360insights Research Uncovers Auto Aftermarket's Digital Divide: Shops Dominate Market Share While Channel Programs Lag Behind

Landmark Study Reveals Channel Programs Missing Mark with Critical Independent Shop Sector

NEW ORLEANS--(BUSINESS WIRE)--A comprehensive new study from 360insights, a leader in channel incentive management solutions, reveals a critical disconnect between automotive manufacturers' channel programs and their dealer networks, despite dealers overwhelmingly believing in these programs' potential for business success.

The comprehensive study surveyed over 200 leaders in the auto and auto aftermarket, including dealers, owners, and technicians across the U.S., reveals a stark disconnect: while 82% of dealers say loyalty programs are effective for achieving business goals, nearly half report limited impact on their business performance, primarily due to program complexity and lack of awareness.

"This research uncovers a fundamental misalignment between program design and real-world implementation," said Jason Atkins, founder & CEO at 360insights. "The data shows that dealers believe in these programs' potential, but complexity and poor communication are creating unnecessary barriers to participation."

Manufacturers Missing Major Opportunities

The research exposes a critical paradox in the automotive aftermarket: while independent shops dominate the industry—controlling 66% of the consumer tire retail market and leading consumer preference—they're largely disengaged from manufacturer support programs due to the following three key areas where they currently fall short:

• Program Simplicity Emerges as Key to Success: The study reveals that program ease of use (50%) and understanding (57%) are the two most influential factors in program participation. Yet, 42% of dealers cite lack of awareness as a top challenge, while program complexity continues to hinder engagement.
• Talent Retention and Training Gap: A striking 75% of dealers identify retaining top talent as a major challenge, yet only 31% of participants are currently enrolled in a training program. This disconnect presents a significant opportunity for manufacturers to support their dealer networks through enhanced training initiatives.
• Shifting Consumer Expectations Drive Change: Shifting consumer expectations are reshaping dealer operations through three key trends: enhanced customer experience requirements, accelerating online sales, and retail consolidation. These changes are forcing dealers to adapt while highlighting the need for stronger manufacturer support.

"The automotive aftermarket is at a critical inflection point," added Adam Zickert, Automotive Channel Consultant. "Manufacturers who can simplify their programs while addressing dealers' core needs around talent development and digital transformation will gain significant competitive advantage."

Critical Market Shifts Driving Industry Evolution

The research identifies the following major forces reshaping the aftermarket landscape:

• Profit Pressure Intensifies: Shop owners report their top challenges as profit growth (53%), customer satisfaction (47%), and customer retention (35%). However, current manufacturer programs focus primarily on volume metrics rather than profitability support.
• Skills Gap Threatens Growth: 60% of shops cite "finding and retaining skilled labor" as their primary organizational challenge, yet only 24% of manufacturer programs offer comprehensive technical training support.

Strategic Imperative for Manufacturers

Clear actions manufacturers can take to improve program effectiveness include simplifying program design and implementation while investing in comprehensive training programs. Additionally, manufacturers should focus on automating administrative processes and supporting digital transformation initiatives. Perhaps most critically, improving program communication and awareness will be essential for driving engagement and ensuring long-term success.

"Manufacturers who move quickly to modernize their channel programs will capture disproportionate market share," added Atkins. "The winners in this market will be those who help independent shops bridge the digital divide while simplifying program engagement through mobile-first training, streamlined 30-day promotions, and aspirational rewards that drive long-term loyalty."

360insights is a global leader in channel incentive management for the automotive industry, powering programs for leading automotive organizations across the globe. The company processes billions of dollars in incentives annually, orchestrating channel ecosystem needs across tires, parts, and aftermarket. With repair shops, dealers, and service centers on its platform, 360insights stands alone in its ability to seamlessly integrate SPIFF programs, consumer rebates, volume incentives, and training rewards while reducing program administration costs.

About 360insights

360insights is the leading channel engagement and business optimization company that enables brands to better influence, manage, and engage with their complex channel ecosystems. The company offers a suite of channel solutions including a SaaS-based platform that empowers brands to fully orchestrate their complex partner networks, while also delivering a powerful Incentive Automation solution for consumer rebates, SPIFFs, volume incentives, MDF/Co-Op, sales allowances and points programs. Combining incentive management, channel marketing services, and ecosystem orchestration with a powerful data analytics engine, 360insights serves more than 400 enterprise organizations globally, across multiple industries, helping them boost their indirect business. With the launch of 360insights | Elevate, the company continues to expand its channel marketing services through enhanced capabilities, offering a full spectrum of expert services that drive results and elevate business performance. Learn more at 360insights.com.

For more detailed inquiries about 360insights | Elevate and its services, please talk to us here.