ADP Claims Services Group
2
Team
Nikhil Hunshikatti
Alarik Wright
Robert Niemietz
Brian(Fan) Yang
Gagandeep Bhatia
3
Agenda
Recommendations Questionnaire Design Key Findings Appendix
Project Overview
4
Project Overview
ADP Claims Services Group provides computerized estimating software and services to both insurance carriers and collision repair shops that enable users to complete an online estimate/claim
There are three main providers of computerized estimating software products in the market:1. ADP Claims Services Group2. Mitchell Repair Information 3. CCC Information Services Group, Inc.
Mitchell recently has engaged in competitive pricing and other customer take-away tactics to gain market share
CCC is already responding to Mitchell’s threat ADP CSG is now looking to understand:
– Pricing and sales tactics of its competitors– Customers’ response to these tactics
5
Project Overview
Primary market research was conducted after designing an online survey to be sent to 5,000 collision repair shops nationwide
Survey responses provided the following critical information:– Price-point comparisons
– Pricing strategies
– Customer take away tactics
– Customer’s preferences to contract terms
Specific recommendations on both pricing and marketing strategies were made based on analysis of the data from the on-line survey
6
Agenda
Project Overview
Questionnaire Design Key Findings Appendix
Recommendations
7
Recommendations – Target Customers
Identified 2 main groups of target customers, each with unique characteristics:1. Large, sophisticated collision repair shops having more experience using
computerized estimating software products2. Smaller collision repair shops will less experience using estimating products
SIZE
EXPERIENCE
Large CollisionRepair Shops
Small CollisionRepair Shops
(>$5MM)
(<$100K)
(None) (10+ years)
ADP Shoplink
ADP Shoplink is currently positioned between both segments
8
Recommendations – Target Customers
Smaller collision repair shops– Small size based on reported annual revenues of less than $500,000
– Less experience using computerized estimating software products and fewer employees and users of software products
– Higher price sensitivity• More likely to switch brands if offered reduced price• More likely to have product add-ons bundled into flat monthly fee• Less likely to use product add-ons and cite price as the most important
reason why not using a particular add-on
– Insurance carriers are less important• Have fewer DRP relationships• Willingness to switch based more price and product features
– Less brand loyalty• More likely to switch between brands of estimating software products• Prefer flexibility
9
Recommendations – Target Customers
Larger collision repair shops– Larger annual revenues, usually $1,000,000 to $5,000,000
– More sophisticated• Longer experience in using computerized estimating software products• Usually more employees using those computerized products
– Price insensitive• More likely to pay more for same brand of estimating software• More likely to use multiple brands and more product add-ons or optional
features• More willing to pay for product add-ons• Fewer have product add-ons or optional features included in monthly fee
– Higher brand loyalty because less wiling to switch
– Insurance carriers more important• Maintain a larger number of DRP relationships• Willing to switch brands more on the basis of what their insurance
carriers recommend than on anything else
10
Recommendations – Overview
Create and market ADP Shoplink as 2 distinct products:
1. An integrated product with access to extensive databases for both increased functionality of base product, as well as product add-ons, and enhanced relationships with numerous insurance carriers
2. A simple, easy-to-use brand of computerized estimating software already bundled with the most popular options and that is as affordable to buy as it is useful in the shop
11
Recommendations – Smaller Collision Repair Shops
Marketing strategy to small collision repair shops:– Focus on competitive pricing
• Reduce monthly fees for ADP Shoplink product• Bundle more common product add-ons into flat monthly fee• Offer shorter contract terms, especially month-to-month contracts
– Provide enhanced customer support for new and small users• Assist users having less experience with computerized estimating products• Improve product’s user-friendliness, because ease-of-use and technical support
more common complaints for other users of ADP Shoplink• Provide product training for new customers• Advertise extensive product features associated with ADP Shoplink brand
– Develop brand loyalty• Market benefits of computerized estimating products directly to these small
shops because of low penetration of all three main software brands • Target sales to new customers because smaller shops less likely to use multiple
products• Develop loyalty early because willingness to switch brands decreases with
increased experience
12
Recommendations – Larger Collision Repair Shops
Marketing strategy to large collision repair shops– Place less emphasis on competitive pricing
• Maintain higher flat monthly fees for increased revenues over long-term• Offer slightly longer contract term lengths, emphasizing 1- and 2-year contracts• Include DRP fees into flat monthly fee
– Emphasize product training• Develop larger base of installed users among current collision repair shops by
targeting all potential users at individual shops• Increase experience level of all users with ADP Shoplink’s brand of
computerized estimating software
– Target relationships with insurance carriers• Market product directly to insurance companies to improve DRP relationships• Use insurance carriers to expand customer base because willingness to use a
different brand of computerized estimating software is mainly influenced by their recommendations and/or requests
• Advertise benefit of using multiple brands to broaden scope with more insurance carriers
13
Agenda
Project Overview Recommendations
Key Findings Appendix
Questionnaire Design
14
Survey Objectives
The main objectives for the on-line survey were to acquire the following information:
Computerized estimating software product currently used Price of estimating software product Preferred product features Number of employees using computerized estimating software Product add-ons used by the customer Price of add-ons Preferred contract term lengths DRP relationships with insurance carriers
15
Survey Requirements
Simple and clear questions
Objective responses
Logical order of questions
20-30 questions
To be taken in 15-20 minutes
Able to sieve out all the required information
16
Survey Design
The survey was divided into the following four sections:1. Demographics
• Shop location• Number of employees and users• Computerized estimating software products currently used
2. Pricing• Price of current computerized estimating product• Price of product add-ons• Product add-ons bundled into monthly fee• DRP fees
3. Attributes/Options• Contract terms – actual vs. preferred• Product options or add-ons used• Preferred product features
4. Sales Tactics• Approached by competitor and switch offer made• DRP relations with insurers• Reasons to switch brands
17
Agenda
Project Overview Recommendations Questionnaire Design
Appendix
Key Findings
18
Key Findings
Market share Customer profiles Customer satisfaction Common product add-ons Contract term lengths Pricing Switch offers Reasons to switch Summary of key findings
19
Market Share
Current computerized estimating products– CCC Pathways is market leader
• 31.58% use ADP Shoplink• 23.97% use Mitchell brand products (of which 87.80% use UltraMate)
– 16.96% use “other” software brands
53.2%
16.9% 31.6%
21.1%
2.9%
ADP Shoplink
Mitchell FirstEstimate
Mitchell UltraMate
CCC Pathways
Other
20
Market Share – Positioning
CCC Pathways well positioned to target larger collision repair shops with longer experience using computerized estimating software products
ADP Shoplink is positioned between both large/experienced and smaller/less sophisticated shops
SIZE
EXPERIENCEADP
Shoplink
MitchellUltraMate
CCC Pathways
OtherMitchell FirstEstimate
(>$5MM)
(<$100K)
(10+ years)
(None)
21
Customer profiles
Length of usage of computerized estimating software– Majority of collision repair shops have extensive experience with
computerized estimating software products
– ¾ of shops have been using computerized products for 5 years or more
– Over 90% of users of 3 main products have used for more than 2 years
0%
20%
40%
60%
80%
100%
ADPShoplink
CCCPathways
MitchellUltraMate
10 Years or More
5-10 Years
2-5 Years
22
Customer Profiles
Size of collision repair shop– Smaller shops more likely to use “other” software brands
• 23.08% of shops with annual revenues less than $100,000• Used by 26.92% of shops with revenues of $100 - $250,000
– CCC Pathways/Mitchell UltraMate are most common computerized estimating software brands used in shops with revenues of $1-5 MM
• 55.2% use CCC and 51.5% use Mitchell brands• Only 40% of these larger shops use ADP Shoplink
0%
10%
20%
30%
40%
50%
60%
<100 100-250 250-500 500-750 750-1000 1000-5000
Collision Repair Shop Annual Revenue ($ 000s)
IndustryAverage
ADPShoplink
MitchellUltraMate
CCCPathways
Other
23
Customer Profiles
Size of collision repair shop– ADP Shoplink is most commonly used by medium-sized shops
• 48% of collision repair shops using ADP have annual revenues of $1-5MM• 72% of shops using ADP have revenues between $250,000 to 5,000,000
– Large collision repair shops use CCC Pathways as the only brand– Mitchell UltraMate most common stand-alone brand for shops with less
than $500,000 in annual revenues
0%
10%
20%
30%
40%
50%
0-500 500-1000 1000-5000
Annual Revenues ($ 000s)
ADP ShoplinkMitchell UltraMateCCC Pathways
24
Customer Profiles
Mitchell UltraMate may already be positioning itself differently to large vs. small collision repair shops– Most common stand-alone product used by small shops with revenues of less
than $500,000– For shops using Mitchell UltraMate and a second brand, over ¾ are collision
repair shops with annual revenues in the range of $1 – 5 MM– Only 62.5% of shops using ADP Shoplink and another product are large
MitchellUltraMate
SIZE
EXPERIENCEADP
Shoplink
MitchellUltraMate
CCC Pathways
(>$5MM)
(<$100K)
(10+ years)
(None)
76.47% of shops using multiple products (including Mitchell
UltraMate) have annual revenues of $1-5,000,000
For shops using only Mitchell UltraMate,
46.67% have annual revenues < $500,000
25
Customer Profiles
0%
10%
20%
30%
40%
50%
60%
Mid
wes
t
No
rth
east
So
uth
east
Wes
t
ADP Shoplink
MitchellUltraMate
CCC Pathways
Regional distribution• 36.10% of all responding collision repair shops are in the Midwest• 29.10% of all shops are in the Northeast• 72% of shops using ADP Shoplink are in the Midwest and Northeast• Majority of shops in Midwest use Mitchell UltraMate• Collision repair shops using CCC Pathways are more evenly distributed
across all 4 regions• Majority are in the Northeast with 34% and Midwest with 25.9%• 20% of shops using CCC Pathways are both the West and SoutheastRegional Distribution
29.10%
19.60%36.10%
15.20%
`
26
Customer Profiles
Regional distribution of competitors to ADP CSG– Higher competition in Midwest
• Very high penetration with 54% Mitchell UltraMate users located in Midwest
– Main threat in Northeast is CCC Pathways• Mitchell UltraMate has minimal installed base of users (only 6%)
Midwest:
1. Mitchell UltraMate 54%
2. ADP Shoplink 40%
3. CCC Pathways 25.9%
Northeast:
1. CCC Pathways 34%
2. ADP Shoplink 32%
Southeast:
1. CCC Pathways 20%
2. ADP Shoplink 16%
3. Mitchell UltraMate 15%
27
Customer Profiles
Some collision repair shops use multiple products– Majority of collision repair shops using either ADP Shoplink or Mitchell
UltraMate use multiple estimating software products
– CCC Pathways also used by 31.48% of ADP and 33.33% of Mitchell users
– 34.5% shops using “other” product also use
– Only1-out-of-5 Mitchell FirstEstimate users do not use other products
Software Brand Total # Users # Using 2nd Brand
% Using NO Other Brands
ADP Shoplink 54 29 46.30
CCC Pathways 91 36 60.44
Mitchell FirstEstimate
5 4 20.00
Mitchell UltraMate
36 21 41.67
Other 29 10 65.50
28
Customer Profiles
How Long Shops Using Single Product Providing Collision Repair Services
16.7%
12.8%
70.5%
1-5 years
5-10 years
10+ years
How Long Shops Using Multiple Products Providing Collision Repair Services
84.2%
2.6%
13.2%
1-5 years
5-10 years
10+ years
More established collision repair shops are the ones more likely to use multiple brands of computerized estimating products– 97.5% of shops using multiple products have been providing collision
repair services for more than 5 years
– Only 2.6% of newer shops with less than 5 years of experience use multiple estimating products
• Of all shops using only 1 brand 16.7% have been in business for 5 years or less
29
Customer Profiles
Collision repair shops using multiple products also have more experience with computerized estimating software– 97% of shops using multiple
products have been using computerized estimating software for more than 5 years
– Almost 90% of shops using one product have been using computerized estimating software for less than 5 years
– 31.1% of shops using only one product say they have never before used any computerized estimating product
Length of Experience Using Computerized Estimating Software
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Users ofOne
Product
Users ofMultiple
Products
10+ Years
5-10 Years
1-5 Years
Never Use
30
Customer Profiles
0% 50% 100%
0-500
500-1000
1000-5000
5000+
An
nu
al R
ev
en
ue
(in
$0
00
s)
MultipleProduct Users
SingleProduct Users
Larger collision repair shops more likely to use multiple computerized estimating software products– 32.6% of shops using one product report
annual revenues less than $500,000 vs. only 13.2% of shops using multiple products
– While 63% of shops using one product have revenues less than $1,000,000, 63% of shops using more than 1 product have revenues between $1,000,000 and $5,000,000.
– Nearly 10-times as many shops using multiple products have revenues in excess of $5,000,000 per year
31
Customer Satisfaction
Customer satisfaction very high for ADP Shoplink and CCC Pathways users– 89.01% CCC users satisfied– 83.33% ADP users satisfied
Common top reasons of dissatisfaction for users of all brands– Expensive most common #1
reason for all 3 brands– Poor technical support 2nd
most identified reason
0%
20%
40%
60%
80%
100%
Satisfaction
ADPShoplink
MitchellUltraMate
CCCPathways
0%
10%
20%
30%
40%
50%
60%
Pro
du
ct
Pro
ble
ms
Ina
cc
ura
ted
ata
Dif
fic
ult
to
us
e
Po
or
su
pp
ort
Ex
pe
ns
ive
32
Customer Satisfaction
Inaccuracy more important reason for dissatisfaction than price– 32.26% identify inaccurate data as main reason unsatisfied
– 35.48% unsatisfied because too expensive
– Poor technical/customer support not very important• 35.48% respondents say least important reason for dissatisfaction
– Overall rankings of reasons for dissatisfaction based on weighted averages (table):
1. Inaccurate data
2. Expensive
3. Product problems
4. Difficult to use
5. Poor technical support
33
Customer Satisfaction
Variability in rankings among users of different brands– Product accuracy and customer service/support more important to
shops using ADP Shoplink than price
Rank ADP Shoplink CCC Pathways Mitchell UltraMate
1 Difficult to use (3) Difficult to use (4) Difficult to use (6.2)
2 Poor technical support (4.8)
Expensive (5.6) Poor technical support (6.4)
3 Inaccurate data (5) Poor technical support (5.8)
Expensive (8.4)
4 Expensive (6.6) Inaccurate data (6.4) Product functionality problems (8.4)
5 Product functionality problems (7.6)
Product functionality problems (7.8)
Inaccurate data (9.6)
34
Common Product Add-Ons
Imaging most common optional feature or product add-on– Used by 73.37% of shops
– Other popular add-ons include:• Aftermarket Parts - 67.46%• Salvage Parts – 42.60%
– Least common add-ons or optional features include:• Estimate Audit used by only 7.19% of shops• 8.88% use Tire Database
– 10.65% do not use any product add-ons or optional features
35
Common Product Add-Ons
Top most common product features or optional add-ons are the same for users of all 3 computerized estimating software brands
Product Features or Optional Add-ons
Product Brand
Imaging Aftermarket Parts
Salvage Parts
Frame Dimensions
ADP Shoplink
34.11% 24.03% 17.83% 12.40%
CCC Pathways
28.52% 28.17% 17.25% 12.35%
Mitchell UltraMate
29.21% 19.10% 13.48% 14.81%
36
Common Product Add-Ons
Collision repair shops using CCC Pathways software more likely to use product add-ons or optional product features– Nearly 100% of shops using CCC Pathways use product add-ons– Shops using CCC pathways use more product add-ons than those
using competing brands of computerized estimating software
Product Brand Using Product Add-ons
(% of shops)
Average Number of Product Add-ons
(# per shop)
ADP Shoplink 97.7 2.43
CCC Pathways 99.6 3.12
Mitchell UltraMate 92.1 2.47
37
Common Product Add-Ons
On average, shops using multiple products also use more product add-ons
Shops using only Mitchell UltraMate more likely to use no add-ons All shops using only CCC also use at least 1 product add-on
0% 20% 40% 60% 80% 100%
Imaging
Aftermarket parts
Salvage parts
Frame dimensions
Dent repair
Tire database
Estimate audit
None
Users of Mult Product
Users of One Product
CCC Pathways
Mitchell UltraMate
ADP Shoplink
38
Common Product Add-Ons
There are add-ons which the customers like but do not use currently– Most popular add-ons not currently used include:
• Salvage Parts 23.67%• Estimate Audit 21.30%• Frame Dimensions 21.30%• Tire Database 20.21%
Cost is the most important reason for not having these add-ons– 40.80% of shops do not use a product add-on
because of its price
– 22.50% have other unknown reasons6.50%
40.80%
11.80%
22.50%
18.30%
Planning to buy it
Cost
Not available withcurrent product
Other
None. I do not like orwant
39
Common Product Add-Ons
Despite high frequency of use of several different product add-ons, 60.95% of responding shops rank the availability of add-ons as the least important feature– The most important features are:
• Easy to use ranked most important by 33.73%• 31.95% rank the products speed and accuracy as most important
– Overall rankings for these features based on weighted averages (Table):
1. Fast and accurate
2. Easy to use
3. Customer support
4. Automated
5. Training
6. Availability of product add-ons
40
Contract Term Lengths - Actual
Majority of contract term lengths for collision repair shops using computerized estimating software products are short– Only 7.78% of shops have term lengths 4 years or more
– Most common contract terms are month-to-month and 1-year
32.02%23.03%
15.73%
2.24%5.62%
21.34% Month-to-Month
1-year
2-years
3-years
4-years
5-years
41
Contract Term Lengths - Actual
Approximately ¾ of shops currently have contract terms of 2 years or less, regardless of current brand of estimating software
Majority of ADP Shoplink users or 39.6% have 1-year contract terms Shops using Mitchell UltraMate more likely to have longer term lengths
– Only 14.7% of shops have month-to-month contract terms– 1/3 of shops using Mitchell UltraMate have contract term lengths longer than 2-years
0%
20%
40%
60%
80%
100%
ADPShoplink
MitchellUltraMate
CCCPathways
3-years or more
2-years
1-year
Month-to-Month
42
Contract Term Lengths – Preferred
Preferred contract term lengths are much shorter than shops currently have regardless of estimating software brand
The vast majority of shops prefer shorter contract terms– 94.08% prefer contracts terms of 2 years or less– 42.01% want month-to-month contracts– 40.83% prefer annual contract term lengths
0%
20%
40%
60%
80%
100%
ADPShoplink
MitchellUltraMate
CCCPathways
3-years or more
2-years
1-year
Month-to-month
43
Contract Term Lengths - Preferred
-30
-20
-10
0
10
20
30
Month-to-
Month
1-year 2-years 3-yearsor
more
Diff
eren
ce B
etw
een
Act
ual
an
d P
refe
rred
Co
ntr
act T
erm
L
eng
th (%
)
ADPShoplink
MitchellUltraMate
CCCPathways
Shops using CCC Pathways show least variability in actual from preferred contract term lengths
Mitchell UltraMate users show largest variability– 27% more shops prefer month-to-
month contracts than currently have
– 24% more shops currently have term lengths in excess of 3 years than would prefer
ADP Shoplink users have largest deviation in actual from preferred month-to-month term lengths– Difference between shops having
month-to-month contracts vs. those preferring same length is 28.3%
44
Contract Term Lengths – Preferred
Shops using multiple products more likely to prefer longer contract terms– No shop using only 1
product, regardless of brand, prefers contract terms of more than 3 years
– Shops using only ADP Shoplink more likely to prefer month-to-month terms
Preferred Contract Term For Single Product Users
0%20%40%60%80%
100%
AD
PS
ho
pli
nk
Mit
chel
lU
ltra
Mat
e
CC
CP
ath
way
s
3-years ormore
2-years
1-year
Month-to-month
Preferred Contract Term For Users of Multiple Products
0%
20%
40%
60%
80%
100%
ADPShoplink
MitchellUltraMate
CCCPathways
3-years ormore
2-years
1-year
Month-to-month
45
Contract Term Lengths - Preferred
Users of various computerized estimating software products cite different reasons why prefer particular contract term length– Shops using Mitchell UltraMate more likely to prefer the flexibility of
changing products
– Mitchell UltraMate users less likely to prefer to remain with one product
0%
10%
20%
30%
40%
50%
60%
70%
Ch
ea
pe
r
Sta
y w
ith
pro
du
ct
Try
ne
wp
rod
uc
ts
Fle
xib
ility
to
ch
an
ge
Re
qu
ire
me
nts
ch
an
ge
ADPShoplink
MitchellUltraMate
CCCPathways
Reason Prefer Contract Term Length
46
Contract Term Lengths – Preferred
Why Users of Multiple Products Prefer Particular Contract Term Length
0% 50% 100%
Cheaper
Stay withProduct
Try NewProduct
Flexibility toChange
RequirementsChange
CCC Pathways
MitchellUltraMate
ADP Shoplink
Why Users of Single Product Prefer Paritcular Contract term Length
0% 20% 40% 60% 80%
Cheaper
Stay withProduct
Try NewProduct
Flexibility toChange
RequirementsChange
CCCPathways
MitchellUltraMate
ADPShoplink
Relative importance of reasons for preferring particular contract term length are the same for shops using 1 product vs. those using multiple products
Shops using only 1 brand of estimating software more likely to chose contract term based on price
Brand loyalty much less for shops using multiple products– Only 25.8% of shops using CCC
Pathways and another product would prefer to say with one product vs. 42.6% of shops using only CCC
– Same ratio for shops using ADP Shoplink is 29.2% vs. 37.93%
Mitchell UltraMate users even more likely to switch if only using that product
47
Pricing – Contract Term Lengths
0%5%
10%15%20%25%30%
$0-260 $261-400 $400+
ADP Shoplink
monthly 1-2 yrs 2+
0%
5%
10%
15%
20%
$0-260 $261-400 $400+
Mitchell Ultramate
0%
5%
10%
15%
20%
25%
30%
$0-260 $261-400 $400+
CCC Pathways
Price for contract lengths
• 80% of shops using Mitchell UltraMate pay less than $400• 44.4% of ADP Shoplink users pay less
than $400 for similar contract term lengths• Only 26.10% of shops using CCC
Pathways pay less than $400 for their contracts
• But only 12.1% of collision repair shops using Mitchell UltraMate also have a monthly contract by paying less than $400• For ADP and CCC, only 7.7% and 6.7%,
respectively, get monthly contract terms for less than $400
48
Pricing – Current Monthly Fees
Current Monthly Price for Users of One Product
0% 10% 20% 30% 40% 50%
<170
171-230
231-260
261-300
301-350
351-400
401-450
451+CCCPathways
MitchellUltraMate
ADPShoplink
Current Monthly Price for Users of Multiple Products
0% 10% 20% 30% 40% 50%
<170
171-230
231-260
261-300
301-350
351-400
401-450
451+
Shops using multiple products more likely to pay higher average monthly fees– 38.9% of shops using Mitchell UltraMate and a 2nd product pay $450 or more
per month vs. 0% of shops using only Mitchell UltraMate• Only 11.1% of shops using Mitchell plus another product pay less than $260 while
3-times as many using only Mitchell UltraMate do
– 60% of shops using ADP Shoplink and something else pay more than $400 vs. just 39.3% of shops only using ADP
49
Pricing – Product Add-Ons Included In Monthly Fees
Percent of Multiple Product Users With Add-Ons Included in Monthly Fee
0%
20%
40%
60%
80%
100%
Imag
ing
Afte
rmar
ket
parts
Sal
vage
parts
Fram
edi
men
sion
s
Den
t rep
air
Tire
data
base
Est
imat
eau
dit
ADP Shoplink Mitchell UltraMate CCC Pathways
Percent of Add-Ons Included in Monghtly Fee for Single Product Users
0%10%20%30%40%50%60%70%80%90%
100%
Imag
ing
Aft
erm
arke
tp
arts
Sal
vag
ep
arts
Fra
me
dim
ensi
on
s
Den
t re
pai
r
Tir
ed
atab
ase
Est
imat
eau
dit
Shops using multiple computerized estimating software products have fewer add-ons included in monthly fees
50
Pricing – Product Add-Ons
For add-ons not included, ADP Shoplink users pay higher average monthly fees on per transaction basis– Average monthly fee for shops using ADP Shoplink and Imaging
add-on is $137.8 • Compared to $65.8 per month for Mitchell UltraMate users and $109.24
per month for shops using CCC Pathways
– ADP Shoplink users pay more per month for Salvage Parts product add-ons
• Average fee is $97.5 per month• Shops using either Mitchell UltraMate or CCC Pathways pay only ½ that
amount• Mitchell UltraMate costs an average of $43.75 per month• CCC Pathways users pay, on average, $53 per month
51
Pricing – DRP Fees
0%20%40%60%80%
100%
<45 46-55
56-65
66-75
76-85
86-95
95+
DRP Fees for Users of Single Product
ADP Shoplink Mitchell UltraMate CCC Pathways
0%
20%
40%
60%
80%
<45 46-55
56-65
66-75
76-85
86-95
95+
DRP Fees for Users of Multiple Products
Distribution of DRP fees similar for shops using multiple products vs. single products, regardless of main brand of computerized estimating software used
Over 2/3 of all shops pay less than $45 in DRP fees
52
Switch Offers
Approximately ½ of collision repair shops have been approached by a competing software provider– 54.76% have been approached
– The most common switch offers include:• 44.09% of shops say they were approached with an offer not listed in as
one of the possible choices• 35.48% of shops were approached with lower monthly payments for
similar estimating software solutions
– Product bundling and discounts are not common offers• Only 16.3% of shops were approached with an offer matching current
monthly fee and including optional product add-ons• 10.75% of offers included matching monthly payments and offered free or
reduced fee DRP communication
53
Switch Offers
Over ½ of shops approached by competing software providers were made “other” offer not identified in the survey
44.57% Other
10.87% Reduced DRP fee
16.30% Add-ons included
35.87% Lower monthly
payments
16.30% Limited free usage
7.61% Buyout of contract
44.64% Not Approached
54
Switch Offers
Collision repair shops using ADP Shoplink more likely to be made offers on reduced prices– 18.42% offered free usage with reduced price thereafter
0%
5%
10%
15%
20%
25%
30%
35%
Oth
er
Red
uce
dm
on
thly
pay
men
ts
Ad
d-o
ns
incl
ud
ed
Red
uce
dD
RP
fees
Lim
ited
free
usa
ge
Co
ntr
act
bu
you
t
ADP Shoplink
Mitchell UltraMate
CCC Pathways
Switch Offer
55
Reasons to Switch – Unwilling Customers
Current Estimating Software Product– Brand Loyalty
– Nearly ¼ of shops currently using any of the three main computerized estimating software products unwilling to switch
0%
10%
20%
30%
40%
50%
60%
70%
Approached Not Switch
ADP Shoplink
Mitchell UltraMate
CCC Pathways
56
Reasons To Switch – Unwilling Customers
Experience– Older shops less willing to switch estimating software providers– Shops with more experience using computerized estimating software
less willing to switch products
0%
5%
10%
15%
20%
25%
30%
35%
5 years orless
5-10 years 10 yearsor more
How Long ProvideCollision RepairService
How Long UseComputerizedEstimating Software
57
Reasons To Switch – Unwilling Customers
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0-500 500-1000 1000-5000
Annual Revenue ($ 000s)
Pe
rce
nt
of
Sh
op
s N
OT
Will
ing
to
S
wit
ch
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 to 5 5 to 10 10 or more
# of EmployeesP
erc
en
t o
f S
ho
ps
NO
T W
illin
g t
o
Sw
itc
h Shop Size
– Shops with more employees less willing to switch computerized estimating software
– Shops with larger annual revenues also less willing to switch products
58
Reasons to Switch – Unwilling Customers
Long-term contracts– Collision repair shops who prefer longer term contracts may be less
willing to switch estimating software products
Month-to-Month
1-year 2-years 3-years 5-years
Percent Unwilling to Switch
19.72% 24.64% 36.84% 37.5% 50%
Preferred Contract Term Length
59
Reasons To Switch – Unwilling Customers
DRP Relationships– Shops having a larger number of
DRP relationships with insurance carriers are less likely to switch products
– Shops encouraged by a larger number of insurance carriers to use a particular brand even more unwilling to switch
0%
5%
10%
15%
20%
25%
30%
35%
Sh
op
s U
nw
illin
g t
o
Sw
itc
h
# of DRP Relationships
# of Insurance Carriers Recommending Particular Brand
60
Reasons To Switch – Most Common
Current Estimating Software Product– All users more likely to switch based on recommendation of
insurance carriers
– Price only 2nd most common reason for all 3 main brands
– Desirable contract length not important in causing shops to switch
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Ins
ura
nc
eC
arr
ier
Re
qu
es
ts
Co
ntr
ac
tL
en
gth
Pri
ce
Pro
du
ct
Fe
atu
res
Cu
sto
me
rS
up
po
rt
ADP Shoplink
Mitchell UltraMate
CCC Pathways
61
Reasons To Switch – Most Common
Length of Service
0% 10% 20% 30% 40% 50%
Insurance Requests
Contract Length
Price
Product Features
Customer Support 10yearsormore5-10years
5yearsorlessLength of Using Computerized Products
0% 10% 20% 30% 40% 50%
Insurance Requests
Contract Length
Price
Product Features
Customer Support10yearsormore5-10years
5yearsorless
Experience– Length of service in
providing collision repair• Insurance carrier
recommendations more important to older shops
• Younger shops much more attracted to price and specific product features
– Length of time in using computerized estimating software
• Less experienced shops also target products with specific features
• Almost 50% of shops with 10 or more years of experience would switch based on the request of an insurance carrier
62
Reasons To Switch – Most Common
Customer Satisfaction– 75% of all satisfied customers would switch because either the insurance
carrier would request a particular brand or they were offered a better price
– Only 2% of responding collision repair shops would switch based on contract length
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Insura
nce
Carr
ier
Requests
Price
Pro
duct
Featu
res
Custo
mer
Support
Contr
act
Length
Reasons To Switch
Pe
rce
nta
ge
of
Sh
op
s W
illin
g t
o
Sw
itc
h
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Cu
mu
lati
ve
Fre
qu
en
cy
of
Sh
op
s
Willin
g t
o S
wit
ch
63
Reasons To Switch – Most Common
0%
10%
20%
30%
40%
50%
60%
70%
Insu
ran
ceR
equ
ests
Co
ntr
act
Len
gth
Pri
ce
Pro
du
ctF
eatu
res
Cu
sto
mer
Su
pp
ort
Shop Size in Terms of Annual Revenues ($ 000s)
0-500
500-1000
1000-5000
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Insu
ran
ceR
equ
ests
Co
ntr
act
Len
gth
Pri
ce
Pro
du
ctF
eatu
res
Cu
sto
mer
Su
pp
ort
Shop Size in Terms of # Employees
1-5 Employees
5-10 Employees
10 or moreEmployees
Shop Size– Shops with greater annual revenues primarily concerned with what
products are recommended by insurance carriers
– Larger shops more willing to switch based on insurance carrier requests
– Product features only important to smaller shops
64
Reasons To Switch – Importance of Insurance Carriers
0
0.2
0.4
0.6
0.8
0 1 to 2 3 to 4 5 or more
Number of DRP Relationships
ADP Shoplink Mitchell UltraMate
CCC Mitchell Users of One Product
Users of Mult Products
0%
10%20%30%
40%50%60%
0 1 to 2 3 to 4 5 or more
Number of Insurance Carriers Requesting Particular Brand
Shops using Mitchell UltraMate less likely to maintain DRP relationships– 31.6% using only Mitchell have 0 DRPs
– Also report fewer insurance carriers encouraging them to purchase a particular brand of computerized estimating software
Users of multiple products maintain more DRP relationships– 63.2% of shops using >1 product have 5
or more DRP relationships
– Only 25% of shops, on average, using 1 product have 5 or more DRPs
CCC Pathways users have more DRPs– 47% of shops using only CCC brand have
5 or more DRPs
– Only 16.4% of shops using only CCC Pathways have 0 DRP relationships
65
Reasons To Switch – Importance Of Insurance Carriers
Influence of insurance carriers– Requests for specific brand
more important to large shops• 60.9% with annual revenues
of $1-5MM• 64.1% with 5 or more DRPs• 50% with 10 or more years of
experience
– Smaller shops more price sensitive
• 34.2% with revenues <$500K and 57.1% with revenues between $500-1000K
• 43.8% with No DRPs and 37.5% with 1-4 DRPs
• 29% with <5 years experience
0% 20% 40% 60% 80%
$0-500
$500-1000
$1000-5000
0
1 to 4
5 or more
<5 years
5-10 years
10 or more years
month-to-month
1-year
2-years or more
% of Customers Willing to Switch
Price
InsuranceCarrierRequests
Annual Revenue
(000s)
# of DRPs
Length of Use
Preferred Term
66
Summary of Key Findings
Use >1 Estimating Software Product
Willing to Switch Products
# of DRP Relationships:
Legend:Limited (0-25%)
Low (25-50%)
Medium (50-75%)
High (75-100%)
ADP Shoplink
Mitchell UltraMate
CCC Pathways
Satisfied with Current Product
None
5 or more
Main Estimating Software Product for Responding Collision Repair Shop
67
Summary of Key Findings
Preferred Contract Length:
Legend:Limited (0-25%)
Low (25-50%)
Medium (50-75%)
High (75-100%)
ADP Shoplink
Mitchell UltraMate
CCC Pathways
Annual Revenues (000s):
1-year
Month-to-month
Main Estimating Software Product for Responding Collision Repair Shop
<$500
$1000 - 5000
$500-1000
68
Agenda
Project Overview Recommendations Questionnaire Design Key Findings Appendix
Calculations for Weighted Average Rankings
70
Matrix – Users of Multiple Estimating Software Products
2nd Estimating Software Product
Primary Software Product
ADP Shoplink
Mitchell UltraMate
CCC Pathways
Other Total # Users
ADP Shoplink
7 17 3 53
Mitchell UltraMate
7 12 1 36
CCC Pathways
17 12 6 91
71
Rankings Estimation – Reasons for Dissatisfaction
Rank Product Problems
Inaccurate Data
Difficult to Use
Poor Technical Support
Expensive
1 4 10 2 4 11
2 4 5 9 6 7
3 12 10 4 1 4
4 9 3 7 9 3
5 2 3 9 11 6
Weighted Average
18.8 15.4 21 22 15.8
Overall Rank
3 1 4 5 2
Return
72
Rankings Estimation – Importance of Product Features
Rank Easy to use
Fast and accurate
Automated Product add-ons
Customer Support
Training
1 57 54 24 5 24 5
2 37 55 26 2 30 19
3 37 24 40 7 43 18
4 16 21 38 17 42 35
5 15 11 31 35 24 53
6 7 4 10 103 6 39
Weighted Average
70.5 66.5 98.8 148.5 89.5 122.7
Overall Rank
2 1 4 6 3 5
Return
ADP Claims Services Group - Online Questionnaire
74
Demographics
1. How long has your shop been providing collision repair services?a. Less than 1 yearb. 1 to 2 yearsc. 2 to 5 yearsd. 5 to 10 yearse. More than 10 years
2. How long has your shop been using computerized estimating products?a. Less than 1 yearb. 1 to 2 yearsc. 2 to 5 yearsd. 5 to 10 yearse. More than 10 yearsf. Never. Do not use computerized estimating product.
3. Which computerized estimating software product(s) do you use? You may select more than one item.a. ADP Shoplinkb. Mitchell FirstEstimatec. Mitchell UltraMated. CCC Pathwayse. Other
4. Are you satisfied with your current estimating software product(s)?a. Yesb. No
75
Pricing
4a. Why are you unsatisfied with your current computerized estimating product? Please rank your reasons in order of importance from (1) most important to (5) least important.a. Product functionality problems
b. Inaccurate data
c. Difficult to use
d. Poor technical support
e. Expensive
5. How may DRP relationships do you have with insurance carriers?a. 1
b. 2
c. 3
d. 4
e. 5 or more
f. None. We currently do not have any DRP relationships with insurance carriers.
6. How many insurance carriers associated with your DRP relationship(s) encourage you to buy a particular Brand of computerized estimating product?a. 1
b. 2
c. 3
d. 4
e. 5 or more
f. None.
76
Attributes/Options
7. Which of the following optional features or product add-ons do you use? You may select more than one item.
a. Imagingb. Paintless Dent Repairc. Frame Dimensionsd. Aftermarket Partse. Salvage Partsf. Tire Databaseg. Estimate Audith. None of these.
8. Which of the following optional product features or product add-ons do you like but do not use currently? You may select more than one item.
a. Imagingb. Paintless Dent Repairc. Frame Dimensionsd. Aftermarket Partse. Salvage Partsf. Tire Databaseg. Estimate Audith. None of these.
9. What is the primary reason for not buying the add-on(s) you like most?a. Planning to buy itb. Costc. Not available with current productd. Othere. None. I do not like or want any add-ons.
77
Attributes/Options
10. Relative to your current product, please rank the following features in order of importance to you from (1) most important to (6) least important.a. Easy to useb. Fast and accuratec. Automatedd. Availability of product add-onse. Customer supportf. Training
11. For each computerized estimating product you own, what is your average contract term?Month-to-month 1-year 2-years 3-
years 4-years 5-yearsa. ADP Shoplinkb. Mitchell FirstEstimatec. Mitchell UltraMated. CCC Pathways
12. What is your preferred contract term?a. Month-to-monthb. 1-yearc. 2-yearsd. 3-yearse. 4-yearsf. 5-years
78
Attributes/Options
13. Why do you like your preferred contract term? You may select more than one item.a. It is cheaper than other options.b. We prefer to stay with one product.c. We prefer to try new products.d. We like the flexibility of changing product.e. Our product requirements change seasonally.
14. For each computerized estimating product you use, on average how much do you pay in monthly fees? Please exclude product add-ons.
<170 171-230 231-260 261-300 301- 350 351-400 401-450 >450
a. ADP Shoplinkb. Mitchell FirstEstimatec. Mitchell UltraMated. CCC Pathways
15. For each software vendor you use, on average how much do you pay in monthly DRP communication fees (fees to upload estimates to DRP insurance carrier)?
<45 46-55 56-65 66-75 76-85 86-95 >95
a. ADP Shoplinkb. Mitchell FirstEstimatec. Mitchell UltraMated. CCC Pathways
79
Sales Tactics
16. Please answer the following questions for each optional product add-on that you use. If you do not use any of these options, then please enter “0” for each product.If a product add-on is already included in the fees of your computerized estimating product, please put a “9” in the box associated with that optional product.
How do you pay on a monthly basis for each listed product?Imaging Paintless Dent Repair Frame Dimensions Aftermarket Parts Salvage
Parts Tire Database Estimate Audit
transaction subscription
What are your monthly costs for each product add-on?Imaging Paintless Dent Repair Frame Dimensions Aftermarket Parts Salvage
Parts Tire Database Estimate Audit
$
17. In the past year, have you been approached by a competing estimating software provider to switch to their product?1. Yes2. No
80
Sales Tactics
18. Which of the following best describes the switching offer(s)? Please select all offers made in the past year.1. Buyout of current contract.2. Free usage of competitor product for a limited time, and reduced price thereafter.3. Lower monthly payments for similar estimating software solution.4. Matched monthly fee and included optional product add-ons.5. Matched monthly payment and offered free or reduced fee DRP communication.6. Other
19. Which would cause you to switch to a new computerized estimating software provider?1. Insurance carrier requests a specific estimating vendor.2. Desirable contract length.3. Price.4. Specific product features.5. Customer service/support.6. I would not switch.
81
Sales Tactics
20. How many employees does your shop have (include part-time employees)?a. Blank
b. 2
c. 3
d. 4
e. 5
f. 6
g. 7
h. 8
i. 9
j. 10
k. More than 10
21. How many employees in your shop use computerized estimating product?a. Blank
b. 2
c. 3
d. 4
e. 5
f. 6
g. 7
h. 8
i. 9
j. 10
k. More than 10
82
Sales Tactics
22. What is your shop’s average annual revenue from collision repair services?a. Don’t know.
b. Up to $100,000
c. $100,001 – $250,000
d. $250,001 - $500,000
e. $500,001 - $750,000
f. $750,001 - $1 Million
g. $1 Million - $5 Million
h. More than $5 Million
23. Where is your shop located? Please enter the City and State.a. City___________________
b. State__________________
Computerized Estimating Software Products
84
ADP Claims Services Group
ADP CSG offers claims information product solutions to insurance companies, claims adjusters, and collision repair shops.
Main claims services products: Automated Collision Damage Repair Estimating products Integrated Electronic Digital Imaging and Communications
services Vehicle Valuation Services for total losses Collision Repair Management systems products Aftermarket and Recycled Parts Locating and Pricing services Related Management Information products
85
ADP CSG Products - Shoplink
ADP Shoplink is a software used in the collision repair industry to:
Create estimates of the cost of repairing damaged vehicles, including parts and labor
Submit estimates (with digital vehicle images, if desired) to the insurance company in order to secure payment approval for the repair job
Qualify for direct repair program relationships with insurers
86
ADP CSG Products - Shoplink
Industry’s only vehicle-driven and option-specific automated estimating system
Fast, accurate and detailed Shoplink Imaging:
– Attaches and uploads digital images faster
– View photos and related comments without even opening the claim
– Increases shop's productivity by transmitting estimates and images in the same simple communication session
ADP Database – Shoplink's powerful engine
– Most comprehensive and widely accepted parts database in the collision repair industry
– Accessed by over 13,000 users across North America
87
ADP CSG Products - Shoplink
– Provided the data to process more than 100 million estimates over the past 20 years.
– Covers over 98% of the vehicles on the road today and leads the industry in coverage of new models.
– Contains over 3 million part numbers and prices, and nearly ½ million labor records
– Every user receives a fully updated database CD, featuring manufacturer, after-market and salvage part pricing every month. "Real steel" salvage data is updated daily and is available via modem.
Source: Press Release, ADP CSG Website
88
CCC Information Services Group, Inc.
CCC Information Services provides automobile claims information, processing services, and claims management software.
Main products: Total loss Integrated Imaging Forms and Correspondence Built-In Digital Imaging Pathways Independent Appraiser Solution Pathways Digital Imaging Recycled Parts services Recycled Part Valuation Recycled Part Location EZFrame Measurement System EZNet Communications Pathways Image Management AutoSearch
89
CCC Products - Pathways
Total Loss: Primary vehicle valuation product total loss Provides insurance companies ability to settle total loss claims
based on market-specific vehicle valuesPathways: Provides up-to-date pricing Offers interactive decision support and computer-assisted logic to
produce accurate collision repair estimatesEznet Communication services network Connects insurers, appraisers, and collision repair facilities Pathways workflow management software designed to integrate
each of the company’s product offerings on a common platform with common graphical user interface.
90
CCC Products - Pathways
Functions of CCC Pathways suite: Collision estimating digital imaging data mining applications claim audit Reinspection management tools
CCC Pathways consists of: CCC Pathways Appraisal Solution (for insurance customers); CCC Pathways Estimating Solution (for collision repair facility
customers); CCC Pathways Independent Appraiser Solution (for independent
appraisers); CCC Pathways Digital Imaging; Recycled Parts Service; Comp-Est Estimating Solution.
91
CCC Products - Pathways
Features of CCC Pathways Estimating Solution software : Enhanced communications capabilities - customers can complete their
estimating work while transmitting information from their CCC Pathways unit to and from the EZNet communications network, eliminating unnecessary downtime.
Automated custom profiles -saves insurance carriers hours of manual input time. With the custom profile feature, users can make changes to individual user profiles for each of the carriers' claim offices and repair shops.
The integration of a Paintless Dent Repair The option to integrate other CCC products and features such as a
total-loss valuation tool, Pathways Digital Imaging, Recycled Parts Services and CCC Valuescope, which allows users to attach pictures to an estimate, and Forms & Correspondence, a tool users can employ when communicating directly with their customers.
The MOTOR and recycled-parts databases
92
Mitchell Repair Information
UltraMate UltraMate ShopPac
Mitchell’s main product, UltraMate, includes the following:
93
Mitchell Products - UltraMate
Functions– helps to create estimates that are accurate, verifiable, and readily
accepted throughout the industry.
– combines database accuracy with Windows
– Includes automated calculations and repair procedure pages that virtually eliminate errors.
– Produces estimates that are right the first time.
– Reduces the need for supplements.
– Delivers powerful estimating technology with intuitive, uncomplicated navigation, clear graphics, and simple-to-follow help instructions.
Mitchell’s main product, UltraMate, includes the following:
94
Mitchell Products - UltraMate
Features– Powered by the Mitchell Database – Tab Menu Structure – Configurable Repair Screen – Right Click and Drag and Drop Functionality – Automatic VIN decode – Procedure Pages – Based on CIECA standards facilitating open communications – Communicate electronically to retrieve assignments and send
estimates – WebCom Broadband Communications (TCP/IP, DSL, T1 and ISP
connections Benefits
– Increase productivity and flexibility – Saves time – Reduce errors due to greater accuracy – Connect easily and quickly with business partners
95
Mitchell Products – UltraMate ShopPac
Features– Turns UltraMate estimates into repair orders
– Generate a parts order and fax it to vendors
– Built-in reports
– Productivity snapshots
– Status Reports
– Instantly shows which parts have been received, back-ordered, or returned
Benefits– Adds a business advantage to your UltraMate estimates
– Saves time and increases productivity
– Fully integrated with UltraMate
Mitchell also offers a more advanced product, UltraMate ShopPac
Auto Repair Industry
97
Auto Repair Industry
The market grew 3.2% in 2001 to a value of $120.5 billion.
98
Auto Repair Industry
Service/garage stores from the biggest chunk of market share in the repair industry, a value of 37.8%, dealers form another 21%.
Parts, Chemicals form 57% of the market, the remaining is labor.
99
Auto Repair Industry
Leading Companies
Daimler Chrysler Ford GM Midas Firestone Mastercare Gemini
100
Auto Repair Industry
The market is forecast to reach $142.5 billion, a growth of 14.5 % from 2002.