-changing customer expectations and prepare their businesses for the seismic shift to the subscription economy.”

    Positive position
    What can we learn from this though, and where does the independent repairer fit in? Assuming that our representative organisations, including the IGA, IAAF, GEA etc are able to make sure that independents maintain the rights secured under the Block Exemption Regulation, independents could be in a very positive position.The connected car could provide a whole new income stream for those able to access it – and we want that group to include independents.
        
    Garages that thrive need to be proactive to attract business in the first place – they do not have the built-in customer base of owners that dealers can rely on. Given the circumstances, and the access to remote diagnostics, independents could be in a good position. Among the exhibits on the HELLA stand at Automechanika Birmingham this year was information on CarForce, the software platform that provides real-time vehicle health data to garages. While this is not currently running in Europe, it does point towards where we are going.
        
    Again, assuming drivers still have the choice, if independents were able to compete on a level playing field information-wise in the brave new future, they could do really well. The best thing to do at this point is to stay on top of the technology, keep up with developments and make sure your business is attuned to the zeitgeist.


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