ClearMechanic Case Study: Fort Collins Muffler & Automotive Uses Real-Time Video To Sell Oil Pump Replacement
Overview: On October 16th, Fort Collins Muffler & Automotive sold a $1,165 oil pump replacement using ClearMechanic's real-time video feature. After seeing hard proof of leaking fluid, the customer approved the service recommendation.
Watch The Video: Click here to watch the video uploaded by Fort Collins Muffler & Automotive's service department. The video clearly shows leaking fluid from the customer's vehicle spitting out and accumulating in a puddle on the service bay floor. Note that this is a situation where static images of the leaks (such as a high-quality photo) were not sufficient. It was important to show the vehicle part attempting to function - and failing - with a real-time video.
Background: Fort Collins Muffler & Automotive, an independent service center in Colorado, is a regular user of ClearMechanic, a visual explanation program enabling service centers to instantly share real-time photos, videos and diagrams with customers. Common examples are leaks, cracks, diagnostic tests, dirt, contamination and wear. In this case, Fort Collins Muffler & Automotive needed to justify a $1,165 service recommendation to a car owner who had already visited another service center. The customer was unsure of the source of the vehicle problem and, as a result, was initially concerned about paying for such a large service job.
In the Words of the Service Advisor: Service advisor Eric Crackel was responsible for explaining and selling the oil pump recommendation. Here is what Eric said about the process:
Notice that the customer was not physically at the service center when the inspection took place, so it was impossible to "visually explain" the service recommendation over a phone call. That is why ClearMechanic's technology is essential. We instantly post photos and video clips (uploaded through our iPhone and Android mobile applications) to the service center's website and allow sharing among spouses and family members. Customers can either view photos or videos by e-mail, text message or directly on the service center's website.
Return on Investment ("ROI") Calculation for the Service Center: Let's be conservative and assume ClearMechanic only increased the chance the customer said "yes" to this oil pump service by 20%. And let's also assume that the service department's profit on this job was $550, which would be under 50% gross margin (probably understated). Even with these extremely conservative assumptions, ClearMechanic technology still delivered $110 of profit to the service department on a single job. If this process were repeated just a few times per week, the product would have a 10-15x monthly ROI.
If, like most of our clients, ClearMechanic technology is used every day and sometimes 10 to 20 times per day, then the ROI is literally 100x-200x. That is, for every dollar spent on our technology, the service department would get $100 to $200 of profit.