The Dealership Opportunity for SMART Repairs
Market size and growth rate
The UK SMART repair market is set to grow rapidly with consumer demand for affordable and quick vehicle repair solutions.
It’s hard to pinpoint market growth figures for SMART repairs, but predictions indicate a CAGR of around 6 – 8% from 2023 to 2030.
For franchised dealerships, the revenue potential is significant. Offering SMART repair services can boost customer retention and attract new customers by providing convenient and affordable options.
Estimates suggest that dealerships can boost their aftersales revenue by 10-15% by integrating SMART repairs into their service offerings.
Key Players in the UK SMART Repair Market
The SMART repair market in the UK reveals a growing number of SMART repair providers. Here are a selection of the national operators:
Offers repairs to paint, bumper scuffs, dents, scratches and ‘keyed’ panels and also service larger fleets. A team of repairers from across the country to act as partners.
Known for their comprehensive suite of SMART repair services, including bumper and alloy wheel repairs. They have a strong presence across the UK with a network of mobile technicians.
A well-established brand offering a wide range of SMART repairs through a network of franchisees. They are renowned for their expertise in minor paintwork damage.
A nationwide smart repairs provider to businesses for alloy wheels, car upholstery, interiors plus dents and SMART repairs.
Challenges for Dealerships in Capturing Market Share
Despite the promising market, franchised dealerships have historically captured a smaller share of the SMART repair opportunity.
Several factors contribute to this:
Lack of Awareness and Training
Not all dealerships are yet aware of the potential revenue from SMART repairs. Others may lack the necessary training to effectively offer these services.
Investment in Equipment
SMART repair requires specialised equipment and tools. The level of existing repair activity and the extent of facility modifications will influence the set up costs
Operational Focus
For some dealerships, vehicle sales and traditional maintenance are still the priority. Not exploring the option of SMART repairs means missing out on a potentially valuable additional revenue stream
Where to start with SMART repairs?
To capitalise on the SMART repair opportunity, franchised dealerships may wish to consider the following:
Leverage AI Vehicle Inspection Solutions
Implementing AI-driven vehicle inspection technologies can streamline the identification and assessment of repair needs. These digital platforms can automatically detect minor damages and generate repair quotes, improving the efficiency and accuracy of service delivery.
Dealerships can integrate AI inspections into routine maintenance checks, creating additional upsell opportunities. This approach helps maximise revenue by identifying more services to offer customers.
Enhance Customer Experience
Making the repair process easy and clear can boost customer satisfaction and loyalty. This includes online booking and real-time updates. Offering warranties on SMART repairs can also build trust and repeat business. Plently of opportunities for conversations with the service department.
Invest in Training and Certification
Providing comprehensive training for technicians in SMART repair techniques can ensure high-quality service delivery. Partnering with established SMART repair companies for certification programs can also enhance credibility.
Promote SMART Repair Services
Marketing campaigns to raise awareness among existing customers about the availability and benefits of SMART repairs can drive demand. Highlighting the cost savings and convenience compared to traditional body shop repairs can attract more customers.
Offer Bundled Service Packages
Customers are likely to respond positively to bundled packages that include SMART repairs. This can be alongside regular maintenance services as part of a service plan. With the added bonus for the dealership of increased revenue per customer visit.
Conclusion
With the necessary investment in technology and training franchised dealerships can secure a larger share of this growing market. The opportunity is not only to boost Aftersales revenue and profit margins but also strengthen customer loyalty by offering a customer service that has growing demand.
Sue Pryce is a Director at TyreSwift. With extensive experience and multiple senior roles within the automotive, retail, logistics and technology sectors, Sue writes about the opportunities and challenges for aftermarket operators.
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