At the Collision Industry Conference in Chicago last week, State Farm unveiled a new performance tool that was described as similar to a credit score to help Select Service Shops manage their performance.
The tool is actually a number from 0 to 1,000 that State Farm uses a proprietary process to determine based on examining all of a shop’s Key Performance Indicators (KPIs). George Avery, a claims consultant with State Farm who made the announcement, used the example of a score of 550 that would put a shop in the 25th percentile of all Select Service shops.
According to Avery, State Farm took into consideration the types of vehicles a shop repairs to arrive at the scores. As of last Monday, all Select Service shops were to have received a report on their scores.
In addition to receiving a number, shops also learn the top three factors that kept the score down so that they can improve those areas. Scores will be available on a monthly basis.
Avery emphasized that this was not a signal that State Farm will once again reduce the number of Select Service shops, even though the insurer is still overcapacity in some areas.
“This is just another step State Farm has taken to look across the board and help shops self-manage themselves,” Avery said.
