2021: Time for a digital revolution in the aftermarket?
Does 2021 mean it’s time to throw out the new ideas and go digital in the garage sector?
Published: 15 February, 2021
The Coronavirus pandemic hasn’t slowed the pace of technological and regulatory change in the automotive industry; if anything, the opposite is true. Consumers and industry have seized the opportunity to recover sustainably, and all of us have incorporated more digital solutions into our everyday lives to ensure we can access the people, products and services we need. So, what does this mean for independent garages?
While many were understandably focused on survival last year – and although this year will bring challenges of its own including Brexit – in 2021 it’s important for workshop owners to take back control. There are two digitalisation gaps to close.
To remain competitive, independent garages need to keep up with the rest of the automotive sector in terms of digital capability and connectivity, while matching service providers in other sectors to meet consumers’ expectations.
We know that many garage owners are cautious about making business investments in the uncertain climate we’re in, but deployed in the right way, digital technology can improve efficiency, profitability and competitiveness from day one.
Digital solutions for business management
Downtime in the workshop is costly – and potentially more likely, now that seasonal demand patterns have been disrupted by shifting MOT deadlines. The onus is on garages to proactively manage their workload, which is where digital garage management solutions come in.
Using data to accurately predict how long each job will take is essential, so that work can be scheduled effectively, and technician resource scaled up or down as needed. Haynes Pro data underpins quoting for and scheduling work through our CarSys garage management software, which is also loaded with customer and vehicle databases. This means technicians can look up MOT and service histories at the touch of a button.
As well as maximising productivity on the workshop floor, garage management software can streamline back office processes, too. CarSys comes with a direct link to our catalogue, facilitating 24/7 online parts look up and ordering, as well as stock management features, a help centre and the ability to sync with leading accounting solutions, Sage and QuickBooks.
Parts ordering in the independent aftermarket has traditionally been done over the phone, but online orders can be faster, as well coming with the added benefit of a digital footprint. This is something we’re encouraging garages to consider in 2021.
Those that buy through our trade website, Omnipart, have got complete visibility of their order until the moment it’s delivered – again, helping them to schedule work. Returns and warranties are also easier to manage – and workshops’ phone lines are freed up for their customers to use.
Digital visibility for customers
While many customers will still book appointments by phone so they can discuss what’s required on their vehicle, it’s likely that they’ll choose a garage through online search. Even if they’ve been given a word-of-mouth recommendation, they might well check the garage out online before going ahead. Garages with a credible online presence are best placed to win business. While we’re supporting by sending work into quality independent workshops via our Fit It For Me online service, there’s a wide range of much higher-value service and repair work that sits outside of this. That’s why in 2021, our advice to garages is to invest in their digital presence, which includes their websites, social media channels and other digital customer communications like emails.
Digital capability and connectivity in the workshop
The vehicles in the UK car parc are getting more advanced all the time, with the introduction of sophisticated software and systems designed to enhance performance, efficiency, safety, and the overall experience at the wheel.
In a recent survey, we uncovered that 29% of independent garages sometimes have to turn away work because they don’t have the skills and/or equipment needed to deliver work on more modern vehicles. The risk is that this becomes more common, unless they invest in their digital skills, tools and connectivity.
The immediate priority for workshops is being ready to service Euro 6 vehicles and hybrids, many of which are now in their fourth and fifth years of ownership and are no longer going back to the OE dealer for maintenance and repairs. As well as being connected and able to carry out important software updates, technicians need to be trained on the latest technology, and provided with the tools and equipment needed to safely and accurately diagnose and repair any faults. Take ADAS for example. This technology is already present in 10% of the UK car parc and will be mandatory on all new registrations from 2022. Often the root cause of an ADAS-related complaint will be a sensor that needs recalibrating but that can’t be discovered by manual inspection. All of the major diagnostics suppliers including Hella, Bosch, TEXA, Autel and Hofmann Megaplan have now added ADAS calibration equipment to their product portfolios, to help garages correctly resolve any issues once they’ve been identified. It’s important to note that while workshops tend to have a three-year grace period while the newest vehicles are in warranty and go back to the dealer, the same can’t be said for bodyshops. In addition to being able to repair Euro 6 and hybrid vehicles, bodyshops can already expect to see EVs coming through the doors – but the good news is that similar tools and skills are required.
Delivering with digital along the value chain
The events of last year meant that garages had to focus on short-term, business-as-usual goals over the long-term investments needed to get match-fit for the future. 2021 will be the year of digital transformation in the independent aftermarket and we’re excited to be a part of it.
Digital solutions can have a positive impact all the way along the value chain, from bringing in customers and processing and scheduling new jobs, to ordering parts, processing payment and completing repairs.
Research has shown that the average driver spends more than £1,200 on vehicle repairs each year. So it’s understandable that their expectations are high. As they would with any product or service they buy, they want transparency, efficiency and ultimately, delivery to a high standard.
It’s no different for garages dealing with their suppliers. We put ourselves in our customers’ shoes to a) determine which services we ought to offer, b) ensure we’re as easy as possible to do business with, and c) make sure we’re operating in a way that’s sustainable and effective – and we encourage our customers to the same, with digital at the heart of everything they do.
- Call tracking: The time is now
A phone call is often the first time a customer has a direct human interaction with a brand. Getting this initial touchpoint right is therefore essential. For the automotive industry, phone calls are still king when it comes to building a customer connection - but how do you effectively measure offline leads and calls as part of a wider marketing strategy?
Despite the digital era transforming marketing into a new world of tools, measurements, and analytics, the core principles of sales and marketing remains the same. The aim is always to deliver a genuine customer experience at every point of the journey, and offer an understanding of the product, brand, and customer intention.
But with phone calls driving more sales, how can businesses understand what is working, what isn’t and what their customer wants? Plus, with research from Mediahawk revealing that inbound sales calls for automotive dealers are up 22% year-on-year, understanding this will be key for business success across the industry as a whole. The data also highlighted that the summer period June – September 2022 showed a steady increase in sales calls to dealerships.
Inbound call tracking and analysis gives all businesses in the automotive industry from dealerships to independent repair garages the opportunity to turn this positive sales call volume data into something much more meaningful - informing a wider holistic marketing strategy.
Getting into gear: Latest automotive insights
In the automotive sector, data trends from Mediahawk indicate that alongside a steady YoY rise in phone calls, a whole suite of marketing technology tools are being used to engage with customers.
Website visitors to automotive dealers in particular follow a similar pattern to calls, rising to a 45% YoY growth, and is in line with the summer 2022 and January 2023 rises. Other key avenues for acquisition and driving customers through to the website come from organic channels, which has increased by 73% YoY.
Paid channels and partnerships are also proving worthwhile for automotive marketing strategies. PPC activity drove 22% of website acquisitions in 2022. Social media, Google Business Profile (GBP) and Auto Trader also saw significant YoY growth in driving website traffic, proving that diverse channel messaging is vital to reach multiple customer audiences.
Mediahawk’s report also uncovered that Google Business Profile had the most impact when it came to inbound calls. 46% of inbound calls were attributable to GBP, demonstrating that the decision to call can be fast-tracked by having an up-to-date profile online.
With so many communication avenues, tracking effectiveness is critical to knowing the impact of marketing budgets and campaign reach. The automotive industry can incorporate these tools into marketing strategies, but should also apply a continuous improvement to prevent wasted budget and more effective targeting.
How call tracking can benefit your garage
Data shows that customers are still keen to pick up the phone and speak to someone - especially for big-ticket items like cars. With the economic squeeze across the UK making everyone more careful with their money, a great experience can be make-or-break when it comes to who they book with in the first instance, and if they become a repeat customer.
Inbound call tracking is not just about monitoring call sources. By implementing it as part of a wider marketing strategy that uses organic, paid, media, and partnership platforms to reach customers, garages are able to maximise a potentially limited marketing budget, understand what channels are most effective, and refine accordingly to deliver great results.
1. Customer experience
Building good relationships are key for any business, but particularly for repair garages. Creating a positive rapport with a customer helps them feel at ease and in control. Establishing a great customer relationship also means they are likely to be a repeat or returning customer.
With more people holding onto their cars for longer, this could mean more repairs over time, so ensuring relationships are being nurtured at every opportunity is critical. Speech analytics is deployed through call tracking and can provide you with an edge over competitors through smart use of customer insights.
Tracking key phrases and intentions allows garages to target customer needs exactly. In turn, this can influence and shape services, offers, and overall customer communication. Marketing messages can be tailored and perfected to improve conversion rates and generate customer loyalty.
2. Team performance
Marketing is just one half of the customer experience here - once the customer has picked up the phone, it’s time for your team to shine. Inbound call tracking allows garages to measure the performance of the calls and know where successes are happening, as well as where improvements can be made.
Inbound leads offer your team the opportunity to nurture a customer relationship and create a positive experience. These human connections are what build customer relationships and all-important brand loyalty.
By using call tracking, garages can understand where additional training is needed to improve the customer experience, keeping your teams up to date and able to answer any query.
Helping teams work effectively hand-in-hand with marketing campaigns and messages can help drive business success. Understanding how the two work together can be unveiled through the use of call tracking technology - as Dick Lovett Automotive Group discovered.
Call tracking in action: Dick Lovett Automotive Group
As an established automotive dealership specialising in luxury cars, Dick Lovett Automotive Group recognises the need for tailored and exceptional customer experience. However, despite a steady influx of positive customer calls, the business lacked insight into what was driving the communications. Without knowing what was pushing customers to call, it was impossible to understand ROI from marketing or accurately measure conversion.
Implementing Mediahawk call tracking technology allowed the Dick Lovett team to understand where calls were coming from, what marketing campaigns were driving customers, and capture more sales leads.
As a direct result of using Mediahawk, Dick Lovett has been able to improve the sales conversion rate, realign its marketing strategy to specific channels for maximum effect, and begin making strides towards improved data capture and enhanced overall customer experience.
The power of data analytics from call tracking is not to be underestimated when it comes to improving ROI and lead conversion. By understanding how to best allocate marketing budget and activity, refining the customer journey to be a seamless and positive experience, and continuously analysing and improving every stage of the sales and marketing processes, businesses can leverage data-driven advantages over competitors and stay a step ahead.
Without call tracking, it would not be possible to take such a nuanced approach to sales and marketing, nor to deliver results that are measurable to exact activity periods. Making every call count and gleaning as much data as possible allows businesses to improve, advance, and ultimately, succeed.
www.mediahawk.co.uk
- Automotive students keen on sector, but pessimistic on pay survey finds
42% of students on automotive college courses are not confident they will be able to get a well-paid job within the industry after completing their course, according to the results of Autotech Academy's Automotive Future Survey Report.
- Mintex Masterclass for Mission Motorsport
TMD Friction’s specialist training team recently visited service charity Mission Motorsport, to run its Mintex Masterclass training programme.
- International Women’s Day 2023: Motor sector reflects
International Women’s Day, which takes place today (Wednesday 8 March 2023) with the tagline #EmbraceEquity has been acknowledged by companies and organisations across the automotive industry.
- Ben’s Health and Wellbeing Survey returns for 2022
Ben has launched its 2022 Health and Wellbeing Survey and asking many people as possible who work in the automotive industry share their thoughts on the challenges they have experienced over the past 12 months.
