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In auto repair, a smooth cash flow is the anchor of your business. When something is off within the shop, the first place that can give answers is the shop’s financial data. It’s not just a tool to diagnose problems or spit out a paycheck – it holds the key to unlocking greater efficiency. By taking control of your money flow, you can not only uncover bottlenecks, but also increase profitability and ultimately grow your business.

Understanding the numbers is the first step to maximizing earnings. Don’t limit your financial knowledge to just sending out paychecks and collecting payments. Instead, embrace the numbers, contextualize reports and leverage the information you gain to make strategic decisions that propel your shop’s success.

The road to profitability must include a strong understanding of your finances. Here are four ways to take control of your money flow and elevate your shop’s business:

1. Track your inward and outward flow through detailed reports

The best way you can get familiar with your money flow is by intentionally reviewing the numbers. Whether real-time or evergreen, you can use data and information in all forms to learn the direction of money flow within your shop and how to influence profitability. These numbers can provide clear insights into your shop’s performance and any adjustments you could make to grow your profit. Therefore, it’s important that you review key reports on a regular basis.

For example, when it comes to your inventory, you can review Tekmetric’s Parts Orders section for information on cores and returns. This knowledge is particularly useful for anticipatory orders and core returns that can easily be tracked and returned as needed. If you have anything eligible for return, you can review that information in real-time and make the return when your parts provider arrives to get that credit back on your statement. By strategically tracking the parts you need to keep and those you can return when unused, you can anticipate future needs and streamline cash flow into your shop.

2. Utilize real-time data to make strategic financial decisions throughout your day

Using real-time data of both posted and unposted data gives you a clearer picture of the shop’s finances in real-time, allowing you to make decisions more efficiently and generate more profit to meet your short- and long-term goals. Additionally, it enables you to adjust your operations as soon as a problem comes to light. Rather than waiting until the end of the day, week or month, you can monitor money flowing in and out of your shop in real time and make strategic decisions that directly impact your final profit.

This might include monitoring your end-of-day (EOD) report in Tekmetric and delegating tasks that can help bring in more business to meet your goals. For example, if you review your shop dashboard early in the week and see $17,000 in approved work that hasn't been finished, you can implement some strategies to close out that work by the end of the week, whether it’s calling customers to follow up on an approval or announcing a bonus for your technicians that incentivizes them to finish the work quicker.

3. Provide financing options for customers

In addition to reporting, another way to influence money flow into your shop is by providing financing options for your customers. After all, if you can make a customer’s payment process easier for them, you can create a better cash flow for your shop. Providing financing options allows the customer to get the needed repair done without compromising their personal budget.

Furthermore, when you provide alternative payment methods, you increase sales. For example, at Tekmetric, we have found that a “Buy Now, Pay Later” option can help increase your average RO amount. The national average RO amounts to approximately $260. By contrast, according to Affirm, the average purchase when using a feature like “Buy Now, Pay Later” is approximately $1,800. Customers are more likely to approve higher-ticket items when they have a financial option like “Buy Now, Pay Later,” which helps increase your ARO. It’s a win-win situation for you and your customers. Not only do you reduce friction with the customer through a convenient payment option, but you also increase your cash flow into the shop.

4. Leverage outside resources to monitor your cash flow

As important as money inflow is, you must also monitor your outflow. Without understanding how both elements work together, you cannot accurately measure – or grow – your profit. This may be daunting, but you can ask for help.

Don’t hesitate to leverage outside resources to gain a better understanding of how to interpret money flow and use that information to grow your shop’s bottom line. Whether through free webinars, basic accounting courses or coaching organizations like our partners at Transformers Institute, Shop Fix Academy, Automotive Training Institute, Autoshop Answers, Elite and more, you can utilize external tools to gain invaluable knowledge that helps you run your shop more efficiently.

Bonus tip: Ask plenty of questions

Knowledge is power – and knowledge of your shop’s finances can lead directly to profit growth. Therefore, make sure to question everything. Ask for documentation, whether it’s an explanation of why a part was ordered or a receipt for a new coffee machine in your lobby. Small purchases add up, and if you do not ask questions and track them, you could end up reducing your profitability without noticing.

Do not be afraid to question the validity of transactions or ask for help in understanding the big picture of why purchases were made. Learning to control the flow of money into your shop is crucial, but implementing strategic decisions regarding money outflow is how you make a profit. By asking for help and closely monitoring your data, you will have a better understanding of the money flow in and out of your shop, leading to more efficient processes, a better customer experience and ultimately, more business.

In today’s competitive auto repair landscape, service advisors play a crucial role in customer satisfaction and shop success. Managing customer inquiries, collaborating with technicians for repair estimates and maintaining the shop’s schedule are all keys to successful service writing. However, there is one secret weapon that can take your work to the next level: data. 

Understanding the importance of data can take your customer service from good to excellent, allowing you to serve more customers in less time – without sacrificing quality. By harnessing data, you’ll be better equipped to enhance your customer experience, optimize your workflow and ultimately elevate your expertise as a data-driven service writer.

1. Leverage Your Shop Dashboard to Enhance Customer Experience 

By strategically leveraging digital tools, service writers can use data and analytics to provide a better customer experience. Service writers can shape a customer’s entire experience with the shop simply by monitoring and adjusting to accessible data on their shop dashboard through Tekmetric. Using the shop dashboard, you can control the customer’s repair experience, serving as an intermediary between the technician and the vehicle owner, as well as ensuring the work is completed efficiently and effectively.

For example, you can push repair orders (ROs) forward for your customer by ordering parts in the “parts needed” category. Or, you can build stronger customer relationships while creating opportunities for additional work by checking in with vehicle owners who previously declined jobs, but may need them now. By using the data at your fingertips, you can make decisions in real-time that support your customers and ensure their happiness with the repair. Happier customers lead to more money for the shop – and for your commission.

2. Optimize Your Workflow with Data-Driven Tools

Like waiters in a restaurant, service writers are the “face” of the shop, and often they are the first experience a customer has with the business. Because of this, it’s crucial you have a smooth workflow that keeps you open for customer interaction rather than stuck behind a computer screen. Fortunately, there are tools you can leverage to reduce your manual tasks and keep you free to focus on the more complex, relationship-driven parts of your job.

For example, Tekmetric’s Smart Jobs feature can automate job creation, allowing you to focus less on manual data entry and more on customer interactions. Within one or two clicks, Smart Jobs allows you to build the order, find parts and finalize the estimate without ever leaving Tekmetric. By automating the job creation process, you free yourself up to spend more time speaking to the customer about their needs, concerns and questions without compromising the RO’s accuracy.

3. Utilize Digital Tools to Elevate Your Expertise as a Data-Driven Service Writer

When you learn how to leverage data in your day-to-day role, not only can you better serve your customers and optimize your workflow, but you can become a stronger service writer overall. Data is not just a set of numbers on a screen – it is a tool that can elevate your expertise, setting you up for success both within the shop and throughout your career.

One tool that supports your development as a service writer in addition to the shop dashboard and Smart Jobs is the digital vehicle inspection (DVI). Because only 25% of shops use DVIs, leveraging this digital tool correctly can truly differentiate your shop from others around you. The DVI is more than just a list of repairs; it provides information that can help you provide better service. For example, your interactions with customers might prove that including several images and videos of necessary repairs can help customers better understand what’s happening with their vehicle. If you see on a DVI that images were not included, you can connect with the technician to add them before sending the DVI to the vehicle owner.

You can also go the extra mile to anticipate customer questions and clarify any confusing details with the technician before sending the DVI to the customer. This helps you prepare for customer interactions while gaining more expertise from your technicians. As you grow more in your role, you can utilize different tools like the DVI to perform at a higher level, making you better at advising and growing in your expertise as the shop’s “voice.”

Your Secret Weapon to Successful Service Writing

In a customer-facing role, one of the best ways to elevate your role as a service writer is to use data and analytics. As technology continues to improve, you can leverage your shop’s reports through Tekmetric or its integration to gain a greater pulse of shop dynamics. By using data to drive your role as a service writer, you can improve the customer experience, contribute to a more efficient workflow and grow professionally in your role as a service writer.

As the auto repair industry continues to evolve, adaptability to changing customer needs is crucial to delivering a top-notch customer experience. When it comes to choosing an auto repair shop, customers are more likely to prefer a shop that is easy to do business with over the nearest shop. For the modern customer – an increasingly digital generation sometimes called Generation CX – the customer experience is paramount. One of the ways to curate an invaluable customer experience is to leverage the trends of today’s customers. Using these trends alongside the knowledge gained from your shop’s data, you can create an experience that is transparent, convenient and efficient.

Tekmetric’s Industry Index Report, pinpoints key trends around customer needs and expectations. In a recent webinar with Ratchet and Wrench, we discussed how you can use these trends to propel your business. By leveraging the trends within the report in conjunction with your shop’s performance metrics, you can tailor your approach to enhance your customer experience, drive revenue and ultimately boost your bottom line.  

Efficient operations drive revenue

Efficient shops create more revenue opportunities by completing repairs quickly and effectively. When you streamline your processes, you enable your team to accomplish more in less time, without sacrificing quality. Efficiency creates smoother customer interactions and reduced wait times. This translates to a seamless customer experience – a key driver of satisfaction and repeat business that drives profits and increases your bottom line. 

Several tools are available that can improve your efficiency, thereby helping you repair more vehicles in less time. For instance, Tekmetric’s Smart Jobs feature allows service writers to create jobs in just one click depending on the customer’s vehicle type by automatically pulling the correct labor time, sourcing the parts and applying relevant matrices based on the job selected. By reducing the number of clicks, your service advisors save time on creating repair orders (ROs). Instead, they can focus on answering customer questions and delivering an exceptional customer experience.

Convenient communication increases customer trust

Today, there are over 250 million vehicles on the road that are more than 12 years old and will inevitably need repairs. On average, shops see customers twice a year – and the majority will seek a shop they trust. Transparency and communication build strong levels of trust, resulting in a significant impact on the shop’s overall performance. Clear and convenient communication with the customer about repairs can streamline the approval process in the short term, as well as increase your average repair order (ARO) in the long term.   

Customers expect clear communication and visibility in the repair process. One tool that supports these expectations is a digital vehicle inspection (DVI). DVIs allow your shop to send visual reports of inspection findings directly to your customers, keeping them informed and engaged throughout the repair process. DVIs can be shared via email or text, so your customer can conveniently access them and approve the work even when they are not physically at your shop. Through DVIs, a shop can share data in the form of photos and videos, encouraging customers to make informed, data-driven decisions. This digital tool goes a long way in building trust as vehicle owners can gain a deeper understanding of the repairs you recommend. Vehicle owners can prioritize the immediate repairs while also having a record of additional work, like a tire rotation, that needs to be done in three months.

Another way to build trust through clear communication is through two-way texting. This feature facilitates instant communication, enabling your customers to authorize repairs, ask questions or provide feedback in real time. For example, shops using Tekmetric can communicate directly with vehicle owners through two-way texts, even creating a repair order or appointment based solely on a text – no calls necessary! Customers know they can reach your shop anytime, from anywhere, and their needs will be met. 

Together, two-way convenient communication and DVIs significantly increase the likelihood of customers accepting your shop’s recommended repairs, increasing your ARO and ultimately driving revenue growth. 

Personalized customer experiences promote loyalty

Personalized customer experiences are another revenue driver. By adding a personal touch to the customer’s experience, you can go beyond the standard service offerings to create tailored experiences that bring customers back time and time again. 

One key aspect of personalized experiences is the integration of digital payment options, such as “buy now, pay later” or text-to-pay. According to the Tekmetric’s Industry Index, only 16% of shops have tapped into the potential of text-to-pay options – but these options have tremendous potential in building customer relationships. Tekmetric’s solution enables your shop to offer customers the convenience of digital payment methods such as Apple Pay, Google Pay or text-to-pay. This not only streamlines the payment process but also caters to modern consumer preferences, making transactions faster and more convenient. 

Additionally, “buy now, pay later” options powered by Affirm or Klarna allow your customers to get the repairs they need and pay over time, supporting their financial needs without negatively impacting your shop’s revenue. By alleviating some of the financial burden of repairs with “buy now, pay later,” you can better empower the vehicle owner to make an informed decision on repairs without breaking their bank. Tekmetric has witnessed the power of digital payment solutions: in the past year, 60% of customers at our partner shops were approved for financing, with 62% of them utilizing this option. The average transaction amount is $567 for card payments and $1,883 for "buy now, pay later" purchases on our platform.

Tying it all together to transform your customer experience

Efficiency, personalization and convenience are all traits that you can prioritize to maximize profit and create a noteworthy customer experience. Technology can do so much for businesses at its foundation, but taking it to the next level within the customer experience makes a significant difference. By leveraging technology to create a strong experience, you can set your shop up for success far into the future and measure up, by every measure.  

For more information, check out our recent webinar with Ratchet + Wrench, or reach out to our team to talk to a shop advisor.