Driving Insight - In Need of Repair
How collaboration and customer-focus can shape the revival of the repair industry
by Michael Huthart, head of group network, FMG Support
The fleet industry continues to polarise as service providers realise that future success is based on adopting a professional and consultative approach to business. As a vital link in the chain, repairers must also demonstrate their commitment to progression and professional development. This can only be achieved if everyone abandons feelings of mistrust and moves towards a partnership approach that is truly focused on customer satisfaction.
Change within the vehicle repair industry is being demanded at every level. Challenges from customers on the quality and cost of repairs have driven greater government scrutiny and consequently damaged repairers’ collective reputation. At the same time, commercial pressure has reached boiling point due to the combined negative effect of increased legislation, reduced job volumes caused by greater vehicle reliability and a concerning shortage of skilled workers coming through the employment pipeline. The impact of this has yet to be fully measured but figures issued by the market analyst Trend Tracker highlighted concerns that since 1994 fleet service volume has declined by 27% and the value of the market has plummeted by 23%. Such statistics are particularly alarming as more company vehicles are on today’s roads than ever before.
Striving for professional recognition is now driving the UK repair market forward and will be the inevitable catalyst to transform the industry. The introduction of the controversial PAS125 Kitemark initiative in early 2007 aims to standardise performance levels and provide greater consistency in terms of meeting customer expectations. Despite questions surrounding the practicalities of implementing the regulations and even hints of cynicism at the effectiveness of the initiative, repairers should embrace it as an opportunity to demonstrate pride and professionalism. However, with such legislation there needs to be a balance between policies that develop the industry and red tape that threatens to stifle progress. At FMG Support, we work with an extensive network of repairers and agents and have largely found that repairers who are passionate about developing their own businesses have welcomed the standard to provide an official hallmark that ‘rubber stamps’ their existing credibility. On a wider scale, new national standards and accreditation schemes should be seen as the chance to self-regulate rather than awaiting further government intervention. It also offers an opening to improve skills, raise standards and maintain the dedication to quality that customers’ desire.
However, official standardisation alone will not provide a complete solution and such policies will only be truly effective when combined with a shift in attitude from the fleet industry as a whole. As the fleet industry strives to progress, deliver strategic solutions and raise service standards it should be recognised that for many, the role of the repairer is an increasingly vital link in the chain. As the two work hand in hand, one cannot afford to be let down by the other if they are to deliver their mutual customer promises. Developing supportive partnerships with pro-active repairers is essential for service providers and fleet managers. For example, the FMG Partner Support programme has initiated a culture of sustained improvement in the performance and commitment of its repairer network by working closely to agree KPIs, improve administration processes, advance technology capabilities and help them to understand the impact that cumulative repair costs, vehicle downtime and other associated costs can have on customer satisfaction levels. Keeping an open dialogue helps to air concerns and share best practice. But, just as importantly, rewarding high performing repairers with increased job volumes also presents them with the opportunity to develop their own business.
Customer-focus is the theme that underpins the entire improvement process. It is obvious but often gets lost amongst the noise of more complex market forces. In this respect, strained and disjoined relationships have been a major distraction. There has been mutual distrust between insurers and repairers. And, poor communication between leasing companies and accident management companies has meant that sometimes the customer may have slipped out of view. Greater co-operation is needed to develop a culture of trust and transparency amongst all these groups in order to re-introduce the primary focus on the customer, which will ultimately benefit all involved. As an accident management provider we believe that taking a joint approach is key by working with repairers and leasing providers to ensure that quality standards are consistent with customer expectations.
Focusing on the customer and using this as the foundation for all relationships, service levels and business development initiatives is the key to prosperity for repair companies. The fleet industry is still polarising. As more professional and business-focused providers continue to outstrip the competition, quality repairers have a critical role. And with the right support, those who are willing to take on the challenge, identify opportunities to progress and demonstrate a commitment to continual improvement through working corroboratively, will not just survive, but truly prosper. Not only will they reap the benefits personally, it will also contribute to improving the industry’s health and reputation and add to weight to the wider professionalism of fleet.
