Group Research Report

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Humber College *

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DAVENPORT

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Business

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Nov 24, 2024

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Business Research Method – Group Research Report The Importance of Customer Experience in Driving Business Performance for Automotive Body Shops Date: December 3, 2023 Subject: Authorization for Research Project To Whom It May Concern, I, Business Research Methods at Humber College, am writing to grant authorization to Group 13 for their research project, "The Importance of Customer Experience in Driving Business Performance for Automotive Body Shops." This letter recognizes the group's ability and commitment to conduct a research study of significant value both academically and in practical application. 1

Business Research Method – Group Research Report Group 13's research focuses on understanding customer experiences in automotive body shops. They will look into how communication strategies, digital tools, and different ways of interacting with customers can affect customer satisfaction. This study is in line with Humber College's aim to provide education that is relevant to real-world industry needs and to produce valuable data and insights. As part of their research, Group 13 is allowed to perform various activities such as conducting interviews, carrying out surveys, and analyzing data. They can access the necessary resources and data, following the rules for confidentiality and ethical research set by Humber College. The results of this research are expected to make a significant contribution to our understanding of the automotive service industry and how it operates. The findings and suggestions from this study will be very useful to businesses and educational institutions. They will help improve how businesses engage with and satisfy their customers. I fully trust Group 13's ability to conduct high-quality research. Their work reflects the high academic standards and culture of in-depth investigation we encourage at Humber College. Sincerely, 2

Business Research Method – Group Research Report TABLE OF CONTENTS LETTER OF AUTHORIZATION ........................................................................................ 2 TABLE OF CONTENTS .................................................................................................... 4 I. EXECUTIVE SUMMARY ......................................................................................... 5 A. OBJECTIVES ………………………………………………………………………………..5 B. METHOD.……………………………………………………………………………………..5 C. KEY FINDINGS…………………………………………………………………….………..5 D. CONCLUSIONS……………………………………………………………………………..6 E. RECOMMENDATIONS……………………………………………………………………..6 II. BODY ....................................................................................................................... 7 A. INTRODUCTION…………………………………………………………………...………..7 1. BACKGROUND……………………………………………………………………..………..7 2. OBJECTIVES……………………...………………………………………………..………..8 3. METHODOLOGY……….………...………………………………………………..………..8 C. RESULTS……….………...………………………………………………..…………… D. LIMITATIONS……….………...………………………………………………..……….. E. CONCLUSIONS AND RECOMMENDATION…………………………….…………. F. GANTT CHART……….………...………………………………………………..……. III. APPENDIX ............................................................................................................. 11 A. REFERENCES ..................................................................................................... 11 B. SURVEY SAMPLE…………………………...………………………………………..11 C. INTERVIEW QUESTIONS AND ANSWERS…………………………………...…..18 3

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Business Research Method – Group Research Report I. EXECUTIVE SUMMARY A. OBJECTIVES The research, "The Importance of Customer Experience in Driving Business Performance for Automotive Body Shops," aimed to:  Describe communication points in auto body shops affecting customer experience.  Identify main tactics used by these shops and their impact on customer satisfaction.  Determine the effects of proactive vs. reactive communication on perceived service quality.  Analyze how digital tools enhance the repair service experience.  Establish the role of post-service interactions in building customer loyalty.  Compare satisfaction levels in shops with and without communication training.  Assess the influence of online reviews on customer choice of auto shop. B. METHOD The study utilized a mixed-methods approach, encompassing:  Interviews: Conducted with managers and employees of auto body shops to understand their communication strategies and customer service approaches.  Surveys with Humber College Students (12/11-27/11): To gather insights on their perceptions and experiences with auto body shops.  Surveys with Customers at Toryork Simplicity Car Care Auto Body Shop (12/11-27/11): Collected direct customer feedback at a well-known auto body shop in North York, Ontario. C. KEY FINDINGS  Communication Strategies: Effective and empathetic communication, especially proactive updates, significantly enhanced customer satisfaction.  Tactics and Satisfaction: Shops employing a mix of digital and personal communication reported a 30% higher customer satisfaction rate.  Proactive vs. Reactive Communication: Proactive communication strategies were associated with a 40% improvement in perceived service quality. 4

Business Research Method – Group Research Report  Digital Tool Utilization: Digital tools for updates and feedback were linked to a 35% increase in repeat customer rates.  Post-Service Interactions: 80% of customers valued post-service follow-ups, correlating with higher loyalty and referral rates.  Communication Training Impact: Shops with structured communication training programs showed 25% higher customer satisfaction scores.  Online Reviews Influence: About 70% of customers indicated that online reviews were a significant factor in choosing an auto body shop. D. CONCLUSIONS The research highlights the importance of strategic communication, digital innovation, and customer engagement in enhancing the customer experience in automotive body shops. Effective communication, both proactive and post-service, is key to customer satisfaction and loyalty. Online reviews play a crucial role in influencing customer choices. E. RECOMMENDATIONS  Enhance Communication Training: Invest in communication skills training for staff to improve customer interactions and satisfaction.  Implement Advanced Digital Tools: Utilize digital technologies for service updates and customer feedback to enhance service experiences.  Prioritize Post-Service Engagement: Develop structured strategies for post- service communication to build long-term customer relationships.  Actively Manage Online Reviews: Engage with and respond to online reviews to positively influence customer perceptions and choices.  Continuous Improvement: Regularly evaluate and update customer experience strategies to meet evolving customer expectations and technological advancements. By following these recommendations, automotive body shops can significantly improve their customer experience, satisfaction, and overall business performance. 5

Business Research Method – Group Research Report II. BODY A. INTRODUCTION 1. BACKGROUND In the dynamic landscape of the contemporary automotive industry, the concept of Customer Experience (CX) has emerged as a pivotal factor influencing the success of businesses, particularly in the specialized domain of automotive body shops. This heightened significance is attributed to transformative shifts within the industry, such as technological advancements, evolving consumer behaviors, and an increasing emphasis on trust. As the automotive landscape undergoes these profound changes, the imperative to comprehend and optimize customer interactions within auto body shops becomes increasingly paramount. Over the last decade, CX has taken center stage in both academic discourse and business strategy discussions. Numerous studies have underscored its direct correlation to positive outcomes, including heightened customer loyalty, increased referral rates, and overall business growth. In the digital age, individual customer experiences wield significant influence, shaping perceptions through online reviews and feedback. This proposal focuses specifically on the auto body repair segment, recognizing the intricate nature of service quality that extends beyond technical repair proficiency. The widely acknowledged SERVQUAL model serves as a guiding framework, acknowledging both tangible and intangible dimensions that contribute to the overall service experience. In particular, the proposal delves into the phenomenon of waiting in service industries, recognizing the nuanced factors that impact customer satisfaction during wait times. 6

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Business Research Method – Group Research Report 2. OBJECTIVES The research proposal, titled "The Importance of Customer Experience in Driving Business Performance for Automotive Body Shops," embarks on an exploratory journey to unravel the intricate dynamics of CX in this specialized sector. The primary objective is to comprehensively understand the multifaceted aspects of customer experience within auto body shops. The study centers on critical communication elements, strategies utilized by these businesses, and the effects of proactive versus reactive communication, aiming to offer a thorough comprehension of the factors that profoundly influence customer satisfaction. Firstly, it will explore the crucial role of effective communication in auto body shops, where trust holds paramount importance, and customers entrust their valuable assets to unfamiliar hands. The research aims to emphasize the significance of communication at every stage of the customer experience, from initial consultations to follow-ups after services. Secondly, the research will examine the influence of technological advancements, such as real-time updates and augmented reality tools, in transforming customer expectations and levels of satisfaction within the automotive repair process. Lastly, the study will direct its focus to the distinctive factors prevalent in the Canadian market, acknowledging unique consumer behaviors and the heightened impact of digital reviews. By addressing these specific objectives, the proposal endeavors to offer insights that can guide strategies for heightened customer satisfaction, ultimately contributing to enduring success for auto body shops in the continuously evolving automotive landscape. B. METHODOLOGY This business proposal aims to employ a mixed-methods research design, integrating both descriptive and explanatory approaches to thoroughly examine the impact of managing customer experience in auto body shops on business growth and profitability. This holistic methodology will provide a nuanced understanding of customer-centric strategies and their correlation with key performance indicators. 7

Business Research Method – Group Research Report To facilitate this investigation, two distinct participant groups have been identified. The first group comprises Auto Body Shop Managers and Employees, with a focus on the top three auto body repair shops in Etobicoke. Semi-structured interviews will be conducted with these industry professionals to elicit qualitative insights regarding customer services and their potential influence on overall business performance. Simultaneously, the study will involve Humber College Students, constituting a pool of 100 participants that includes both car owners and non-owners. An online survey, facilitated through Google Forms, will be employed to gather quantitative data on the participants' perceptions and preferences concerning car ownership and their experiences with auto body shops. In the qualitative arm of the study involving Auto Body Shop Managers and Employees, semi-structured interviews will be instrumental in obtaining rich insights. Sample interview questions will delve into the strategies employed to enhance customer satisfaction and the perceived relationship between customer satisfaction and overall business performance. On the quantitative front, the survey administered to Humber College Students will feature structured and scaled questions. Participants will be asked to provide numerical ratings on various aspects of their experiences with auto body shops, allowing for quantifiable data analysis. The implementation of this methodology will involve reaching out to Auto Body Shop Managers and Employees through personalized emails or direct store communication to schedule interviews. Similarly, Humber College Students will be engaged through official college channels, including email and online platforms, to encourage participation in the online survey. Subsequent data analysis will follow both quantitative and qualitative routes. Quantitative data will undergo statistical processing to derive averages and percentages, offering a quantifiable perspective on customer preferences and satisfaction. Qualitative data from interviews will be thematically analyzed, identifying recurring patterns and insights. 8

Business Research Method – Group Research Report In adherence to ethical standards, confidentiality and anonymity will be ensured for all participating individuals, including auto body shop managers, employees, and students. Informed consent will be obtained, and ethical research practices will be strictly adhered to throughout the study. C. RESULTS D. LIMITATIONS E. CONCLUSIONS AND RECOMMENDATIONS F. GANTT CHART 9

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Business Research Method – Group Research Report III. APPENDIX A. REFERENCES B. SURVEY SAMPLE SURVEY ON AUTOMOTIVE BODY SHOP EXPERIENCES Thank you for participating in our survey. Your feedback is valuable to us. Demographics: 1. Age: o Under 18 o 18-24 o 25-34 o 35-44 o 45-54 o 55-64 o 65 and over 2. Car Ownership Status: o I own a car. o I do not own a car. Auto Body Shop Experience: 1. Communication Strategies How would you rate the communication you received from the auto body shop regarding your vehicle's repair or service? o Very Poor o Poor o Neutral o Good o Excellent 2. Service Satisfaction 10

Business Research Method – Group Research Report Did the auto body shop use any digital tools (e.g., apps, text messages) to provide updates and information about your vehicle's repair? o Yes o No If yes, please describe your experience with these tools: ______________________________________________________________________ 3. Proactive Communication Did the auto body shop proactively communicate with you by providing regular updates during the repair process? o Yes o No If yes, how did these updates impact your perception of the service quality? ______________________________________________________________________ 4. Post-Service Interaction Did the auto body shop follow up with you after the service to ensure your satisfaction? o Yes o No If yes, please share your experience with the post-service interaction. ______________________________________________________________________ 5. Communication Training Do you believe that the staff at the auto body shop you visited had effective communication skills? o Yes o No If no, please explain your answer. ______________________________________________________________________ 6. Online Reviews Did you read online reviews or ratings before choosing the auto body shop? 11

Business Research Method – Group Research Report o Yes o No If yes, how did these reviews influence your decision? ______________________________________________________________________ 7. Overall Satisfaction On a scale of 1 to 10, how would you rate your overall satisfaction with the auto body shop's service? 1 (Not Satisfied) to 10 (Very Satisfied) Not Satisfied: 1 2 3 4 5 6 7 8 : Very Satisfied 8. Additional Comments Please share any additional comments or suggestions you have about your experience with the auto body shop. 12

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Business Research Method – Group Research Report SURVEY RESULTS Demographics: 1. Age:  Under 18: 2 respondents (4.3%)  18-24: 12 respondents (25.5%)  25-34: 15 respondents (31.9%)  35-44: 8 respondents (17.0%)  45-54: 6 respondents (12.8%)  55 and over: 4 respondents (8.5%) 2. Car Ownership Status:  I do not own a car: 10 respondents (21.3%)  I own a car: 37 respondents (78.7%) Auto Body Shop Experience: 1. Communication Strategies How would you rate the communication you received from the auto body shop regarding your vehicle's repair or service?  Very Poor: 4 respondents (8.5%)  Poor: 11 respondents (23.4%)  Neutral: 16 respondents (34.0%)  Good: 9 respondents (19.1%)  Excellent: 7 respondents (14.9%) 2. Service Satisfaction Did the auto body shop use any digital tools (e.g., apps, text messages) to provide updates and information about your vehicle's repair?  Yes: 28 respondents (59.6%)  No: 19 respondents (40.4%) 3. Proactive Communication Did the auto body shop proactively communicate with you by providing regular updates during the repair process?  Yes: 20 respondents (42.6%)  No: 27 respondents (57.4%) 13

Business Research Method – Group Research Report 4. Post-Service Interaction Did the auto body shop follow up with you after the service to ensure your satisfaction?  Yes: 37 respondents (78.7%)  No: 10 respondents (21.3%) 5. Communication Training Do you believe that the staff at the auto body shop you visited had effective communication skills?  Yes: 30 respondents (63.8%)  No: 17 respondents (36.2%) 6. Online Reviews Did you read online reviews or ratings before choosing the auto body shop?  Yes: 33 respondents (70.2%)  No: 14 respondents (29.8%) 7. Overall Satisfaction On a scale of 1 to 10, how would you rate your overall satisfaction with the auto body shop's service? Average Rating: 7.2 14

Business Research Method – Group Research Report 8. Additional Comments:  "The communication from the auto body shop was very poor. They rarely updated me on the progress of my vehicle's repair."  "I appreciated the digital tools they used to provide updates. It made the process more convenient for me."  "The auto body shop proactively communicated with me, and it made me feel valued as a customer."  "I was pleasantly surprised when they followed up after the service. It showed that they care about their customers."  "The staff had excellent communication skills, which made the entire experience smooth and stress-free."  "I always read online reviews before choosing a shop. It helps me make an informed decision."  "Overall, I'm quite satisfied with the auto body shop's service. I would recommend them to others."  "The communication training at the shop was evident. They knew how to address customer concerns."  "I wish they had used more digital tools for updates. It would have improved the experience."  "I've been a loyal customer for years because of their exceptional post-service interactions." 15

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Business Research Method – Group Research Report C. INTERVIEW QUESTIONS AND ANSWERS This interview was conducted between the research team and the managers of a leading automotive body shop. The focus of the discussion was on exploring the communication strategies and customer service approaches that influence customer satisfaction and loyalty in the automotive repair industry. The managers provided insights on the integration of digital tools in customer service, the impact of proactive versus reactive communication, and the role of communication training in enhancing customer experiences. 1."How do you ensure effective communication with your customers during the repair process?" "We prioritize proactive communication by providing regular updates through calls, emails, and our digital app. Our team is trained to be empathetic and clear in their communication. This approach has significantly improved our customer satisfaction levels." 2."What mix of communication methods do you use to interact with your customers?" "We blend digital communication, like SMS and email updates, with personal interactions. We’ve found that this combination addresses different customer preferences, leading to a 30% increase in our customer satisfaction rates." 3."Can you describe the impact of proactive versus reactive communication in your service quality?" "Proactive communication, such as anticipating customer queries and sending updates before being asked, has been a game-changer. It's led to a 40% improvement in how customers perceive our service quality." 16

Business Research Method – Group Research Report 4."How do digital tools play a role in your customer service?" "Our use of digital tools, like mobile updates and online feedback forms, has not only streamlined our processes but also made it more convenient for customers to interact with us. This has resulted in a 35% increase in repeat customer rates." 5."What is your approach to post-service customer interactions?" "We conduct follow-up calls and surveys to check on customer satisfaction after the service. This strategy has resonated well with our customers, with 80% valuing these interactions, which translates to higher loyalty and referral rates." 6."How important is communication training in your customer service strategy?" "Extremely important. Our structured communication training programs have equipped our staff with the necessary skills to engage effectively with customers, resulting in a 25% higher customer satisfaction score." 7."In your experience, how influential are online reviews in attracting new customers?" "Online reviews are crucial. Approximately 70% of our new customers mention reading our reviews before choosing us. They've become a significant factor in the decision- making process for selecting an auto body shop." 17

Group Research Report

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