In 2009, Dan Menafee decided it was time to walk away from collision repairs after a 40-year career, the last half of it spent managing shops in southern Maryland. Before saying his goodbyes, he picked up the phone and delivered to ABRN the best advice he believed he could give anyone wanting to repair vehicles for a living.
"Ask yourself how much you're willing to pay for your customers," he said.
Obviously, he was referring to the cost of doing business, but Menafee framed the statement oddly in reference to a challenge he had spent several years handling. The owner of the shop where he worked was growing increasingly frustrated at the business's inability to draw in customers after losing several key DRPs. Finally, he turned to a business consultant who put together a reorganization plan that included new layouts for customer marketing and perks. The thinking behind the program was sound, on paper at least.
Some of the most successful shops in the country pampered customers with a host of extras--everything from extended pickup and delivery hours, lavish waiting areas, complementary gourmet coffee and snacks, business centers and child play areas to free automotive services. Menafee remained unconvinced.
"I'm all for making our shop as convenient and nice as possible for customers," he said. "But this wasn't working for us. I couldn't see it helping us turn the corner." With that, he decided to depart the industry.
Ironically, Menafee may have exited the market at the very moment repairers were changing their position on perks. The shifting terrains of collision repair were being remade by fast growing MSOs built for speed and looking to grab up as much territory as possible.
Customers, too, were changing. Access to online estimates and convenient scheduling allowed them to focus on finding shops that could provide service as soon as possible.
Don't count out the power of perks just yet. The thinking on what extras work best for shops and motorists has evolved. They remain an important part of doing business for many shops.
Definitions matter
What counts as a perk these days?
Part of the changing nature of perks is their definition. Some repairers consider conveniences such as pickup and delivery and free WIFI necessary costs of doing business. Others extend the definition even farther to include any extra steps shops take to promote themselves through positive customer experiences.
For the purposes of this article, perks refers to any additional niceties beyond a quality repair and standard customer service (scheduling, regular updates and a friendly attitude). While this definition may seem dated, it helps illuminate the changing perception of these bonuses and their many forms.
Perks with problems
When ABRN last spoke with Jimmy Lefler, owner of multi-Top Shop winner Lefler Collision and Glass, he was unveiling his innovative and leading edge business's newest creation, a valet concierge program for rental cars. That program had Lefler employees delivering rental vehicles, along with the necessary paperwork, to customers at their homes and jobs. The program was designed to allow customers to skip what could be an inconvenient trip to the shop or rental agency.
Setting up the concierge service was no simple task. Lefler's had to invest time and resources investigating the ins and outs of renting and eventually had to work out an agreement with the rental company that permitted the shop's customer service specialists to assume the roles of agency employees.
The program proved to be popular with the shop's clientele. Its success came with some significant downsides. Namely, the service drew away a large chunk of the business's resources, far more than anticipated.
"When each of our stores are bringing in 5 to 10 cars every day, the logistics and manpower required are greater than the current staff can handle, making the program costly to staff," explains Lefler. "It basically requires a team of its own."
Additional, potential costs also weighed on the program. Once Lefler's took control of the rental, it owned any negative portion of the deal. That included cleaning vehicles and handling difficult issues such as pairing customers with a comparable replacement.
After the service was in place, the shop encountered an unexpected revelation. Many customers considered it problematic. "Most would rather stop by our shop for a rental before or after work since they often already have more than they can handle during the day," says Lefler. "Stopping to meet with our people in the lobby or parking lot turned out to be a bigger pain than just coming by the office."
Valuable lesson
Currently, Lefler is weighing what to do with the program. For now, he offers his thoughts on what perks deliver the best results, beginning with responsive communication.
"That's the degree that what you say responds clearly and directly to what the other person just said," he explains. "If you are being responsive, the other person knows you are paying attention, and care enough about what he or she is talking about to 'stay on that topic.'"
The opposite, non-responsiveness, involves changing the subject — sometimes in a subtle way, other times more obviously. The result is a conversation that quickly becomes disjointed and disconnected, with both shop and customer walking away believing the entire talk was rather pointless or feeling unhappy with the other person. Even if their intention are truly in the right place and they want to put the customer's concerns at the forefront, repairers that fall into this bad habit actually send the message that they don't care.
Lefler says shops next need to practice productive communication that, again, demonstrates an interest in the customer's concern. This begins with setting clear and realistic expectations. If the repair calls for 12 hours, don’t project seven days just to cover the unknown possibilities, he says.
"Explain the process and control your cycle time. Give updates at a minimum of every other day and contact the customer immediately with any changes" Lefler adds. Be mindful of pickup times and how they can impact a customer's personal schedule. Lefler recommends giving customers at least a four hours. No customer wants to get a 3:45 pm call stating a vehicle is ready but must be picked up by the shop's 5:00 pm closing time.
From there, Lefler says to plan on spending time to go over the repair and "sell it back to the customer." That means presenting the vehicle to the customer personally as opposed to having a front desk rep request the required signatures and payment before turning over the keys and pointing to where the vehicle is parked. Setting aside time to review the work shows customers that any concerns they expressed in the beginning or any promise the shop made has been addressed.
Finally, he suggests looking for ways to wow customers. This can be as simple as changing a turn signal bulb the customer overlooked or reattaching a loose piece of trim, handle, mirror, etc. Lefler says pointing out these relatively small acts out upon delivery is fine since it demonstrates to customers that a shop cared enough to go the extra mile.
Beyond tasks related directly to the repair, Lefler points to recognizing opportunities to reach out to customers personally. For example, recently an employee at his Newburgh, Ind. location was speaking with a customer waiting for a small repair who mentioned needing to go to the grocery store on the way home when the vehicle was finished. The employee contacted the courtesy driver who transported the customer to the store and then waited patiently in the parking lot for the chore to be completed.
Notable in Lefler's take on perks is that many, perhaps most, don't seem like perks at all. They're examples of thoughtful customer courtesy that one could rightly expect to receive at any collision repair business. But they aren't. (The fact that customers actually might be surprised to receive them says a lot about customer expectations in the auto service industry.)
That's exactly Lefler's point. Perks aren't necessarily about going to extreme ends to satisfy customers, and they don't replace real customer service. They're another part of service that must be managed and maintained with ongoing training and feedback. They provide value through their direct, individual--not generalized--appeal. That's the core of the five star customer experience service experience many shops aspire to provide.
Perk payoffs
For the better part of its 44-year history G&C AutoBody has taken a leading role in creating and offering a host of perks to help keep drawing in customers to its growing 11-shop operation headquartered in Santa Rosa, Calif. In return for affixing a three-inch G&C decal on their rear window, customers received free services for as long as they own their vehicle, including oil changes, tire rotations, front-end alignments and local towing. Rental vehicles were available for $1 a day along with a Rental Rebates program that returned half of the paid rental bill to customers.
G&C also invested in arguably the most unique shop design anywhere, palatial structures that took their inspiration from founder Gene Crozat's visits to Europe. Crozat wanted his customers to know they were be treated special. The eye-popping architecture is paired with equally striking interiors sporting expansive customer lobbies, large stone fireplaces, chandeliers and plush couches and chairs.
While the business continually reviews all these offerings, Chief Operating Office Shawn Crozat says the lavish structures are here to stay. They might just be more important than ever, in fact.
Crozat notes that collision repairers need to find ways to differentiate themselves. He explains, "You can only fix a car right once. You have to do something else to stand out."
When it comes to setting themselves apart, shops need to recognize who their true competitors are. Crozat says it's not other shops.
"Customers don't get in an accident every week. It's not something they think about," he notes. "They aren't going to compare us to a shop down the street or one of the big name consolidators. They don't know them."
Crozat says his real competitors are dealerships and higher end retailers such as Apple Stores and upscale restaurants. "Those are the customer service experiences people remember, and that's what we're being judged against."
That explains why the business continues to invest in stylish customer surroundings. G&C is currently renovating two new locations and intends to spend $35,000-$40,000 on countertops and wood trimmings alone. Even more important, it will carry over the business's emphasis (like Lefler's) on "wowing" customers, providing them with a service experience they'll enthusiastically recommend to spouses, friends, neighbors and coworkers.
So important is this kind of customer service to the business that it's tied to staff pay, including Crozat's. Employees look for ways to provide a memorable, personable experience. G&C supports their efforts with an environment conducive to a customer-centered focus. The shops sets an employee dress code. Customers are referred to as "guests." G&C also heavily promotes successful customer interactions, sharing positive Yelp reviews and stories of exceptional customer feedback within its business.
"We've had several occasions where customers have been so happy they've tipped estimators as much as $100. They bring in baked goods, pizzas and even a 12 pack of beer to staff members. This happens all the time," says Crozat.
"We even have had customers drive an extra 40 miles after we moved an employee to a different location because they liked him so well and wanted to do business with him again."
Verdict on extras
Once again, no single perk drives these responses or delivers this level of loyalty. Steady, special attentive care pays off. Crozat and other owners say more traditional perks such as complimentary WIFI, snacks and comfortable waiting areas, though not highly used, continue to prove their worth, providing background comforts in a larger effort aimed at an impressive experience.
Shawn Moody, co-owner of Moody's Collision Centers in Gorham, Maine, says much of what his business does focuses on creating a calm and trusting environment. "We utilize natural wood, a lot of glass and soft pastel colors, all designed to create a soft, calm feeling. Our grounds are always neat and well manicured," he says.
"This gives customers the feeling when they walk in our front door that 'I’m in the right place. These people are open, honest and take pride in what they do.'"
These benefits often outweigh those gained from more extravagant offerings. A Charlotte, N.C. owner reports his shop once began entering customers in monthly drawings for cruises and resort vacations. He eventually abandoned the strategy after one winner asked if he could exchange a trip for something more valuable: an earlier start date for repairs on college-bound daughter's car.
This episode highlights what might be the key takeaway on perks in today's market. Customers aren't looking for giveaways. They just want reassurance that their business matters. That's something every shop can provide, each in its own way.
