Four Ways to Maximize Your Shop’s Data

Taylor Fuqua

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May 17, 2024

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Read time: 3 min

One of the most important parts of building a thriving auto repair shop in today’s industry is knowing how to interpret your shop’s data well – and often. Understanding how to leverage and report on your data can help you transform your business overnight through informed decision-making, financial health monitoring and strategic planning. Large corporations invest in tools to provide them with business intelligence to grow their bottom line and it should be no different when it comes to running your auto repair shop.

Through data analytics and predictive reporting, organizations can gain a deeper understanding of market trends, customer behavior and emerging opportunities. Integrating these capabilities into running your business can be quite intimidating. Fortunately, Tekmetric’s shop management system provides the tools you need to run reports, monitor your shop’s performance, and make strategic decisions that promote increased efficiency and profitability. Read on to discover how you can leverage data to enhance efficiency, improve customer engagement, identify growth opportunities, and drive profitability in your shop.

1. Identify Business Objectives

Identifying a clear target of what you’re looking to achieve in your business is the most important starting point when it comes to measuring performance and success. To effectively leverage data for your business, start by clearly defining your goals. Identify what you aim to achieve, whether it's improving customer satisfaction, increasing sales or optimizing operations to save you time or even looking to expand your auto repair shop to a new location. 

Once your goals are set, establish specific Key Performance Indicators (KPIs) to measure your progress. This step is crucial to ensuring you are able to evaluate progress clearly and objectively. Once you’re able to track your performance accurately and measure success, you can now move onto formulating a data-driven strategy to reach your business objectives.

2. Analyze Data & Establish Baselines

For an auto repair shop, analyzing data begins with collecting detailed information about various aspects of the business, such as customer demographics, parts usage, Digital Vehicle Inspection (DVI) metrics, technician efficiency, as well as sales trends. This analysis helps in understanding the current performance levels, pinpointing areas for improvement, and optimizing resource allocation. For example, with Tekmetric’s real-time insights you can quickly identify repair orders by status and identify bottlenecks before they occur in your shop.

Establishing baselines involves setting standard performance metrics against which future performance can be measured. By using historical data, the shop can determine average repair order (ARO), parts margins by vendor and employee efficiency. These baselines serve as benchmarks for evaluating progress and identifying deviations that require attention.

3. Make Data-Driven Decisions

An auto repair shop can make data-driven decisions by leveraging data insights to inform its business strategies and decisions. Tekmetric built its reporting suite with a focus on helping shops identify key areas for growth and opportunities for innovation. For example, thorough and efficient digital vehicle inspections can strongly enhance your customer experience by building trust and transparency.

At Tekmetric, we've discovered that shops sending eight to twelve photos to customers on over 50% of their repair orders achieve a higher average repair order (ARO) compared to those that don't. By measuring DVI quality through metrics like photo quantity, you can increase your ARO while building trust and transparency with vehicle owners. Leveraging Tekmetric's reporting tools, you can identify your own trends and implement a growth strategy driven by data-backed decision making.

4. Monitor and Review Progress Regularly

To ensure ongoing success, an auto repair shop should prioritize monitoring and regular review of its operations. This entails creating regular reports to track Key Performance Indicators (KPIs) and measure the impact of data-driven decisions. By consistently monitoring performance metrics, the shop can stay proactive in addressing challenges and capitalizing on opportunities.

It's crucial for auto repair shops to remain agile in their approach. Tekmetric’s reporting enables its users to be prepared to pivot and make quick decisions based on real-time data and insights. As the automotive industry evolves and customer needs change, shops must adapt their strategies accordingly. By staying agile, the shop can swiftly respond to market shifts, customer preferences, and emerging trends, ensuring its continued relevance and competitiveness in the industry.

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

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From what we see, there’s a lot that shop owners get right. They understand how to lead their teams, grow their shops, and bring trust and transparency to their customers. But as a former trainer and franchise performance specialist, I do notice a lot of little inefficiencies that add up. 

Tekmetric touches every part of running your shop -- from managing customer information and measuring business metrics to facilitating digital vehicle inspections, repair order workflows, and even payment processing.

Because we have so much information available, we've collected and analyzed all that data at our fingertips to bring shop owners and general managers unique industry insights on how your shop can make the most money out of the work you already do.

3 Ways to Maximize Auto Repair Shop Profitability

May 30, 2024

Read time: 3 min

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Whereas traditional methods of payment require dipping a card in the same terminal as other customers or the hand to hand exchange of cash or check, the ability to pay by text message through SMS mobile payments takes the complexity and headaches out of the payment process for owners, service writers, and guests alike.

For auto repair shops in particular, giving guests the ability to pay by text not only streamlines the guest experience but also frees up service advisors from having to do a bunch of data entry, giving them more time to help other guests.

Here’s how text-to-pay works on our Integrated Payments, Tekmerchant. As you’ll see, we’ve built in opportunities to enhance efficiency while strengthening the relationship you have with your guests at each step of the process.

Step 1: Complete the Repair Order & Send the Invoice

By connecting Tekmerchant to Tekmetric, service advisors can quickly review the invoices of completed work and simply click a button to text the invoice to the guest.

Since the invoice is automatically generated from the repair order and is easy to edit within Tekmetric, the service advisor can reduce the time they would usually spend writing invoices.

Step 2: Collect Payment

Once the invoice is sent, the guest will receive a link that takes them directly to their invoice and pay screen. From there, they can review the work that was completed and make their payment, prompting them to input their billing information.

The customer inputs their card information, including their billing address, making it a verified payment.

At this point, all the service writer has to do is make sure that the payment has been approved and that everything checks out.

Pro Tip: Enhance Guest Service with a Call or Personal Text

Because service advisors and guests both have access to a digital invoice, it gives service advisors the opportunity to add a human touch to the payment process without the guest coming into the shop.

Consider having service advisors give guests a call or send a personal text message at this part of the process.

While this may seem like an extra step, it gives service advisors a chance to check-in with the guest to ensure all approved work was completed, which is a big step towards avoiding chargebacks.

Calling the guest is also a good chance to remind them of any maintenance that may need to be taken care of in the future and any upcoming deals or events. If the guest is too busy to take a call, Integrated Payments has a Text-to-Pay feature giving them the freedom to pay when they have time.

If everything looks good on the invoice, the guest can easily pay and move on with their day. You get paid fast and the guest is able to pay at their convenience.

Step 3: Return Vehicle to Customer

Once the payment has been processed, all that’s left to do is to return the vehicle.

Pro Tip: Add a Key Drop-Box for Convenience

Some auto repair shops use a key drop-box or locker to make vehicle returns more convenient for their guests and service advisors.

Most contactless drop boxes use programmable codes, so you can put the guest’s keys in a locker, send them the code, and let them pick up their car when they’re ready.

With a key drop-box, everyone wins: service advisors don’t have to worry about staying late; shop owners don’t have to worry about paying a service writer overtime, and your guests don’t have to feel rushed to make it back to the repair shop before closing time.

Turbo-charge Your Payments Processing

The Integrated Payment text-to-pay feature makes life easy for your guests and service advisors, and can potentially save you time, money, and headaches.

Vehicle inspection checklists guide your technician’s through each aspect of a given inspection so that no problem areas go unaddressed.

Having a set list of points to check for each inspection will ensure they remember to look into each item listed. But before your shop gets started on inspections, you have to get down to the nitty-gritty of inspection checklists.

Find The Right Digital Vehicle Inspection Checklist For Your shop

There's no one-size-fits-all vehicle inspection checklist. It's essential to have different inspection checklists depending on the customer's concerns and what prompted them to bring their car to your shop.

One generic inspection checklist is not enough as it may be too broad or too narrow to cover all the necessary areas. 

Your shop may have its own variations of inspections depending on the services you provide. For instance, an auto body repair shop may focus on checking for scratches, dents, and cracks, while a general repair shop will mostly inspect the belts, filters, fluids, and everything else under the hood. 

So, how many vehicle inspection checklists do you need? As many checklists as there are common reasons for vehicle owners to bring their cars to your shop.