“We developed this online video check where the customer can book an interaction with a licensed technician from their local store via [webchat to] SMS. They undertake a very high level check on the vehicle through video, and determine whether it is essential for the customer to come into the store for a more thorough check,” explained Steve Grossrieder, CEO and executive director of Jax Tyres & Auto. 

The industry-first program combines the capabilities of Jax’s digital platform and the knowledge of store teams, and received a positive response when introduced to customers during Victoria’s lockdown. 

“We were first to market with a zero contact strategy by about two weeks, and then our competitors quickly followed,” Grossrieder told Inside Retail. 

“We saw an instant spike in our Net Promoter Score (NPS) which went up nearly two points by implementing this ahead of the market.” 

Customer demand

The remote video checks came about as a result of customer feedback in the Jax Tyres & Auto Road Safety Report 2021. One in ten Australian drivers (including 13 per cent of NSW drivers and 8 per cent of VIC drivers) said video and livestreaming calls with mechanical experts would be the most convenient way for them to maintain their vehicles.

“Customer centricity is at the heart of everything that Jax does,” Grossrieder said. “We have a customer journey map that we revisit every year with our customers, just to make sure that it’s still very relevant. We fine tune it and that becomes the centerpiece of all of our innovation, of how we actually pivot in these circumstances and develop new products.”

“Covid really taught us a lot. I think the biggest turning point for us was when we started to see consumer and customer behaviour changes; we leaned into Covid, we didn’t pull back.”

The video checks are just one element of Jax’s zero contact strategy, with the retailer also offering zero contact services in store as well as mobile services at select locations. The mobile offer allows mechanics to work on a vehicle at the customer’s home and receive payment over the phone, so no face-to-face interaction is required. 

“The mobile service is not new, but it is based on customer feedback in a Covid situation with a zero contact strategy. We’re piloting it in four states, Victoria, New South Wales, Queensland and South Australia.”

This zero contact strategy has allowed Jax to open up beyond its traditional hours, five and a half days a week, to be accessible 24/7.

“Even some of the franchisees after hours, when they’re locked down in their homes, they are manning their computer and through our SMS functionality, they are taking questions from customers,” Grossrieder said.

Jax is also thinking ahead to when it can fully reopen, offering a free in-store vehicle inspection and 10 per cent off post-lockdown services to customers who make pre-bookings, to help offset potential financial burdens experienced during lockdown.

Making changes under the franchise model

Implementing strategies like these is no easy feat for any business, but it is particularly challenging under a franchise model like Jax, where the majority of the network is franchised.

“As a franchise franchisor and a franchisee, we are both independent businesses, legally, so to operate and deliver a seamless service to the customer, we must partner operationally,” Grossrieder said.

Jax pulled together key staff from head office and linked up with all of its franchise network remotely to discuss the changes and establish a joint agreement, which Grossrieder said was critical to the program’s success.

“We’re all in it together. I know it’s a cliche, but it really is [the case] for a franchisor and their franchisees. If they’re not in it together, the actual operating model will break down.”