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Letter to the Editor
This article originally appeared in the July 2001 Issue of INSIGHT
The Decision-Makers Speak
Consumers talk about what they know and think about the collision repair industry
Allstate buys a 39-shop chain of collision repair facilities.
Progressive launches a program that virtually eliminates customer-shop contact.
About 30 percent of claims are now handled through DRPs - up from 20 percent in 1998 and 8 percent in 1996 - with many predicting similar growth in the coming years.
Will these efforts succeed - or eventually prove to be unwise business decisions? The twist, turns and trends in the collision industry can be unsettling at times, and that’s prompted INSIGHT to turn its attention this month to those who will have the ultimate say in which of these or any business decisions in the industry prove fruitful: vehicle-owning consumers.
Over the course of three focus group meetings, more than 20 consumers were given an opportunity to talk about what they know and think about the collision industry, what they look for in choosing a shop or insurer, and how they view some of the issues that shops, insurers and industry vendors go back and forth about, at times seemingly forgetting to consider or give adequate weight to the "consumer view."
A sampling of this size does not provide the data needed to say the findings are representative of the public as a whole. But unlike larger scale surveys, the focus group setting gives consumers more opportunity to provide more context, to discuss the reasoning behind their answers, often just as valuable as the answers themselves.
So for those who understand the value of listening to the ultimate consumer, here’s your chance to find out what a cross-section of vehicle owners - almost an equal number of men and women ranging in age from their late 20s to early 60s - had to say about the collision industry.
Payment Options
Nearly 90 percent of the consumers said they wanted the option of paying by credit card for all work on their vehicle. Only one said the option of paying the shop by installments was appealing or would affect his choice of shop.
Evidence of Training
Most of the consumers didn’t know what to look for at a shop as evidence of on-going technician training; only one said training certificates displayed in the shop would be an important factor in choosing a shop.
"In my business, the techs I work with are all trained and have certificates, so something similar at a shop would give me the impression they’ve at least been exposed to the right way of doing things," said Jim, a lighting salesman.
The other consumers said evidence of certification or training would only be "somewhat important" to their choice of shop, and only if from a source they recognized, such as ASE (the National Institute for Automotive Service Excellence).
Insurance Referrals
About 60 percent of consumers said a referral from a friend would be their primary means for choosing a shop. But most of the consumers were insured by large national companies (State Farm, USAA, Farmers and Allstate), and had been insured by that company for a long time (70 percent for more than three years). Based on their satisfaction with their insurer, more than 80 percent said they would strongly consider a collision repair shop referral from that insurer.
Jim said he recently took his son’s car to a shop recommended by his insurance agent.
"That (referral) first kind of put me on guard, like maybe there is something going on," Jim said. "But they did a beautiful job, and they had a free loaner car for him for the four days it was there. One thing that impressed me was they cleaned the inside of the cab of the truck. They didn’t have to do that, but I thought it was great."
"I‘d be a little leery (of an insurer-referral), but also I’d know that the place was reputable," said Judy, an accountant.
Preferred Provider Plan
About half of the consumers seemed at least somewhat interested in buying a lower-priced insurance policy even if it meant giving up their right to use the shop of their choice.
"It would be a relief not to have to make that choice," said Binnie, the editor of a community newspaper.
"I’d have to look at the list of shops I could choose from," Judy said. "If it included both independently-owned shops and dealers, I’d probably go for it."
Non-OEM Parts
None of the consumers said they would be interested in a discounted insurance policy that required the use of non-OEM parts, even if those parts were warranted by the insurer. Most could recall reading an article that questioned the safety or quality of such parts - although few were aware of the verdict in the non-OEM class action lawsuit against State Farm - and a fair number were concerned that the use of non-OEM parts would hurt the resale value of their vehicle or cost them money when turning in a leased vehicle.
Extended Hours
More than 75 percent of the consumers said a shop offering extended hours (into the evenings or weekends) would be much more likely to get their business.
"That’s probably the first thing I look for because I work long hours," Judy said. "I can’t use a shop that is open just Monday through Friday, 8 to 5. I need someone open on Saturday - even Sunday would be nice - and on weekdays until at least 6 or 7 p.m."
Customer Feedback Mechanism
The consumers were split on whether they would return to a shop if they were unhappy about something that was done. But all said they would like a non-threatening way to provide feedback to the shop; more than half said they preferred a follow-up phone call, while the others said they would prefer a reply card.
Written Warranty
In a bit of a contradiction, many of the consumers said the availability of a written warranty would play a large role in their choice of shop - and yet most said they had never received one from the shops they’d worked with.
Customer Updates
During a two-week repair, how often should you update your customers on the progress of their vehicles? About half of the consumers said about twice a week. Most of the men, however, said they weren’t interested in updates.
"No news is good news," said Paul, a postal employee. "If the phone rings and it’s the shop, I make the assumption there’s a problem. If I’m curious, I’ll call, but if I know it’s a two-week time frame, just call me a couple days before it’s due and tell me when it’ll be done. Until then, I don’t want to know."
Jim agreed.
"I’d be more impressed if the guy says it’ll be done a week from Friday, and I’ll call the night before and he says, ‘Yeah it’ll be ready then.’ That impresses me," he said.
Lapse of Rental Car Coverage
Consumers were asked who they felt should pay for their rental car if their coverage ran out before repairs were completed because of parts delays. Three of five consumers said the insurance company, with the others split between the shop and the parts provider; not one consumer felt the charges should be his or her responsibility.
Music On-Hold?
When placed on hold when calling a business, more than 75 percent of the consumers said they preferred silence or music only. The others said they wouldn’t mind or would prefer a combination of music and taped information about the shop, car care, etc.
"I don’t mind hearing that sort of thing if it’s done correctly and it’s more for information than a sales pitch," Jim said. "Because the shop may do something that I don’t know about that I want to have done, and as long as my car is there, why not have them do it?"
Phone Book Ads
The consumers were asked to look at the shop ads in a phone book and choose the phrases and logos that made a shop appealing to them.
Kim, who owns a house-cleaning business, said she looks for a shop that is open evenings and weekends, offers free estimates, and has certified technicians.
Helen, a city employee, said she was disappointed in how few shops (at least according to their ads) seem to cater to domestic vehicle owners.
"Probably more than half say, ‘specializing in import business,’ and I didn’t see any that said anything about Fords or Chevys or Chryslers," she said.
She said she looks for the ASE logo and shops that have been in business for a while.
Jim said he looks for free estimates and a warranty. He liked the ads that said the shop uses OEM parts and offers direct insurance billing and loaner vehicles.
Taffy, who works for a non-profit organization, said she found at least one ad’s portrayal of women to be offensive. She said she liked the shops with ads that mentioned guarantees, free estimates, technician certification and shop longevity.
Logo Recognition
None of the consumers was familiar with the I-CAR Gold Class Professionals logo or the Automotive Service Association (ASA) logo.
Fewer than half knew that the ASE logo had something to do with technician training - but just as many recognized the logo for the Rotary, the only non-automotive-related logo they were shown.
On the other hand, more than 75 percent recognized the State Farm Insurance logo, and all were familiar with the AAA and NAPA logos.
Industry Image
The final question consumers were asked is: What kind of image do you think the vehicle repair industry has? While several of them reported negative experiences with a shop, most held the industry in high regard.
Helen, for example, said she feels that there are probably no more "bad apples" in the automotive repair industry than there are in other professions.
"I know a fair number of doctors and lawyers and you guys shouldn’t feel badly at all," she said. "Car repair, like medical care or legal help, is a fact of life. It’s just up to us to find people that we trust and will do a good job for us. If you treat your customers right, word-of-mouth will help you develop a reputation for doing so. And you’ll be doing your part to improve your whole industry’s image."
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