Businesses should live by the motto, "the customer is always right." Another good practice today is to listen to customers and identify trends that translate to services customers want and need. In the quick lube world, those might be an offering that extends beyond the basic service of an oil change and fluid check. If you offer the services customers want, they will come for those services and more.
The challenge is to know what those added services are that customers are hoping to get at a quick lube location. The first step may be simply to ask customers and also competitors. You might even get insight from other nearby businesses.
Listen and Adapt
"Our shop adapts to our customer trends and needs simply by listening to our customers," explains Michael Spier, owner of Fifties Oil Change and Service Center in Tyler, Texas.
Spier and his wife and co-owner Charlisha believe customer service is first and foremost. Listening to customers also helps Fifties Oil Change learn what more they can do for their customers. In some cases, it's simple customer service that operators can implement.
"Having been in this industry since the late '80s, I have seen a sad decline in 'customer service' over the past ten to 15 years," Spier tells NOLN. "Shops and service centers are focused on car count instead of taking care of their guests, customers want to feel valued."
The Spiers also look beyond their storefront when looking for the best ways to work with their customers and offer the services those patrons need.
"My wife and I pay close attention to businesses we frequent in the area and learn what it is that continues to bring us back to that particular business," Spier says. "We focus on customer service offered, aesthetics of the business as well as how valued the business makes us feel. We in turn put these same types of policies in place at our business making sure all our employees know and understand the importance of making the customer feel valued."
Look to Data
Traditionally, there were and still are a number of ways businesses can determine what services they should add based on customer demand. Talking directly to the customer is the first and easiest. Many quick lube owners also develop a network of shops in the same market and regionally and can draw on those resources to learn of new trends and get examples of how other shops have implemented various offerings. Many shops look to sales reps for information; this resource can help shop owners identify new services to offer. It has been one of the few ways to get information on competing businesses.
Advances in technology may come to the aid of the industry—both for franchise owners and independent operators alike. Software from Welcomemat and ISI Software that tracks the quick lube industry may help owners identify trends and become more competitive. The database can report on the activity of the shop and help owners compare it to other shops locally, regionally, and nationally.
The software can show operators car counts for the location to compare with regional and national benchmarks.
"Our industry has not had an objective format," explains Brian Mattingly, president of Welcomemat.
Operators can look further into car counts and time spent on each car. They can view what services were performed and see other data that can help a shop weigh whether the service is worth offering.
Shop owners can look at trends in the space and view trends on a macro side. "The ability to track and measure, the ability to see someone searching for 'oil change near me' and see the transaction happen," Mattingly tells NOLN.
This level of trend-spotting is something large operators and franchises have some access to; however, many are implementing this new software to obtain more precise data.
"Large customer groups have their department do all of that for them," says Steve Barram, president of ISI Software. "For other groups, most of them do not know whether or not their 35 cars a day is doing well or not."
Without such a resource, Barram advises that many independent operators have to rely on an association to offer benchmarks for comparison.
"In our view, this is adding another set of tools that could be useful to you," Barram says.
In terms of determining services to add, a shop manager can query whether customers ask for new wiper blades as a service, find out what percentage of quick lube locations offer the service, and weigh whether it's worth offering the service to their customers.
Talk It Out
When a shop finds a service a customer needs, it's still important to evaluate what's required to meet that request before adding the service to the shop's offering. Will it require new training and tools? Will the shop need to keep an inventory of parts for various makes and models? Will enough customers use the new service to make that investment pay off?
A shop might take advantage of the knowledge of a sales rep on the next visit. A supplier has insight into demand for certain parts or services and may be able to offer details on how many shops in the area offer certain services.
"The smaller operator has fewer resource sets available to them," Barram states. "They might have a supplier they can ask. That's how the industry works, typically. Ask other operators what they do. It's generally an open, sharing environment."
Barram continues, "That may be enough to operate if it's a low bar to investment. If you have to get a lot of machinery, you may want to do more research."
A data-driven approach can offer more quantifiable insight.
"Smaller groups, they need it, but they don't understand how to ask for what they need," says Barram. "Part of this is putting it on the table in front of them, so they can see what's available."
Using a database to learn about trends can offer advantages over traditional outlets.
"Being able to see and understand trends within an organization, leveraging the tools, needing to increase car counts, reduce churn and attrition," says Mattingly. "Not only can you learn from the benchmark, all those things are based on objectives as an operator."
Even with all the data at a shop's fingertips, listening is still one of the most important resources an operator has.
"Our shop has adapted to customer value by listening to our customers," Spier says. "We focus on what makes us happy at other businesses and implement the same here at our business."
