Archive for category Fleets
What Will Winter 2019 – 2020 Bring?
Posted by "Just Sayin'..." in aftermarket, AGRR, aumotive after-market, Auto Glass, Autoglass, Batteries, Battery, Business, cars, Collision Repair Industry, customer, Disruption, Disruptive Innovation, Economy, Fleets, General, Innovation, Leadership, rental cars, Retail, Service, state government, Success, supplier, Technology, Tools, U.S., U.S. Govt., Uncategorized, USP on September 12, 2019
If you read the recent “Farmers’ Almanac’s Extended Forecast 2020” article on the outlook for the coming Winter in North America you’d have seen that it’s predicted to be what the self-proclaimed provider of “perception, experience, and common sense” is calling a “Polar Coaster”. Their forecast for this Winter anticipates that we will experience bitter cold from the Rockies to the Appalachians. A forecast likes this tends to be great news for the retail automotive aftermarket as weather extremes are a key driver whether you’re in the Emergency Roadside Service (ERS) industry or the auto glass repair and replacement (AGRR) industry.
For 201 years the Farmers’ Almanac has been providing seasonal weather predictions and this Winter the worst areas for cold and snow include the Northern Plains, Great Lakes Region all the way to the Northeast. The prediction indicates that the worst weather could take place from late January through early February.
Winter weather often brings feast or famine to the automotive aftermarket depending on whether it’s a colder or warmer season. It doesn’t matter whether you’re a manufacturer of products used by the automotive industry’s that operate in the aftermarket, a company distributing replacement parts into markets across North America or a retailer providing services to the end user, the spikes in opportunities that cold weather extremes bring includes probable logistical and supply issues. Potential issues that extreme cold, ice and snow brings can include keeping plants open and fulfilling increased parts orders, keeping delivery vehicles on the road getting those products to the retailers who also have to deal with scheduling repairs that come along with the increased opportunities.
With the current historically low unemployment rates that we’re seeing across North America an extreme Winter also will bring additional stress due to difficulties finding those qualified to manufacture, distribute and provide repairs that consumers and businesses alike will require. Currently there are numerous examples of difficulty finding and keeping qualified technicians in both the AGRR and ERS industry’s. In the AGRR industry a glass repair or replacement can often be deferred for some period of time, but weather extremes effect on automotive batteries will drive volume spikes in jump starts and replacement opportunities putting strains on companies that provide services in the ERS space.
So if the Farmers’ Almanac prediction turns out to be accurate for Winter 2019 – 2020, has your company planned and prepared its best so that you can take care of your customers parts and service needs? Those who have done the best job planning before any extreme cold, ice and snow appears will be the ones able to capitalize on the opportunities that are available.
Just sayin’.
* Photo by Vel Vesa on Unsplash
The New Normal
Posted by "Just Sayin'..." in Acquisitions, ADAS, AGRR, aumotive after-market, Auto Glass, Auto Glass Networks, Autoglass, Business, Call Centers, customer, Disruption, Disruptive Innovation, Fleets, General, Innovation, Insurance, Service, state government, Technology, U.S. Govt., Uncategorized on August 20, 2019
Today the competitive landscape in the auto glass repair and replacement (AGRR) industry in the United States was dramatically altered. We saw this morning an announcement that Safelite, the largest company in the space, purchased the second largest company. As the clear market leader Safelite was perhaps 14+ times or so larger than TruRoad Holdings. By acquiring the companies that make up TruRoad and bringing them into the Safelite platform the gulf between Safelite and the possible number two AGRR company Glass America is even more gigantic.
You’d have to believe that auto insurers, fleets and even consumers would have a strong interest in ensuring that competition continues to exist for AGRR services. Insurers and fleets especially would have interest in seeing a strong national competitor emerge to keep pricing and service levels in check considering the market share Safelite controls. The prospect of building a true competitor and all that would be required to compete against Safelite in the marketplace would be an incredibly daunting task and in my opinion is highly unlikely considering the new competitive landscape in the AGRR space with Safelite acquiring TruRoad.
Baseball player and coach Yogi Berra was once quoted as saying when asked about the chances of the New York Yankees winning a pennant race one year, “It ain’t over til it’s over.” I’m sorry to say that competition in the AGRR space might be over. Welcome to the new normal.
Just sayin’
Interview with Chris Thornton, Managing Director – Auto Windscreens, United Kingdom
Posted by "Just Sayin'..." in AGRR, Auto Glass, Call Centers, Fleets, General, Insurance, Interviews, Leadership, recipe for success, Retail, United Kingdom, USP on July 29, 2014
It’s always an interesting exercise looking at automotive aftermarket retailers that excel in the industry they compete to understand reasons for their success. It doesn’t matter where in the world a company operates; be it in the United States, Canada, Brazil, the United Kingdom or elsewhere in the world. Those companies that do standout and outclass rivals, take on market leaders in the industry they compete and are recognized for the high levels of service they provide to customers, deserve our admiration, respect and emulation. One such company is based in the United Kingdom. Auto Windscreens is headquartered in Derbyshire, in a town named Chesterfield 150 miles north of London. Originally formed in 1971 Auto Windscreens has gone through a number of evolutions to get the company to where they are today. Auto Windscreens is the United Kingdom’s fastest growing and most dynamic provider of (auto) glass repair and replacement services (AGRR). Suffice it to say that the company has a lot of things going for it right now.
Auto Windscreens has won several prestigious awards over the past several years. Among them:
- At this year’s 2014 British Insurance Awards Winner Auto Windscreens won top honors for two award categories:
- Both in 2014 and 2013 they were recognized by The Sunday Times being selected as one of the “Best 100 Companies to Work For”.
- Auto Windscreens was ranked second in the United Kingdom and when the received recognition as a “Top 50 Call Centres for Customer Service” in 2011. At the same time they were also named the “Best Newcomer” and the “Best Service Provider”.
These are very impressive awards for any company. George Bernard Shaw said, “Imitation is not just the sincerest form of flattery – it’s the sincerest form of learning.” I think that there is a lot automotive retailers can learn from Auto Windscreens.
Chris Thornton is the Managing Director (the U.K.’s version of Chief Executive Officer) of Auto Windscreens and I thought hearing from him on a number of topics would be interesting to readers of this blog. Chris took over as Auto Windscreens’ Managing Director earlier this year.
DR: Thank you for taking the time to talk Chris.
CT: My pleasure David. I like nothing better than talking about Auto Windscreens
DR: Auto Windscreens has certainly seen some great successes of late. What do you believe are key the reasons for the company’s successes?
CT: It’s all about being the best at everything we do in delivering the finest service possible to our customers. And in order to do so every member of the team has to play their part. As we offer a Customer Satisfaction Survey to every customer, we can see exactly where and when we are delivering this outstanding service and where we may have some improvements to make
DR: What were some of the issues (positive and/or negatives) you and your management team faced in moving the company forward after you joined Auto Windscreens in 2013?
CT: The atmosphere and approach within Auto Windscreens is outstanding. Everyone knows what we are looking to achieve and how to get there. I am a firm believer in clear and regular communications within the business.
Our biggest challenge is maintaining this as we expand. Many of the UKs biggest insurers and fleets are in discussion with us at the moment as we are clearly THE automotive glass company to be dealing with.
That expansion impacts across our business and one critical area is recruiting and developing technicians to work at the same high standards as we do now. At the end of the day we are a people business.
DR: Of the issues you’ve mentioned which one do you feel made the biggest difference in getting everyone focused on providing customer excellence?
CT: Communication and training is essential.
From the moment we take the customer call, the focus is on finding the right appointment to fit the customer needs. Our automated system generates a selection of appointments for the customer to choose from and once selected the appointment is guaranteed. We spend a lot of time training our contact centre agents in both call handling and technical skills.
Auto Windscreens has the only accredited training centre in the UK. Our facility not only provides an excellent workshop environment for new starters but on-going training, development and advancement to higher qualification.
All our technicians are kept fully up to date with the latest information. All work is processed on Personal Digital Assistants (PDAs) which have a detailed Technical and Training programme on them to support the technician. In addition our Training department supports the technicians with a team of field based trainers and a 24 hour support line.
DR: How have the partnerships Auto Windscreens has made with insurance and fleet customers improved your customer service?
CT: Both insurers and fleets have recognized the quality Auto Windscreens have brought to the industry. We demonstrate this through leading Management Information and more critically through Customer Satisfaction Surveys and Net Promoter Score.
Our surveys are both offered by Auto Windscreens and through an independent survey analyst which creates total transparency for our clients. In turn they have total confidence in Auto Windscreens in our service delivery.
DR: Can you provide an understanding how your value proposition is resonating with your customers? How does your relationship with your customers differ from what other competitors offer?
CT: In 2011 we noticed that customers were regularly getting in touch with us to thank us for the quality of the work they had received. This told us we were doing something right.
From this we created the Praise Log, an internal document sent to everyone in the business each month showing where customers had called to say “Thank You”. And our people love to see their names on there.
This has expanded as customers write about their experiences on review sites such as reviewcentre.com. This is totally independent and Auto Windscreens have a 96% recommendation rate. It is the consumer trust in our brand that is making the difference.
DR: Your company focuses a great deal on providing management information systems to customers to help them find ways to reduce costs and operate more efficiently; how do you feel that helping them understand their windscreen losses is a winning strategy for Auto Windscreens?
CT: Management Information is critical in every business and we support our clients by providing them with the information they need to enhance customer experience and in doing so boosting customer retention.
The information also helps reduce wastage and controls cost but our clients are now being driven by quality rather than cost alone.
DR: How does Auto Windscreens use social media (Facebook, Twitter, YouTube, Google+, etc.) to interact with its customers? Do you feel it is time well spent for anyone operating in the retail automotive after-market?
CT: The world of communications has changed significantly in the last decade and like many businesses we have had to adapt. Our marketing department manages our social media accounts not only promoting our business but monitoring and responding to any questions.
It is very worthwhile as it brings us closer to our customers and helps identify trends before our competitors
DR: How many fitting centres, mobile service units and employees does the company currently have?
CT: We have over 40 branches covering the UK (it’s a lot smaller than the USA) more than 350 mobile service units and over 500 staff in total
DR: Do you see further growth for Auto Windscreens in the United Kingdom? With the success you’re enjoying, are there any thoughts of growth outside of the United Kingdom?
CT: Our focus in firmly on the UK for the foreseeable future. It offers great opportunities for us as we expand. We will not get distracted by expansion alone, the key is to continue delivering the best service in the industry.
DR: With the great success Auto Windscreens has found in recent years while facing a large competitor, can you offer some advice to those who also find themselves competing against companies bigger than they are in a market or country?
CT: I believe you need to set your stall out and get your team on board in delivering this. Our message has been Total Customer Satisfaction from our beginnings which meant everybody has to play their part.
DR: Do you use radio or television to reach customers?
CT: We have in the past but not currently.
DR: What is the most effect way to reach targeted customers?
CT: If you win the corporate accounts then the volume will come. If those clients will support you as the only option for replacement glass and repairs then the business is as good as guaranteed.
DR: Auto Windscreens was a winner in the 2006 Commercial Fleet World Honours – The Environment Award. I know that you and your company have a strong commitment to green initiatives by recycling 100% of the windscreens that you replace. When did this initiative begin and what has been the response from Auto Windscreens’ customers?
CT: 2006! That was a few years back but we are as proud of our environmental credentials now as we were then. We are in a world where recycling is promoted greatly and we have always led in our industry with green policies. Our customers have always been supportive of this approach which started more than 20 years ago. Our resources are finite so we must use them wisely
DR: I read on your web site that 40 replaced windscreens that you recycle fit on a skid, while the materials required for 40 repairs can fit in the palm of a hand. By your commitment to repairing windscreens Auto Windscreens is providing great value to its customers while also fulfilling your green initiative strategy to help reduce the effect replacements have to the environment. That is a strong endorsement for repairing over replacing. How do your customers view your commitment to repair? Can you give us a range of repair rates you see in the United Kingdom?
CT: The repair rates vary by customer type but can be up to 50% of our work. Our customer base encourages repair over replacement and so wherever we can safely make a repair we will.
DR: During my career I spent a fair amount of time in the United Kingdom and I greatly value all that I learned from those I worked with while in country. There is one service component that is offered by your company (and other windscreen companies in the United Kingdom) that hasn’t caught on in the North America and that is 24/7/365 service* with mobile units. Your web site touts that, “Our fitting centres are open from 8:30am till 5:30pm Monday to Friday and on Saturdays from 8:30am to 12:30pm. Outside these hours, work is carried out by our team of mobile technicians who are on call 24 hours a day every day of the year.” Can you provide the reason why this type of service is offered in the United Kingdom and what percentage of work is done outside of the normal fitting centre operating hours?
* Since 1981 windscreens in the U.K. have been laminated. Prior to that date tempered glass was used for some windscreens.
CT: It has been customer led and is for “emergency” work such as broken rear and side glass. We cannot allow customers to be left stranded in a vehicle that cannot be driven or is insecure. Such urgent requests may be low in volume but very high in importance.
DR: What do you feel are the strengths and weaknesses of Auto Windscreens and what are you doing to take advantage or fix them?
CT: Some of our IT infrastructure was getting old so we have created a data centre, 24 hour IT monitoring team and issued new PDAs to all technicians. This significant investment will cover our requirements for the next 10 years.
Our strengths are many. Our independence allows us to develop the business as we need without interference from head offices, shareholders or partners. Our clear leadership in high quality service provision is proving very difficult for our competitors to get close to and as we further develop this, the gap will increase.
And as technology becomes more prevalent in windscreens, companies who cannot demonstrate and prove that they have the proper training processes in place will fall away.
DR: I know that you focus a great deal of time and effort on training Technicians. You obviously feel that you’re reaping dividends on these initiatives. Can you give us a brief overview of your company’s approach to training?
CT: By having highly skilled technicians we have created a team that is prepared to go that extra mile and takes pride in its work. The training starts from the moment a technician, either skilled or a new recruit, joins the business and that training never ends.
It may take place at our Technical Training Centre or through field accompaniments. All technicians are assessed annually to ensure they continue to work to the standards expected of them whether a repair technician , replacement technician or a master technician.
DR: You have an amazing Net Promoter Score (NPS) that is off the charts in the mid 90’s. That is the highest number I’ve ever seen in our industry. As a company how have you been able to achieve that result?
CT: We are very proud of Net Promoter Score and Customer Satisfaction results. It has not been easy but by creating a customer centric culture as mentioned previously we have all staff aligned in delivering an outstanding service
DR: With that high level of NPS you’ve been earning a great deal of new business and contracts with fleets and insurers alike. How was Auto Windscreens able to garner this new business from the incumbents?
CT: That’s a question our customers would have to answer but I would say it’s down to the breadth of service we can offer at a rate which works for everyone. As a progressive business with a clear vision we will attract like minded businesses.
DR: I have been very impressed with what you and your team(s) have accomplished at Auto Windscreens. I firmly believe that that some of the strategies and tactics that Auto Windscreens has been employing can be exported to other countries and used by those who are interested in growing and/or making a difference with their company. I appreciate your taking the time to talk with me. I wish you and Auto Windscreens continued great success.
CT: It’s been a pleasure David.
Auto Windscreens is a great case study in how to turn a company around and make it into a world class service provider. It takes great leaderships and dedicated teams throughout the business, but I believe that Auto Windscreens has shown how to take on competition (big or small) and consistently win against them by focusing on the needs of each and every customer. I applaud Chris and all at Auto Windscreens for all they’ve accomplished.
Just sayin’.
GQA Qualifications Limited
(Auto Windscreens only offers GQA qualifications to their employees)
GQA Level 2 NVQ Certificate in Windscreen Repair (QCF) (GQA Qualifications Limited)
GQA Level 2 NVQ Certificate in the Principle of Windscreen Repair (QCF) (GQA Qualifications Limited)
Just Sayin’ Blog – A Matter of Self-Interest or Consumer Choice
Posted by "Just Sayin'..." in AGRR, Auto Glass, Call Centers, Economy, Fleets, General, Insurance, Legislation, Retail, Service, Third Party Administrator - TPA, Uncategorized on April 29, 2014
Last June 3, 2013 Dannel Malloy, Governor of the State of Connecticut signed a bill that was passed by Connecticut’s House and Senate the previous month into law. This link to the summary of the act that was first introduced in the Insurance and Real Estate Committee of the Connecticut House states,
“The act requires that a glass claims representative for an insurance company or its third-party claims administrator, in the initial contact with an insured about automotive glass repair services or glass products, tell the insured something substantially similar to: “You have the right to choose a licensed glass shop where the damage to your motor vehicle will be repaired. If you have a preference, please let us know. ” By law, appraisals and estimates for physical damage claims written on behalf of insurers must have a written notice telling the insured that he or she has the right to choose the shop where the damage will be repaired (CGS § 38a-354).”
This law seems to be a reasonable approach to provide and ensure consumer choice to the residents of Connecticut.
As it appears on the State of Connecticut’s General Assembly bill tracking web site the law – Public Act Number 13-67 – states,
“AN ACT CONCERNING AUTOMOTIVE GLASS WORK.
To require an insurance company doing business in this state, or agent, adjuster or third-party claims administrator for such company to provide additional disclosures to an insured regarding such insured’s right to choose a licensed repair shop or glass shop where such insured’s motor vehicle physical damage or automotive glass work will be performed.”
Again, this language also seems to be a reasonable expectation for residents of the state. Everyone believes that consumer choice is a good thing right?
The signing of the law was reported by number of industry publications (glassBYTEs.com, Autobody News, Automotive Fleet) due to the dramatic effect that it would have when fully enforced on insurance companies claims management programs, as well as automotive glass repair and replacement (AGRR) industry players (Harmon Solutions Group, NCS/Netcost Claim Services, TeleGlass/Strategic Claims Services, Gerber National Glass Services, PGW Lynx Services, Safelite Solutions) that provide network and/or Third Party Administrator (TPA) services to the insurance industry. AGRR networks and/or TPA’s tend to steer business to either company owned stores and/or to affiliated network repair or glass shops that conform to the pricing or service requirements of the network and/or TPA. That has been a long standing business practice of networks and TPA’s and it’s not hard to understand the financial benefit to these companies to continue doing so. The passing and subsequent enforcement of this law requires a pivot away from the long-standing AGRR industry practice of placing the decision of which company provides the repair or replacement into the hands of the consumer needing service and out of the hands of a network and/or TPA that has always been heavily involved in the decision. This also seems to be a positive for consumer choice. Again, everyone believes that consumer choice is a good thing right?
In order to protect its network and TPA business Safelite Group, Inc. and Safelite Solutions LLC (the Plaintiffs-Appellants) have gone to court against GEORGE JEPSEN, in his official capacity as Attorney General for the State of Connecticut and THOMAS LEONARDI, in his official capacity as the Commissioner of the Connecticut Insurance Department (the Defendants-Apelles) in hopes of overturning the law. The law clearly prohibits the steering of Connecticut consumers to specific repair shops by TPA’s and/or auto damage appraisers so one can understand the self-interest involved. Connecticut’s “Department of Consumer Protection” web page states that:
“Ensuring a Fair Marketplace and Safe Products and Services for Consumers”
The purpose of this government department is pretty obvious by its title. Public Act Number 13-67 protects the interests of consumers in the state and their “right to choose”; and the State of Connecticut unquestionably is within its rights to enact such a law, right?
If the State of Connecticut prevails in its defense of the constitutionality of Public Act Number 13-67 through the appeal process, as Safelite continues to fight to overturn the law, the future landscape of networks and/or TPA’s that provide AGRR services to consumers in the state will forever be changed. And if this law stands it will have an effect on the landscape of the AGRR industry in the entire United States. You can be sure that similar consumer protection bills will be introduced in state assembly’s’ across the country. Is that why Safelite is so strongly fighting this law duly enacted by the State of Connecticut?
If you visit the Safelite web site you will find that the company describes Safelite Solutions LLC as providing:
“….complete claims management solutions for the nation’s leading fleet and insurance companies.
The company currently serves as a third-party administrator of auto glass claims for more than 175 insurance and fleet companies, including 19 of the top 30 property and casualty insurance companies. Safelite® Solutions manages a network of approximately 9,000 affiliate providers and operates two national contact centers in Columbus, Ohio and one in Chandler, Arizona.”
The Connecticut law could serve to undermine a business practice that has existed in the AGRR industry since the late 1970’s. The genesis of call centers (a.k.a. a network or TPA) was when Joe Kellman, former owner of Globe Glass & Mirror, visited an auto glass call center facility in Bedford, England operated by Belron’s Autoglass and brought the idea back to the United States starting the U.S. Auto Glass Network. Since then, the impact, influence and control of consumer auto glass losses by networks and/or TPA’s operating in the AGRR industry has continued to grow each and every day. The networks and/or TPA’s obviously work hard to control and steer auto glass repairs and replacements to either company owned stores or to glass companies that agree to join and follow pricing arrangements that benefit the goals of the network and/or TPA. A business practice worth fighting for right?
The State of Connecticut is interested in protecting consumers in the state, who are in need of auto glass repairs or replacements, from being steered by a network and/or TPA. This law seems like a reasonable next step action in a state where those that are engaged in the AGRR industry are required to be licensed by the state (in my last blog I wrote about “Is it Time for Licensing?” in the AGRR industry). The Department of Consumer Protection oversees the licensing flat glass and automotive glass work.
We will have to wait for the appeal process to work its way through the courts to find out if this law stands, is amended or falls. But whether you believe that the law is a positive development for Connecticut consumers or you believe that the law violates free speech in commerce, the fight will continue as the stakes are too high. If the law passes through the appeal process and stands, it could be the tipping of the first domino and could be the beginning of big changes for the AGRR industry.
So where do you stand on Public Act Number 13-67? Are you on the side of consumer choice or on the side of the networks and/or TPA’s? Perhaps it depends on your own self interest.
Just sayin’.
Associated Articles and Reference Material:
Zauderer’s Scope (page 589) https://www.law.upenn.edu/live/files/1566-keighley15upajconstl5392012pdf
http://www.nldhlaw.com/content/uploads/2013/07/UpToSpeed_July2013A.pdf
http://www.glassbytes.com/newsConnAutoGlassBillGoestoGov20130523
http://www.glassbytes.com/newsConnecticutSteeringPasses20130606
http://www.glassbytes.com/documents/03192014SafeliteSecondCircuitBrief.pdf
http://www.glassbytes.com/documents/04232014SupplementalIndex.pdf