Leveraging Customer Feedback to Improve Shop Performance

John Phelps

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September 27, 2024

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Read time: 3 min

In the auto repair industry, where customer trust and satisfaction are paramount, leveraging customer feedback is an invaluable strategy for improving shop performance. As technology improves, customer expectations for service quality and transparency continue to rise. Fortunately, shops can actively seek, analyze and act upon customer feedback to better position themselves to meet these expectations, enhance their service offerings and build long-term loyalty.

Customer feedback is a powerful tool that, when leveraged effectively, can lead to enhanced customer satisfaction, repeat business and a stronger reputation in the marketplace. As the industry continues to evolve to meet the needs of its customers, auto repair shops that prioritize and act on customer feedback will be better equipped to rise to these standards, thrive and succeed.

Know your audience in the modern industry

Today’s customers are increasingly more digital. In the past, auto repair shops relied on phone calls as their primary form of communication. In the modern market, however, digital communication like email or text messaging has become the preferred type of communication for most people. In fact, 91% of texts are opened within the first three minutes after receipt, with 81% of Americans texting regularly. Ultimately, the best way to get ahold of your customers is to cater to their preference – so ensure you know your audience’s preference and offer solutions that help meet their desired communication style.

Furthermore, the modern landscape of the customer experience emphasizes convenience. At the click of a button, you can have groceries delivered or receive an item within two days of ordering it. Long wait times and visiting brick-and-mortar stores to purchase items is no longer the only way customers can buy things. The same applies in auto repair shops. With this knowledge, you can implement digital solutions to make the customer experience more convenient, thereby increasing loyalty and ensuring your customers return time and time again.

Collect feedback on your shop’s customer experience  

Once you understand your audience in general, you should also strive to understand their experience with your business specifically. It’s important to foster a two-way relationship with the customer and give them the opportunity to share direct feedback. This can help you gain insight into the customer experience, including your shop’s strengths and pain points for customers, so you can adjust and improve.

Tracking feedback is just as important as tracking your shop’s internal operations or financial performance. You can gather feedback through multiple avenues: Google reviews, post-service surveys or even in-person conversations. Each option offers customers an opportunity to share their thoughts on areas where you perform well or bottlenecks that need to be addressed. 

Digital tools can help monitor all forms of customer feedback. Through Tekmetric, you can integrate with a variety of solutions to monitor and respond to feedback via Google reviews. Or, to help drive your customer experience and gather feedback, you can utilize Tekmetric’s Smart Jobs feature to create estimates within one click, allowing your service advisors to spend less time on manual labor and more time cultivating strong customer relationships. 

Leverage feedback to improve shop performance

Customer feedback is critical because it addresses your shop’s bottlenecks from the perspective of the vehicle owner. For example, some shops may include parts ordering and inventory tracking among service advisors’ responsibilities, in addition to taking care of the customer. At Tekmetric, we’ve found this creates many opportunities for miscommunication between the technician who needs the parts and the service advisor, leading to a delay that affects the customer. To solve this problem, we created our Inventory Orders feature so technicians can easily order the parts needed. This ensured better accuracy within the shop and a greater customer experience.

Customer feedback also highlights the importance of convenience when it comes to driving loyalty. For vehicle owners, convenience is not always about choosing the closest shop. It is about choosing the shop that will make their life easier. For example, digital payments solutions can create a more convenient solution for customers. With Tekmetric’s two-way texting and text-to-pay features, customers can pay from their desk or their home office, pay for their college kid who lives in a different state and even pick up their vehicles after regular business hours.

Implementing customer feedback cultivates a stronger connection between your shop and your customers. Through open dialogue, feedback creates a two-way relationship that allows you to address customer needs effectively and improve shop performance. Customer feedback can also help address bottlenecks and streamline processes in your shop, leading to enhanced customer experiences, increased loyalty and, ultimately, a healthier bottom line.

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FAQ

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Abruptly shifting from task-to-task a handful of times throughout the day can disrupt your workflow and distract you from spending time with customers. And let’s face it: we’re all prone to tunnel vision when we’re focused on mundane tasks that can probably be automated for us.

For the shop owners and service advisors who have been in the game for a while now, it’s likely you already have your shop’s tedious functions down, but you may still have a major opportunity to save time. And for those of you who are new to the game—whether you just started your shop or are in the process of getting things up and running—you might have clicked on this blog to find your solution to your shop’s auto repair receipts. There are many auto repair receipt options out there. You could get a template or use a basic PDF. But the modern customer experience can be met with a shop management system that has a receipt process built into it.

Changing even a small procedure in your shop can have a big impact. Streamlining your auto repair receipts, for example, can save your shop time, enhance your shop’s customer experience, and even boost transparency within your shop. Let’s say your shop takes about five minutes to fill out one receipt manually. So if you have about 25 repairs in a day, that five minutes adds up to around two hours a day—simply filling out receipts. You shouldn’t have to spend time rewriting the same information over and over. The same information that you’ve already plugged in during the estimate process should automatically go into the receipt for you.

But when it comes to receipts, you can’t just cut corners to save on time. You need to make sure you include all requirements on an auto repair receipt—at minimum. Let’s take a look.

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The Art of Knowing Where Everything Is

In auto repair, there are many moving parts to keep track of—both the literal parts your shop uses to repair vehicles, and the parts of your business that determine your shop’s efficiency, security, and ability to grow. If you want your shop to flourish, it’s crucial to devote part of your business to keeping track of the parts you order.

Many shops track parts in terms of cost of goods sold. The parts you need for the job are included on every repair order, so it’s easy to see what parts your customers are paying for as long as you have a solid process for building repair orders.

But what about in terms of accounts payable? How does your shop track how much you’re spending for parts from the supplier?

Why Match Parts from Repair Orders on Purchase Orders?

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Adjusting your pricing on parts to make a profit is pretty straightforward. But when it comes to labor times for auto repair shops…that’s where things can get a bit tricky. Yes, you need competitive labor rates, but you also need to keep those rates reasonable so you don’t scare off your customers with sky-high prices.

3 ways your shop can make more money on labor:

  1. By using a labor matrix
  2. By creating custom labor rates
  3. By applying a labor guide markup

Before we dive into the differences between these three methods for setting the best labor times at your shop, here’s a quick refresher on the one thing these methods have in common: the labor guide.

What is a Labor Guide?

A labor guide is like the gospel of labor times for auto repair shops. It tells you how long, on average, it takes to complete different types of repair work. Remember that the times listed in auto repair labor guides are averages, so it’s best to treat them as a starting point.

Factors That Can Affect Labor Times for Auto Repair Shops

Let’s take a look at some of the factors to consider when determining how much to mark up (or mark down) your shop’s labor rates.

Age of Vehicle Older vehicles are often trickier to fix, especially because finding parts for them can require a time-consuming hunt across parts suppliers. You can make up for the time spent hunting down uncommon parts by charging more for all repairs involving vehicles over a certain age.
Geographic Location Some areas lead to different types of repair challenges that can affect the time it takes for repairs. For example, shops in Syracuse, New York—the snowiest city in America—might find themselves working with cars that have rust, which can significantly add to the time it takes to remove or even clean certain parts.
Experience of Technician Chances are, you’re already paying experienced technicians a higher base salary or hourly rate. However, certain situations might call for cranking up those numbers, like if you really need to put their skills to the test for a tricky repair for a client who wants it done ASAP.
Customer Needs You can offer customers who need their cars back fast a “Pro Tech” rate, where your tech wraps up the job in record time. When you’re asking techs to complete a job faster than the time on the labor guide, and still do a good job, the customer is getting special service. Be sure to let customers know that speediness comes with a surcharge.
Relationship With Customers It’s a good idea to consider giving loyal customers a special rate as a token of appreciation. With that said, industry leaders advise sticking to your labor rates as much as possible, because if it becomes a habit, you risk financially harming your business.

How to Choose a Reliable Labor Guide

A reliable auto repair labor guide is foundational for your shop when you’re setting labor rates, so you’ll want to use a labor guide that stays up-to-date with the latest labor times in the industry. Just like many people use online directories instead of the Yellow Pages, many auto repair shops use digital labor guides that are constantly updated with the latest labor times.

When seeking out a digital labor guide, look for one that:

  • Offers consistent, comprehensive data on labor times from industry leaders, so you can set accurate labor rates that will keep your shop profitable
  • Adds labor times for new vehicles and jobs periodically, so your shop’s pricing can stay competitive
  • Integrates with your auto repair shop management software, so you don’t have to dig through multiple systems
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