We talk frequently about challenges faced by collision repair shops, but often fail to examine opportunities. We all know the headaches – cycle time, insurer pressures, parts procurement, repair challenges associated with new materials. Do we all recognize opportunities when they pop up?
In May, I attended the 2013 Autopromotec show in Bologna, Italy, and several of my interviews on that trip included discussions about telematics. My radar for telematics may be a little more dialed in these days, but the technology is taking off like a wildfire. General Motors Corp. first popularized automotive telematics with its OnStar system, but this year the technology is blossoming. There was a June telematics conference in Detroit. I’ve seen frequent press releases about new initiatives almost daily from OEMs as well as players in the aftermarket. For example, Delphi and parts distributor Auto-Wares just announced a program in which Delphi’s Connected Car Care telematics solution will allow Auto-Wares to “talk” with car owners. A two-way communication device, coupled with vehicle data delivered from the unit, will allow Auto-Wares to assist customers with a variety of services including remote vehicle diagnostics, roadside assistance, service and maintenance, and vehicle health monitoring.
And then there are insurers. We all have seen insurers marketing new telematics tools that plug into OBD ports under the dash. Collecting vehicle data helps insurance companies assess risk of their customers based on driving habits, which in turn helps them fine-tune premiums. For consumers who drive responsibly, premiums may drop, while unsafe drivers could see rate increases. It’s also possible to assist with vehicle recovery in cases of theft, which reduces payouts for stolen vehicles. We’ll examine telematics more in November’s edition of ABRN MSO, specifically looking at how insurers are using this technology.
So how is telematics an opportunity for MSOs? Simply put, think customer service. One challenge faced by shops is staying in contact with consumers before they have their next accident. Statistically we know drivers crash on average once every seven years. That’s one reason collision repair shops are doing more mechanical work. What if you had a way to monitor the health of your customer’s vehicle? You could tell when certain sensors were about to go belly-up, or when certain parts were about to fail. And you could warn your customers ahead of time that they were about to encounter a no-start situation or potentially dangerous system failure.
As an MSO you may have shops in several states or cities. What if you could remotely see that a vehicle was about to encounter a failure and the driver just happened to be driving on a vacation out of town? A quick text or e-mail could save your customer, guide them to your nearby facility and turn your business into a hero. How valuable would that be to your customers and DRP relationships? For that matter, could your DRP agreements include access to telematics information for drivers in your region? Seems like a win-win for everyone.
Speaking to Paola Carrea, head of telematics business development for Magneti Marelli, I learned that her company has trained around 500 “Infomobility” specialists in Italy. These are repair shops in their Checkstar program with the ability to use telematics to assess and repair vehicles. Carrea considers the car to be “a smart phone with tires.”
That analogy is a good one. Soon consumers will enter shops the same way they do their local cell phone location, looking for quick evaluation and troubleshooting of their mobile device. You could become a go-to destination when consumers have “wi-fi” problems in their vehicle (yes, I said “wi-fi”) by helping them diagnose connectivity problems on the fly.
Many of you have rental car counters in your shops. Why not a counter for “Infomobility Services?” It’s an opportunity that seems to be there for the taking.
