In today’s auto repair industry, data can play a key role in a shop’s ability to repair a vehicle more efficiently and accurately. Traditionally, repair information was documented informally, often by hand on paper. Today, this information can be captured and processed electronically, leading to a significant acceleration of the repair process – and a more positive experience.
The transformative power of data extends beyond streamlining individual repairs. In fact, by strategically analyzing your shop’s data over time, you can also use the information to grow your shop. However, to maximize the impact of data, it’s important to know what kind of data is most effective to use in your shop. Some forms of evergreen data – performance over time – are useful in your long-term strategy, while others, such as real-time performance metrics, are more helpful in making short-term tweaks to promote better performance.
Understanding real-time vs. evergreen data
To effectively use data, it’s important to distinguish between real-time data and evergreen data. Real-time data is live data that is available as soon as it is generated. It allows you to manage your shop and respond to situations instantaneously as they happen. On the other hand, evergreen data is used in hindsight, after a timeframe has ended. Most shops use this type of data to reflect after the repairs are complete.
Both forms of data have their uses. Real-time data allows you to respond to situations as they happen in a way that helps support your business. Evergreen data helps you track long-term trends and their effects on your shop. When you leverage data strategically in all forms, you can optimize your shop’s operations and processes, create an excellent customer experience and prime your business for growth.
Stay ahead of the curve with real-time data
Real-time data enables immediate visibility into what is happening with your shop at any given time. From inventory to customer communication to repair progress, you can review different buckets within your shop and respond as the day progresses. This capability allows you to make decisions on the fly without having to wait until the end of the day, week or month to know which parts need to be ordered or how many repairs you have completed. Strategically, real-time data can be used for short-term decisions that have long-term effects, ultimately becoming an integral piece to growing the shop’s bottom line.
Examples of how you can use real-time data might include:
- Track shop performance throughout the day: Reviewing your shop’s performance in real-time allows you to respond to potential bottlenecks or problems that arise throughout the day. For example, if you see $15,000 in work pending approval before lunchtime, you can encourage your service writers to conduct follow-up calls to get approval and begin the work.
- Send out rainy-day coupons: Business tends to slow down on rainy days. However, if you experience this, you can respond in real-time by sending a rainy-day coupon incentivizing customers to come in for quick-turn work, like oil changes.
Analyze, determine, and predict trends with evergreen data
In addition to real-time data, you can leverage evergreen data by analyzing trends and your shop’s data for predictive forecasting. One of evergreen data’s biggest advantages is that it captures a period of time without the need for constant refreshing. This can help you review your shop’s performance over longer periods – year-over-year, month-to-month or quarterly – so you can implement long-term solutions to promote growth.
Examples of using evergreen data include:
- Drive more business with declined jobs: When you want to influence cash flow for the coming weeks or months, you can follow up on previously declined jobs, such as an oil change or tire rotation. This customer-centric approach can not only build your customer relationships, but also drive business during a slow month
- Create value with Shared Customer History: Look for a solution that allows you to share your customer’s history across multiple locations, bringing extra value through this evergreen data. For example, if a customer asks when they had their last oil change, your service advisor will be able to pull that information within seconds – no matter which location the customer last visited
- Leverage custom financial reports to track shop performance: Financial reports give you the power and flexibility to create a report that tracks what’s important to you without any extra noise, so you can make decisions based on past performance. For example, you can compare data from the previous year or another custom time period, identifying bottlenecks that restrict your financial performance and adjusting your strategy accordingly.
- Track month-over-month trends with comparative reporting: Pay attention to the trends that occur each month in comparison to the same time frame in previous years. This will allow you to spot trends and respond accordingly, such as preparing for a particularly busy season or implementing strategies to create more work in a slower season.
The price of ignoring data
Time is money. Evergreen and real-time data allow you to manage your shop’s time and resources in the most efficient manner to generate profit while providing an excellent customer experience. To grow your shop, ensure you are using both forms of data to your advantage. Combining evergreen data’s longevity with real-time data can lead you to a multi-faceted business strategy, creating a customer-centric approach that ultimately generates more cash flow, profit and growth.
The right shop management system can help you determine how best to use data in your shop. For more information and information on using technology to gather information on your shop’s performance, check out Tekmetric’s latest blog posts.
This article was originally published on VehicleServicePros.com
