Rob Infantino
Forum Replies Created
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I agree with @David. I will answer this question from the customer’s point of view.
At Openbay, an automotive service marketplace, we hear from consumers and business fleets all the time on this topic. Consumers today are all about speed, convenience and quality of service. They want as much information upfront about a service or product prior to any decision. If they are not getting what they want and when they want it (immediately), they move on to someone that will provide what they are looking for.
At Openbay, over 70% of the decisions on a service center comes down to proximity, not price. Consumers do not want to travel far for service. And they rely on customer ratings and reviews – they seek quality of service.
Don’t be afraid to provide general pricing with the stipulation a service tech will have final say it what services need to be performed and the price.
Rob
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vdepot – would you clarify your comment in parenthesis (21% new customers)? Are you generating 54 “new” customers a month or 11 new customers a month (21% of 54).
$33 to acquire a “new” customer via a web channel is reasonable if your average ticket is $423.
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The original storyline by rlucyk was how to compete with Amazon, not necessarily how to deal with the consumers bringing their own parts in for installation.
rlucyk stated that during the meeting a solution was proposed by one of the vendors in attendance suggesting the consumer purchase the parts from the supplier and the service provider does the install. Similar model to a TireRack or Tirebuyer (my analogy).
Many of you pointed out the potential liability and risks involved if the part fails – you’re on the hook.
At Openbay, we see very few cases where a customer will enter a Service Request for auto repair indicating they have their own parts. Not many Service Providers on the Openbay platform will respond to this type of request for the reasons stated above.
I think this thread should be focused on how to deliver a great online user experience as the customer solicits your business and to deliver high quality service.
As an aside, the DIY market where customers buy and install their own parts is shrinking. About 19-20% of the aftermarket is DIY, the remainder 80-81% is DIFM. This is good for everyone on this thread. And this is where the focus should be. All of you know newer vehicles are more complex to service and require unique skill sets. If consumers lack skills to diagnosis most issues with their vehicle, how are they going to determine what parts to buy? Many millennials and Gen-X much rather hire a professional to service their vehicle.
Again, focus on the shift in the consumer online buying behavior – most of the market is DIFM, not necessarily buying parts for a professional to install.
Extend and enhance your digital footprint to include ways to interact with consumers online. Respond to online consumer inquiries with speed and accuracy. This is how you win and grow your business.
Rob
#openbay #amazon #millennial
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rlucyk – Great topic. Interesting set of responses and positions.
How to compete with the approaching “elephant” [Amazon] for automotive services is a great question. And one that certainly need discussion. But I would argue the question all automotive service centers should be asking themselves is how can I win over the same consumer Amazon is targeting for automotive services? Once you achieve this, you win. The focus then becomes on growing your business and not necessarily on the elephant.
Amazon is getting into automotive “services” as several of you indicated. It’s a natural extension of their auto parts business. According to an exclusive article in the New York Post penned by Josh Kosman and James Covert, “Amazon’s next Frontier to conquer? Auto Parts”, touches on how Amazon has its sights on the $50 billion dollar DIY aftermarket auto parts business http://nypost.com/2017/01/22/amazons-next-frontier-to-conquer-auto-parts.
Amazon’s target customer for Automotive Services
These days, Amazon appears to be targeting anyone with access to the web. Do they have a customer segmentation strategy established for automotive services? My guess they will start with any Amazon customer that purchased automotive parts from their site – a natural starting point. And then segment these customers by the Vehicle-Make and Vehicle-Age they purchased parts for. The older the vehicle the better because it requires more service. And some Vehicle-Makes require more maintenance than other more reliable vehicles. Amazon most likely has “Profiles” built for every Y-M-M predicting when a component needs replaced before the OE does. Powerful.
Given the above, what is the common characteristic amongst Amazon’s target customer for Automotive Services? All are mentioned above, but in the simplest way of identifying this group is they are online consumers, that own a vehicle and place a high value on convenience.
Who makes up the majority of this target customer? They are a fast-growing segment of the overall market. They are the Millennials and Gen-X. The Millennials make up a powerful buying group of 91-million in the U.S. with ages between 17 – 37, the largest in U.S. history. They are certainly early adopters of technology and online services. They grew up in the digital age and with mobile. There is Generation-X too, with a powerful group of 61 million in the U.S. that caught the technology wave and became users of online marketplaces and services. Both groups educate themselves on a product or service before they buy, they rely on customer ratings and reviews, ask friends for referrals, and seek convenience and quality.
To compete and win the same consumer Amazon is targeting for automotive services is offer a great online user experience and deliver quality service throughout the entire service process. From engaging the customer online, to booking their appointment, during the service itself and then follow up. Are you delivering this level of interaction with the customer? If not, the way you go about your business of acquiring and maintaining new customers must change (if it hasn’t already) to align itself with the buying behavior and expectations of the online consumer. This is the way you win.
Alignment with the modern consumer
Your business must have an online presence – Website, blog, business profile page hosted by a third party. Good-to-great reviews. Social footprint. Your online presence must have features to engage the online consumer – one to one – and in ways they want to communicate; text, notification via mobile app (if you have one), email, video, etc. The online consumer wants to be treated like they are your only customer. Responding to their questions should be quick and meet all their expectations for the information they are seeking.
What types of information can you expect to deliver to the consumer?
Consumers want to know if you support their make-model vehicle. They want to know if you can perform the service they are seeking. When can they bring their vehicle in for service. Price range for the service. The time it will take to service their vehicle. They are a busy group and they need to plan their day. Can they wait on site or should they drop the vehicle off in the morning or the evening prior to the day of service. When service begins, they want to know how is the service going. Were any other issues found and should they be addressed now or on the next service. When service is complete, customers want to be notified right away that their vehicle is ready for pickup. These are the expectations of the modern day consumer.
When you shop for products and services on Amazon (outside of automotive services), most of the information is readily available on line or Amazon proactively keeps you informed on the status of your product or service. They have worked hard a delivering a great user experience. You can too.
How to compete with Amazon
My advice – focus on what you do best, deliver quality service to your customers and start leveraging new and innovative online tools and services to align your business with the modern consumer and deliver a great online user experience.
There are many online tools and services available to you that will align your business with the modern consumer. One of these online services is Openbay (http://www.openbay.com). Openbay is an online marketplace that connects online consumers in need of automotive repair and service with automotive care businesses nationwide. Openbay is also a provider of several subscription services (online customer facing tools) to help align your business with the online consumer delivering on their expectations and convenient.
Openbay has earned the trust of the top automotive insurance providers in the country
https://www.statefarm.com/customer-care/life-events/buying-a-car https://www.allstate.com/auto-insurance/mechanical-repair.aspx
Full disclosure: I am the founder and CEO of Openbay.
Thanks.
Rob
