Telematics is going to kill the aftermarket!

(spoiler alert: the opposite is true)

The Uncertainty:

People fall into a three categories regarding telematics:

  • Uninformed
  • Learning
  • Embracing

The shame is more people are likely in the Uninformed category. They are fearful that the automotive OEMs are going to push them out of business in the next few years. They believe that their automotive service businesses (examples are suppliers, service providers, marketers, etc.) are in danger. I have felt that same angst before, not knowing the future. Uncertain events that are going to effect me, cause concern for me.

The Problem:

People seem to always fear the worst. So let's set the scenario straight. It is early stages in the life cycle of the Telematics market. However, spend a few moments looking at the market, data and projections. You will begin to see that almost all parties (providers, suppliers and even the vehicle owners)  will DEFINITELY gain from the adoption of Telematics.

Below is a graphic for you on what the Telematics market looks like from the numbers. 


Here two key things to note:

20+ years - even with rapid adoption is the time to replace all the vehicles
11.6 - average age of vehicles are high (and potentially rising).

Take home message:

Auto Care is not going anywhere in the near term. For all the auto care service facilities and their suppliers, good news, you have 20+ years of runway before things as you know it have REALLY changed because of Telematics alone. Things will stay the same. However, therein lies an opportunity to embrace a change to your benefit. The smart folks are already embracing or figuring out how to set themselves apart using the coming change. You ought to consider it to. I'd be happy to suggest ideas.


So the next step is thinking about how to use Telematics to your advantage. Here are a few ideas to get you started:


Vinay Raman is the co-founder and CEO of CAARMO.

CAARMO is a global Loyalty Telematics provider to auto care service providers. We believe improving visibility and connection between the service proivder and the customer is critical to improving the auto care industry.

Click below to get info about Loyalty Telematics:

Telematics is Easier than you think

The Hype:

There is lots of buzz around telematics, but very few people who understand how to use it. The Auto Care Association ( has a task force dedicated to watching it.

Roger C. Lanctot, a clear leader in the automotive industry, has a number of posts that will tell you where things are heading. BTW, his posts are good reads. All of them.

The key is vehicle owners, fleets and consumers, and the value you can build for them. In an age of prolific Internet-connected technologies, the answer is quite simple: connection with your customers. Telematics is a Loyalty solution.

Better than you expected:

In the automotive aftermarket, many talk about loyalty as one of the biggest challenges. The idea of using telematics for loyalty is not novel. The approach however, in how you tie telematics to loyalty, is novel. In that regard, I think telematics is probably better than you ever expected for multiple reasons:

  1. You (auto care and service facilities) can provide telematics to your customers for close to $0. (yep, you read that right) The ROI you can get from a well-implemented telematics system is staggering.
  2. Your customers already want it. You just need to package telematics in a way they desire it.
  3. Your revenue will increase and your costs will decrease.

So, where are you in your telematics journey? I hope you are asking that question about now.

These are interesting times for sure. It happens that there is a lot of government regulation (in the US and across the globe) evolving around the larger connected car markets and ultimately telematics. There is much unfolding in the industry. 

I'd love your thoughts.

Vinay Raman is the co-founder and CEO of CAARMO.  Find more details about CAARMO  Loyalty Telematics: here

The Shop of Tomorrow - Ratchet+Wrench - June 2015

The Shop of Tomorrow addresses the bigger vehicle ownership experience.

The shop is but just one part of the vehicle ownership experience. Auto manufacturers have done an excellent job building their brands around lifestyle. People choose Hondas and Toyotas for practicality and reliability. People choose Fords and Chevy because of their patriotism and belief in American engineering excellence. Whatever your motivation, there is an emotional draw. However, this emotional experience applies to both consumers and fleets. There was a choice made, likely based on some numbers but also a gut feel that says: This Ford 1/2 ton is stronger than any Chevy. That may or may not be true, but the next step for auto repair shops, the Shop of Tomorrow, is to capture the heart of vehicle owners thru a customized Vehicle Repair Experience.

The question is how does a local shop, a dealership, or a franchise capture the hearts of their customers? The easy answer is loyalty. That's a tall order, as anyone in the repair business will tell you. It takes work, a shift in culture and a relentless pursuit of serving the customers best interests.

So how do you build loyalty and a better repair experience? 

The answer is through: convenience, trust, transparency and education. All of a sudden, this is becoming not just a tall order, but somewhat impossible; unless you incorporate technology into your business. Automated methods of relevant communication (there is a key word in that sentence) can take you from being just a shop sending out a newsletter to a shop that is a trusted consultant. Let's take a deeper look, in backwards order (there is a reason why):



When you educate your customers, you build an informed customer. They ask better questions and you reduce the level of anxiety they have when making a decision. When you go and buy a computer or TV online, that little compare button allows you to educate yourself as to the specifications of each model. Your education has allowed you to make an informed and confident choice.

Educate your customers and it facilitates their making a decision.


Show them what you are doing. When you first started turning wrenches, let's say you were watching your father change the oil on the family station wagon. You didn't know where to start, what to touch or how to start. Your dad said..."use the 5/8ths inch wrench over there, and put it around this bolt here. That will allow you to open up the oil plug". In those two sentences, he has told you why, how and the result. I bet you turned that wrench a moment later (hopefully without oil all over the driveway). The point is that simple explanation built an immediate rapport between you and your father. It was transparent.

Transparency is the key to building a truthful dialogue



Defined trust basically means someone believes what you are telling them and any future statements you make to them. If your dad told you just before you loosened that oil plug, "Watch how fast you unscrew that nut, or it will spill on you". He just told you the future. You happened to unscrew it too fast and he was right. He educated you, he told you how and why to do something and told you what would happen next. Did you trust him next time? Yes. Building trust in a shop is about making statements that show you can either anticipate their future need or predict what will likely happen next. Wait that's exactly what most every customer comes to you for in the first place.

Trust can be built by showing customers that you know what you are talking about


Make it easy for them to get your advice. Providing smartphone apps, text messages and customized emails makes it easy for them to get your advice. Tell them when to schedule their next appointment and what will happen and why. They don't have to take the time to schedule a time, you have done it for them. Would you ever go to the dentist if they didn't? Probably not. Most people I know don't look forward to that visit. Take the work out of being our customer. Make it an easy experience. How many times have you walked in to a store, found what you wanted and checked out inside of 2 minutes? Now THAT would be convenient. Do the same for your customers. Make sure they get information about service orders and repairs in an easy way.

Convenience is all about easy. If they have to think about how to get your number, it is not convenient. technology can help solve that.

Use technology for a win-win relationship

So the crux of this article is how to build a better vehicle ownership experience. Your customers can enjoy a better vehicle ownership experience thru the automation of your education, transparency and trust building. You just have to make it convenient.

CAARMO, Inc. is the leading Service Center solution for building convenience, trust, transparency through education. From our location in Washington, DC, we are building a network of the best shops across America and the world for a better vehicle ownership experience.


Written By:

Vinay Raman

June 9th, 2015