How can automotive service providers levelup to support customers impacted by increasing costs, while maintaining profitability in their organisation? Research shows that the rise in the cost-of-living is impacting vehicle owners, but also garages, repair shops and automotive service providers. Forbes reports significant cost-of-living pressures on consumers. A study found that 19% have had to dip into rainy day savings or take out a loan to cover basic running costs. Overall, two-thirds of all drivers agreed the rising cost of living has made owning a car more challenging, with 68% worrying about affording fuel for essential journeys such as commuting to work or taking children to school. The impact of rising inflation works both ways. A study from The Motor Ombudsman shows that automotive servicing and repair businesses are facing their own operational issues due to the cost-of-living increase. Nearly 80% of workshops surveyed stated that increased parts prices may impact their business. This led to 60% of those polled to suggest they would be looking to increase costs to their customers, in order to remain profitable in the face of higher overheads. Delays getting hold of replacement parts were cited as the second largest obstacle for garages and workshops, negatively impacting 72% of businesses. The poll also showed 71% of workshops are seeing motorists reducing their ad-hoc spending and routine vehicle maintenance when compared to the first six months of last year. McKinsey’s prediction for the reality of the automotive sector spanning the remainder of the decade is upbeat however: “Driven by shared mobility, connectivity services, and feature upgrades, new business models could expand automotive revenue pools by about 30%, adding up to $1.5 trillion.” As McKinsey cites in its report, thinking out of the box is 16 AFTERMARKET OCTOBER 2023 BUSINESS www.aftermarketonline.net Emerging repair models and digital tools can guarantee a happy customer, while retaining competitive service pricing for garages key to unlocking both better customer offerings and business value – and both of those are symbiotically linked. The route to better customer satisfaction and business growth will involve changing traditional repair shop business models, adapting to meet changing customer preferences and introducing supporting automotive technology inside and outside the physical garage. This is exactly the approach Halfords has taken as a business – both inside and outside of its autocentres with its tech- and customer-led changes, underpinned by its end-to-end Avayler software platform. New software accelerates business change and keeps the customer in tow On the Halfords Autocentres side, new tech has been introduced on to the repair shop floor that has a threefold advantage. It aids technician productivity, at the back end makes parts/inventory management more automated, and essentially keeps the customers on-side with a portal to keep them informed throughout the repair journey. Halfords has also been growing its Mobile Expert operations. Customers can book slots online for vehicle repairs at a time and location that suits them. The Avayler platform then tracks the skills level of a technician, work hours and the work undertaken to not only optimise scheduling but learn from the data to make mobile jobs more efficient. The van operation, which has a 4.8/5 Trustpilot rating, has seen a 70% increase in job productivity and more than 200% increase in utilisation since it started using the platform, demonstrating the potential for greater customer satisfaction from mobile operations. With this experience in mind, here are the top three areas where tech-led innovations can deliver realisable cost, efficiency and time benefits across all areas of the automotive repair landscape. 1. Putting the customer front and centre Automation of tasks and having a coherent digital presence makes repair organisations more responsive and time-efficient – better for customer service and for the business bottom line. Whether booking a service inside or outside the garage, most customer journeys will begin online. This means making sure they can easily book their services at a time and date that suit them – for mobile services this will also extend to location. Overlaying this with dynamic pricing depending on slot availability allows. Once the service is booked, it’s important to keep a digital line of communication with the customer through a self-service portal. Customers log in to the portal and can view details about their appointment including pricing quote, parts needed, technician name and more. NEW BUSINESS MODELS DRIVING SMR BY John Bramley, Group Operations Director, Halfords, Karl Baker, Head of Halfords Mobile Expert
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