Reclaiming customers from insurance companies

The advent of direct repair programs (DRPs), concierge programs and other insurance company offerings have muddied the waters when it comes to managing customer relationships, with many customers mistakenly believing that the insurance company is in charge of the repair process. A recent Society of Collision Repair Specialists survey even found that many shops consider the insurance company, not the vehicle owner, their actual customer.

"Years ago we competed for business by marketing to the consumer, not going through insurance companies," says Lou DiLisio, president of Automotive Industry Consulting. "Over the last 15 years or so a lot of shops have lost that focus on the customer. You have to build that relationship, even in a DRP environment. Once a customer comes through the door of the shop, it's the shop's responsibility to make that customer their own."

How can shops reclaim the customer relationship, even when their customers have come to them by way of insurance referrals or a DRP program?

A key part of that is building an identity for your shop, says Bobby Price, owner of Price's Collision Centers, a $12-million operation with three locations in Tennessee. "I allocate 3 percent of revenues to advertising, and I've been doing that for 10 years," Price says. "You have to deliver a consistent message and maintain top of mind in the marketplace."

Part of his advertising focuses on educating consumers about their rights. His most recent radio ads describe the deceptive word tracks sometimes used by insurance companies to steer work to their DRP shops. Price participates in one DRP, State Farm's Select Service program.

"My message is all about working for the consumer," Price says. "We try to educate the consumer on their right to choose a collision center, and we've built our message around the fact that we work for the customer."

Price says his biggest competition isn't other collision shops, but the word tracks that insurance companies use to steer customers. "In bringing those things to light, consumers are educated and not as apt to be steered," he says.

In fact, just passing out a "Motorists Rights" or "Customer Bill of Rights" document can go a long way to help educate those consumers. Many state auto body associations offer these pamphlets. Shops should have copies available and hand them out to every customer that comes in for an estimate.

"That explains that they have the right to get their car fixed anywhere they choose, and they don't have to go around getting multiple estimates," says Tom Franklin, author and industry consultant.


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