How to increase the turnover of the workshops?
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3 Keys to increase the turnover of the workshops?

Innovating in spare parts is the best way to adapt to the new needs of the automobile market. But, what are the main keys to doing it? Here we share three tips to help increase the turnover of the workshops

The new user behavior

The automotive sector is undergoing important changes. From innovation in production and manufacturing to the unbridled race to assume, as soon as possible, a complete digital transformation.

These changes are preceded by a new behavior in the buyer’s habits. The rise of new technologies has increased the impatience and demand of consumers.

Vehicle owners require parts that are available in real time and with continuity. This is something that traditional workshops have a hard time providing. It is still very difficult to have such direct communication between distributor and point of sale.

Workshops need to increase their turnover

During this 2022, the workshops will be on the road to recovery after the pandemic crisis. How can workshops be helped to recover and adapt to new market needs?

According to the newspaper CincoDías, during the pandemic, the clientele of the workshops decreased by nearly 60%. For the aftermarket sector, it will be decisive to find strategies that can help workshops to recover economic progress.

3 keys to help workshops increase their sales

Workshops are an essential gear in the machinery of the AfterMarket sector. All the actors involved in this sector are interested in the proper functioning of these establishments.

1. Identify and address the causes of low customer loyalty

Improving customer loyalty is one of the keys to success in any business, but especially in services. To be successful in business you have to stand out from the competition. And it is important, when you have a client, to keep it.

Humanize care

To do this, training staff on a more personalized customer service usually helps improve the professional-client relationship. Humanizing attention is key to getting closer to our closest audience and carrying out our main objective: purchase and retention.

It is very important to recognize what are the causes of low customer loyalty, therefore, using forms so that the customer can assess the quality of the service is very important to determine our low points. This form can be sent automatically after your purchase.

Loyalty programs

You can use loyalty programs such as:

  • Points programs: in order to promote the consumption of our products or services.
  • Appoint VIP clients in social networks.
  • Make special gifts to the most loyal customers.

Converting your customers into repeat customers is a much easier task than acquiring new ones. These programs have proven to be extremely effective in increasing billing and loyalty, despite being a fairly classic solution.

2. Focus on pricing strategy

As we mentioned in the previous article, in an attempt to attract more customers and adjusting to the current situation of precariousness after the pandemic, betting on white brands in spare parts for vehicles will bring us quite close to our customers’ pockets.

Cheap brands

For several years, the average age of the Spanish automobile fleet has increased, taking this into account we can anticipate the decision of drivers to include cheaper brand parts in our catalog.

According to a new NielsenIQ study, 76% of Spaniards have changed their purchasing habits as a result of the economic crisis.

Thus, almost a third of Spaniards say that they do not feel confident about their income prospects in the next 3 to 6 months. In addition, half say they have changed their shopping habits in response to the Covid-19 pandemic. Private label is increasingly proving to be a viable option for many Spaniards.

The most important conclusion is the prevalence of private label, even in a country like Spain, which has been more successful with private labels than many other European countries.

For 58% of Spanish buyers, they opt for private label products since they find them as good as those of other leading brands and companies and, in addition, it makes it easier for them to choose the cheapest alternative.

On the other hand, 55% of consumers in Spain decide on promotional products, regardless of the brand.

In fact, this data suggests an added advantage when it comes to private labels, as they help your company save money.

Although the most important thing is, without a doubt, to guarantee the quality of the repairs and accredit them with the corresponding certification or insurance, the best guarantee of a good job.

3. Jump to the online market

Ten years ago online sales represented 0.7% of purchases, now it represents 7.4% of total sales. Not taking into account this business opportunity to bill more in the coming years is a serious mistake.

And with online sales we are not only referring to e-commerce sales, but e-commerce will also grow through social networks. It is estimated that sales through social networks will grow by 31.4% each year until 2027, which translates into a sum of 500,000 million euros.

These data have been collected in North America, Europe (where Spain is included) and the Middle East, in a Global Consumer Survey Report by Astound Commerce.

Social networks are a great resource for freelancers, these tools can help increase the turnover of your workshop due to the fact that they increase the visibility of the business in other promotional channels and attract new clients. But, without a doubt, the main advantage is its zero cost.

 Increase the visibility of your business and attract new customers.

The market is in a state of flux where the traditional garage business model is struggling to evolve and adapt to competition from aggregators and e-commerce.

Bodyshop operators must face the reality that their business models are under intense and immediate pressure. Workshops must be flexible to be able to operate in multiple channels (digital and physical) offering one service or several.

E-tailers have a market share of 5-10% and they expect these figures to double by 2030, according to a report by Info Taller. Only if they are agile enough to quickly adapt to changes will they be able to survive in the future workshop landscape.