When it comes to outside-the-box marketing, if you can think of it, odds are some shop operator has tried it. From wacky radio commercials to sign spinners at a busy intersection, any shop owner or operator would be doing a disservice to their business if they didn’t explore any opportunity to increase revenue. But the success rate can be as varied as the initiative.
On the scale of thinking outside the box, hosting continuing education (CE) events is not in the same universe as a catchy jingle. But it’s also maybe not the sort of thing one might think of right away as a marketing initiative. When you take a closer look, though, all the revenue drivers you’d want are there: It’s a way to build relationships and earn more referrals, all for a minimal investment.
“I’m an advocate of it because I’ve done it since 1997,” says Robert Rick, who as strategic account manager for Axalta helps design programs and train CE instructors. “And it frickin’ works, man. It works unbelievably well.”
How it works
For those unfamiliar with the world of continuing education, these classes are for insurance agents who are required to take a certain amount of continuing education work on a regular basis to stay current on their license. This amount ranges from around 20 to 24 credits per year, depending on the state. The curriculum can be designed by anyone but must be approved by the state and assigned a credit amount.
Rick began his involvement with CE classes while working with Abra Auto Body & Glass in the late 1990s. Abra designed training programs for American Family Insurance agents and noticed an uptick in referrals to Abra shops. That operation quickly grew to the point where they had certified programs in 49 states.
“Agents are very frugal,” Rick says. “So, when they can get free classes, and they’re referring their customer to Abra, or whoever the company is that is hosting the class, they're going to give these cards out. The customer takes it, and they come to Abra. So, we know that the referral came from that agent. These CE classes turned into a marketing mecca.”
Just as Rick is now with Axalta, a shop wishing to host CE classes could start by reaching out to their vendors. They can assist with setting up the curriculum, the instructor, scheduling, and identifying a venue. Many shops choose to host their classes at a hotel or event space, though large shops with dedicated conference rooms or lounge space could actually host the class in-house.
The bottom-line benefits
Jamison Randall, marketing manager for Latuff Brothers Auto Body in St. Paul, Minnesota, was intentional about pursuing CE events because he saw them as a fit for what his shop could afford to do as a small family business. Lacking the resources of bigger shops or those affiliated with national brands, Latuff could build relationships and generate organic referrals through hosting CE classes.
“I made it part of my long-term marketing plan,” Randall says. “So, it’s not something I expected to go in and have one class and all of a sudden get a bunch of referrals; it’s more of a long-term effort to develop these relationships over the long run that you become a resource for people to reach out to you. And get to know you, like you and trust you to be able to be that referral partner.”
Latuff hosts one or two events per year. Some shops do more, though there is only so much continuing education each agent needs to receive, so the opportunities are not limitless. Rick says that some shop owners may be hesitant to spend several thousand dollars to host a class, covering things like licensing fees, paying the instructor, providing refreshments, and so forth. But that’s short-sighted, he says.
Rick offers the example of spending $3,000 to host a class. If an average repair order is also roughly $3,000, with a 40% gross profit margin, it would take only three referrals from that class to pay for the cost of hosting it. That, Rick says, makes it a simple decision.
“It is an effin’ no brainer,” Rick says. “And we’re not talking one agent, you’re talking multiple agents. Because once you become known to offer good CE in the spring or the fall, you own these relationships, because you’re marketing to them three months before the class, several months after the class, and then you’re marketing your next program.”
A symbiotic relationship
Beyond increased revenue directly from referrals, there is also an intrinsic value to hosting CE events, says Randall. There’s a power in working with other business partners, and it also sends a message that the business can be a resource and not just trying to get more business.
“It’s a great way to get out to the insurance agents and have something to offer, versus going in and asking for business,” Randall says. “You’re creating more of a reciprocal business relationship where you’re able to help each other out. So, what I found was, when you’re doing that, you’re working with these companies, like restoration companies, or the rental company, they’re not your competitor; they’re your business partner.”
Rick points out that both the shop and the insurance agent have a lot at stake during a repair. If an agent is going to give out a referral, it has to be for a shop that does good work and treats the customer right. If not, that could have a negative impact on the customer’s opinion of the insurance company.
“Agents want to work with body shops that have the best chance of keeping that customer happy through the repair process,” Rick says. “And why not do it with someone from their local community that they know, where they've attended insurance CE credits, and the person stops by periodically? And that person they insured is one of their own. We see how CE comes back 360 degrees, because of our relationship.”
