State Farm to Adapt O&A Program, Effective October 12
September 15, 2011
State Farm will be adapting its Offer & Acceptance (O&A) program to create two levels of O&A participant status, effective October 12. There will remain a basic O&A level participant status, and a "Select O&A" participant status will be added.
State Farm's Melissa Kern, team manager for glass claims service, announced the change today in Memphis, Tenn., as part of Auto Glass Week.
There will be three requirements for O&A participants to be considered to quality for "Select" status:
- time in the program (a minimum of 365 days);
- minimum claim volume (60 claims per three-year period); and
- electronic invoicing.
"Once you have those three pieces, you can be reviewed for 'Select' status," said Kern.
Beyond that, those shops that meet certain key performance indicators (KPI) based on quality, efficiency and competitive pricing will attain Select status.
Select O&A participants then will differ in a couple of ways from other O&A providers.
"If a customer doesn't have a pre-determined shop choice, Select O&A providers will be offered," said Kern.
In addition, "only Select O&A participants will be permitted to make customized offers," said Kern.
Select O&A participants will be re-reviewed on a continuous, quarterly basis.
All current O&A participants will need to "re-certify [i.e., sign the new O&A agreement] by October 11 to remain an O&A participant," said Kern.
"If you don't re-sign up, the clock starts again," for the one-year minimum participation required to be considered for Select status, she added.
Kern offered the following advice for current and future O&A participants.
"They need to read the O&A agreement--this is a contract, and not something that should just be signed without reading," she said.
Also, providing correct, current information to LYNX Services, which handles State Farm's glass claims program, is key.
"It's crucial that participants update their email addresses in the Metryx system--that is how we communicate with shops," she said.
In addition to these changes, State Farm also is moving to an hourly labor rate and will be updating its material pricing. Specifics on those are expected to be available in the coming weeks.
While there has been much anticipation among industry shops about the changes, Kern pointed out that changes have been rare at State Farm in the glass claims program.
"State Farm has not made any changes to its O&A Program in six years," she said.
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