Toronto, Ontario — OEM subscription services are here to stay, says Mike Anderson. If you need proof, just look at how television has changed in the last decade.
“How many of you on this call have a subscription to a streaming service like Netflix?” Anderson asked the audience during a Consolidated Collision Services (CCS) training session.
All but one of the respondents admitted to subscribing to Netflix, Disney+, Prime Video or similar services.
OEM subscription services charge extra, often monthly fees for vehicle “add-ons”—features like heated seats, advanced cruise control and certain ADAS features. BMW sells heated seat subscriptions for US$18 per month; General Motors believes that, by 2030, it will generate between US$20 billion and US$25 billion in annual revenue through subscription services.
“These subscriptions will be done through an OEM-driven app,” Anderson explained, adding that such an app would introduce a prime opportunity for OEM-certified or affiliated/dealership collision centres.
“Plenty of OEMs believe first-notice-of-loss (FNOL) will be done through [this] app. That provides the perfect positioning for an OEM-certified collision centre to get connected with the customer.”
Anderson started the presentation by highlighting the importance of acquiring and maintaining your OEM certification status, not only to keep up with training and procedure requirements but to help your business “be extraordinary.”
“Each year my presentations have a theme. This year, my message to collision repairs is to be extraordinary.”
Anderson continued to say that many bodyshops mistakenly believe that the work will just roll in once the certification is slapped on the door—but there’s more work involved than that.
“You have to work to build that relationship. You have to win that customer’s trust.”
Anderson said his company recently called 179 U.S.-based, OEM-certified collision centres. When the Collision Advice caller requested assistance with a specific make of vehicle, not one of the shops so much as mentioned their certification.
“You must mention your OEM certification,” he stressed. “‘We have advanced training on XYZ vehicles.’ That is key.”
He added that customer expectations today are “fluid,” meaning that a customer’s experience with one business could impact their expectations during an entirely different transaction in a totally different industry. For example, Amazon offers free shipping with a Prime membership; therefore customers expect free shipping elsewhere to meet the consumer experience Amazon provides.
“There are countless areas where we must be extraordinary. We have to be extraordinary in supporting the customer post-collision; extraordinary in our customer service and how we communicate updates to the customer. We also have to be extraordinary in our repairs, of course.”
This session was hosted by Consolidated Collision Services (CCS) and sponsored by BASF.
