Over the past few months, we have been hearing repairers are slowing down, and backlogs have declined from weeks to days. To support repairers, we thought we would explore how having a sales culture can improve the closing ratio at your repair center.
Know Your Assignment Conversion Rate and Closing Ratio
Recently, I had conversation with someone from CCC who informed me that the assignment-to-repair conversion rate (as an industry) was 73-77%, when I would have guessed it to be in the 90s. That means the insurer assigns the work to your repair center, and your staff doesn’t get in touch with them to schedule and inspection or repair in a timely manner. Then the customer who has made a claim has been referred to or convinced to go elsewhere, and you lost the opportunity to repair his or her vehicle.
I recently conducted a phone survey of 20 repairers by asking them to run a current closing ratio report (RO’s converted / estimates written). In most cases, we were shocked to find their closing ratio was as low as 65-70%, and they guessed they were as high as 80-85%. Frankly, some were as low as 40-45%, and when confronted with the data, they admitted to being DRP-lazy and only repairing vehicles when the customer had a claim number. When asked about their focus on following up on unsold estimates, most admitted “we need to get better at that”.
So, despite dwindling sales, as an industry we have not put a focus on building or refining our sales culture for the past few years post-COVID due to the long backlogs we’d enjoyed. Let’s look at the ways to make this sales culture come to life and then measure the same KPIs to see if we can improve the assignment conversion and closing ratio to maintain our sales levels.
Role of Marketing and IT to Support Sales
Most people think of marketing to generate traffic (TV ads, billboards, etc.). But marketing can help support sales by providing several things to assist in the sales efforts.
It often includes modernizing your shop’s branding via a logo, image, and defining your marketing and sales message and then updating your shop’s website -- which is the virtual lobby of your business available 24/7 -- to provide important insights on your business to include:
- Hours of operation
- Shop address to geolocate
- What to do in case of an accident
- Tips on making the decision on whether to file a claim or self-pay
- Connections to towing or rental services and answering FAQ regarding the repair process.
- Scheduling estimates or repairs and submitting digital images to begin repair process.
- Digitize your shop brochure to feature the key reasons your repair center should be the customer’s choice.
- Career information for potential applicants
Marketing can also help by optimizing customer reviews, Facebook and other social media posts, including geofencing.
Role of Facility in Supporting Sales
Marketing can assist us in carrying that brand image to the shop’s signage, awning, and lobby décor, as it ties into the customers perception of the brand. Keeping the lobby color and décor modernized goes a long way in reassuring a customer that your repair center can repair the highly complex modern vehicles. A well-marked customer reception counter (free of clutter) and lobby with comfortable chairs offer a welcoming environment.
To enhance customer confidence while the customer sits (hopefully briefly in the lobby), we suggest you post the current “Our Certifications” earned by the repair center, such as OEM programs and dealer affiliations, insurance or fleet DRP programs, or endorsements. To reinforce your staff’s capabilities to deliver quality repairs and show pride in your staff, have a current “Wall of Fame” with the technician’s image and his or her training or certifications listed. To reinforce your commitment to the community, you may want to have an area dedicated to “Our Accomplishments” which shows key causes you have donated to, events run or sponsored, or any other community activities.
Finally, having a selling area (desk or raised counter) where the customer can join his or her estimator while creating the advanced inspection is important to optimize the time we have during the sales process where the customer might review marketing tools (a shop brochure or laminated sell sheet).
Phone and In-Person Greeting
Once the foundation of your selling environment is established, it’s time to build a sales and service culture, so your staff should mirror the marketing message you’ve communicated.
This culture of commitment to customer service starts with the very first phone call or email. Starting by saying, “How can we assist you in repairing your vehicle and processing your claim?” Your confident and helpful tone sets you up for success. Guiding them through the process will establish trust in the organization and ensure they show up for the inspection / estimate appointment. Recently, Ryan Taylor from Body Shop Booster demonstrated how AI can automate and standardize these calls and database of the customer information, schedule an inspection, and send the photo application to be able to photo triage the job as drivable and whether an advanced inspection is necessary.
Upon arrival (for the inspection, drop-off or pick-up), greeting them by name (as you know the color, make, and model of vehicle) shows solid commitment to offer personalized service. A customer service representative who guides them through providing customer information ensures we get complete and accurate information and to hear the story as to how the damage occurred and what their needs are. Then, have the CSR introduce the Estimator emphasizing their experience or commitment to service and have them share a few relevant details on how the damage occurred shows respect for the customers time and demonstrates the CSR in fact listened to their story, this transition enables the estimators to understand how best to offer the services they need.
A CSR and estimator who are committed to a sales culture, are active listeners, are patient, and truly care about helping others. It is important that the customer sees your team as their “trusted advisors” in the collision repair business. So, before going to the vehicle to inspect for damage, review the customer’s information form, verify his or her specific needs and ask if he or she has any questions. We want to verify his or her situation so we are optimizing his or her time at the repair center.
Your Time by the Vehicle with the Customer
Instead of searching for the damage to the vehicle, ask your customer to show you the areas of the vehicle he or she would like you to repair. This ensures you understand the full extent of the damage he or she would like repaired. After inspecting the vehicle (if the customer is interested), point out the damage you will be repairing, including descriptions of the suggested method, such as which items will be removed and reinstalled, to assure repair quality.
Further, ask for permission (opt-in) to write a customer paid estimate on the items which have damage but are not related to the claim or warranty repair. This sets you up to upsell as you present the various repair options. Again, the AI from Body Shop Booster now knows which prior unrelated added-value damage items to follow up on if they are uncertain as to whether to schedule.
At the Estimator’s Desk or in Selling Area
Too many repairers ask the customer to wait in the lobby “while we write it up.” Considering it is often 10-12 years between reported claims, those 15-20 minutes are the best opportunity to build trust and answer the customer’s questions to be his or her “friend in the business.” Build the office with a triangle design so customers sit across from you and they have a dual monitor so they can see what you’re documenting as the estimate / inspection report is prepared.
Provide them with selling tools which they can review while you document the inspection. Further, adorn your office with a few personal photos of pets, family, or recent travels to strike up a personal dialogue if they do not have questions while you complete the estimate. Even if you prefer to document the damage in quiet, at least bring them into this private (selling) area to review their inspection results and discuss the approach they’d prefer when getting the vehicle repaired.
Then, please don’t hit “print” on the estimate when complete…. Instead, invest the time to sell the various pricing packages you may have to offer such as:
- Customer-paid repair price with appearance allowances to keep their costs down
- Insurance-paid repair price
- Insurance-paid repair price and fixing the little dings and dents, “while they are there”
Then ask which package they prefer and answer any questions to help guide them to make the best decision for them or their vehicle. Avoid providing a printed copy of the estimate until after you have agreed to the approach to the repair.
Then, provide them with two alternative dates to schedule the repair. This assumptive close process often works quite well! Do not merely staple your card to the estimate and say, “Call me when you decide.” Instead, use the assumptive sale approach and ask which package (mentioned above) they want to go with.
Call to Action Follow-up
Finally, if they don’t agree to the date to schedule in for repair, determine their objection and seek to provide proof that you can help them get their vehicle repaired properly.
If you cannot overcome the objection, then offer a “call to action” follow-up call to find out if they have questions or if they have decided. Those calls need to be scheduled, be conducted on time when it's convenient for them, and relate to the specific objection or consideration they mentioned during their visit. If done right, these calls could yield a 50% plus conversion rate on unsold estimates. Again, AI can assist in making follow-up email or text contacts encouraging them to schedule and to consider the investment in the prior unrelated damage repairs to add value to their vehicle at trade-in.
Summary
I would challenge you to review your current situation relative to brand definition and web site content and ask you to verify you have enough solid reviews. Then, walk into your office with “fresh eyes” to verify you offer a clean, modern, and comfortable office. Ensure the counter is free of clutter and your customer waiting area is comfortable. Is the lobby inviting, and do you offer amenities which customers would appreciate (water, snacks, etc.)? Sit back and observe your CSR and estimator working as a team to enhance your customers’ trust. Verify you offer a very nice estimating area and a selling station to support their presentation of the various packages they should be offering. Finally, if they don’t make the assumptive close, does the estimator proactively schedule those call-to-action follow-up calls to ensure the best chance to make the sale? And do they record the customer's needs and then the results of these calls with solid notes? It’s a bonus if you use AI to support this effort to ensure consistency and follow-through.
If we do these things, measure the closing ratio of number of estimates to see if these things have been effective. Then, periodically review them to ensure they stay sustained for years to come.
