CCC's Crash Course reports on shop management strategies for the new decade

This new decade requires a fresh approach to collision repair center management. Shifting societal trends amid a battered economy will continue to be significant factors in determining how you operate your business.

“Shops have to prepare themselves for a smaller number of repairs,” says Susanna Gotsch, the lead analyst at CCC Information Services and author of the just-released CCC Crash Course 2010 report.

“First and foremost, it’s important for a shop to take a look at your marketplace and where you’ve been successful to date and how you can line those up,” she notes. For example, if you’ve been regularly dealing with 10 insurance companies with mixed results it might be beneficial to focus on the best four and enhance your relationships with them.

Are policyholders in your area buying direct from insurers or maintaining the personal touch that an agent provides? If going through local agents is the preferred method, outreach along that route may be an effective technique.

“Do you have a sizable avenue for getting business” amid a “moderate pattern of decline” in crash claims being made throughout the country?

“It’s going to be a business analysis that has to be done by each individual shop,” explains Gotsch, pointing to a number of variables such as the population demographics within your customer base; the types of repair jobs you bring in, whether it’s consumers who have been in a wreck or fleet accounts, etc.; the scope of competing collision, glass and/or mechanical repairers within your sphere; and the status of local auto dealerships.

“We’re going to see more dealers trying to get more business,” she says. Some communities may instead be experiencing a pattern of dealership shutdowns and added opportunities for independent repairers. Or an evolving vehicle mix could be in play with a prominent sales outlet concentrating on pickups and SUVs as smaller imports populate local roadways, creating an underserved car care segment.

The CCC Crash Course report cites author Paul Ingrassia’s view that the traditional “Big 3” nameplate arena will transform into a “Medium 6” comprising U.S., Japanese, Korean and European automakers.

Among repairers, financial stresses may have an impact on competition in your area. “We’ll see more shops close their doors,” says Gotsch, adding that “it’s going to be a fairly long recovery from the recession.”

Numerous collision repairers are adding mechanical services, paintless dent repair, glass replacement, custom painting, detailing and rental cars to their waiting room menus – and the lobbies themselves are looking more like doctors’ offices with attractive decors, refreshment offerings, clean rest rooms and other amenities.

Take a look at your target audience to better “build your brand,” Gotsch suggests. “Maybe there’s a town that has a lot of government fleets.” If that’s the case, you’ll want to approach the officials overseeing the motor pools rather than placing consumer-oriented advertisements. “If you’re trying to target your market toward fleets, you don’t want to do cable TV.”

Countries of origin and languages spoken could be a pertinent equation. If Hispanics (or any other ethnic group) are prevalent, “you should understand how to market to them,” she says. People belonging to certain sociological elements may benefit from specifically tailored and easy-to-digest explanations of how the claims and collision processes function.

The 45-page report contains extensive up-to-date scholarly research complete with footnotes. A chapter entitled Tiger Woods Not the Only One Postponing a Tee Time delves into aging baby boomers and how these “young seniors” are eschewing a leisurely lifestyle of hitting the links. Today’s 55-plus population is delaying retirement and still driving to and from work. They are demographically different than older motorists of the past who typically drove less and had fewer wrecks. You may want to take these factors into account when making marketing plans for this growing segment.

Among the more youthful Generation-Y crowd, unemployment rates for people aged 16 to 24 have soared to nearly 50 percent during the recession. They have embraced Facebook and other social media outlets, which presents multiple methods for reaching them. Gen-Y is also big on texting while driving, a practice that is akin to driving drunk, according to the latest research.

The average American gets into an auto accident every seven years, which means a good amount of your customers may be seeking industry services for the first time. “For most people it’s a brand-new experience,” says Gotsch. Clients are likely to expect stellar customer service in the form of clear explanations, real-time communication and efficiently quick repairs.

A pleasant manner and people skills are desirable traits if a repair specialist is called upon to deal with the public – and technical knowledge is crucial for frontline representatives. “The customer is going to want someone who knows what they are talking about,” she points out.

Shop owners are continually compelled to invest in more training and new equipment to address advances in vehicle technology and data management. “All of these factors represent a significant change in the way vehicles were repaired 10 years ago, and how they will be repaired in the future,” says Gotsch.

The green movement also is coloring shop management strategies as more states are adopting pollution control standards similar to those promulgated by the California Air Resources Board. Waterborne paint systems are a rising tide within the industry. “There’s been movement in that direction for many years, and I think we’ll see more movement,” Gotsch forecasts. “There is certainly an investment upfront, but over time you recoup that.”

To download a copy of the report, visit www.cccis.com and click on the Crash Course 2010 link.