As the UK sees more hybrid and battery cars replace petrol and diesel, the costs of repairs is inevitably rising. Heavier vehicles carrying battery packs often cause more severe damage to other vehicles, or property, and even in a solo accident the recovery costs can increase too. Fire safety means more regulations regarding storage of battery pack cars for example. So what is the long term solution for the insurance sector?
Good question. Some might say an investment in battery car repair centres by insurers would be a wise strategy, with a series of technician training academies set up around the UK regions too. A special course in ADAS tech repair could be sponsored at Tech colleges as well. But the motor sector needs to play a part in modernising as well, with more training and investment in new equipment and parts distribution management -including green parts.
Here are some thoughts from AX;
AX is urging franchised dealers to adopt a more proactive approach to accident management as mounting challenges take their toll on the UK automotive retail sector. The leading accident aftercare and credit hire services expert is encouraging action to pre-empt further uncertainly with tightening margins, increasing operational costs and an evolving post-COVID car parc which has impacted aftersales revenue.
Delivering increasing revenue and better customer retention with a minimal administrative burden, accident management remains a vital, underutilised tool for boosting dealer profitability and customer satisfaction. UK dealers are under increasing pressure, with recent results from industry players having cited lower profits and narrower margins, pointing to rising costs and expanded headcount as necessary but costly measures to drive activity.
Managing squeezed margins, static car volumes and the long-term impact of COVID-19 remain key challenges, with fewer new vehicles having entered circulation during the pandemic and the transition to EVs meaning retailers are having to cope with significant upheaval.
“Accident aftercare is underutilised and often overlooked despite it being easier to implement than ever to boost revenue and prevent customers slipping away. It directly touches key areas of the dealer’s bottom line,” said Scott Hamilton-Cooper, Chief Commercial Officer at AX.
“It’s not just about supporting the customer in their time of need – it’s about converting a negative experience into long-term customer loyalty and measurable benefit to revenue.”
AX is reminding dealers that a consistent percentage of customers will be involved in road traffic accidents or other incidents each week and each month without fail. This presents a significant, regular opportunity.
Scott Hamilton Cooper added: “By embedding an accident management programme, dealers can access multiple revenue streams – including credit hire commission, additional sold workshop hours, parts and materials sales and even the uplift in new vehicle sales from the many customers who change their car following an accident.
“We have invested a vast amount of time and resources to ensure our services can be embedded with minimal hassle, with increased vertical integration and various digitised processes making it far easier than ever before to harness accident management to benefit drivers and retailers.”
AX has also recently launched its AX Academy, a new digital training platform designed to train dealership staff, improve compliance and optimise accident aftercare performance. The AX Academy automates and digitises the process to make it easier to ensure both experienced and new dealer team members are kept abreast of the latest developments.
The inclusion of the AX Academy at dealership new starter induction stage demonstrates to new personnel how important the revenue stream is along with sales, service, parts and bodyshop repairs. With over 6,500 personnel having been enrolled ready, the AX Academy allows users to update their training schedule instantaneously, meaning progress can be tracked more easily.
“With so many variables outside a dealer’s control, the predictable nature of accident frequency is a simple win. Improved accident management performance means better retention, increased revenue and an improved outcome for drivers too,” added Hamilton-Cooper.
For more information, please visit: AX
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