How has the COVID-19 pandemic changed customer expectations in the auto repair industry?

Digital experiences were already growing in popularity, but the pandemic accelerated consumer expectations for streamlined, digital service. - Customers want to make decisions from their phones and spend less time in waiting rooms. - Shops that adapt to these expectations are more likely to thrive.

Why is offering contactless service important for auto repair shops post-pandemic?

Contactless service and health precautions may continue to be valued by customers. - Shops offering these options will have a competitive advantage. Auto repair shops that continue to offer contactless service will be better positioned to compete, whether for safety reasons or customer convenience.

How 500 of Tekmetric's High-Performing Auto Repair Shops Responded to COVID-19

In response to the challenges posed by COVID-19 in 2020, Tekmetric supported 500 high-performing U.S. auto repair shops by launching the TM-500 Index to track key performance metrics like Average Repair Order and Car Count, while accelerating digital transformation through features like Text-to-Pay and True Two-Way Texting to enable touchless, modern customer experiences and help shops adapt and grow despite reduced driving and economic uncertainty.

Remember spring and summer of 2020? It was a challenging time for everyone, including the automotive repair industry.

Last April, auto shop owners were concerned about whether customers would come into the shop, if people would drive less, and if reduced driving would impact the frequency of repairs. There were also worries about the broader economic impact and whether customers would have less money for repairs.

Tekmetric aimed to help answer these questions and support shops in not only enduring the pandemic but also growing stronger.

Strength in Numbers

Metrics provide confidence and clarity. Tekmetric launched the TM-500 Index, which tracks the Average Repair Order (ARO) and Car Count of 500 auto repair shops across the United States. The TM-500 allows users to sort data by time and region, making it easy to explore trends.

For example, users can view ARO and Car Count for specific months or compare performance across different regions. This tool provides auto repair professionals with valuable insights into industry trends.

A Catalyst for Digital Transformation

The auto repair industry has traditionally lagged behind other service industries in adopting technology. While ordering food and tracking delivery is commonplace, auto repair customers often still deal with paper-based processes.

The COVID-19 pandemic became a turning point for many shop owners to digitize their operations. In 2020, Tekmetric accelerated the rollout of features to help shops provide a modern customer experience. In April 2020, they introduced Text-to-Pay, enabling shops to invoice and collect payment via text message. In November 2020, they launched True Two-Way Texting for seamless communication between service advisors and customers.

These features allowed shops to offer a touchless experience without compromising service quality. Customers appreciated the enhanced, digitally assisted experience. Tekmetric continued to add new metrics to the TM-500, such as state-by-state Labor Margin, Parts Margin, Effective Labor Rate, and Car Count, to provide a more comprehensive view of shop performance.

What Have We Learned Since the Onset of the Pandemic?

Tekmetric combined quantitative data from the TM-500 with qualitative feedback from shop owners to draw insights about industry trends.

Repair shops are selling larger repair orders

Shops are closing larger tickets. Two main reasons:
1. 1.People are driving less, so they address all necessary repairs in one visit.
2. 2.Tekmetric features like Tekmerchant, Tekmessage, digital vehicle inspections, and estimate approvals have enabled shops to sell more work.
Car Count was lower than in previous years, but shops offering a transparent experience saw more approved work.

Fully digitized shops are the future

Some shops performed better during the pandemic. For example, S&S Auto Repair expanded, improved metrics, and added locations.
Success factors included adapting processes for COVID conditions and focusing on community outreach, such as providing discounted or free service to essential workers.
Thriving shops were able to hire skilled technicians and service advisors from other shops that struggled to adapt.
Cloud-based systems allowed for easy onboarding and scaling as customer demand increased.

What Lasting Changes Has the Pandemic Left on the Auto Repair Industry?

While the future is uncertain, some changes appear to be lasting:

Remote Work

Many workers and employers have realized productivity is possible from home.
Less commuting means less wear-and-tear on vehicles, so drivers may visit shops less often but approve more repairs per visit.
Shops need systems that enable them to sell more work during each visit.

Digital Customer Experiences

Digital experiences were already growing in popularity, but the pandemic accelerated consumer expectations for streamlined, digital service.
Customers want to make decisions from their phones and spend less time in waiting rooms.
Shops that adapt to these expectations are more likely to thrive.
Increased awareness of personal space and health may lead to continued demand for contactless service.

A More Careful Approach

Some people will remain cautious about public spaces, especially those who are older or immunocompromised.
Contactless service and health precautions may continue to be valued by customers.
Shops offering these options will have a competitive advantage.

Auto repair shops that continue to offer contactless service will be better positioned to compete, whether for safety reasons or customer convenience.

Five Questions to Ask Before Signing a Shop Management Software Contract

Committing to shop management software is a significant decision. The right platform impacts your front counter, bays, reporting, and customer communications. The contract you sign shapes your shop's daily operations.

Here are five questions to ask before signing:

1. How flexible is the contract, and do you have to commit to a full year?

Ask about month-to-month billing versus annual contracts and what happens at renewal.
Flexibility is important as your shop's needs change.
A good vendor offers both options and helps shops transition from other contracts.

2. What does support actually look like after I sign?

Support quality is crucial after the sale.
Look for multiple live support channels and a team that understands your business.
Ask where the support team is located and how to reach a live person during busy hours.

3. How open is the platform, and will it work with the tools I already use?

Your shop likely uses various tools (parts suppliers, accounting, payments).
A closed platform creates extra work; an open platform integrates with your existing tools.
Ask for a published integration list and confirm your vendors are supported.

4. What do you actually guarantee about onboarding?

Onboarding can make or break your experience.
Look for a dedicated onboarding manager and a clear, quick setup process.
Ask about the timeline, point of contact, and how your data will be migrated.

5. What happens if it isn’t the right fit?

Understand the process for leaving the platform and taking your data with you.
Month-to-month options provide freedom and show vendor confidence.
Ask vendors to explain the exit process.

The through-line: confidence answers questions

A confident platform offers flexibility, real support, open integrations, stands behind onboarding, and allows you to leave if it’s not working. Lock-in is a sign of a vendor lacking confidence in their product.

When evaluating software, remember you’re choosing a partner for your shop’s daily operations. Make sure they earn your business and continued trust.