Keep in touch!

It’s a known fact among insurance providers, but collision repair shop owners have also borne witness to a decrease in the number of damaged vehicles coming into their body shops over the last few years. The Autorité des marchés financiers (AMF) qualified 2010 as an exceptional year, noting in its annual report that the number of collision-related insurance claims reached its lowest level in 25 years. Although the numbers increased by 4% in 2011, the total number of claims has remained at a very low level.

This downward trend has also had an impact on the average auto insurance premium. The Groupement des assureurs automobiles (GAA) indicates that between 2005 and 2011, the average annual price of auto insurance policies (fire, theft, vandalism, glass breakage and collision) decreased 10% from $589 to $536.

Several factors explain the general decline in the number of claims that some shop owners unofficially estimate at 35%. In its annual report on automobile insurance rates, AMF surmises that milder winters and less precipitation are key factors in the reduced number of claims.

Anne Morin of the GAA argues that other factors must be taken into consideration, such as aging of the population and vehicle automation. GAA statistics show that the number of accidents decreases for drivers in the 30 to 65 age bracket, which reflects the demographic age portrait of Quebec, where the median age is estimated as 41.4 years, according to Statistics Canada.

The introduction of ever-more efficient vehicles, equipped with antilock brakes, radar, cameras, intelligent parking assist systems and other electronic equipment may also have had an impact on reducing the number of claims, says Morin.

“Faced with lower volumes, shop owners have to secure the loyalty of their customers and manage their businesses more closely if they want to continue generating profits,” advises Chantal Lamarre, Sales Director at Carrus.

This is why it is crucial for collision experts to equip their shops with efficient management software that will help them analyze their strengths and weaknesses.

“Shop owners should understand where they are making money or why they don’t. They must be able to analyze their profitability and understand what works and what doesn’t,” says Lamarre.

Collision repair shop owners should review the internal structure of their company in order to provide better customer service.

“Taking charge of your customers means a lot of things,” says Lamarre. “It’s important to put the right person at the right place and provide them with a clear job description and proper training. The customer who just had an accident should feel reassured, comfortable and safe. ”

For example, pro-actively contact your customer to give them an update on the repairs. “By taking the lead, you control the situation. The customer will not be calling you at an inopportune moment, and because they feel safe, will be less inclined to doubt the quality of the repairs,” points out Lamarre.

“Let's be honest; a customer who visits you to have their car repaired hopes to get good service, but their biggest wish is to never see you again,” says Lamarre.

It is therefore important to diversify your services as much as possible so that customers can return to your shop for something other than only repair work. “Why not take advantage of the aesthetic side? You might offer, for example, to apply 3M adhesive tape on the hood of a customer’s car that has just been repainted. You could sell carpets or offer Aquapel treatment. These are products and services that don’t require much investment but that may provide big payoffs,” explains Lamarre.

She also suggests offering special promotions at certain times of the year, or promoting loyalty cards with which customers can earn points to redeem on various services.

“The goal of all these approaches is to ensure that the customer won’t forget you. Be everywhere. Participate in conferences, collision repair seminars, talk to your customers. In short, ensure customers will continue to need you,” advises Lamarre.

One of the best investments you can make as a manager is helping to make your employees successful. Tell them what to do and why they should do it. They will necessarily become more productive and better in offering great customer service.

“Make people aware of your expectations and about what’s happening in the industry. Tell them why it’s important to have a particular attitude or do a particular thing,” concludes Lamarre.