FOUR WAYS INDEPENDENT AUTO SHOPS CAN COMPETE WITH DEALERSHIPS

Four Ways Independent Auto Shops Can Compete With Dealerships Table of Contents

INTRO#1IMPROVE CUSTOMER SERVICE & MARKETING

#2FOCUS ON YOUR STAFF

#3PAY ATTENTION TO YOUR NUMBERS

#4STAY CONNECTED WITH CUSTOMERS

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Attracting and retaining new customers is never easy in the auto repair business. But for shops that are ready and prepared, the competitive landscape is changing in three crucial ways. First, more Americans are driving older cars that require more maintenance and repairs. The average car on U.S. roads is now more than 11 years old, the oldest average age on record, according to IHS Automotive.

Second, as many Americans put off investing in new cars, they will have more money to spend on the cars they currently have. The Gallup U.S. Daily Survey, which tracks overall consumer spending to estimate a monthly daily spending average, found that Americans’ spending steadily increased from just $59 in March of 2009 to $86 in March of 2015, suggesting that Americans are feeling more economically stable and more willing to spend money when necessary.

Third, as more Americans drive older cars, the number of vehicles no longer under warranty increases, meaning customers who previously preferred dealerships for maintenance and repairs due to warranty guidelines may be exploring new service options.

Independent repair shop owners who want to make the most of these opportunities must set themselves apart from the competition. While that can be difficult, particularly when competing with large dealerships that have economies of scale and marketing budgets, several factors are working in the independent shops’ favor: they just need to know how to take advantage of the opportunity. Here are four ways independent shops can get potential customers to notice them, come in, and keep coming back.

HERE ARE FOUR WAYS INDEPENDENT SHOPS CAN GET POTENTIAL CUSTOMERS TO NOTICE THEM, COME IN, AND KEEP COMING BACK.

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INTRO

Four Ways Independent Auto Shops Can Compete With Dealerships

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Dealerships have a natural advantage over independent shops because of the amount of advertising and marketing they can do. While smaller shops don’t have the financial means to invest in wide-scale marketing campaigns, they can market themselves another way: by providing great customer service and getting happy customers to do their marketing for them. If customers believe that your shop provides professional, fair, quality service, they are going to tell their friends, family, and coworkers about it.

A 2013 survey on auto repair conducted by AutoMD.com found that independent repair shops already have a solid foundation when it comes to making customers happy. The survey found that:

Consumers trust independent shops over dealerships two to one

80 percent of consumers feel they have been overcharged for a repair at a dealership

Most consumers believe they have better relationships with mechanics at independent shops

To successfully stand out as an independent shop worthy of consumers’ dollars, you must continue to retain and build on this image of a trustworthy, relationship-oriented auto repair service provider. Here’s how:

Improve the customer experience

Often, since customers aren’t familiar with the technical aspects of auto repair, they will judge your shop based on the experience you provide. Everything counts, from the way you answer the phone to the attitude of your employees to the appearance of your shop. The most successful independent shops are spotless — not only in their waiting rooms but in their service bays, bathrooms, and behind the counter.

And while customers may not judge you harshly if you aren’t using technology in your shop, they are going to recognize if you are. The more your shop uses technology, the more innovative and professional it will look.

Four Ways Independent Auto Shops Can Compete With Dealerships

#1IMPROVE CUSTOMER SERVICE & MARKETING

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Some shops, for example, use digital customer profiles into which customers can input their vehicle information, their contact information, and their preferences, such as what time of day they prefer to be contacted and by what method, such as a phone call, text, or email.

Others are using digital invoices that reside on a tablet at the front desk. When customers check out, they can review their invoice on the tablet, and then the shop can offer to email the invoice directly to customers, who are grateful to have a record of their service that they can easily retrieve, if needed, without having to rifle through their glove box. (If this sounds like the Apple Store experience, it is.) As an added bonus, customer information stored electronically is easy for shop owners to sort through the information and use it in the future for customer follow-up and tracking.

Show customers they are your priority

A great customer experience also comes from how easy it is for them to use your shop. Make it clear that you prioritize their needs by allowing them to schedule appointments online and by offering flexible hours. Also, offer various payment options, such as payment by credit card or payment by installments.

Four Ways Independent Auto Shops Can Compete With Dealerships

Customers will judge your shop based on the experience you provide. Everything counts, from the way you answer the phone to the cleanliness of your waiting room to the attitude of your employees.

#1IMPROVE CUSTOMER SERVICE & MARKETING

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