Get back to basics for your future

So often we take things for granted ... that those "things" always will be there and they have little maintenance required. We like such guarantees because we don't have to worry about them, and we can then concentrate on "pressing" issues of the here and now. But what happens when one of these "things" breaks down or no longer is maintenance-free?

In marriage, this is a common issue that often leads to divorce and other more complex issues. The rate of divorce in our country is staggering, and often it is caused by "taking for granted" our significant others or family matters. At times we do not even realize it has gone that far.

This often is similar to how we view our vehicles. When was the last time you had your vehicle tuned up? So if it does not start or run what do you do? The same is true of your business. What "things" that were once "givens" not worthy of your full attention are now troublesome issues? What have you been doing to keep your business "in tune" and running smoothly?

Nothing today in this industry or your personal life, can be taken for granted. You must work to keep everything finely tuned and running smoothly.

We are nearing the end of 2006. In the last year and a half many areas we may have taken for granted have changed drastically. State Farm, for instance, has been rolling out its new Select Service Program. Many shop owners who previously took this relationship for granted are finding out this valuable tie is in jeopardy and not guaranteed. Solera has entered the industry as a third party claims management company and changed the given relationship with another work provider. Progressive continues to change relationships with new concierge centers around the nation.

So what does all of this mean? Simply, get back to the basics of how you built a successful business.

I remember an airline commercial a number of years ago that included a CEO asking employees what happened to one of their primary accounts. The CEO originally established the account and considered the client a long-time friend. The current account manager replied that the client took his business to a competitor because "we have grown too distant and non-responsive to their needs." Plane ticket in hand, the CEO begins to walk out of the meeting when he's asked where he is going ... "To visit an old friend" is his reply.

Even the greatest athletes work on basics every practice. Former UCLA basketball coach John Wooden, considered one of the greatest coaches of all time, began with teaching every player on his team how to properly put on socks. This was a shock to many players who expected some great new philosophy or move. But this basic approach ensured players would have a lesser chance of developing blisters that could hinder their performance.

We have entered an era in which the need to be out marketing, advertising and promoting your business could not be more critical. There is no more important time to ensure you can match or even exceed your customer's expectations and delight them with your services.

In a visit to Australia a few years ago, I reviewed the system a particular insurer has for providing shop referrals to a customer when submitting claims. The system was very vanilla in that it was based on the postal code that generates three referral shops in no particular order. The customer selects one of the three at a very high rate — almost 80 percent of the time and climbing. They too have "customer choice," but culturally the customers in Australia are comfortable in using a provided referral. When a customer does select a shop not on the program, it too is challenging for all.

The shops I spoke with were all concerned about this system and felt they could do nothing to improve their sales. They were totally dependent upon what was referred to them. I kept envisioning a slaughter line with cattle. Despite many broken down fence sections the cows follow one right after another, not looking for opportunities other than the obvious. I asked the Aussies simple questions about their basic marketing approach. How does a customer recognize your facility's name over the others on the list? What do you do to keep your business at top of mind to the customer? The answer was often, "Nothing, why ?"

The basics, the basics, the basics.

First and foremost, take care of your customers. Do you still provide the services they expect? Take care of your employees. Are they equipped to meet customer expectations, as well as respond to promises you've made? Finally, take care of your business. Are you operating in the right direction, doing the right things and at the right time?

Keep in mind your business requires tune ups from time to time, refocus sessions and SWOTS (Strengths, Weaknesses, Opportunities, Threats and Strategies) sessions. This may be difficult for many, but it's a basic of business that works. Get clear directions before you just drive. Knock on more doors if that is what it takes.

In addition, get involved with your state and national trade associations. There are several issues facing our industry today that need the strength of numbers to address. This is the cornerstone of the basics, but we have allowed ourselves to take the road alone in many ways, and the terrain has gotten too difficult to pass without some unity and direction.

So for 2007, get back to the basics which got you to your success. Refocus on what your customers expect, what your employees need and your collision repair business deserves. The sooner you can adjust to these new needs the sooner the basics will lessen the chance of blisters that will keep you from competing in the future.

Please send your comments, questions and potential discussion topics you would like to see addressed in future columns to [email protected]. For additional information you can also visit www.aeii.net.