Aiming for Greater Profitability by
Building Long-Term Customer Relationships
Establishing a Growth Model around Statutory Safety Inspections and Maintenance
With total vehicle registrations of around 60 million, and average vehicle useful lives estimated to be at least 12 years*, demand for statutory safety inspections and maintenance services in Japan is expected to remain steady. A key factor in this regard is the regular safety inspections that are required by law. This obligation of car owners provides a key point in time for customers to consider the purchase of maintenance services and even moving on to their next vehicle. Increasing the number of vehicles for which statutory safety inspections are performed, therefore, is critical for expanding customer contacts.
That is why we are pursuing measures to use statutory safety inspections and maintenance as an opportunity for strengthening customer contacts. By providing a one-stop source for a comprehensive set of automobile services — everything from oil changes and other types of maintenance to statutory safety inspections, tire changes, and automobile purchases and sales - we are working to establish a growth model for maximizing earnings.
* Source: Automobile Inspection & Registration Information Association
Making the Most of a Customer Base of 15 Million Point Club Members
AUTOBACS has approximately 15 million customers registered as active point card members. This customer base serves as the focus of measures we are taking to strengthen our sales initiatives and services. We are encouraging these customers to switch to our Maintenance Member system, which offers ten maintenance services free of labor charges, while also working to sign up new members. By having customers regularly use AUTOBACS for oil changes and other types of maintenance, we are creating opportunities to also perform statutory safety inspections and tire changes, and even help customers acquire their next vehicle. Our omni-channel strategy, under which we are enhancing our online and telephone reservation service and using member information marketing activities targeting individuals, is the primary tool we are using to increase store visit frequency.
Enhancing our automotive goods, statutory safety inspections and maintenance, and automobile purchase and sales operations, in addition to the above, results in even greater convenience for customers.
Advance the Omni-Channel Strategy to Strengthen Customer Relationships
We are advancing our omni-channel strategy, which organically links our Maintenance Member system with stores, our online channel, and call center. By creating an environment in which customers can easily and conveniently look after the maintenance of their cars and enjoy shopping, we are promoting continuous store patronage.
Ongoing Peace of Mind for Customers through Regular Maintenance Free of Labor Charges
AUTOBACS introduced the Maintenance Member system in June 2014 to expand its customer base. Customers who become Maintenance Members have access to ten maintenance services, such as oil and battery changes, and flat repairs, all free of labor charges. Reducing the amount of money customers have to spend makes it easier for them to request regular maintenance and encourages store visits.
- Use DM, receipt coupons, and other media to encourage point card members to switch to Maintenance Member status
- Put Maintenance Member Card sales displays in all stores
- Enhance the line of oil and other merchandise available only to Maintenance Members
Maintenance Services Free of Labor Charges to Maintenance Members
- * “◆” Designates services available once a year. No limits apply to other services.
- * Maintenance Memberships are valid for one year at a time, for an initial fee of ¥1,080 (including tax) and a renewal fee of ¥540 (including tax).
- * Two services were added in April 2016.
Maintenance Members
Average Annual Store Visits per Member(FY ended March 2016)
* “Active Members” means customers who have made a purchase within the past one year.
Enhance the Telephone and Online Reservation System to Reduce Waiting Times and Promote Store Visits
Taking statutory safety inspection and oil change reservations through the AUTOBACS.COM online shop, via a smartphone app, and over the phone eliminates time spent waiting in stores. Looking to the future, these reservation channels will be opened up for tire change and other services as well.
| Oil changes | Accept same-day reservations at all stores |
|---|---|
| Statutory safety inspections and maintenance | Telephone follow-up for in-store customer interactions |
| Tire changes | Trial run for online and telephone reservations |
Reservation System Case: Statutory safety inspections
Online and Telephone Reservation Results (FY ended March 2016)
Linking Multifaceted Online Store Development and In-Store Installation Services to Gain Customers
By not only developing AUTOBACS.COM but also establishing a presence on third-party online stores, we are expanding our contact with online customers. In addition, when customers purchase automotive goods through AUTOBACS.COM, Rakuten Ichiba, or Amazon.co.jp, they can have them installed at a brick-and-mortar AUTOBACS store. In offering this service, we aim to not only increase convenience for customers but also synergistically boost store sales.
- Enhance lines of goods and services
- Enhance information on compatible car makes and models
Current Status of Online Stores
(Established in January 2001)
(Opened in August 2012)
(Opened in June 2013)
(Opened in January 2014)
Online Sales Progress (FY ended March 2016)
Enhancing Sales Promotion Efficiency with Car Make and Model, and Maintenance History, Data to Optimize Individualized Communications
Having revamped our CRM system in the fiscal year ended March 2015, we are accumulating car make and model, purchase history, store visit, and other data on individual customers. Based on Communication Plans developed from this data, we recommend to individual customers goods and services consistent with maintenance timing for their cars and their tastes and preferences to encourage ongoing store visits and enhance sales promotion efficiency.
- Use direct mail targeting 6 customer segments
- Expand the number of stores using Communication Plans
Greater Marketing Precision through Data Analysis
Model Case:Winter Campaign for FY ended March 2015
(vs. FY ended March 2013)
Enhance Goods and Services to Provide Customers with Greater Convenience and Peace of Mind
Focusing on statutory safety maintenance with minimal time and cost burdens for customers, and on further strengthening our solid line of private-brand (PB) goods, we are responding precisely to the various concerns and desires customers have regarding their cars.
Statutory Safety Inspections and Maintenance
Aiming to Provide Even Greater Satisfaction for More Customers with Time-Efficient Statutory Safety Inspections and Maintenance
Statutory safety inspections and maintenance mean burdens, in terms of time and money, for customers. We lighten those burdens by focusing on mandatory maintenance items to perform statutory safety inspections quickly and then providing customers with post-inspection maintenance plans. Lightening the customer’s burden and encouraging future store visits, we are at the same time leveraging greater operational efficiency to increase the number of inspections we perform.
- Introduce efficiencies to shorten inspection times
- Gain reservations for next statutory safety inspections
- Develop automobile mechanics
- Increase number of authorized inspection sites
Statutory Safety Inspections Performed
Reservations for Next Inspections
Number of Automobile Mechanics
Authorized Inspection Sites
Number of Automobile Inspectors
Automotive Goods
Strengthening Tire Sales and the Line of PB Goods
According to third-party survey research, AUTOBACS is the most popular retailer of fuel-efficient tires and winter tires* in Japan. We are also among the overall top sellers of tires in the Japanese aftermarket. Making the most of these strengths, we are seeking to further expand our tire sales by working with leading Japanese tire makers to expand our line of PB and exclusive goods.
In addition, working from the concept of providing customers with a “go-to” choice when a clear choice is otherwise nonexistent, we updated our line of PB goods in July 2014, and expanded the product line to include not only interior automotive goods but also tires, oil, and batteries. We continue to develop products and sales environments to offer customers good merchandise at reasonable prices. Evidencing our success along these lines, over 80% of customers choose a PB product when purchasing a new battery.
* Source: May 2015 research report on fuel-efficient tires and August 2015 research report on studless (winter) tires. Both prepared by JMA Research Institute Inc.
- Strengthen tire sales
- Strengthen the Tire Storage Service (Storage service for customer tires)
- Enhance the line of “go-to” PB merchandise
(Left: Oil Right: Rear-view camera)
Tires Sold
Stores Offering the Tire Storage Service
PB Goods as a Percent of All Merchandise
Automobile Purchase and Sales
Expanding Automobile Purchases by Increasing the Number of Franchise Stores and Staffing
AUTOBACS is developing its automobile purchase and sales business under the AUTOBACS CARS brand. We operate this business mainly in existing AUTOBACS stores and, as of March 31, 2016, had automobile purchase and sales operations in 480 franchise stores throughout Japan. Making the most of frequent customer store visits and our strengths in being able to appraise vehicles quickly using the same criteria regardless of location, we are making progress in both purchasing and selling outstanding used vehicles.
- Expand number of franchise stores
- Increase the number of qualified appraisers
- Shift approximately 100 headquarters employees to stores (FY ended March 2016)
- Start nationwide TV commercial campaign in Japan (FY ended March 2016)
- Open stores specializing in purchasing used cars (FY ended March 2016: 2 stores)
(Patented in October 2015)
Cars Purchased
Franchise Stores
Number of Internally Qualified Appraisers
Improving Store Operations
We are moving forward with improvements in store operations to achieve greater quality and efficiency in customer interactions. At test stores, for example, we have found that flexibly deploying staff – including having store managers serve customers at maintenance counters - increases both the amount of time devoted to interacting with customers and sales revenues. This and other such improvements will be implemented throughout the chain as they come to light.
