Our industry is definitely in consolidation mode. If you read the daily updates from the trade press, acquisitions have become the norm. And all this consolidation is a positive sign that the industry is strong and growing.
But strength in numbers may not necessarily equate to an enhanced overall customer experience. A network of collision repair centers comprised of a bunch of newly-acquired shops spanning a number of states and sporting the same sign out front does not guarantee immediate bottom-line success. That guarantee comes from being able to replicate a positive customer experience at each shop, then extending that experience throughout the entire network.
I often hear the term “replicate” used in industry circles when talking about the future of consolidation and multi-store operations in our industry. And while I wholeheartedly acknowledge consolidation as well as the MSO business model, and applaud some of the efforts to make change in the industry, I'm cringing a bit because of the challenges that lie ahead for the more rapidly growing networks.
Integrating an independent shop into a larger network involves so much more than simply switching the sign out front and changing a few up-front processes. That's just the start of what will become a herculean effort to realizing true business and customer model replication.
In the marketing world, branding extends well beyond a familiar logo. It's the feel one gets – the emotions a customer experiences – from your product or service.
What's the first thing that comes to mind when you think of Ritz-Carlton? Nordstrom? Apple? Morton's Steakhouse? Volvo? Each brand has it's own “experience.” Whether it's amazing customer service, or top-notch product design, or unfettered safety and performance, the brand experience is what keeps customers happy and loyal. The real challenge is to replicate that experience across your entire network of shops, anf that ain't easy.
It starts up front with familiar-looking environments, like inviting lobbies and other public environments that welcome customers. It's the consistent use of layouts and colors, of consistent messaging, of consistent care by the team members receiving that customer.
This type of consistency up front is achieved by establishing and documenting standard processes and company guidelines that are taught to new employees the minute they walk through the door, and strictly enforced throughout the entire network.
On the back end it’s a team-based, continuous workflow process approach that ensures replicated results. It begins with meticulous pre-planning to identify and secure every component needed to begin the reconstruction process. It involves regimented procedures and standards that are aligned with OE guidelines. It requires taking advantage of the many benefits of using OEM specific materials and parts. It measures success standard work and on-time delivery, not by the individual technician efficiency.
But in order for the team to work as the proverbial well-oiled machine, its members have to be on the same page. That's where education and training enters the fold. The business must provide the resources that allow team members to:
- Possess a thorough understanding of repair methods
- Utilize proper equipment
- Maintain a high level of continuing education
- Have a complete understanding of the shop's production process and how it impacts cycle times, quality and output
- Keep a close eye on manufacturer bulletins
- Maintain credentialing from quality training sources such as I-CAR and ASE Training
Similarly, the business itself needs to:
- Invest in the latest technologies to streamline the increasing complexity of collision repair
- Utilize I-CAR and ASE certified technicians who are continually trained in the latest technologies and best-practices
- Provide ongoing coaching, education and learning clinics for the team
- Stress consistency in all phases of production, from panel welds and bonding to grit choice and what can seem like documentation overkill
- Promote processes that closely follow OE guidelines and paint manufacturer guidelines
While the drive to acquire shops and consolidate the industry has vast appeal from a business perspective, the real challenge is to ensure replication throughout the network which begins at the front of the shop and extends right through to vehicle delivery. Only then will you begin to realize true value from your brand.
