Calling ‘Em as I See ‘Em

The automotive aftermarket must feel doubly proud these days. First, the Automotive Industries Association of Canada touts success on the market share front over dealers–the first in years–in its Car Maintenance in Canada Report; then J.D. Power and Associates gives a hearty well-done to the independent service provider in its Canadian Customer Commitment Survey.

That study states, “While record new-vehicle sales in Canada in recent years have increased the volume of service customers in New Car Dealerships, Independent Repair Shops are outperforming most Dealerships in satisfying service customers.”

This is great news, but it is not the first time we have heard it. We all know that a great many service providers out there are fabulous at dealing with customer concerns. The survey results bore this out: “Shops may not have consciously perfected the art of good, long-term customer relationship management, [but] the personal contact that customers experience at these facilities keeps them coming back.” They are, almost to a man, really good guys, and deserve to feel proud at times like this.

But what we have here is one set of customers that is going to the local garage and feeling very good about it; but a very large contingent of customers ends up at the dealership, too. In many cases, it is probably the same customer, for different cars.

You can segment the market necessarily into the “independent customer” and the “dealer customer.” Some 46% of cars four to seven years old end up at the dealer. There is no warranty imperative, and with the greying population it is highly unlikely that the owners of these cars have never seen an independent garage. No, likely it is about comfort level, with some having stayed at the dealer because they value the service, and others having been driven from the independent sector by a bad experience.

The way people see their independent garage is a lot like the way they see drivers: they’re okay, but everyone else on the road is an idiot. Their garage is great, but that trust does not necessarily translate to the shop down the road. Sometimes, at least for a while, they go to the dealer.

Every day, faced with choice, consumers wander down the road, feeling no particularly loyalty to the local shop. And they take their wallets and their next repairs with them.

Each car is, according to J.D. Power, worth some $10,000 in service over its lifetime. I daresay that the bulk of that is in its “prime aftermarket years.” And half of that is in parts.

This is where I am forced to admit that trying to figure out the complex dynamics of who goes where, what the financial benefit is, and how to solve it makes my head hurt. But I do know this: If you knew a guy who had a thousand bucks in his pocket that he might give you if you reminded him to, you’d probably call him and ask if he’d like to bring it on down.

So, why don’t garages call their customers?

Yes, they are great at dealing with the customer when they are in the shop, but they rarely get on the phone and call those customers when they estimate service is due, or even after service to check on whether they are happy.

I’ll tell you who does though: the dealer. They retain customers every day by simply talking to them for five seconds. And, if shops don’t think they can afford to have someone call, why do they spend so much time calling for a nickel off a part? It is a matter of mindset.

Still, the independent service provider has much to be proud of. It’s just that they have a few things they can do better too. They have every right to pat themselves on the back, but you might want to remind them to check over their shoulder at the competition while they do so.

Andrew Ross, Editor and Publisher