CarParts.com CEO Says Click-to-Delivery Experience Builds Customer Loyalty

In a year where used car prices looked more like new car prices, aftermarket auto parts retailers experienced unusually strong demand, as seen in presentations from several top names in the sector, most recently eCommerce site CarParts.com.

During its fourth quarter 2022 earnings call Tuesday (March 7) CarParts.com CEO David Meniane said, “We’ve built an incredible business centered around positive unit economics, repeat customers, and a laser focus on financial discipline” as he detailed innovations the aftermarket auto parts dealer put in place throughout the year.

Outlining three areas of focus for the site in 2022 that culminated in a record Q4, he started with customer service, saying, “Our customers are already seeing a more streamlined experience on the website as well as faster delivery times. Today, we’re closer to our customers, and our click-to-delivery times are better than ever.”

Driving home his point on loyalty, Meniane added, “These tangible improvements are part of the cultural shift that started in 2022 at CarParts.com in which every decision starts with the customer. As a reminder, repeat customers account for over one-third of our eCommerce revenues, and as we continue to improve our customer experience, over time we see an opportunity to build a long-term relationship with our customers.”

See also: AutoZone Same-Store Sales Rise 5.3% in Fiscal Q2 2023

He also spoke of operational excellence, at which point he officially welcomed longtime Amazon VP Michael Huffaker as the company’s new COO. Huffaker joined in December. Meniane said, “Michael shares both our cultural and business mindsets, and we look forward to him bringing his best-in-class processes to our vertically integrated supply chain and beyond.”

On the innovation front, CarParts.com introduced new services in 2022 designed to bridge the gap between online ease and offline needs. “The path to disrupting our industry is by removing the friction from a notoriously burdensome process,” Meniane said, adding, “Last year we launched a new do-it-for-me capability, Get It Installed, on our website, where customers in select markets can see installation pricing and book an appointment at a certified repair shop.”

He said bookings for the Get It Installed offering have doubled since the company’s November earnings release, and he said it would be building on that program.

Responding to an analyst’s question on the state of the auto parts consumer as it relates to the company’s performance, Meniane said, “In the back half of last year we obviously did capitalize on demand. The way to categorize consumers right now is that they’re being, I think, very discerning about how they spend money. They’re being cautious. We’re significantly cheaper than the competition, so as people look to save money versus a traditional brick-and-mortar, I think we’ll be able to capture customers there.”

Read: Advance Auto Parts Fights Headwinds to End Q4 on Slightly Better Footing

Huffaker noted the auto parts site expanded in 2022 to “over 1 million square feet of built-out distribution space strategically positioned close to our customer base, allowing us to cover 98% of the country with a two-day transit time.”

“As we gain market share we’re in a strong position to thrive and continue delivering profitable growth amid whatever changes the market brings us by leveraging our vertically integrated supply chain, proprietary catalog, and other advanced capabilities like data science.”

Read: O’Reilly Automotive Sees Sales Accelerate as Car Buying Slows

The CarParts.com Q4 story played out along similar lines for brick-and-mortar rivals, including AutoZone, Advance Auto Parts, and O’Reilly Automotive, all of which reported strong Q4 and full-year 2022 earnings as inflation-pressed consumers keep older cars running longer.