Defining Industry KPI’s - Collision Industry Conference · Assigned Tasks Define Cycle Time...

Defining Industry KPI’s

Definitions CommitteeDefinitions Committee

0707--3030--20092009

Committee Members

Chris AndreoliChris Andreoli Mel Mel HunkeHunke

Scott BiggsScott Biggs Doug KellyDoug Kelly

Barry DornBarry Dorn Joe LacyJoe Lacy

Al EstorgaAl Estorga Jeffery PattiJeffery Patti

Chris EvansChris Evans Richard PerryRichard Perry

Don FinleyDon Finley Bob SmithBob Smith

Ron GuilliamsRon Guilliams Rick TuuriRick Tuuri

ChrisaChrisa HickeyHickey Dusty WombleDusty Womble

Assigned Tasks

�� Define Cycle TimeDefine Cycle Time

�� Define Other Industry Define Other Industry KPIKPI’’ss That Are That Are

Used to Measure Shop PerformanceUsed to Measure Shop Performance

•• Performance ReviewsPerformance Reviews

•• Chart of AccountsChart of Accounts

Cycle Time Definitions

��Disclaimer: Cycle time is only one Disclaimer: Cycle time is only one

component of shop performance. The component of shop performance. The

measurement of Cycle Time should be measurement of Cycle Time should be

used in conjunction with other critical used in conjunction with other critical

KPIKPI’’ss to determine the overall to determine the overall

efficiency and performance of a repair efficiency and performance of a repair

facility.facility.

Normalizing the Variables

�� Drivable vs. NonDrivable vs. Non--DrivableDrivable

�� Performance Relative to Your MarketPerformance Relative to Your Market

�� ““Keys to KeysKeys to Keys”” vs. Production Timevs. Production Time

�� Specialized or Luxury VehiclesSpecialized or Luxury Vehicles

�� Possible Subsets for Each of the DefinitionsPossible Subsets for Each of the Definitions

Cycle Time Definitions

�� The Committee Identified the Need for The Committee Identified the Need for

Three Three Different Definitions for Cycle Time:Different Definitions for Cycle Time:

�� RepairerRepairer

�� InsurerInsurer

�� ConsumerConsumer

The following are the definitions that we are The following are the definitions that we are

recommending to the CIC body for approval.recommending to the CIC body for approval.

Repairer Cycle Time

�� Repairer Cycle Time:Repairer Cycle Time: From the Time From the Time

the Vehicle Arrives at the Repair the Vehicle Arrives at the Repair

Facility for Repair Until the Vehicle is Facility for Repair Until the Vehicle is

Completed and Picked Up by the Completed and Picked Up by the

Consumer, (includes weekends). Consumer, (includes weekends).

Commonly Referred to As, Commonly Referred to As, ““Keys to Keys to

KeysKeys””..

Insurer Cycle Time

�� Insurer Cycle Time: Insurer Cycle Time: ““The Time From The Time From

the First Notice of Loss to When the the First Notice of Loss to When the

Claim is PaidClaim is Paid””..

Consumer Cycle Time

�� Consumer Cycle Time: Consumer Cycle Time: ““From the Time From the Time

of the Accident to the Time the Vehicle of the Accident to the Time the Vehicle

is Repaired and Returned to the is Repaired and Returned to the

ConsumerConsumer””..

Other KPI’s to be Defined

�� Repair Labor Hours Per DayRepair Labor Hours Per Day

�� Repair Dollars Per DayRepair Dollars Per Day

�� Normalized items in chart of accountsNormalized items in chart of accounts

Cycle Time Presentation

J.D. Power and Associates

�� Presenting for J.D. Power and Associates:Presenting for J.D. Power and Associates:

Mark GarrettMark Garrett

Senior Research ManagerSenior Research Manager

Insurance PracticeInsurance Practice

[email protected]@jdpa.com

© 2009 J.D. Power and Associates,The McGraw-Hill Companies, Inc. All Rights Reserved.

Its All in the Eye of the Beholder: Customer Satisfaction and Cycle Time

Presented by J.D. Power and Associates

July 30, 2009

© 2009 J.D. Power and Associates,The McGraw-Hill Companies, Inc.

All Rights Reserved.

• Focused on the auto claims experience involving physical damage – both repairable and total losses.

• Excludes claims involving only glass/windshield damage.

• Survey designed with active collaboration from many

carriers profiled in the study.

• Study provides a clear set of benchmarks for recent claim

performance among the top 25 insurers in the nation.

• National sample of 11,700 respondents who filed a claim

within the last year.

• Surveys gathered independently to ensure results are objective

and representative.

• Interviews obtained in July/August 2008

Survey Overview



Overall

Satisfaction

Index

Service

Interaction29%

3%

18%

Rental Experience

Repair Process

First Notice of Loss

– Call Center

36% Settlement

34% Appraiser

36% Local Agent

31% Adjuster

Key Drivers of Customer SatisfactionRepairable Vehicles

13%



Index Range of PerformanceRepairable Vehicles

876

910

875859

883

825 824 829810

826

738 742 734

771

724

650

700

750

800

850

900

950

Overall CSI FNOL

Call CenterService

Interaction Repair

Facility

Settlement

Ind

ex S

co

re

Highest Insurer Score Industry Lowest Insurer Score

The Repair Facility has the tightest range of performance acrossInsurance carriers.



*Data sourced from J.D. Power and Associates 2008 Customer Contact Satisfaction Study

Relationship Between Satisfaction with Repairand Likelihood to Recommend Shop – Carrier Level

Insurance Carriers

35%

45%

55%

65%

75%

7.75 8.00 8.25 8.50 8.75 9.00 9.25

Overall Satisfaction with Repair Process

% C

us

tom

ers

wh

o w

ill d

efi

nit

ely

re

co

mm

en

d s

ho

pHigh correlation between satisfaction with the Repair Process and

recommending the Repair Facility.



Claim Contact



47%

12%

40%

8.158.03

8.38

0%

20%

40%

60%

80%

Company Appraiser Independent Appraiser Repair Facility

% W

ho

ap

pra

ise

d v

eh

icle

6.00

7.00

8.00

9.00

Th

oro

ug

hn

es

s o

f ap

pra

isa

l

Thoroughness of appraisal

Who Appraised Vehicle

Customers are more satisfied when the appraisal is conducted by an employee of the repair facility.



22% 20%15%

35%

803822

828850

0%

20%

40%

60%

80%

Local agent Repair Facility Person reported

claim to

Company

Appraiser/Adjuster

% P

rim

ari

ly in

tera

cte

d w

ith

du

rin

g c

laim

600

700

800

900

Ov

era

ll CS

IPrimary Interaction Throughout Claim

Satisfaction scores are highest when customer deals with the repairer or their personal agent.

Person Identified as Primary Interaction

Overall CSI



Repair Process



Methods Used to Select Repair Facility

25%29%

17%

30%

849823

787771

0%

20%

40%

60%

80%

Had shop in mind

(Preferred Shop)

Had shop in mind

(Non-Preferred/DK)

Insurer

Recommended /

Other

Chose from Insurer's

list

% M

eth

od

used

to

sele

ct

sh

op

600

700

800

900

Rep

air P

rocess In

dex

* Caution small sample size.

Customers are most satisfied when they can use a shop they

had in mind for repair work.

Repair Process Index



Who is Responsible for Quality of Repairs?

Customers primarily view the repair facility as being responsible for the quality of their repairs.

20%

79%

94%

4%

0%

20%

40%

60%

80%

100%

Insurer Repair Facility

% R

esp

on

sib

le f

or

rep

air

s

DRP Shop Non-DRP Shop

50% 49%

Progressive Concierge Center



Point Customer Considers Claim Settled Repairable Vehicles

Majority of claimants considered claim “settled” when they pick up their vehicles.

18%

47%

32%

6% 8%

82%

0%

20%

40%

60%

80%

100%

Accepted settlement offer Received payment Picked up vehicle

% W

hen

cla

im c

on

sid

ere

d s

ett

led

Insurer Paid Customer

(30% of claims)

Paid Repair Facility

(55% of claims)



Repaired Vehicle Claim Timeline

FNOL Next Contact with Insurer

Appraisal Conducted

Vehicle to Body shop

Informed of Settlement

Vehicle backto customer

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Number of Days

6.05.03.01.3 14.35.9Time of

Incident



Repaired Vehicle Claim Timeline

It’s not all about “keys to keys.”

Drivable

Towed

FNOL Next Contact with Insurer

Appraisal Conducted

Vehicle to Body shop

Informed of Settlement

Vehicle backto customer

5.83.2 13.31.5 5.3 6.9

3.0 4.22.00.5 17.95.7

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Number of Days

5.64.42.61.3 12.1

9.45.43.21.4 15.15.6

Repair FacilityAppraisal

Appraisal at Home



Repair Time by CarrierDrivable Vehicles

* Caution small sample size.

Carrier RepairSatisfaction Rank

7.37.37.27.27.17.1

6.86.86.86.86.7

6.66.4

6.26.16.06.0

5.75.5

5.3

9.28.6

8.0

7.4

7.5

8.3

0 2 4 6 8 10

Carrier YCarrier X

Carrier WCarrier VCarrier UCarrier TCarrier SCarrier RCarrier QCarrier PCarrier OCarrier NCarrier MCarrier L

Carrier KCarrier JCarrier I

Carrier HCarrier GCarrier FCarrier ECarrier DCarrier CCarrier BCarrier A

Industry

# of Days Vehicle in Shop

Industry

25172316118

122220137

19152

142193

1046

245

181



Attribute Scorecard—Repair Process2009 Auto Claims Study (Preliminary)

Worst in Industry Best in IndustryIndustry

Speed of completing the work

Kept informed of progress

Thoroughness of appraising damage

Responsiveness

Explaining the work

Quality of the repair work

7.0 7.5 8.0 8.5 9.0 9.5



Top Service Practices Repair Process

20% 30% 40% 50% 60% 70% 80% 90% 100%

Worst in Industry Best in IndustryIndustry

Notify customer of repair issues

Proactive updates on repair

Use OEM parts or have a parts discussion

Fix vehicle the first time

Repair drivable vehicles with 7 days (14 days for tow)

Complete repair when promised

Flexible appointment time



Method of Repair Update

Limiting customer initiated contacts by providing proactive updates has a positive impact on satisfaction.

Repair Process IndexNon-Tow Tow

58%

75%

42%

25%

774

876

0%

20%

40%

60%

80%

100%

Proactive updates only Claimant initiated contact

(At least once)

% T

yp

e o

f u

pd

ate

600

700

800

900

Rep

air P

rocess In

dex



Customer Updates: Repairable Vehicles



67%

42%

10%

20%

46%

14%12%10%

58%

14%

8%6%

8%

46%49%

0%

20%

40%

60%

80%

Calls to/from

Insurer

Calls to/from

Repair Facility

Calls to/from

Agent

Insurer's Web site E-mail

% T

yp

e o

f S

tatu

s U

pd

ate

18-34 years old

35-54 years old

55+ years old

How Customers Received Status Updates (Repair)2009 Auto Claims Study (Preliminary)

The younger age cohort is more likely to receive updates via Web or e-mail and less likely to call the repair facility.



Do Customers Prefer More or Less Options?2009 Auto Claims Study (Preliminary)

41%

54%64%

35%

27%

22%

24%19% 14%

0%

20%

40%

60%

80%

100%

18-34 years old 35-54 years old 55+ years old

% o

f P

refe

rrin

g D

iffe

ren

t O

pti

on

s

No change in updates Prefer more/different options Prefer less options

The younger age cohort is also more likely to prefer receiving updates through a different method.



Difference in Preferred Update Method 2009 Auto Claims Study (Preliminary)

10%

3%

-2%

8%

18%

1%

-9%

3%

26%

1%

-11%

-3%

-30% -20% -10% 0% 10% 20% 30%

18-34 years old

35-54 years old

55+ years old

E-mail / text message

Insurer's Web site

Calls to/from Agent

Calls to/from Repair Facility

Calls to/from Insurer

Prefer more updatesPrefer less updates

All customer groups prefer more e-mail updates.



43%

15%

51%

786

877884

0%

20%

40%

60%

80%

Contacted by Insurer Contacted by Repair

Facility

Not Contacted

% o

f c

laim

an

ts c

on

tac

ted

po

st

cla

im

600

700

800

900

Se

rvic

e In

tera

ctio

n In

de

x

Contacting customers after they received their vehicle has a

positive impact on satisfaction.

Contacted Post Repair

Note: Multiple Response

* 2009 Preliminary Data

Service Interaction Index

45%

65%

55%

% Will Definitely Recommend*



Conclusion

Contact Info:Mark Garrett248-312-4378

[email protected]

Thank You

�� To Contact Committee:To Contact Committee:

�� [email protected]@fixauto.com

�� 951951--522522--4999 cell4999 cell

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