What to Know: Section 179 for Auto Repair Businesses

As the auto repair industry continues to evolve, adaptability to changing customer needs is crucial to delivering a top-notch customer experience. When it comes to choosing an auto repair shop, customers are more likely to prefer a shop that is easy to do business with over the nearest shop. For the modern customer – an increasingly digital generation sometimes called Generation CX – the customer experience is paramount. One of the ways to curate an invaluable customer experience is to leverage the trends of today’s customers. Using these trends alongside the knowledge gained from your shop’s data, you can create an experience that is transparent, convenient and efficient.

Tekmetric’s Industry Index Report, pinpoints key trends around customer needs and expectations. In a recent webinar with Ratchet and Wrench, we discussed how you can use these trends to propel your business. By leveraging the trends within the report in conjunction with your shop’s performance metrics, you can tailor your approach to enhance your customer experience, drive revenue and ultimately boost your bottom line.  

Efficient operations drive revenue

Efficient shops create more revenue opportunities by completing repairs quickly and effectively. When you streamline your processes, you enable your team to accomplish more in less time, without sacrificing quality. Efficiency creates smoother customer interactions and reduced wait times. This translates to a seamless customer experience – a key driver of satisfaction and repeat business that drives profits and increases your bottom line. 

Several tools are available that can improve your efficiency, thereby helping you repair more vehicles in less time. For instance, Tekmetric’s Smart Jobs feature allows service writers to create jobs in just one click depending on the customer’s vehicle type by automatically pulling the correct labor time, sourcing the parts and applying relevant matrices based on the job selected. By reducing the number of clicks, your service advisors save time on creating repair orders (ROs). Instead, they can focus on answering customer questions and delivering an exceptional customer experience.

Convenient communication increases customer trust

Today, there are over 250 million vehicles on the road that are more than 12 years old and will inevitably need repairs. On average, shops see customers twice a year – and the majority will seek a shop they trust. Transparency and communication build strong levels of trust, resulting in a significant impact on the shop’s overall performance. Clear and convenient communication with the customer about repairs can streamline the approval process in the short term, as well as increase your average repair order (ARO) in the long term.   

Customers expect clear communication and visibility in the repair process. One tool that supports these expectations is a digital vehicle inspection (DVI). DVIs allow your shop to send visual reports of inspection findings directly to your customers, keeping them informed and engaged throughout the repair process. DVIs can be shared via email or text, so your customer can conveniently access them and approve the work even when they are not physically at your shop. Through DVIs, a shop can share data in the form of photos and videos, encouraging customers to make informed, data-driven decisions. This digital tool goes a long way in building trust as vehicle owners can gain a deeper understanding of the repairs you recommend. Vehicle owners can prioritize the immediate repairs while also having a record of additional work, like a tire rotation, that needs to be done in three months.

Another way to build trust through clear communication is through two-way texting. This feature facilitates instant communication, enabling your customers to authorize repairs, ask questions or provide feedback in real time. For example, shops using Tekmetric can communicate directly with vehicle owners through two-way texts, even creating a repair order or appointment based solely on a text – no calls necessary! Customers know they can reach your shop anytime, from anywhere, and their needs will be met. 

Together, two-way convenient communication and DVIs significantly increase the likelihood of customers accepting your shop’s recommended repairs, increasing your ARO and ultimately driving revenue growth. 

Personalized customer experiences promote loyalty

Personalized customer experiences are another revenue driver. By adding a personal touch to the customer’s experience, you can go beyond the standard service offerings to create tailored experiences that bring customers back time and time again. 

One key aspect of personalized experiences is the integration of digital payment options, such as “buy now, pay later” or text-to-pay. According to the Tekmetric’s Industry Index, only 16% of shops have tapped into the potential of text-to-pay options – but these options have tremendous potential in building customer relationships. Tekmetric’s solution enables your shop to offer customers the convenience of digital payment methods such as Apple Pay, Google Pay or text-to-pay. This not only streamlines the payment process but also caters to modern consumer preferences, making transactions faster and more convenient. 

Additionally, “buy now, pay later” options powered by Affirm or Klarna allow your customers to get the repairs they need and pay over time, supporting their financial needs without negatively impacting your shop’s revenue. By alleviating some of the financial burden of repairs with “buy now, pay later,” you can better empower the vehicle owner to make an informed decision on repairs without breaking their bank. Tekmetric has witnessed the power of digital payment solutions: in the past year, 60% of customers at our partner shops were approved for financing, with 62% of them utilizing this option. The average transaction amount is $567 for card payments and $1,883 for "buy now, pay later" purchases on our platform.

Tying it all together to transform your customer experience

Efficiency, personalization and convenience are all traits that you can prioritize to maximize profit and create a noteworthy customer experience. Technology can do so much for businesses at its foundation, but taking it to the next level within the customer experience makes a significant difference. By leveraging technology to create a strong experience, you can set your shop up for success far into the future and measure up, by every measure.  

For more information, check out our recent webinar with Ratchet + Wrench, or reach out to our team to talk to a shop advisor.

If you run an auto repair shop, chances are you have customers that think they know what’s going on with their vehicle as soon as they set foot in your shop. Although customers with preconceived assumptions can be frustrating at times, we have to give drivers credit for doing their research, especially now when we have a wealth of information at our fingertips.

You’re probably thinking to yourself, “Yes, but automotive repair estimates online aren’t always the best source of information.” And you’re right. But let’s think about ourselves for a second. As people who have experienced the world and have naturally developed our own worries, fears, and doubts, we tend to trust our own intuition and symptom-research sometimes more than we trust professionals.

And it’s a well known fact that consumers have a hard time trusting the auto repair industry—or any business that gives customers diagnoses for that matter. Just as people look up their symptoms online, and come to a conclusion on WebMD, they tend to do the same thing when something is wrong with their vehicle.

Whether it’s true or simply a situation where someone is convincing themselves they have said illness, the internet isn’t going anywhere. And let’s face it, we’re all guilty of using the internet for quick and easy answers, which is why it’s important to empathize with customers. Just as they may Google their symptoms, it is likely that they might type into the search bar, “Why is my car making a rattling sound?”

Of course, it is highly possible that the results that populate aren’t necessarily what an auto repair pro would point out to them. But whatever they find online still gives them some peace of mind, knowing they are informed before stepping foot into an auto repair shop that they may or may not trust.

It’s inevitable: people feel more protected if they understand—or even slightly understand—the issue at hand first.

Now, take a step back and think to yourself where your customers are getting their car repair information from. If you answered “auto repair estimate online tools,” you’re exactly right.

The list of service advisor responsibilities can seem endless. You might find yourself being pulled in many directions at once. You have to be there for customers, technicians, the shop owner, and even other service advisors. But it’s important to remember that you’re not alone.

Traditionally, there are four pillars to an auto repair shop that all support one another: the shop owner, technicians, customers, and service advisors. The integrity of the shop depends on each of these pillars in different ways. The shop owner needs to make the right calls and put the right systems in place for technicians and service advisors to do their jobs. Technicians must stay focused on their repairs and be diligent to catch all vehicle issues. And loyal customers keep the lights on.

As a service advisor, you’re uniquely positioned to support the other three pillars of the shop. By working with technicians, you can help customers better understand what needs to be repaired and why. By working directly with customers, you can gain a deeper understanding of what the shop does right and what the shop can do better. With a clear perspective of all facets of the shop, you’re one of the best people to advise the shop owner on ways to transform their business.

Whether you’re just getting started with your career or you’ve been a service advisor for a while now, the good news is that this is a career path that encourages ongoing learning and development. Being intentional about how you support the other three pillars of the shop—and remembering how they support you—can help you achieve balance and improve the quality of your job.