How to position yourself to be successful in the collision repair industry

July 28, 2017
Collision industry guru Mike Anderson was in fine form July 27 when he presented “Positioning Yourself in the Collision Repair Industry” during NACE Automechanika in Chicago.

CHICAGO — Collision industry guru Mike Anderson was in fine form July 27 when he presented “Positioning Yourself in the Collision Repair Industry” during NACE Automechanika in Chicago. Anderson, a tireless presenter and advocate of the collision repair industry, grabbed attendees’ attention with his rapid-fire, insightful delivery about what it takes to be successful in the collision industry.

But this class went beyond the nuts and bolts how-to repair talk that I-CAR and other organizations do such a great job with. Instead, Anderson examined three key areas of business: sales and marketing; production; and accounting, finance and human resources.

Perhaps most compelling was Anderson’s explanation of protecting a repairer’s brand and the brand of the vehicle they are working on. Collision repairers who own or operate shops and don’t think of their business as a brand, should think that way, he said. The automakers certainly think that way when their vehicles are being repaired.

Mike Anderson instructs his course “Positioning Yourself in the Collision Repair Industry" to attendees.

For example, a Chrysler study determined that if a consumer has a bad experience at a collision repair shop and needs to go back to the shop for additional work or to fix an incorrect repair, that affects the customer’s original equipment manufacturer (OEM) brand loyalty.

“What happens is that 60 percent of the time consumers lose faith in that car brand and trade in their recently repaired vehicle within one year,” Anderson said. “Of that 60 percent, 63 percent of consumers will purchase a different brand of vehicle, according to the Chrysler study.”

In effect, the vehicle brand suffers due to a poor experience in the aftermarket. Because of that, OEMS are very concerned about shops protecting their brand. In addition to getting the repair right the first time, it also means completing the repair on time on schedule.

Anderson also provided an insightful comparison on the differences between what consumers are looking for, what OEMs are looking for and what the insurers are looking for from a collision repair business. Getting involved in an accident often is a traumatic experience for consumers, he said. While repairers and insurers deal with the situation daily, consumers may only deal with this situation once every 10 years.

“Consumers are looking for somebody that they can trust, somebody who will be empathetic to their situation, and for direction,” Anderson said. Consumers often are unfamiliar with the collision repair process of what happens and they are looking for guidance to get them through the entire repair process. They often turn to their insurer to provide that direction.

“Insurers are looking for service, speed and accuracy,” Anderson said. “They want the repair done right, done fast and done on time and without supplements.” Insurers always will be mindful of the bottom line, but they believe that if the repair is done right, fast and done accurately, then they have a good chance to please their insured. If they please their insured, they are more likely to keep them as a customer.

“OEMS are looking for a safe repair, for a proper repair done with the proper parts, and for protecting their brand,” Anderson said. “Doing a safe and proper repair means a couple of things to the OEMs. First, it means doing the repair according to the correct OEM-recommended repair procedure. If you don’t do that you are not going to achieve a successful repair.”

It also means doing the repair with the right part, and for example, not trying to repair parts that can’t be safely and properly repaired. OEMs are concerned that shops are researching OEM repair procedures and scanning vehicles with OEM scan tools prior to delivering the vehicle back to the consumer.

Anderson also discussed telematics and what role it will play in the future.

“People die in car accidents. Automobile accidents were the fourth leading cause of death in the U.S. last year,” Anderson said. “That is often because first responders can’t get to the scene of the accident in time. Telematics in vehicles will allow first responders to get to the accident more quickly.”

It also allows the OEM to communicate with the consumer very early in the process. In fact, telematics will allow the OEM to speak to the consumer before the insurer, and of course, before the body shop. In effect, telematics gives OEMs the first crack at communicating with the customer after the accident, which will allow them to recommend body shops before the insurer gets involved. So once again, protecting your brand and the brand of the OEM can prove beneficial.

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