AutocheX Survey Shows Customer Communication is Key to Keeping Referral Rates High
SAN DIEGO--Dec. 6, 2002--Keeping vehicle owners fully informed of delays in the collision repair process may be just as important in gaining customer referrals as delivering a completed repair job on time. That is according to AutocheX, the collision repair and claims industry's largest and most recognized source for customer satisfaction indexing (CSI), which recently completed a survey of nearly a quarter of a million body shop customers.
The report showed that nearly 84 percent of customers who were kept informed of the repair process would still refer the shop even if the repaired vehicle was delivered seven or more days late. The referral rate drops to about 42 percent when customers believed they were not kept adequately informed about the reasons for a delay of a week or more.
"Every day the typical shop owner is dealing with customers, employees, insurance companies and parts vendors," said Dennis Kiyohara, AutocheX vice president. "Sometimes factors beyond a shop owner's control drive extended delays in vehicle delivery. We have found that keeping customers informed of these delays minimizes the impact on customer satisfaction."
AutocheX released the results of its recent survey as a service to the collision repair industry gathered at NACE, the International Autobody Congress and Exposition, Dec. 6-8 in Dallas, Texas.
"We have the largest database of customer opinion information in the industry," Kiyohara said, "and we're pleased to share data that can help shops and insurers enhance their business operations."
AutocheX has been providing CSI services to the industry since 1989 and will be the CSI service provider to the new Mitchell Open Repair Network.
Kiyohara said keeping customers in the dark on their vehicle status can quickly tip the referral scale against shops.
"Anytime a shop's referral rate drops below 70 percent, more people are likely to be saying bad things about the shop than are saying good things," he said. "This is because dissatisfied customers tend to share their experiences more often than satisfied customers."
The survey showed that the referral rate for shops that do not keep their customers adequately informed drops below 70 percent after being one to two days late in delivering a repaired vehicle. This compares to a referral rate of over 90 percent when customers feel they were kept informed despite their vehicle being delivered 1-2 days later than promised.
But there was good news in the survey. About 83 percent of the more than 2,500 shops involved in the survey were doing an adequate job of communication, according to interviewed customers.
"It is obvious most shops are doing a good job in communicating with their customers," Kiyohara said. "But those that don't communicate run a very high risk of losing customers -- maybe even their business."
Kiyohara recommended shops communicate by e-mail or telephone, any way that gives customers an update of the repair process and a chance to respond with questions or comments. He said one shop, with particularly high CSI ratings, has gone so far as to install cameras in its repair bays so that customers can go to the shop's Internet site and watch the repairs in progress.
"Anything that gives customers the feeling that they know what is going on with their vehicles keeps them happier -- and that leads to repeat customers and new referral business," he said.
About AutocheX
Since its founding in 1989, AutocheX has been the leading provider of customer satisfaction indexing (CSI) services to the automotive claims industry. AutocheX interviews more than 35,000 vehicle owners every month and has the largest database of customer opinion in the industry today. AutocheX measures customer satisfaction with the claims process, collecting information on the customer's experience with the insurance company and collision repair facility. Insurers and shops use the AutocheX results to monitor and improve customer satisfaction, to retain and attract new customers, and to increase profitability. For shops, CSI measurement also serves to enhance their business relationship with insurers. AutocheX, a Mitchell International company, also measures customer satisfaction for home and property repairs, auto glass repair, rental car and collision repair parts. For more information on AutocheX, contact Bonnie Ward at 858/530-8990 or bonnie.ward@mitchell.com.
About Mitchell International
Mitchell International Inc., founded in 1946 and with headquarters in San Diego, is The Source for information software and eBusiness solutions for the insurance and collision repair industries. Providing services that enhance productivity, profitability and customer satisfaction, Mitchell facilitates several million electronic transactions between more than 16,000 business partners each month. Mitchell's own parts and labor database, a critical connectivity point between shops and insurers, is trusted for its accuracy and respected as the industry standard. For more information on Mitchell, contact Bonnie Ward, PR Manager, 858/530-8990 or bonnie.ward@mitchell.com. Visit our Web site at www.mitchell.com.
