Web 2.0 in Auto Body Repair and Home Building

By Bud on July 15, 2007 TrackBacks (3) Comments (15)

Dave Henderson talks about how he has used digital photography and boundary spanning systems to improve customer service in the autobody repair and home building industries.

Like this? Let us know with a $5 donation, so we can do more

In this podcast (Click here for 165 MB ipod compatible download), Dave Henderson, CEO of See Progress, discusses the phenomenal growth of his company. See Progress is actually an umbrella organization for three businesses: Auto Watch, the flagship offering and well established business, New Home Watch which is starting to attract major customers, and Select Repairs which should be ready in a year.

Dave's story is fairly unique for a technology executive. He started out and developed a long career as an auto body repair technician because he had a love of the work and cars. However, he also harbored a keen interest in technology. He bought one of the first IBM PCs in Michigan and took time off to develop a new idea for electronic vending machines. In the late 90's when he saw a customer with a digital camera, he knew he could make a business of letting people watch their body shop online, getting the shop to pay. The idea for the initial business, Auto Watch, had hatched. Dave's peers were skeptical.

Dave set out attending conferences hawking his service and trying to sign on body shops to provide better proof of concept. Eventually, he succeeded in getting a number of body shops. Then two paint companies noticed what was going on and started referring customers. After that, he was approached by Nationwide, the sixth largest car insurer in the US. He also managed to sign on Esurance.

The sales proposition to both insurers and body shops is improved customer service and viral marketing. A main complaint of auto body shop customers is lack of control over what is going on. Auto Watch gives customers the chance to see their cars and get a daily update on what is happening. They can also share this information with their friends who can then be enticed by the service.

A less apparent component of this value proposition is that, through a patented process, Dave is able to provide extensive record keeping for his customers, for instance letting claims adjusters monitor the progress dozens of cars from PCs. They also receive aggregate reports on repair performance.

New Home Watch offers similar value propositions to builders and home buyers. Select Repairs extends the Auto Watch concept to all car repairs.

As I listened to Dave, it struck me that See Progress is a perfect Web 2.0 company. Information collected from many sources is at the core of its operation and the foundation of all of its value propositions. It creates further value by allowing customers to share the information. The difference between Web 2.0 as practiced by Dave and as frequently touted in Silicon Valley is that Dave has had to self-fund his operations. He's figured out how to do Web 2.0 and make money through something other than advertising.

Additional Links

See Progress is a "Michigan 50 company to watch", indicating that it is a second-stage entrepreneurial company, in a position to generate jobs and sustainable growth.
D. R. Horton, a major homebuilder outside of Michigan, has been one of New Home Watch's flagship customers.
Dave worked for many years at Art Moran Pontiac.

3 TrackBacks

Listed below are links to blogs that reference this entry: Web 2.0 in Auto Body Repair and Home Building.

TrackBack URL for this entry: http://michiganinnovators.org/cgi-sys/cgiwrap/fpgibson/MI/mt41/mt-tb.cgi/7

» Auto Watch, an interisting idea from Tobias Steck

I just watched the interview "Web 2.0 in Auto Body Repair and Home Building" with Dave Handerson. As I was interested in the Idea and how it works I checked the website of some companies that uses this System. I... Read More

» Web 2.0 in Auto Body Repair and Home Building from Erwin

I just watched Dave Henderson clip from MichiganInnovators.org about Web 2.0 in Auto Body Repair and Home Building. His idea is that customers of body shops would be able to see online the progress of their cars being repaired from... Read More

» Web 2.0 in Auto Body Repair and Home Building from Terry Hilton

As with all of the articles I have read, on michiganinovators.org, I find it encouraging when I see how many individuals are finding new ways to use technology to create or improve their business. The article Auto Body Repair and... Read More

15 Comments

Amanda Murray on November 19, 2007 1:54 PM

I am really impressed that Dave has succeeded to devise a company that he truly is passionate about. His experience in an aspect of his company really helped him in finding a niche that was "untapped." Given his current growth and expectance of further growth, I would like to know if there are any challenges for the management of that growth. One thing I would like to point out is that many small businesses fail to manage their growth properly which can result in failure for the company. This is an extremely important part of the business that needs special care. Another thing that I am interested in learning more about is his pricing strategy. Since there are not many competitors, how did Dave determine what the best strategy and price was for his services? Does he charge by hour or account? Amanda Murray

Dylan Matovski on March 20, 2008 11:11 AM

After listening to Dave's podcast I was in total shock. I myself am very into cars and doing modifications. Unfortunitly just like Dave is with computers, I am not very good at doing car repairs. I have a vehicle that has gone through heavy modification and to be able to have seen the car through the process would have been a wonderful benefit. I believe some problems that came up doing the process could have been taken care of more easily if I were to have been able to log in and check the progress. I do have a question though about how See Progress is planning on controling the market once their patents are suspended. As far as I know patents are not infinite and so I would be worried about larger insurance companies doing this idea within their own company. I also would like to know more about the select repairs because I think that is a great tool to upsell to customers like Dave had mentioned. I also think that this idea could be used in many different industries once the company grows because just like New Home Watch, there could also be a program that does it for landscaping companies or builders who do add on's to houses. Dylan Matovski

Nicole Trinkle on March 31, 2008 7:58 PM

Mr. Henderson, I believe that those who have worked in the industry and have gotten there hands dirty and are out there in the field are the best at developing and marketing a product or service that fills the gap for consumers. Working as a mechanic allowed you to see the gap in customer service and develop a product that is suitable for both the shops and the end users. You made a very good point about the "low life" shops that are often featured on the news because they make great stories. These products are ingenious idea and the fact that it lends itself to viral marketing so well means that they will be very successful products. Viral marketing is one of most trusted sources and when consumers are dealing with an industry that unfortunately has a poor reputation, that trust is critical. Sincerely, Nicole Trinkle, Eastern Michigan University Student

Brian Dickhart

on May 27, 2008 10:11 PM

Hello Mr. Henderson, as a car guy myself, this is a great business. This tool is an excellent way to combine technology with a skilled trade. The marketing aspects of your programs are great for everyone the uses these programs. From the small local body shops and home builders, to the large national ones. They all can benefit from such technology. If my car is ever at a body shop that uses auto watch, I would be the guy that looks at the pictures 10 times a day and show my friends. The largest benefit however, is the customer service aspect. Customers love to be involved when it comes to things like their vehicles and homes. I'm sure the Auto Watch program saves a lot of headaches for body shop employees that get dozens of calls everyday from customers inquiring on the progress of repairs. You did a great job of identifying the target markets for your programs. I do have one question concerning New Home Watch. Since the nation's housing market is currently in poor shape, do you find builders canceling their subscriptions to your service? As for Select Repairs, this may be the best See Progress idea yet. Being a person with a knowledge or cars myself, I understand how frustrating it could be for repair shops to try and explain labor costs. When a customer sees the time and skills it takes to perform repairs, I think will have a better idea of why some repairs cost so much. This idea is also nice because it is a more interactive program. Customers get to inspect damaged parts from their home and approve repair much more quickly. Currently a customer has to go into the repair shop to see damaged parts. This can save the shop owner and customer possible injury that could occur on the shop floor. Someone could slip on grease and hurt themselves. Besides most customers do not want to go into a dirty shop to inspect repairs. Good Luck with Select Repairs, Brian Dickhart Eastern Michigan University

Mary Cassista on June 1, 2008 8:08 PM

As a college student taking an entrepreneur class, I enjoyed listening to Dave Henderson very much. He certainly has the entrepreneur spirit. Most of us wouldn’t consider being a paper boy the same as being an entrepreneur but it is. Mr. Henderson seems to have recognized his entrepreneur spirit at a young age, embraced it, and used that positive part of his personality to make positive things happen for him. Many people let their independent, entrepreneurial spirit get squashed as they age and never realize their dreams. While Mr. Henderson identifies his Auto Watch customers as the body shops and insurance companies, I bet a lot of the people who log on to look at their cars think he started the business as a service for them! As someone who knows next to nothing about cars, I must say that I often feel very helpless when I leave my car for repairs. I have to believe that the shop is telling me the truth because, unfortunately, I don’t know otherwise. Although I understand that the marketing strategy for his next company is aimed at the mechanical shops, I think Mr. Henderson’s new company, Select Repairs, should be dual marketed to people like me. I would definitely appreciate the visual approach and I would feel that the shop was doing the best possible job because it was being watched. This would build goodwill for the shop – as well as for Select Repairs. Mary Cassista

Megan Langton on June 10, 2008 9:32 PM

Hello Mr. Henderson I am currently a student enrolled in an entrepreneurship class and was fascinated by your idea to combine two very different fields of business. You were able to pinpoint a facet of the auto repair business that customers wanted more interaction with. I think you really give the customers what they want. You said in your interview that many individuals think that repair shops try to take advantage of them. Your idea of auto watch helps reduce those numbers by allowing customers to watch the process for themselves. I think it was a great idea. I also had to take notice to the fact that you were able to focus on a niche in the market. You were able to give the customers a visual experience by watching and knowing exactly what was going on with their vehicles. You also stated that you are better able to educate the customer by allowing them to know why auto repair costs so much. I think that auto watch has given a new meaning to customer service when it comes to car care. You have also given auto repair shops new life by allowing them to prove to customers their credibility. This allows auto repair shops to gain a greater customer base. You also touched on how important it is to repair shops to have word of mouth referrals. Auto watch is similar to an advertising site for auto repair shops. Repair shops can show off their quality workmanship. Auto Watch also gives customers a better estimate of when their car will be completed. You have also made it easy to navigate for customers by giving them an ID number to type in that will automatically bring up their car. I bet this saves the customers a lot of frustration at home as well. Megan Langton

Bryan Chan on June 11, 2008 12:06 AM

Mr. Henderson used existing technology to create an innovative idea. He had the background of working as an auto body repair technician. He also had a keen interest in technology. As a car owner, I like my auto repair shop to have such service for several reasons. First, the most important thing about auto repair shop is the quality of the repairing job done by the technicians. If the auto repair shop provides a service that customer can use to check the later vehicle repair status, it can increase the trusting relationship. Second, this service can send a strong message to the customers that the auto repair shop has nothing to hide to its customers. Third, it brings convenience to the customers. Customers can check the repair status anytime they want, just by browsing their auto repair shop’s Website. The Auto Watch Website states that as many as 70% of incoming phone calls to a body shop are basic vehicle status questions. Auto Watch can help eliminate many of these calls, resulting in saving the company’s resources. One of the most components of Internet-related business is security. Identity theft is the new crime of the information age. A criminal collects enough personal data on someone to impersonate a victim to banks, credit card companies, and other financial institutions. The demonstration in the Auto Watch Website illustrates how users can check the repair status using the vehicle ID number (i.e. Key Tag). It brings convenience to the customers. The problem is that everyone can go to the auto repair shop Website and look for car repair status. Confidentially is easily violated. As a result, it may lead to a series of lawsuits. Internet security is a business problem, and the risks of Internet attacks need to be managed the same way as any other business risks. Bryan Chan - EMU student

Adrianne Smallwood on June 11, 2008 6:27 PM

Wow! AutoWatch through See Progress is a fascinating tool for consumers across markets. See Progress is a great tool that consumers can use for various parts of their life. I imagine that most consumers that have had the AutoWatch experience once will use that tool as part of their selection criteria for other repair shops in the future. Although the actual the AutoWatch tool customers are the insurance industry and repair shops, the end-customer benefit is what makes the tool a success. The AutoWatch tool is not only a marketing tool, but also a customer service tool. It’s also very easy for end-customers to promote AutoWatch to friends and family. Most people now have e-mail, and if I were a customer having my car repaired at a facility that used AutoWatch, I would more than likely forward my login info to friends, family and close colleagues at work so they can check out the progress as well. This is the equivalent of the word of mouth advertising Mr. Henderson was referencing. Although the average for auto accidents is every seven years, chances are that the word of mouth advertising will be very effective given that the AutoWatch is an online service, and it’s very easy to forward an e-mail with login information to others rather than remembering to tell others when I would see them. The insurance industry is also a great market for the AutoWatch tool. I imagine that consumers are less likely to complain to an insurance agent if they are aware of the progress of the vehicle, know the estimated delivery date, and get to see the progress of the repairs at the customer’s convenience. AutoWatch also allows the management of the shops that use it to operate more efficiently. My father works at an Autobody repair shop and he has told me of times that customers just show up out of curiosity and want to see the progress of their vehicle. A manager then has to stop what they are doing in the office, make sure that the shop is presentable to a customer and walk the customer over to the vehicle where someone is laying on the floor working on it. This disrupts normal business going on in the office, as well as stops the repair technician from what they are working on. It’s obvious that AutoWatch can provide consumers with the customer service consumers are looking for, as well as provides repair shops with a check and balance system between the customer, shop, and insurance companies. See Progress is an excellent tool that provides consumers across different industries with a level of customer service that is not otherwise offered when it comes to status updates and the convenience of them. See Progress can tap many markets; can you mention any other tools in the works that weren’t included in the interview? Adrianne Smallwood-EMU Student

Mary Adams on June 11, 2008 7:24 PM

Good evening bloggers! What a great example of taking expertise, interest, passion and drive and turning it into a great business! In today’s voyeuristic society, a YouTube world, consumers want to see what is going on constantly. This concept, of taking photos, so as a way to document service, or better yet, sell service is brilliant! This is a good match of how consumers want to be engaged, at the same time educate them, and also give them trust in service departments. In addition, a repair shop can really enhance customer service, and dispels media perceptions of dishonest behavior in the industry. They also, offer a measure of click rate, which tells the shops that this is a service customer, is interested in. The fact that others are looking in not just the customer, is great guerilla marketing! The word of mouth example of others in the office coworker looking in is a great confirmation. Increased customer service score, and great word of mouth advertising is hard to beat! Anyone who has built a home knows it is not quite as easy as on TV, like they would have you believe on the popular improvement shows. It is a time taking and difficult process. Having it captured on film, and put together in a keep- sake is a great idea! Finally, the insurance industry is probably disliked and distrusted by many. To have this product, which keeps the customer informed, is very beneficial. It helps the industry monitor its productivity, and get its customer’s jobs prioritized is priceless. This concept could change the service industry all together. Good stuff, Mary Adams

Neil Gounaris on June 12, 2008 12:20 AM

Dave Henderson has found an answer to many of the qualms that have plagued consumers when doing business with the auto repair and home building industries. As Dave mentioned, media coverage has skewed the public’s view of these industries as synonymous with shady and unscrupulous dealings even though only a small percentage of businesses could be found to have that characteristic. The value that See Progress can bring to repair shops and construction companies is an increase in the trust that a customer has for a business and the satisfaction level in the process. See Progress has given consumers virtual access to the production process of these industries that they have been traditionally kept away from primarily for liability concerns. This is particularly attractive to consumers, like myself, who have some experience in doing their own repairs and who like to see why it is more advantageous for a professional to perform the necessary service as well as understand the need for it. Providing this information can expedite the process and make the customer more willing to consider any additional work proposed. As technology becomes more integrated into cars, the age of the driveway mechanic is coming to an end and the consumers’ opinion of repair shops becomes a greater concern.

Aside from the generation of goodwill, the See Progress tools create a great opportunity for word-of-mouth marketing. In Dave’s example, not only is the customer viewing the progress on a job, but their acquaintances will also check in which increases the visibility of the particular business and can generate referral business. The services that See Progress provides can also be used as a tool for a marketing strategy to differentiate a business and promote its commitment to customer service.

Since Dave was a member of the auto service industry, he is in a position to see both sides of the process and has developed a technological solution to address some of the major issues. I hope that his growth continues to the point that this becomes a standard tool because of its obvious benefits to all stakeholders in the targeted industries. Perhaps the future will allow for See Progress to not only provide photographs but also dedicated web cams so that customers can log on at any time to see real-time progress.

Neil Gounaris

Sarah Butler on November 16, 2008 2:18 PM

While listening to Dave's interview, I could just feel the thought of a pure genius. I wondered why this has taken so long to be available. His point on educating the consumer is ingenious. I am an Interior Designer and have been taught my whole career that your sale is made through visuals and he has tapped into that niche 100% and in a very professional, ethical way. I know being a women that I do not have the education on cars and I have always respected my repair shop for taking me in and pointed out what it is that needs to be corrected. It has put me at ease knowing I am not being taken advantage of. By involving the consumer into the process it shows trust, makes a sale and is going to keep that customer a client for life. Dave's ideas have gone far past being a trade off of goods for profit but have taken it to a whole new level that connects the professional in a personal way.

Zachary Donofrio on November 17, 2008 9:53 PM

This interview involves technology entrepreneur Dave Henderson. When first viewing this interview I was intrigued on this new idea and I could see how it could be placed in so many different areas. I feel that this is a great idea that you can monitor the status of your vehicle and not need to be there in person. I have seen this application in the food industry. You can order a pizza online from dominos.com once the order is placed it will inform you on the status of your pizza for example: once your pizza is done receiving the requested toppings it will go into the oven and you can track all of this information on your computer. Through this you know that your order was placed successfully and about how long it will take for you to receive it. In this instance with automobiles you can actually see how long they have been working on your can and you no longer need to doubt the labor expenses on your bill because you can see it all for yourself without even needing to take a trip to the shop. People are continually innovating and trying to provide supreme customer service, this is the most important factor to the success of your business that your customers are indeed happy. I am curious and would like to ask Dave what other areas he plans to use this function in and what opportunities he sees for future growth from this idea. We live in a growing tech world and people are becoming more reliant on computers everyday this is why I see this idea growing with the future, and with this growth it may have additional tools customers can use to achieve added satisfaction.

Matthew North on March 31, 2009 9:47 AM

Dave's idea is really a great one. It is no wonder that it caught on. The idea to provide auto repair customers with the ability to keep tabs on their vehicle and its repairs is ingenious. I myself am always skeptical of whether I am getting what I pay for when I have my vehicle repaired, or if I am getting overcharged. I think the idea to present the service to auto insurers as well is a great one. I can't imagine why auto insurers wouldn't want to use this service. This would allow them to cut down on fraudsters by being able to see from their PC that a customer's car is actually being repaired. The benefit to auto repair companies is that by using the See Progress service they show the customer that they are committed to customer service excellence, and in doing so want to provide proof to the customer that their car is being repaired properly. Using the See Progress service is the only way to do that other than have the customer physically stand in the body shop and watch, which is simply not a feasible option. It seems to me that Dave really benefited from having a background in the auto service industry and the technology industry. He drew from his experience in both and merged the two together brilliantly.

Mary Lawson on November 23, 2009 5:13 PM

Dave Henderson’s ideas are very good ideas. I really liked how he has incorporated the same technology and applied to three somewhat different concepts. The first auto watch is great how it gives you the option to see what is really going on with your vehicle while it is in the shop over a long period of time. I feel like this really appeals to the customer to the auto shop because some people are always unsure of what is going with car during that time period. It lets the customer form some trust between themselves and the employees working on their car. New Home Watch is a nice idea especially for first time homeowners. Purchasing a home is a big deal for some people and this give them an inside look of every part of the building of their home. It definitely makes the future homeowner apart of the process and appreciate it much more. And at the end giving them the photo album that they can have forever and share with friends and family is also great. Lastly, Select Repairs is to me the one that is going to be most effective because many people I have question when a mechanic finds something else wrong than what they initially brought their vehicle in for in the first place. Having the technology to actually show them the problem on their car via photos on the web will give the customer less doubt that the auto shop is trying to cheat them of their money. The common idea I see in all the products is that customer satisfaction is the most important. When Dave Henderson came up with these ideas he was thinking of the customer and what would make things easy for them and for them to feel included in things that affect them. I think that is very important when creating a business or introducing a product, you need something that will appeal to the consumer and what they will benefit from and Henderson did that in all three. Thank you! Mary Lawson

Dani Shepherd on November 24, 2009 12:27 AM

I find the way that Dave's company uses the theory of a differentiation strategy. Not only does his company offer a unique product, but it helps the companies that it sells its product to differentiate themselves from the competition. I like the ideas behind his 2 existing businesses. As a stereotypical woman, I have no idea what a mechanic is talking about when they tell me that something on my car needs to be replaced. I usually make the mechanic take about 5-10 minutes to explain to me what the part is, what it's supposed to do, what it's supposed to look like, and what's wrong with mine. I suppose in this instance, a picture could be worth 1,000 words, and they could just tell me to log onto the site. That would save the mechanic valuable time and also make me more confident in knowing that I actually DO need to spend that money. I LOVE the idea of the New Home Watch. The way that Dave described it, watching it from the first time they break ground, it reminded me, strangely enough, of my pregnancy. When a woman is pregnant, every time that she sees an ultrasound, hears a heartbeat, or feels a kick, she falls more in love with her baby and gets more excited about the day the baby is born. This process would likely occur with the New Home Watch. Much like a mother shows friends and family an ultrasound picture, new home buyers could show their friends and family pictures of the house as it's built and really start feeling connected to it. Thanks to Dave for sharing your story of how you brought this business from conception to reality!

Search

Web 2.0 in Auto Body Repair and Home Building

Additional Links

3 TrackBacks

15 Comments

Leave a comment

From Our Readers

Subscribe by Email

Financing Innovation

Early Stage Innovation

Network Businesses

From the EMU Google Partnership

From our Bullpen

From the New Enterprise Forum

Links