The advent of direct repair programs (DRPs), concierge programs and other insurance company offerings have muddied the waters when it comes to managing customer relationships, with many customers mistakenly believing that the insurance company is in charge of the repair process. A recent Society of Collision Repair Specialists survey even found that many shops consider the insurance company, not the vehicle owner, their actual customer.

"Years ago we competed for business by marketing to the consumer, not going through insurance companies," says Lou DiLisio, president of Automotive Industry Consulting. "Over the last 15 years or so a lot of shops have lost that focus on the customer. You have to build that relationship, even in a DRP environment. Once a customer comes through the door of the shop, it's the shop's responsibility to make that customer their own."

How can shops reclaim the customer relationship, even when their customers have come to them by way of insurance referrals or a DRP program?

A key part of that is building an identity for your shop, says Bobby Price, owner of Price's Collision Centers, a $12-million operation with three locations in Tennessee. "I allocate 3 percent of revenues to advertising, and I've been doing that for 10 years," Price says. "You have to deliver a consistent message and maintain top of mind in the marketplace."

Part of his advertising focuses on educating consumers about their rights. His most recent radio ads describe the deceptive word tracks sometimes used by insurance companies to steer work to their DRP shops. Price participates in one DRP, State Farm's Select Service program.

"My message is all about working for the consumer," Price says. "We try to educate the consumer on their right to choose a collision center, and we've built our message around the fact that we work for the customer."

Price says his biggest competition isn't other collision shops, but the word tracks that insurance companies use to steer customers. "In bringing those things to light, consumers are educated and not as apt to be steered," he says.

In fact, just passing out a "Motorists Rights" or "Customer Bill of Rights" document can go a long way to help educate those consumers. Many state auto body associations offer these pamphlets. Shops should have copies available and hand them out to every customer that comes in for an estimate.

"That explains that they have the right to get their car fixed anywhere they choose, and they don't have to go around getting multiple estimates," says Tom Franklin, author and industry consultant.

Basic customer service

It seems obvious, but shops could also do a better job of treating their customers like customers, instead of just jobs that have been fed to them through the insurance companies.

"What I've learned over the years is you treat customers like you would your family," says Roberta Ferrara, owner of Budd's Auto Body in Cedar Grove, N.J. "You inform them what you're going to do to the car, explain the repair, and treat them well. Whatever their needs are, you meet them."

Budd's Auto Body participates in several DRPs, but Ferrara has used customer service to turn those DRP referrals into ongoing customers, and to get additional referrals from them. "We let them know we guarantee all of the work we do. If they say the repair is wonderful, we ask them to refer us to somebody else."

At Price's Collision Centers, the shops have a customer-friendly lobby that includes flyers about the claims process, the right to choose a repair shop, and insurance and repair issues. Customers are kept in the loop about what type of parts are being put on their vehicle.

"It's a continuing education process for the consumer throughout the repair cycle," Price says. "You have to exceed the customer's expectations from the time you meet them until you deliver the car."

Bub Barkhurst, owner of Barkhurst Collision Center, a small shop in Saratoga, Wyo., has some slight advantages when it comes to customer marketing and insurance issues – he's the only repair shop within 60 miles. Still, he has to do a good job for his customers.

"They expect things to be done the way you said you would do them," Barkhurst says. "You have to be honest and keep them informed about the repair. If it's going to take a few more days to fix the car, you let them know that ahead of time."

Shops also should be an advocate for the consumer when claim disputes come up, although Price says it's important to keep the vehicle owner out of the middle of these fights.

"We don't want the customer drawn into this battle," Price says. "We don't get the customer involved. We've learned over the years that is not the way to earn referral business."

Price and his claims staff escalate any disputes through management channels with the insurance company to resolve these problems. "It's pretty clear whether the car needs something or it doesn't," Price says. "When you ask the questions the right way, you get what you need. If you say, 'You're not going to pay for the seam sealer that's required to fix this car?' its' difficult for them to say they won't pay for that."

Many of these disputes can be averted by building solid and respectful relationships with the insurers you do business with, and establishing a pattern of making quality repairs based on standard processes.

"Have a policy and stick to it," Price says. "A staff adjuster that's in your shop every day looking at how you do things will give you a lot less resistance."

"I've only got two insurance companies that I deal with that will send an adjuster all the way up here," says Barkhurst. "They used to send out a lot of independent adjusters, but I have a good enough rapport with the companies now that they are more trusting. They go off of what my estimate is. If there's a problem, we can usually work it out over the phone."

When he reaches an impasse with an insurance company, he tries to make sure the insurance company takes responsibility for the issue. If worse comes to worse, he will negotiate a discount with the customer rather than the insurer.

Ultimately, shops have to take charge of the process from the very beginning.

"At the end of the day, if the customer chooses the shop, that's the shop's customer," DiLisio says. "Insurance companies think they own the consumer. If a shop allows that to take place, then shame on them."