Has the pandemic been a boon to online sellers? - Auto Service World
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Serving the Automotive Aftermarket Since 1931
SEPTEMBER / OCTOBER 2020
rise of
e-commerce
Has the pandemic been a boon to online sellers?
ARE YOU BUILDING CUSTOMER LOYALTY…
or just trying to buy it with rewards?
CAN WE KEEP THIS CONFIDENTIAL?
Five rules about business discretion
PLUS
The value of marketing in bad times, pg 15 +
New SEMA report on ADAS technology, pg 7 +
Canada Post Canadian Publications Mail Sales Agreement No. 43734062
CONTENTS
September / October 2020 • Volume 88, No. 5
Columns
Service Notes
5 What do your clients think of OE parts?
JobberView
15 In hard times, marketing makes sense.
Off the Shelf
19 Are you creating loyalty… or buying it?
24
Features
MANAGEMENT
15
Confidentially speaking 22
Discretion is a key element of building trust with clients. Jeff Mowatt
offers five unwritten rules on how to treat confidential data. Departments
SELLING 7 In the news
Covid and e-Commerce 24
A new report from Global Market Insights suggests the global 11 Names in the news
pandemic may have accelerated the adoption of e-Commerce.
12 By the numbers
PRODUCT FEATURE
27 Baywatch
Getting tough! 26
The growing popularity of light trucks and SUVs has created 29 Advertiser index
demand for tougher chassis and suspension parts.
30 EyeSpy
w w w. a u t o s e r v i c e w o r l d . c o m M AY / J U N E 2 0 2 0 3
SERVICE NOTES
FOUNDED 1931
Jobber News is Canada’s longest-established
CAPTURING THE SALE
publication serving the distribution segment
of the Canadian automotive aftermarket.
It is specifically directed to warehouse
distributors, wholesalers, machine shops,
and national accounts. A new report examining the wholesale market
for OE parts reveals some basic truths.
Publisher | Peter Bulmer
(416) 605-5346
peterb@newcom.ca By Allan Janssen
O
Editor | Allan Janssen
(416) 578-1586
allan@newcom.ca ne thing I’ve learned about my cell phone is that it doesn’t like aftermarket
Contributing Writers| Susan Hitchon, Jeff Mowatt,
sync cords.
Sayan Mukherjee, Akshay Prakash, Zara Wishloff If I buy a pink one at a gas station because my battery is dangerously low
Creative Director | Dave Escuadro
and I forgot to bring my own cord, my phone will look at it blankly and then
continue to power down.
Video / Audio Engineer | Paul Willson It is original equipment or nothing for my phone – a costly and often inconvenient
Sales | condition for me.
Peter Bulmer, (416) 605-5346 Some vehicle owners take the same approach to replacement auto parts. For
peterb@newcom.ca
reasons real, projected, and imagined, about 20% of vehicle owners routinely ask for
Delon Rashid, (416) 459-0063 OE parts. And they’ll get them as a default if they go to a dealership for their repair
delon@newcom.ca
and maintenance.
Production and Circulation | But if they prefer the longer hours, personalized service, and multi-make competence
Delon Rashid, (416) 459-0063
delon@newcom.ca
of an independent shop, they may have to insist a little harder. Why? Because according
to a fascinating new survey by Carlisle & Company, on behalf of Motor Information
Systems, the majority of parts installed at independent shops are aftermarket parts.
Jobber News is published by Turnkey Media
Solutions Inc. All rights reserved. Printed in Looking at all mechanical repairs, a little more than a third use genuine OE parts. The
Canada. The contents of this publication may balance (64%) are non-OE parts. This is reassuring news for the manufacturing and
not be reproduced or transmitted in any form,
either in part or full, including photocopying
distribution side of the aftermarket. But the reason for this situation bears examination.
and recording, without the written consent of There are some useful lessons for jobbers among the survey findings:
the copyright owner. Nor may any part of this • A catalogue or online part search will return multiple manufacturer options two-
publication be stored in a retrieval system of any
nature without prior consent.
thirds of the time… but OE parts are identified as an option only 42% of the time.
Canada Post Canadian Publications Mail Sales
• The vast majority of independent shops do not place high value on one-stop
Product Agreement No. 43734062 shopping. They’ll shop around for the best price and availability.
“Return Postage Guaranteed” Send change • OE parts are generally lacking in price, margin, and delivery times – three of the most
of address notices, undeliverable copies and critical considerations at repair shops.
subscription orders to: Circulation Dept.,
Jobber News, 48 Lumsden Crescent, Whitby,
It is true that, generally speaking, OE parts are seen as better
ON, L1R 1G5 than aftermarket parts for quality, fit, and customer satisfaction.
Jobber News Magazine (ISSN#0021-7050) is
Furthermore, they’re on-par with non-OE parts for availability,
published six times per year by Turnkey Media tech support, and warranty. But the cons outweigh the pros, it
Solutions Inc., 48 Lumsden Crescent, Whitby, would seem, and jobbers who excel at inventory management,
ON, L1R 1G5
delivery efficiency, and price control will continue to do well with
From time to time we make our subscription list
available to select companies and organizations
independent repair shops.
whose product or service may interest you. If you In fact, the Carlisle & Company report finds that dealerships
do not wish your contact information to be made dramatically overestimate how long independent shops are
available, please contact us.
willing to wait for the delivery of a part. Dealerships appear
to expect part delivery delays of about 12 hours for
maintenance parts and 24 hours for repair parts. Not so
in the independent arena. There the expectation is one
hour. You’ve got 60 minutes to get the part to them, or
you risk losing the sale.
President & Managing Partner | Delon Rashid The Carlisle report makes fascinating reading, and
Head of Sales & Managing Partner | Peter Bulmer
we’ll put a link to it on our website. Feel free to see
Corporate Office what the stakes are when trying to capture sales to
48 Lumsden Crescent, Whitby, ON, L1R 1G5 independent repair shops.
But you may find the key takeaways are the things you
already knew: your customers expect excellent service, Let me know what you think.
great delivery times, and the best price. Those things may You can reach me at
allan@newcom.ca
ISSN 0021-7050
Online 1923-3477 never change.
w w w. a u t o s e r v i c e w o r l d . c o m SEPTEMBER / OCTOBER 2020 5
NEWS
SEMA SPEARHEADS INDUSTRY REPORT
ON ADVANCED DRIVER-ASSIST SYSTEMS
THE SPECIALTY EQUIPMENT Greg Potter, chief technology officer
MANUFACTURERS ASSOCIATION at ETI, said the lack of a coordinated
(SEMA) has released the first in a series approach to modifying vehicles that takes
of white papers designed to explain ADAS into consideration is creating safety
how advanced driver-assist systems performance challenges across the industry
(ADAS) function. and concerns for vehicle owners.
Designed to help manufacturers of “Owners of vehicles that have ADAS
performance equipment and accessories technologies [on] their cars and trucks
to “Customize with Confidence,” the quickly become reliant on them for safety
inaugural report outlines the automotive and convenience,” he said. “When a
aftermarket industry’s first active safety vehicle has parts replaced, is repaired after
performance study and test program a collision, or modified and accessorized,
for Pedestrian Automatic Emergency owners expect these ADAS features to
Braking (P-AEB). operate as designed to help keep them safe.”
John Waraniak, vice president of The report points out that ADAS
vehicle technology at SEMA, said access technologies pose new challenges to
to cross-industry resources will speed the performance aftermarket companies
development of ADAS compliance tools, because of the numerous cameras,
practices, and solutions in the automotive ultrasonic, RADAR and LIDAR sensors,
performance community. Center and asTech, in collaboration vehicle electronics, software and
“Understanding how ADAS with SEMA and the Equipment and Tool cybersecurity architectures currently
technologies and sensors function is an Institute (ETI). onboard many of today’s vehicles.
integral component for Customizing with The full series will give manufacturers “It’s imperative for repairers to
Confidence and the future of successful, information, tools, practices, procedures, have tools, procedures and methods to
complete and safe vehicle repairs and and resources to help ensure their accurately calibrate and validate these
aftermarket modifications,” he said. products can be successfully integrated systems prior to returning these vehicles to
The white paper was produced with the latest factory-installed service,” Potter said.
by subject matter experts at SCA Advanced Driver Assistance The report can be downloaded
Performance, Transportation Research Systems (ADAS) technologies. at www.sema.org.
REPORT OFFERS PERSPECTIVE industry survey of 1,281 professionals.
The report found that around 72%
ON PANDEMIC DISRUPTION of companies have experienced external
disruptions to their manufacturing supply
A JUST-RELEASED SUPPLY CHAIN Over 96% of global companies are chain over the last 10 years. Pandemics,
RESILIENCE REPORT from 3D Hubs, now planning to take measures to boost natural disasters and trade wars are
says 60% of manufacturing companies the resilience of their manufacturing the most common disruptive events.
around the globe have suffered supply supply chains - though fewer than half Despite being a major concern for many
chain disruptions as a direct result have started the process. As businesses companies, less than 10% have experienced
of Covid-19. develop long-term strategies, over 59% of disruptions due to cybersecurity issues.
According to the report, the pandemic companies say geographic diversification According to the authors, the need for
has emerged as the most potent threat of their supply chains is the most effective supply chain resilience has become greater
to economic growth - more than way of building resilience. as the frequency and severity of risks have
trade sanctions, natural disasters and The 3D Hubs Supply Chain Resilience increased and global trade has become
cyberattacks combined. Report 2020 includes insights from an more entwined.
w w w. a u t o s e r v i c e w o r l d . c o m SEPTEMBER / OCTOBER 2020 7
NEWS
PANDEMIC CLOSES 'INDUSTRY WEEK' SHOWS
DESPITE HERCULEAN EFFORTS to The Automotive Aftermarket Parts “While we had hoped to meet in person, we
proceed with Automotive Aftermarket Exhibition and the Specialty Equipment are excited to use technology to bring together
Industry Week in Las Vegas this Manufacturers Show will not be held as the supply chain of essential services to
fall, uncertainty surrounding public in-person events. For its part, AAPEX conduct business,” said Auto Care Association
gatherings has forced the cancelation of will be redrafted as a virtual event to be president and CEO Bill Hanvey, who is
the industry’s two biggest trade shows. held the week of Nov. 3. leading the team to stage AAPEX virtually.
LORDCO TRADE
SHOW GOES VIRTUAL
LORDCO PARTS turned its annual trade
show into a virtual event in the wake of
COVID-19 restrictions.
“We want to thank all our customers
and vendors,” said Sarah Durant, vice
president of marketing at Lordco Parts Ltd.
“It is their continuing support that makes all
our trade shows, especially this year’s, such a
huge success.”
The Lordco Annual Trade Show showcases
a diverse range of products from the highest
quality brands in every category that the
company carries.
This year marked the 30th anniversary of
the two-day event, and the first time it was
held online. Lordco’s virtual tradeshow was
built from scratch in 10 days and featured
every vendor from past trade shows and
catalogues.
“Initially, we were disappointed, but we
acted quickly to ensure all our vendors were
taken care of and that our customers received
the innovative, solutions-oriented service they
have come to expect from us,” Durant said.
Customers were awarded with scores of
prizes ranging from televisions and gift cards
to raw cash and even a custom Rat Rod. Brad
Halco from Burnaby Dieseltech claimed the
top prize.
Lordco’s 31st Annual Trade show will be
held in April 2021.
8 SEPTEMBER / OCTOBER 2020 w w w. a u t o s e r v i c e w o r l d . c o m
MONACO WINS PRONTO store-brand parts. According to a new report, independent
automotive repair shops have significantly increased their
SUPPLIER AWARD purchases of private-label and store-brand parts in recent
THE MONACO GROUP OF CANADA months. IMR says private label parts now constitute 45.4%
was presented with the Pronto Member of shop purchases among those surveyed. The survey of
Marketing Excellence award. Monaco independent repair shops also shows that 65.8% of shops have
Group is comprised of three distribution increased their purchases of private label/store brand parts
centers, strategically located in Montreal, in recent months. The predominant reason shops made the
Ottawa and Toronto, supporting 22 switch is “to save money due to pandemic uncertainty.”
corporate jobber stores, as well as a
network of over 70 affiliated jobber Continental to close Mitchell, Ont. plant
partners. The award was given during Continental says it will phase out its suspension and vibration
the recent Automotive Parts Services Group virtual national control product manufacturing in Mitchell, Ont., and transfer
conference and expo. Also honoured were Parts Authority of the business to a plant in northeast Indiana. The move will put
New Hyde Park, New York (Pronto National Accounts award); 151 people out of work by March 2021. The company said it
and Cost Less Distributing of Vancouver, Wash. (Pronto was forced to make the move to enhance competitiveness and
Co-Man Member of the Year). protect the viability of its operations across North America.
"In 2019, our sales volume has declined significantly when
Private label parts growing compared to 2018 and we expect the downward trend to be
in uncertain times continued in 2020 and beyond," the company said. "Over the
Illinois-based research firm IMR Inc. says pandemic past months we have done all we could to offset the business
uncertainty has led to a rise in the sale of private-label and loss in our Mitchell facility, however we were not successful."
Demand and supply
know-how
Car professionals are rigorous people. They demand the best price possible.
They demand access to the best brands and they demand good service and
expert advice. NAPA Auto Parts supplies all that, and a lot more.
NAPA Auto Parts. Ready to deliver. napacanada.com
w w w. a u t o s e r v i c e w o r l d . c o m SEPTEMBER / OCTOBER 2020 9
NEWS
TRANSIT EXPANSION
ON TRACK
DESPITE THE COVID-19 PANDEMIC, expansion
of the Transit Auto Parts head office in Levis, Que.,
is on schedule, according to company president
Stephan Guay. The company launched the $18
million project in June to triple the surface area of
the company’s facilities. Guay said he plans to hire
more than 100 new employees to prepare for an
anticipated increase in revenue from $30 million to
over $100 million annually. Operating since 1971,
Transit claims to be the largest auto parts distributor
in eastern Canada.
PWI completes merger
with Tri-States
Little Rock, Ark.-based Replacement Parts, Inc.,
which goes to market as Parts Warehouse, Inc.
(PWI) and Crow-Burlingame, has completed
its merger with Marianna, Fla.-based Tri-States
Automotive Warehouse. Tri-States, previously
led by the Spence and Stephens families, adds 20
company stores to PWI’s operation, bringing the
business’s total to 194 company stores and more
than 210 independent jobbers. The two companies
originally announced plans to merge in May.
Hope & Cope walkathon
takes new form
The annual Hope & Cope event, organized by
Quebec auto parts retailer Group Dorval-Sources-
St-Henri, took a very different form this year.
Organizers asked supporters across the country to
hold their own private walkathon on Sept. 13 in
hundreds of locations around the country. Last year
the event raised $73,000, bringing the grand total
over the past years to over $720,000. “Yes, things are
different this year,” said co-organizer Alex Trichas,
“but the need for cancer support is as stronger as
ever!” This year’s total will be announced in the
months to come. Photos of individual events are
posted on Facebook.
10 SEPTEMBER / OCTOBER 2020 w w w. a u t o s e r v i c e w o r l d . c o mNAMES IN THE NEWS Dayco has hired Ron Barnes, a veteran in the automotive and heavy-duty aftermarket industries, as its new national commercial vehicle business development manager. Remy Europe has appointed Fabio Cidral as its new manager of sales and marketing. He will be responsible for all marketing and sales activities, as well as customer service. Akebono Brake Corporation has named Mike Eldard as national sales manager of the aftermarket. He will lead regional and district sales managers in the US, Canada, Mexico and Latin America. Data company IHS Markit has hired senior industry executive David Goggins as VP of automotive strategy and industry insights. Goggins brings 30 years of global OEM experience to the role. Bill Holmes has been named director of national accounts at Mevotech. Holmes has held various roles within the organization over the past 22 years. Gary Hoover has joined National Tire Distributors as director of sales for British Columbia. He will oversee the territory managers and inside accounts managers across the province. CRP Industries has appointed automotive industry veteran P.T. Muldoon as the company’s director of engineering, responsible for development initiatives and line improvements. Dimitris Psillakis takes over as president and CEO of Mercedes-Benz Canada this month, succeeding Brian D. Fulton who is departing the company to pursue other opportunities. Genuine Parts Company has announced that Scott A. Sonnemaker has resigned from his position as group president, North American Automotive, to pursue other opportunities. Sensata Technologies has appointed Russ Stebbins as general manager of the company's Global Aftermarket Business Unit. He joins Sensata with over 25 years of automotive experience.
BytheNumbers Stats that put the North American
automotive aftermarket into perspective.
64:36
Ratio of aftermarket parts to genuine
OE parts used to repair vehicles at
dealerships, independent shops and
service chains.
Carlisle & Company, Selling OE Genuine Parts into the IRF Channel
Forty-four per cent
Percentage of Canadians who would be willing to wait up to 15 minutes
for their electric vehicle to charge enough to travel 300 km.
J.D. Power Mobility Confidence Index fueled by Survey Monkey Audience
82 %
85.8 % biggest countries in North America (Canada, the U.S.,
In 2019, the percentage of vehicle population in the five
3.3% Mexico, Puerto Rico, and Dominican Republic) that run
on GASOLINE. That’s up 0.7% from 2018 figures.
The percentage of Honda’s 2019 sales 2020 Automotive Report, TecAlliance
attributed to fleet customers in Canada. The percentage of
34.9% 14.1 % Other
Percentage of Ford’s 2019 sales employees that will fuels in use by the 318 million
attributed to fleet customers in Canada. light vehicles in operation in North
return to the office America in 2019.
DesRosiers Automotive Consultants
8.6% Flex fuel
by December 2021, 2.1% Diesel fuel (down 0.3% from 2018)
2.0% hybrid
according to a survey 0.9% Acc/Electric
0.5% Alternative
of 600 I.T. leaders in the
2020 Automotive Report, TecAlliance
U.S., Canada, the U.K.,
95.8 % byvehicles
Percentage of Canadian vehicles in 2017 that were powered
Annual sales of light vehicles in Canada Germany, and France. conventional gas. (25,649,181 light vehicles). Diesel-fueled
per 1000 residents – ranked fourth in the world. constituted 3.2% (846,225); plug-in hybrids were 0.8%
(220,866); and battery electric vehicles were 0.1% (19,696).
Countryeconomy.com Future of Work Survey, Vanson Bourne
Conference Board of Canada
31
In 2018, the percentage of U.S. consumers surveyed who said they switch between motor oil brands.
That number was just 25% in 2013. A similar trend is seen in the purchase of brake parts, filters,
wiper blades, engine treatments, and appearance chemicals – all categories which show waning
per cent brand loyalty. NPD Group
12 J U LY / A U G U S T 2 0 2 0 w w w. a u t o s e r v i c e w o r l d . c o mBENEFIT
FROM OUR
BENEFITS.
To Ford, every part counts. That’s why members of the Ford Professional Service Network
enjoy benefits through the purchase of Ford, Motorcraft®, and OmnicraftTM parts.
MEMBERS RECEIVE EXCLUSIVE ACCESS TO:
• QUARTERLY REWARDS AND REBATES ON ELIGIBLE PURCHASES*
• VITAL NO CHARGE TECHNICAL SERVICE INFORMATION,
INCLUDING WORKSHOP MANUALS AND SERVICE BULLETINS
• NO CHARGE MEMBERSHIP FOR QUALIFYING REPAIR FACILITIES
FIND YOUR CLOSEST CERTIFIED PARTS WHOLESALING DEALER
AT FORD.CA/WHOLESALE
*
Eligible purchases are based upon the net price paid for the purchase of Ford, Motorcraft and Omnicraft parts (including accessories) at a Ford or Lincoln Dealer (other than Ford collision parts, tires and core changes) exclusive of any credits/
rebates or other deductions and applicable taxes and/or fees. Additional limitations may apply. Membership and rewards are subject to the IRF Terms and Conditions as may be amended from time to time. OmnicraftTM is a trademark of Ford
Motor Company. Motorcraft® is a registered trademark of Ford Motor Company. ©2020 Ford Motor Company of Canada, Limited. All rights reserved.JOBBER VIEW
FISHING FOR
about moving your boat, or even
leaving the lake entirely.
PROFITS
In this analogy, fishing represents
your marketing efforts. When I see
companies starting to pull their lines
If marketing brings results, the suspension of marketing in as it were, by limiting sales calls,
reducing their salesforce, and curtailing
must surely bring penalties. promotions, I get the impression that
By Zara Wishloff they’re giving up on marketing. They
believe the lake is dry.
T
Giving up on marketing is part of a
he extreme changes in the market are putting a spotlight on business self-fulfilling prophecy. Reduced effort
philosophy. means reduced results. Lacklustre
I have witnessed companies embrace marketing with renewed vision and results seem to confirm the decision to
excitement. They have come to see it as an investment. reduce marketing. It’s circular logic.
I’ve also seen companies mishandle marketing – fumbling the message or Put simply, you’re not going to wind
cutting back because they see it as an expense. up with the same number of fish in
I find that the companies that reign in their marketing efforts during hard times your boat without sustained efforts to
are the same ones that never fully realized the benefits of a strong sales strategy catch them.
when times were good. So why do some companies fall into
The simplest analogy I can think of is fishing. a spiral of reduced marketing efforts
When you’re out on the lake and the fish just aren’t biting, is the answer to pull and dwindling sales? It might stem
your rod? Or switch up your bait and throw a few more lines into the water? The from the fact that the cost of marketing
answer is simple. If you want fish, more hooks makes sense. is easy to quantify, but the results
Sticking with that analogy, there are times when there simply are no fish to be are often difficult to measure. The
found. The market has changed. Or the economy has soured. You can verify the wisdom of investing can be clouded by
situation with analytics (in this case, a fish finder) and make an informed decision ambiguous statistics. You start asking
w w w. a u t o s e r v i c e w o r l d . c o m SEPTEMBER / OCTOBER 2020 15It’s a bit of an artform to
devise an effective strategy
with creative promotions
while still adding to your
profitability.”
yourself some difficult questions:
• Were the last six months good
because your sales and marketing
efforts struck a nerve in the
industry? Or were they good because
the local market turned a corner?
• Would your results have been as
good without the promotion, the
flyers, and the trade show?
• Would your customers have made
the same purchases with or without
the ad you ran?
• Are they buying from you simply
because you have it on the shelf?
Or because they have a strong and it exists. There isn’t a product on the that you’re measuring actual results
trusting relationship with your market that will make money if people from your investment.
sales staff? don’t know where to find it, how to use And for those of you who have been
• Did the promotion really add to your it, and how to get it. tempted to reduce your marketing
sales, or just come straight off your It goes without saying that whatever spend, consider this: If investing in
bottom line? you invest in marketing, you should be sales and marketing brings a return, the
Companies that have never felt getting a return that covers the cost. same must also hold true in removing
the value of an effective sales and There’s a proven formula that you can marketing cost. There is a penalty to pay.
marketing strategy are quick to use. Take the sum of your sales minus What message is a company sending
eliminate or reduce it when sales start the marketing cost, and divide it by to its staff and to the market when it
to slow. It’s a bit of an artform to devise your marketing cost. That represents pulls its marketing investment? That’s
an effective strategy with creative your return on investment. generally seen as a short-sighted move
promotions while still adding to your So if you normally sell $500 worth to hit a temporary goal.
profitability. Promotions always need of widgets a month and you spend $500 True, the business environment
to have a specific and definable goal. to promote them and you see your sales often forgoes long-term brand
Whether you are trying to increase jump to $2500, your return on that investment to achieve quarterly results.
sales by a certain percentage, build $500 is 400%. But be careful, because from the outside
loyalty, strengthen relationships, or you’re conceding that there’s little or no
create awareness you have to figure $2500 - $500 growth to chase and you see nothing
out a way to measure its success. = 400% but a decline of market in the future.
Carefully planned and with the proper $500
investment of time and money, it will
Zara Wishloff
always get a return. You can advance these formulas to Vice president of sales and marketing
for Automotive Parts Distributors (APD)
Everyone needs marketing. There factor in average organic sales growth with four warehouses in Alberta and
isn’t a company in the world that will over time, or a variety of other factors... Saskatchewan. You can reach him at
zwishloff@apdparts.ca.
thrive if its target customers don’t know whatever makes you feel comfortable
16 SEPTEMBER / OCTOBER 2020 w w w. a u t o s e r v i c e w o r l d . c o mOFF THE SHELF
management personnel. These daily
interactions are intangible and cannot
be summarized in any sort of program
or report. And they certainly can’t be
measured in dollars.
The fact is that while you’re
tracking sales through your rewards
programs, your clients are tracking
every touchpoint with your company.
They have their own private loyalty
scorecard! I believe the real measure
of your success is how you’re doing on
that scorecard. Are they loyal to you
because you’re kicking back rewards?
Or because they truly appreciate the
way you go to market, and the way you
interact with them, and the way you
satisfy their complex needs?
I would go so far as to say a high
participation rate in your rewards
program does not necessarily translate
to client loyalty at all. Let’s face it,
almost everyone offers a rewards
SAY GOODBYE TO
program these days. And the ‘points’ or
‘bucks’ that they earn can be translated
‘BUCKS’ AND ‘POINTS’
into real dollars. At the end of the
month, they can directly compare the
monetary value of your program with
your competitor’s program.
How to create real loyalty with your ASP clients. So rather than discuss intimate
By Susan Hitchon details of why one type of rewards
program is better than the other, let’s
explore the client’s loyalty scorecard as
a true measurement of client loyalty.
T
After five months of managing their
here’s no question that loyal clients are highly coveted in any industry. business through a global pandemic,
Under stable or normal market conditions, almost any business owner the priorities of your ASP clients have
would agree that client loyalty needs to be at the top of the priority list. pivoted. Your services have to be in-line
The big question, of course, is how do you create loyalty? with their new direction. It’s time to
Some businesses create tiered rebates and VIP experiences that encourage their really learn what your clients’ wants,
clients to grant them more of their total spend. This is often referred to as a “loyalty needs, and pain points are so you can
program.” But let’s examine that for a minute. The rebate is earned with increased secure your position as their first call.
spending. It has an intrinsic monetary value. It is calculated by a formula. And the I know your sales reps are in regular
accrued value can be reported to the client at any time. contact with them. And they will tell
In my books, that constitutes a big carrot at the end of a very long string. I you they know the current status of
would suggest this is not a loyalty program. It is a rewards program. each account. But I think an updated
It’s absolutely critical to ensure that your clients regularly experience positive assessment of each client’s current
interactions with your sales team, counter staff, customer service, delivery drivers, position during the Covid crisis is in
website, on-line ordering system, marketing staff, accounts receivable, and order. You need to schedule a formal
w w w. a u t o s e r v i c e w o r l d . c o m SEPTEMBER / OCTOBER 2020 19ordering system?” That’s not going to
draw out any well-considered answers.
Is it truly loyalty Instead ask them, “Can you give me
if you’re buying it?" an example of a time when our on-
line ordering system was particularly
difficult to navigate?” And then sit
back and listen. You’ll be amazed that
visit with each shop, making it clear a cookie-cutter answer will give way
that you want to have a focused to more thoughtful answers if you give
discussion on how you can help them it time to bubble up in their memory.
meet or exceed their targets for this When they have exhausted that answer,
year. This strange, interrupted, socially follow up with probing questions. “How
distanced, face-masked year. The visit did we resolve the issue for you?” “Can
can be virtual, if necessary, but if you share with me your experience changes have been implemented, and
you are able to meet in-person, invite with other suppliers’ on-line ordering make yourself available for short, less
them to your facility, away from the systems?” “What is it about their on- formal follow-up discussions asking
distractions of their shop. line systems that makes it easy to do them to rate the progress you’ve made.
Now I’m not quite sure how to say business with them?” Here’s a solid question to ask:
this, so I’m just going to say it. During Uncover what they like or dislike “Compared to the last time we spoke
this interview after you have asked a about your competition with more about our on-line ordering system,
question, stop talking! It’s time to listen open-ended questions being careful what improvements have you noticed?”
and listen carefully. You’re not selling not to criticize your competitors in the Remember, if you can satisfy
them anything during this interview. process. Trash-talking your competitors their wants and help them meet their
You’re not talking about the benefits of to your client will accomplish only one targets, they will become a walking
your program offering. You’re simply thing… insulting your client. You’ve advertisement for your products and
opening the door so they can be totally just told your client that they make bad services. They will seek you out for new
candid with you. You have to learn decisions and aren’t intelligent enough products rather than waiting for you to
what’s most important to them, and to choose you over another supplier! appear at their doorstep with the next
that’s not going to happen if you spend Remember, you are trying to figure promotion. When the next problem
most of the time talking. Your client out what is on their own personal occurs, they will trust you to resolve it.
will leave the meeting feeling like loyalty scorecards. Best of all, they will no longer be as
they’ve listened to another sales pitch. Every aspect of your program needs open to pitches from other suppliers,
They’ll feel like you wasted their time. to be addressed, one by one, with an and they won’t so easily be influenced
Be prepared with a list of open- eye to ticking the corresponding box by pricing alone.
ended questions to keep the discussion on their own loyalty scorecard. Explain Simply stated, your goal should
fluid. Above all, express your concern how your services meet their very high be to make it as easy as possible for
for their business during this difficult bar of service and competence. Leave them to do business with you. The
year. Ask about their family, their staff, no stone unturned. And make sure you best measure of loyalty is not a ‘10’ on
their regular clients. Find out how address every touchpoint they have a survey. It is ensuring the next order
they’ve been impacted by the year’s with your company. from that client… and the next… and
events. Find out how hopeful they are Next steps: meet internally as a the next!
for the future. team to review your client’s feedback
And when you get around to the and determine a course of action for Susan Hitchon
specifics of business, avoid the kind of positive change. You need to implement Ontario business development
manager for the Automotive
questions that can be answered with a noticeable improvements that relieve Aftermarket E-Learning Centre.
snap judgment. Don’t ask, “On a scale the pain points you just learned about. You can reach her at s.hitchon@aaec.ca
of 1-10, how would you rate our on-line Communicate to your client what
20 SEPTEMBER / OCTOBER 2020 w w w. a u t o s e r v i c e w o r l d . c o mTune into the
newest podcast for
Canada’s automotive
aftermarket
Auto Service World: Conversations is Turnkey Media’s
newest offering to our audience. Join us weekly for
insightful industry conversations with your peers,
suppliers, and customers, to get a well-rounded and
entertaining understanding of trends, problems,
solutions... and sometimes just the lighter side.
You can subscribe to Auto Service World: Conversations
on iTunes and Soundcloud to keep up to date on our
podcast releases. If you like us, be sure to like and
subscribe! It’s quick and easy for you, and makes a
world of difference for us.
www.tinyurl.com/ASW-conversations
www.soundcloud.com/AutoServiceWorld
SPONSORED BYMANAGEMENT
Let’s keep this Five unwritten rules of customer
confidentiality. Ignore them at your peril!
between us
By Jeff Mowatt
H
ave you ever had a potential customer who seemed nervous and reserved, where coffee shops are used as offices,
rather than excited about doing business with you? and where cell phones can record just
It happened in a weird way for me. The senior managers seated about anything at any time, discretion
around the boardroom table were excited about a new technology they is on the wane and confidentiality is an
had developed that would disrupt their market and separate them from their increasingly rare commodity.
competitors. They had brought me in to help craft their sales message and to That’s why you can gain tremendous
eventually train their reps on how to introduce it to their customers. trust with your customers by simply
Along with their excitement, though, I sensed some tension. So, after the vice following these five unwritten rules of
president of marketing introduced me, my first remark to the brass was, “I know customer confidentiality.
this goes without saying, but I will treat everything we discuss here with the
highest confidentiality.” Rule #1
I immediately noticed a huge look of relief on the CEO’s face. And from that Know that you’re in a position of trust
point on, things went just fine. We’ve all heard of doctor-patient
Customers are not always comfortable about asking you for discretion, but they confidentiality and lawyer-client
always appreciate it. privilege. Some professions are sworn
In today’s data driven world, we face the double-edged sword of needing more to secrecy about their customers’
information from our customers in order to increase our efficiency in serving affairs for good reason. Your customers
them, even as they are getting ever more leery of disclosing it. deserve the same discretion from you.
Disclosing facts, figures, and data points is a sensitive transaction these days. It Whenever you talk to others about
comes with a leap of faith on their part that you will treat it carefully, and not lose specific customers, assume those
or abuse it. And it comes with a great deal of responsibility on your part. customers are in the room with you,
As we build relationships with our wholesale and retail clients, there is a or that they will read everything you
temptation to ask a lot of questions – both professional and personal. This has to be post or write about them. If what
done thoughtfully and sensitively. you’re sharing isn’t complimentary and
Unfortunately, in today’s world, where people routinely “overshare’ on social media, publicly known, keep it to yourself.
22 SEPTEMBER / OCTOBER 2020 w w w. a u t o s e r v i c e w o r l d . c o mClients need to be reassured that
As we build relationships with our wholesale and retail
you’ll be discreet with their data. And directly clients, there is a temptation to ask a lot of questions – both
that starts with explaining why you’re
asking certain questions, and what you
related
to your
professional and personal. This has to be done thoughtfully
plan to do with the information you business, and sensitively.
glean. Above all, avoid collecting data or you run
that you don’t intend to use. the risk confidentiality lesson at work and in
Thank them for their trust, and give of overstepping the bounds of your life. We can’t un-say something we blurt
them reason to believe you’ll be a model relationship, and offending your client. out in the heat or mirth of the moment.
of discretion. Has this ever happened to you in Similarly, it is difficult (and sometimes
a restaurant? While you’re inserting ineffectual) to un-post a comment, or
Rule #2 your credit card into the point-of-sale un-tweet an inappropriate remark.
Remember Starbucks machine, and figuring out how much No doubt you can think of numerous
to tip, the server asks, “So what are examples at work and in the news where
isn’t a confession booth your plans for the rest of the evening?” a little discretion and self-restraint
We’re all getting used to Zoom
Pardon?! When did our relationship would have saved significant fallout.
meetings, and now that economies are
develop to the point where I would While it’s tempting to be drawn into
starting to open up, it won’t be long
share my personal plans with you! adding our two cents to a discussion,
before the person on the other end of
The key to making small talk sound perhaps the greatest contribution
that web call will once again be in a
natural and appropriate is context and we can make to the relationship is
coffee shop or other public space.
relevance. Read the room. Unless you’ve remaining silent. We hope in turn that
I once hired a consultant who
been chatting about weekend plans when we say or do something less than
was based in another city to do some
with that person, it is better to stick to brilliant, others won’t share it with
work on our website. We scheduled
safe topics. the world. Ironically, kindness and
a conversation via Zoom about my
maturity are often best reflected when
brand and target market. To my dismay,
Rule #4 you keep quiet. That can also lead to
he logged into the call from a coffee
greater trust from your clients.
shop. Throughout our conversation, Yes, your loud phone This is particularly important now,
I was seeing customers come and go conversation is annoying as we approach a U.S. election that will
in the background. Not only was it This is a growing concern at the surely be divisive and contentious. You
distracting, but it felt like a violation of counter, in meetings, and in public. may not know the politics of the person
my privacy as a client. People who talk at length on cell on the other end of the phone, so don’t
There are good reasons why lawyers phones around other people are not offer an opinion that could offend.
and accountants won’t host you in their acting professionally. It reflects a total Increasingly, our conversations
office. Instead meetings are held in a lack of self-awareness and distain for reveal datapoints that can be valuable
private meeting room. One reason is basic civility. Worse, it telegraphs the to someone. Our clients are learning
that you shouldn’t see files lying on fact that they are very casual about the to hold some information back, and
their desk from other clients who may privacy of the person on the other end they’re suspicious when the businesses
be under legal investigation, or filing for of the phone. They’re damaging their they deal with ask for information
bankruptcy. Another is so your meeting own reputation and are too oblivious to before proving that they will be good
will not be seen or overheard by others. realize it. data stewards.
Coffee shops are for casual coffee; not Don’t be one of these loud-talkers. In a world where data is power,
for doing business. Move to a quiet area and lower discretion is key. And understanding
your voice. You never know what the value of confidentiality will help
Rule #3 information will prove useful to you build trusting relationships.
There’s a difference between someone around you, and detrimental
small talk and prying to the customer you’re talking to.
Keeping things professional is more Jeff Mowatt
than just a point of expediency. Rule #5 A customer service strategist, and
bestselling author, based in Calgary,
It is part of the public mood. The You don’t have to express every feeling Alta. This article is based on his book
Influence with Ease. You can reach him
information you request needs to be This is perhaps the most important at www.jeffmowatt.com.
w w w. a u t o s e r v i c e w o r l d . c o m SEPTEMBER / OCTOBER 2020 23SELLING
Tomorrow’s
By Sayan Mukherjee
e-commerce
and Akshay Prakash
There’s no denying the proliferation of Internet-based commerce and
its increasing impact on the Canadian automotive aftermarket landscape.
T
he rise of e-commerce in the Canadian automotive space is unmistakable. growth rate of over 15% in the next six
Once thought to pose a limited threat to brick and mortar operations, years, according to analysis from Global
e-commerce has grown in significance and scope, and its potential Market Insights.
continues to grow as communication technology and consumer The e-commerce segment, though
acceptance develop. still at a nascent stage, will hold a
The automotive aftermarket places high demands on its distributors, with most significant share in the automotive
installers demanding accuracy, product knowledge, flexibility, service, and speed – aftermarket by 2030.This can be
difficult to deliver in the faceless online marketplace. attributed to the quickly evolving
But what e-tailers lack in personality, they make up in convenience and logistics and supply-chain efficiency,
innovation, making them a growing force in the automotive aftermarket. as well as the propensity of sellers
Given the growing influence of e-commerce and its place as a topic of discussion to maximize revenue through the
in the board rooms of automotive distribution companies, it is worth examining e-commerce channel.
the evolution of e-commerce in the Canadian aftermarket, its growth prospects in It is also likely that growing
the future, and the challenges it faces. dependence on online platforms, due to
It is important for players in the traditional distribution and sales channel the closure of traditional sales outlets
to understand the e-tailers and the influence they could have on the automotive during the Covid-19 pandemic, will
aftermarket. increase the revenue generation from
e-tailers and may create a permanent
Online advantages shift in procurement preferences in
Increasing Internet penetration has enabled retailers to sell their products online the future.
and cater to a wider catchment area.
It has also resulted in escalating dependence of buyers on e-commerce or online Internet penetration
platforms. These platforms provide multiple advantages to consumers, including Canada has one of the highest Internet
convenience, lower cost, and easy comparison between products. penetration rates in the world
The Canadian e-commerce of automotive replacement parts was estimated to In 2019, the country had an Internet
be around US$340 million in 2019 and is likely to witness a compounded annual penetration rate of 85%. Seeing the
24 SEPTEMBER / OCTOBER 2020 w w w. a u t o s e r v i c e w o r l d . c o mGrowing dependence on online platforms, due to the
potential in such a market, e-commerce e-commerce closure of traditional sales outlets during the Covid-19
industry players have been aggressive
about offering multiple discounts to
segment, and
has already
pandemic, may create a permanent shift in procurement
attract customers. resulted in preferences in the future."
The products available on these increased
platforms are economical owing to vigilance by
the lower overheads compared to parts manufacturers to create has intensified the competition among
traditional sales outlets. Moreover, the counter-fraud measures. the industry players, leading to lower
absence of middlemen from the supply Another issue that plagues both product cost for the customer.
chain enables the e-commerce industry online consumers and sellers of The brick-and-mortar parts
participants to offer deeper discounts. auto parts is the problem of parts distributors need to develop an
Apart from the economical product proliferation. Unsophisticated buyers understanding about e-commerce, and
cost, advanced search engines enable face difficulty determining the correct then refine their services accordingly.
consumers to rapidly search for the part number for their specific needs. Already there are efforts by some
exact part they need. While traditional Incorrect part numbers lead to fit issues traditional players to diversify their
sales channels have been working during installation. revenue streams with a mix of online
hard to close the I.T. gap, tech-based A third challenge revolves around and offline distribution services.
retailers still have a significant software security and the rising concern about Moreover, adoption of innovative
infrastructure head-start. both payment fraud and data breaches. supply chain methods such as drop
Online platforms also provide an This insecurity tends to erode confidence shipping will enable the distributors to
increasingly varied range of products in the segment. Steady growth requires a reduce the overhead charges.
in the same segment making it easier resolution of these issues. Traditional distributors are also
for consumers to compare between increasing their visibility on various
different makes. Major players search platforms such as Google and
And the 24-7-365 nature of The Canada e-commerce automotive Bing. This is key, given that customers
e-commerce gives e-tailers a further aftermarket is highly fragmented with increasingly refine searches based on
convenience advantage over their multiple industry players including, visibility and service rating.
retailing counterparts. Growth in the Amazon, Walmart, Tdot, Auto Parts As more and more services migrate
do-it-yourself (DIY) segment in the Way, Parts Avatar, MTL Autoparts, online – especially in the wake of
country will also likely prove to be a Rock Auto, and Canada Auto Supply. the Covid-19 pandemic – traditional
boon to e-commerce penetration. These industry players, and others, are distributors will have to continue
offering parts comparison, multiple developing alternate order and delivery
E-commerce issues discounts, credit facilities, and easy methods while maintaining their
There are, nonetheless, serious payment gateway facilities to enhance reputations for personal service.
challenges facing e-commerce in their revenue generation. Moreover, the Superior visibility and digital
the automotive space, most notably promise of same day delivery will play a options will allow them to compete
the increasing concern about the significant role in attracting customers on a more even playing field with
availability of counterfeit parts on for these platforms. online retailers.
online platforms. The e-commerce channel holds a
Unscrupulous distributors can threat to the sales generated by brick-
pad their profit margins by passing and-mortar distributors of auto parts, Sayan Mukherjee
An assistant manager at Global Market
off replicas of name-brand parts as as it has the potential of reaching wider Insights. He focuses on the evolution of the
authentic. Consumers are easily duped, number of customers. latest automotive and aerospace industry
trends and their revenue impact on global
either because they do not know that Brick-and-mortar parts distributors and regional markets.
counterfeit parts are in circulation, or hold around 90% share in the Akshay Prakash
because they cannot examine the parts automotive aftermarket. However, it can A research analyst at Global Market
Insights. He has an engineering degree,
properly in advance of purchasing them, be argued that they are losing traction with an MBA in Oil and Gas.
in order to verify their authenticity. with changing consumer dynamics and
This threatens the integrity of the emergence of e-tailing activities. This
w w w. a u t o s e r v i c e w o r l d . c o m SEPTEMBER / OCTOBER 2020 25PRODUCT FEATURE
A growing market for By Allan Janssen
Owners of SUVs and light trucks are increasingly interested
in beefing up their suspension and chassis parts.
tough parts
T
wo automotive trends have come together to create have created a demand for sturdier, heavier replacement parts that
new opportunities for aftermarket chassis and will perform well and can take a lot of abuse.
suspension manufacturers. In counterpoint to flimsier OE parts, Mevotech is replacing
On the one hand, public appetite for robust SUVs and polymer bearings with sintered metal bearings, increasing the
light trucks has grown dramatically in recent years. Indeed, by thickness and weight of crucial chassis parts, applying corrosion
some measure three out of every four new vehicles sold in North protection to exposed parts, and adding design elements that
America last year was an SUV, CUV, or light truck. improve installation, seating, and service.
On the other hand, strict emissions targets and cost-cutting “TTX parts were designed for working vehicles, where the
efforts have led vehicle manufacturers to remove as much weight down-time caused by failures can often be more expensive than
as they can from undercar components and simplify their chassis the repair itself,” said Moreira. “It is designed to address common
and suspension designs. issues that we’ve seen both in the bays and in the field.”
The conflicting nature of these trends has opened the door to He describes what has happened to original equipment parts
aftermarket manufacturers like Mevotech and KYB to beef up constitutes a “de-evolution” in the quest for lower production
their products and help meet driver expectations for the look, costs and safer emissions. As an engineering company,
performance, and durability of their vehicles. Mevotech can exercise complete control over their materials
KYB, for example, has recently released a bevy of new “Truck- and designs to resolve OE design issues, he said. The company’s
Plus” numbers, including a performance assembly, and leveling four-pillared strategy for TTX is to reduce component wear
kits designed to improve the ride and appearance of light trucks. with stronger materials and better designs, prevent water
According to Aaron Shaffer, director of product and operations ingress and contamination, minimize corrosion, and simplify
for KYB Americas, it’s a fairly new category for the Greenwood, installation procedures.
Ind.-based company. According to Shaffer, there is a wide range of light-truck owners
“We started talking about this late last year,” he said. – each with different needs and expectations.
“Historically, every shock manufacturer had some kind of Among them are those who use their vehicle as a daily driver,
truck upgrade offering. But this business has really exploded. If where “the bed of the truck never gets dirty” as well as those “who
anything, the pandemic helped it, as people found themselves with use their truck as a truck.”
time and government cheques in their hands.” Either way, there’s a growing audience for robust aftermarket
Truck owners are looking for sturdier alternatives and products that make the vehicle look a little more aggressive, or
accessories that enhance the look of the vehicle, he said. perform better and longer.
Meanwhile, Toronto-based chassis manufacturer Mevotech is “The demographics are in the aftermarket’s favour, he said.
seeing great success with its TTX line of control arms, ball joints, With OE part numbers lasting through multiple model years,
tie rod ends, and stabilizer links. applicable to millions of vehicles on North American roads, the
Victor Moreira, technical services manager at Mevotech, told opportunities are enormous.
participants in a recent technical webinar that OE design changes “These are not niche vehicles,” he said.
26 SEPTEMBER / OCTOBER 2020 w w w. a u t o s e r v i c e w o r l d . c o mPRODUCT SPOTLIGHT BAYWATCH
Universal headlamps
Hella is launching a new world headlamp, controlled by software,
that takes into account all the different ways drivers require the
road below them to be lit. Rather than have up to 12 technically
different types of headlamps, light in its headlamps will be
adjusted via the identical SSL 100 light module via programmable
software. The digital control can activate each pixel individually
and display the entire light distribution according to the respective regional regulations. Lights
can be adapted to regional requirements, road features, or driver preferences like glare-free
high beam or projected orientation lines on the road.
www.hella.com
Parts for Ford engines
Elgin Industries has launched an extensive portfolio of OE-quality
replacement components for Ford 6.7L diesel engines, including
406 CID “Scorpion” engines, model years 2011-2019. Elgin is a
premier manufacturer of push rods, rocker arms, valves, valve
springs, camshafts, lifters, timing sets, and other precision-engineered
components for light-, medium- and heavy-duty engines.
www.elginind.com
Covid-19 decals
Superior Signals has developed a line of social distancing
decals to help fight the spread of Covid-19 in automotive
Glowing green retail spaces. The series features a selection of five decals,
encouraging safe social distancing and the wearing of
motor oil appropriate safety gear. Extremely durable and highly visible, these decals can withstand the wear
and tear of daily use and stand up to high-activity traffic from even your heaviest equipment.
Liqui Moly’s new Molygen motor oils www.superiorsignals.com
help repair shops turn a normal oil
change into a unique service. These
new oils really stand out from the Galvanized brake pads
crowd – not just technically, but also Bringing together modern design and technology in vehicles and
in terms of colour. The bright green brake pads, NRS Brakes has launched a new line of premium
Molygen motor oils employ unique galvanized pads exclusively for the 2020 Volkswagen Jetta.
friction modifiers with chemical Supporting the Jetta’s already sleek and safe ride, NRS brake pads
ingredients that smooth the metal combine durability with affordability in an OEM quality part.
surfaces in the motor and even out This new addition for the 2020 Jetta represents approximately 520,000 vehicles in production
microscopically small bumps. This globally. They feature NRS Brakes’ advanced noise cancelling piston cushions and shims,
patented mechanical attachment technology and fully galvanized steel backing plates.
reduces friction in the engine and
www.nrsbrakes.com
therefore fuel consumption, too.
They also provide protection
from wear and tear – a particularly TPMS tools
important feature in urban traffic
Continental has introduced two new Tire Pressure
with its many start-stop phases. Monitoring System (TPMS) tools designed to help
The distinctive oils are available shops optimize their investment in TPMS and tire
in a wide range of viscosities, from a service. With the Autodiagnos TPMS D and SE Tools,
thin 0W-20 to a thick 5W-50. To find professional technicians can handle all of the TPMS
out which oil is the right one, simply and tire service requirements of their customers. Autodiagnos TPMS D reads and diagnoses
click on the oil guide at the Liqui 100% of the OE and 20 aftermarket TPMS sensor brands on the market, while Autodiagnos
Moly website. TPMS SE works with 100% of OE sensors and aftermarket sensors from REDI Sensor and EZ-
sensor. Both tools can easily perform relearns on 98.6% of all domestic, European, and Asian
www.liqui-moly.us TPMS compliant vehicles.
www.autodiagnosTPMS.com
w w w. a u t o s e r v i c e w o r l d . c o m SEPTEMBER / OCTOBER 2020 27You can also read
