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How to have a modern workshop? Find out the best tips to make your business stand out
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How to have a modern workshop? Find out the best tips to make your business stand out
Hello, and Welcome to Racext’s Car Magazine column, the column aimed exclusively at the world of 4-wheeled vehicles with news, insights and guides, available every day here racext.com, today in this article we will talk about “How to have a modern workshop? Find out the best tips to make your business stand out”
How to have a modern workshop? Find out the best tips to make your business stand out
When looking for a garage, it is natural for the customer to choose the most up-to-date companies. You also want to find equipment with the latest technology, agile and personalized service and quality parts. For those who are entrepreneurs, investing in a modern workshop is essential, especially in our times.
During the coronavirus pandemic where social isolation became mandatory, people got into the habit of researching corporate reputations. As well as the quality of their services. Of course, those who need to carry out repairs or maintenance on their vehicle are looking for a reliable place at a fair price.
Developing a modern workshop requires constant and strategic work, but if your goal is to have loyal and satisfied customers, it’s worth it.
1. After all, what is a modern workshop?
If there is one sector that is always being modernized, it is the automotive one. Diversified mobility, autonomous driving, connectivity and electrification are some of the trends that have impacted this market in recent years. It is on these issues that the owners of the workshops must keep an eye on them, as influencing the sector influences the way of working, the consumers and the supply chain as a whole.
McKinsey, an international management consulting firm, developed a study a few years ago, indicating which would be the most promising practices for this market until 2030. Among these we can mention the massive adoption of electric cars (according to the survey, in the city denser, can reach 50%), even greater growth in mobility services (such as uber ) and the presence of startup in the segment.
To modernize a workshop, trends like these need to be taken seriously. Keeping up with the news and updates of the territory is essential to adapt and differentiate in such a competitive sector. A modern company is not limited to technology, although most of the changes are based on technology. A modern workshop has credibility in the its services and it is easier to engage in the changes that the future brings.
2. Why is it important to invest in modernization?
Each company undergoes modernization. It’s an inevitable process, and when it doesn’t, the business likely won’t survive. This is due to current market demands, as well as constant technological updates. Consumer behavior changes, with this the market must follow, and vice versa.
Over time, this has become necessary, because it has begun to represent more than an opportunity for profit: it is an opportunity to reduce costs, attract more customers to the company and make your experience unique. Understand these reasons better below.
2.1. Reduction of operating costs
Most companies are constantly evaluating new ways to reduce operating costs and increase profitability. One of the easiest ways to save money, through workshop modernization, is to replace conventional bulbs with LED ones. It may seem like little, but considering the all-time high the service went through this year, this change could be significant at the end of the month. In addition to this bill, there are other expenses that can be reduced, such as internet consumption, telephone (especially when working with operator plans) and water.
An alternative is to change the working regime of employees. With the labor reform, the transition from CLT to PJ (legal person) has become less bureaucratic. The change can benefit both parties and the business owner is able to save on labor costs.
2.2. Improved customer experience
Customers are increasingly demanding. Providing an exceptional experience is a way to charm them and earn their loyalty. The relationship with them must be preserved and conducted strategically to bear good fruit. With modernization it is possible to increase the attraction and loyalty index, strengthening the sales opportunity and improving their satisfaction.
Investing in modernization and customer experience helps promote the brand, especially organically, through social networks, for example. Plus, your business still benefits from referral marketing. The best way to get started is to implement surveys that help you get information such as NPS – Net Promoter Score .
This indicator lets you know more about your consumer, including whether they are loyal. Then, you need to work with this data, associating it with other metrics, to identify areas for improvement and develop an action plan. Feedback from those who consume your services is essential to improve them.
2.3. Attract new customers
The arrival of new customers is one of the objectives of investing in experience, but the modernization of the workshop, as a whole, favors this result. Do you know that phrase “advertising is the lifeblood of business”? One of the consequences of having a modern workshop is to start investing in marketing and the promotion happens accordingly.
Every company wants to be seen and remembered. Social media is a good example of how this can be leveraged. The more you invest in updating your processes, the more time you earn to attract more customers, whether it’s advertising, creating partnerships and promotional actions, or strengthening the relationship with the list you already own.
2.4 Increase in business ROI
ROI is the English acronym of the expression return on investment . It is a metric used to know how much the company has earned from the investments made. It is mainly used for marketing purposes. Using this indicator is very useful, as a few years ago it was less feasible to understand what was working in this industry.
The use of indicators already works as a modernization of the business, because it demonstrates its concern and practice to improve results through metrics, analysis and research. To increase this index it is essential to invest in marketing and technology.
3. What can’t be missing from a modern workshop?
To classify a workshop as modern, it’s not just its procedures that need to be updated. Your equipment and means of work must also confirm this condition. But where to start?
3.1. Virtualization of processes
If you have a time-consuming business, it’s a manual operation. Because it is repetitive, it ends up taking hours that could be devoted to other more relevant and strategic actions for the company. A modern bodyshop understands the need and importance of managing time better, especially when it represents wasted money.
Process virtualization reduces costs and helps increase productivity. Therefore, the operational error rate is also reduced with standardization, generating accurate reports with platform integration. Overall, there is more consistency and speed in all operations.
3.2. new equipment
Gone are the days when the image of a machine shop consisted of grease-stained walls and floors covered with worn-out equipment. Today, when such a scene is encountered, the impression that the customer may have is that that company is not worthy of credibility or able to take care of their vehicle.
Any company, regardless of its size, must take seriously the cleaning and organization of its facilities , as well as the quality of its equipment, if modern and durable. Your materials must be up to your workmanship, so that you can give visibility to their provenance.
One of the responsibilities of the purchasing sector is to inquire about the brands with greater credibility in the market, making sure that the end customer has their eyes closed to trust what is done in their vehicle. With new equipment and skilled employees, you can’t go wrong.
3.3. Connectivity
Without a doubt, we are living in the age of connectivity. Smartphones, smartwatches and other electronic devices are interconnected, favoring our connection with the world. In the mechanical workshop it is already possible to connect the equipment so that they work together, each with its respective function, saving time and making the mechanic’s work easier.
Currently you can count on high-tech devices, which replace the traditional computer and are portable, allowing the professional to serve the customer everywhere. Some models are waterproof and even grease resistant. It is possible to connect the equipment, aiding the diagnosis, analysis and solution process, as it collects all the information in one place.
3.4. Reference products on the market
Working with products of reference in the market it is also a way to make the mechanic’s job easier and the workshop more modern.
4. How to modernize the workshop?
Now that you know the benefits of workshop modernization, there is a desire to start the process as soon as possible, right? Check out our tips to get started right away!
4.1. Diagnosing the business
How well do you know your company? When making a diagnosis, the manager must be aware of all processes. This procedure will highlight the problems and needs of the organization and thus allow the creation of an action plan.
The first step is to gather information. Talk to other managers, analyze reports and take a closer look at how your company’s day to day works. The second phase is the study of the data and the identification of problems. Once this is done, it’s time to get involved and outline the solutions together with the other strategic areas of the business.
4.2. Define strategic planning
The concept of strategic planning is widespread, but not all companies take it seriously and, therefore, fail to achieve the desired results. This report should gather information on the current situation of the company, where it wants to go and, most importantly, what the people involved need to do to achieve this goal.
With the help of strategic planning, it is possible to improve brand positioning, diversify sales channels, optimize financial management and increase profitability. Before starting it, it is necessary to prepare the diagnosis, because it serves as the basis for this plan.
4.3. have an action plan
The action plan is the step by step that the areas will follow to achieve the proposed results. This phase requires discipline and commitment from all those involved. When setting goals, be objective and realistic. This is essential to avoid frustration and non-compliance with the plan.
Another point that deserves to be highlighted is the deadlines. If the actions have been delegated to a specific sector, it is up to him to define how long it will take. Of course, urgent measures are an exception, but otherwise the managers, who already know what their work routine is like and how they will proceed with the request, must have autonomy to make this decision.
4.4. benchmark
First conceptualize this expression. Benchmarking is a strategic analysis of best practices used by other companies in the same segment as yours. In other words, it is the search for references to improve processes, services and products.
Interestingly, benchmarking is not plagiarism. Also because each company has a different reality and need. What happens in this research is the observation and evaluation of what can be adapted to your business. That is why it is a highly regarded practice in the business field, when it is carried out legally.
If you know other managers in this segment, talk to them. If possible, make an appointment to see your workshop and see how it works. Remember that your reference is a modern workshop. In the previous arguments, what has been seen in one has already been specified. Hence, it is the companies with these characteristics that you should look for.
4.5. Investing in strategic partnerships
Speaking of talking to other businessmen, a good tip is to participate in events in your segment to get to know each other and forge strategic partnerships. It is also a way to work on your personal marketing and develop your negotiation skills.
Partnerships are welcome, as long as they are positive for both parties. If your intention is to benchmark , having colleagues in the field who have similar challenges to yours is positive and rewarding. This is why it is worth investing your time in this practice.
4.6. Having a data-driven
culture
Have you ever heard of data-driven culture? It is a methodology driven by data analysis. A company with this type of culture considers statistics, metrics and all kinds of data in its decision-making process. We talk a lot about the analysis of information, but above all it is important to transform them into strategies that have an impact on the business. No doubt a modern laboratory does this.
In the marketing industry, for example, data driven can allow you to create more personalized actions for customers, improving this relationship. Furthermore, it is a way to reduce costs with the sales funnel, identifying new opportunities and trends for continuous improvement.
5. What care is needed?
5.1. Pay attention to your budget
Modernizing your workshop shouldn’t leave you in the red. If you want to buy new and more updated equipment, do a lot of research, always giving preference to brands that are a reference in the market, but that are flexible and offer you good terms of payment. Take this opportunity to create good partnerships with suppliers and not compromise your budget.
5.2. Use agile methodologies in everyday life
When diagnosing and following the work routine of the workshop areas, pay attention to what can be simplified, which processes can be automated, and which tasks can be delegated. One of the prerequisites behind any business must be agility, without sacrificing quality.
5.3. Follow the market news
Innovation is one of the keywords in the automotive industry. This means that there is often news and new trends that it is important to follow. Electric cars, self-driving cars, connectivity and mobility are some of the guidelines every workshop manager should keep an eye on.
If possible, take some time into your routine or during the week to do some research. No doubt the period applied to this also counts as an investment in your business.
5.4. Look for an omnichannel
communication
Modern communication is omnichannel, that is, multichannel. When a company uses this strategy, there is a model of what is being communicated, both inside and outside the organization. In practice, the message is the same for both employees and customers.
There is a connection between aesthetics, language and purpose. The channels are integrated and no matter what the customer chooses to contact, they will receive the same service: agile, kind and focused on solutions.
5.5. Invest in CRM and ERP
It is not uncommon that, after winning the customer and finalizing the sale of the service, the company does not resume contact. The after-sales service is often neglected and this compromises any other consumer loyalty action. One tool that can help is CRM. Its main objective is to manage the relationship with customers .
In addition to improving their satisfaction and business ROI, this feature centralizes information and customer documents , facilitating contact and new negotiations. With this, the generated leads have more quality, i.e. sales are more effective and cross-sector communication is facilitated, avoiding errors in other processes.
ERP has similar capabilities, but focused on management areas, such as finance (accounts payable, issue of invoices , etc.). In a workshop it is just as necessary, as it increases productivity, helps reduce costs, enables data analysis and centralizes organizational information.
5.6. Secure your shop’s digital presence
Previously, when searching for a product or service, the most common way was to ask a friend or family member for information. Media announcements were also highly relevant. Consumers today generally search online for references on what they are about to buy or hire.
For entrepreneurs, this signals the need to invest in the digital presence. Not just on social media, but on relevant content ( blog that reinforces your authority on the topic, for example), in advertisements, etc. More than ever, the maxim “He who cannot see himself does not remember” makes sense and, in business, it is necessary to keep up to date.
You can start by improving the company’s website. Does it contain all the information you need to answer customer questions and facilitate contact? Are you updated on the amount of services offered in the workshop? Remember that it should be easy to navigate, whether on a computer screen or a smartphone .
Another simple but effective option for increasing your digital presence is to register your company on Google my business . This makes your address easier to find. There you have the opportunity to read reviews about a company: for you it can represent the opportunity to understand how to improve and what your customers think about your services.
Modernizing your business is no longer an option – it’s a matter of survival for any business in any segment. The era of digital transformation has dictated trends and it is important to keep up to date to differentiate yourself in the market and take advantage of the best opportunities to forge partnerships.
A modern workshop doesn’t just invest in technology. The management must spend time and money in data analysis, systems that streamline their processes every day and generate resource savings and strategic practices, which culminate in desired results.
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How to have a modern workshop? Find out the best tips to make your business stand out
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