Should I Increase My Average Repair Order or Increase My Car Count?

As a shop owner, growing your business is always top of mind. A significant part of this growth involves increasing the revenue brought in by your shop through increasing your average repair order (ARO) and increasing your car count. If you're wondering which one to focus on, the real answer is that you need to focus on both. Each plays a crucial role in achieving your business goals.

Increasing Average Repair Order (ARO)

Increasing your average repair order means enhancing the value of each service visit. This can be achieved through improved communication within your shop and with your customers.

Internal Communication

For any given job, effective internal communication is essential. Service technicians must efficiently pass on information to service advisors, and vice versa. Implementing technology to aid this communication can be a game changer as service advisors can use workflow software to assign work to technicians, track time, and monitor the status of vehicles in the bays. 

Real-time tracking allows service advisors to see the progress of each job, manage workloads effectively, and make informed decisions on task assignments. This transparency improves workflow, anticipates potential issues, and ensures that all team members are on the same page, leading to better service delivery and higher repair order values. Additionally, detailed records of each job help identify areas of improvement and provide a comprehensive service history, enhancing customer trust and loyalty.

Customer Communication and Education

On the other side of the counter, increasing communication with customers is vital. A crucial component of this is education. The more informed a customer is, the more likely they are to agree to necessary preventative services. Providing clear and detailed information about their vehicle's condition empowers customers to make educated decisions, which can significantly boost your average repair order. Digital inspections with pictures and videos can greatly aid this process. By showing customers the actual state of their vehicle, they can see for themselves what requires maintenance and why. This transparency builds trust and confidence, making customers more likely to approve additional services.

Using technology like digital inspections streamlines this educational process. Service advisors can send inspection reports via email or text, allowing customers to review the information at their convenience. This method enhances communication and provides a record for future reference. Visual evidence combined with detailed explanations helps demystify the repair process, reducing skepticism and resistance to suggested services. Engaging customers in this way creates a sense of partnership, fostering trust and long-term loyalty. By prioritizing customer education and transparent communication, you support higher average repair orders and sustained business growth.

Increasing Car Count

Increasing car count focuses on bringing more vehicles into your shop. This involves a combination of retaining existing customers and attracting new ones.

Future Appointment Scheduling

A quick win to increase car count with your existing customer base is to implement future appointment scheduling while they are still in your shop. Inform them of upcoming maintenance needs and lock in a time for their next visit. Our software can automate this process, allowing customers to receive reminder texts, ensuring that their next service is always top of mind. Even one or two more visits per year from each customer can lead to a significant rise in income.

Additionally, future appointment scheduling can help in reducing no-shows and last-minute cancellations, as customers are more likely to keep an appointment they have committed to in advance. This proactive approach also enables better resource planning and workload management within your shop, ensuring that you can accommodate the increased car count without overwhelming your team. By consistently engaging with your customers and reminding them of their scheduled maintenance, you reinforce the importance of regular vehicle care, further strengthening their loyalty to your shop. Implementing this strategy not only boosts your car count but also contributes to a steady and predictable workflow, enhancing overall operational efficiency.

Marketing Automation and Targeted Campaigns

To attract new customers and retain existing ones, effective marketing automation is essential. Implementing this allows you to deliver targeted campaigns, ensuring that you’re sending the right message at the right time. Based on customer history, you can create personalized emails and direct mail that addresses specific needs, prompting customers to schedule service appointments.

Automated marketing tools enable you to segment your audience based on factors such as vehicle type, service history, and seasonal needs. This segmentation allows you to send highly relevant promotions and reminders, increasing the likelihood that customers will respond positively. For instance, you can automatically send reminders for upcoming maintenance or special offers on services they frequently use, making sure your messages are timely and pertinent.

Utilizing these tools to their full capacity ensures that your marketing efforts are efficient and effective. By consistently delivering valuable and relevant information, you keep your shop top of mind for customers, encouraging them to return for regular maintenance and repairs. This approach not only helps in increasing your car count but also builds long-term customer loyalty and trust.

Balancing ARO and Car Count: The Key to Success

So, which should you focus on: increasing ARO or car count? The truth is, it's not an either/or situation. To make your shop more productive, you need to leverage both strategies. They are interconnected and collectively contribute to making your shop more effective, streamlined, efficient, and productive.

By informing your customers, ensuring they return regularly for necessary services, and making it easy for new customers to find you, you will see an increase in both your ARO and car count. This balanced approach will help you achieve your business goals and drive long-term growth for your auto repair shop.

Ready to learn how BOLT ON can help you boost both your ARO and car count? Schedule a demo with our team today to learn more.