Overview: Royal Palm Toyota uses ClearMechanic to speed up a customer’s response time when presented with additional service recommendations. Before ClearMechanic, customers took an average of 2 hours to approve recommendations. Now, with ClearMechanic, customers take an average of 30 minutes for approval, a substantial reduction. Royal Palm Toyota estimates its labor gross profit improves by $40,000 from this efficiency improvement.
(Note: this efficiency benefit of the ClearMechanic program is in addition to the higher success rate on additional service recommendations. The customer says “yes” and says “yes” quickly.)
See Photos Shared by Royal Palm Toyota: Here are several examples of service recommendations from Royal Palm Toyota successfully sold using the ClearMechanic program:
- Battery Replacement, 11/5/12: click here for photo.
- Tire Replacement, 11/3/12: click here for photo.
- Shock Absorber, 11/2/12: click here for photo.
Background: ClearMechanic improves service center profitability in two major ways: 1) it gets customers to say “yes” and 2) it gets customers to say “yes” quickly.
Our clients often sign up for ClearMechanic to reduce the percentage of “declines” they get on repair recommendations. Providing visual evidence to customers truly works. It overcomes the trust deficit between customers and service centers and improves success rates on additional service recommendations by 20-40 percentage points.
However, a lesser known – but equally important – benefit of ClearMechanic is the efficiency we deliver to service departments. A customer who sees a real-time photo or video clip of *their* defective vehicle part approves service recommendations quickly. In contrast, a customer who is simply told a repair is needed, without proof, may say “no” or may call a friend or family member before saying yes. That results in declines and delays.
Interview with Royal Palm Toyota Service Manager Ryan Hall:
CM: What's the average amount of time it takes for a customer to approve a repair after it has been presented to them?
Royal Palm Answer: Most people waiting in the lounge approve all additional repairs immediately if the advisors are able to provide a report within 15 mins of arrival. We have found that using real-time photos drastically improves the approval time on higher dollar repair items.
CM: What's the average reduction in time when presenting ClearMechanic photos or videos clips via email and/or SMS text message? This can be either a percentage or number of minutes.
Royal Palm Answer: The average approval time for authorization after ClearMechanic photos/videos are sent is about 30 minutes. Prior to ClearMechanic, the approval time was 2 hours.
CM: Can you provide an estimate or calculation of how much delays in approval cost the service center over the course of each day?
Royal Palm Answer: The average CP ticket in our service department is roughly $180.00. I could easily see an increase of .30 per repair by reducing cycle time and sending photos. I can safely say the delays in approval easily cost a store $39,000 in labor gross profit.
About ClearMechanic, Inc.: Founded in 2009, ClearMechanic has proven experience creating award-winning applications for the automotive repair industry. Their existing mobile and web applications have delivered more than 200,000 repair recommendations and bring transparency and ease to repair center customers. ClearMechanic has been featured in The Wall Street Journal, Automotive News and Consumer Reports.
For more information, please visit www.clearmechanic.com.