Looking to increase profitability? The answer is simple, right? Repair more vehicles. Out of space? Start repairs outside or build another building. Not getting enough cars? Sign up for another DRP. It’s easy.
Of course, it’s not. But information can help. This information includes your business data, your market data, and data about your competition — it can all help you understand your customers, your processes, and opportunities to improve your profitability. You can use data to:
- Determine the right target market
- Market your shop more effectively, to that target market
- Take advantage of consolidation
- Adjust internal processes for better efficiency
Understanding your market
You need to understand your target market and the needs of the market. Insurance companies have always sent vehicles to your shop, and any shop could repair any car, but can they properly and safely repair today’s more complex vehicles? Do you have the right training? Do you need to be OEM-approved to purchase parts? It’s no secret that vehicles are becoming more difficult to repair and OEM certifications are gaining more prominence and they provide a great opportunity to differentiate and market your business. Not every shop is certified by every OEM — nor should they be. Data can help shops understand their market and which certifications will be the best fit for their business. Data can help collision shops analyze their markets to determine the most common brand of car, their competition, certified shops in their area, and dealerships in their specific geographical area. This will help to define a business strategy and create opportunities to determine if an OEM certification could create a competitive advantage in the market.
Unlock Your Shop’s Efficiency
Looking to improve efficiency in your shop? Unsure why efficiency is such a big deal? Here's the answer to both questions!
You need to market the right way to reach your target audience. You want to invest your money in getting the best customers — those that will return, send their friends, and promote your business. Data can help you learn about the population and vehicles in your market. For example, if your market is largely luxury vehicles, your money may be better spent on fewer, more prominent and appealing ads, versus mainstream vehicles, which are more highly available to the masses and can be owned by a wider variety of customer. Those car owners are better marketed to similarly to the vehicle availability — commonly and widely.
"Consolidation" is the buzzword of the 21st century
And for many small businesses, it’s the subject of nightmares. With data, though, shops can navigate consolidation to their advantage.
- Considering selling your business? How do you make your business desirable to a consolidator? Data can help you understand what differentiates you in the market and what the consolidator may be missing in the market. Do you need to fine tune your business model? Is your shop the only one certified by an OEM a brand where you can dominate the market in repairs to that brand of vehicles? Are you marketing that differentiator and can you demonstrate the value of that certification? Do you know where and how to find the data to demonstrate the values? Demonstrating that marketable difference with data can make your shop more desirable to a consolidator if you wish to sell.