Dealerships of all kinds and sizes are undoubtedly familiar with metrics and dashboards. Whether it’s your CRM, DMS or sales platform, a good portion of your day is already spent on reviewing dealership performance reports and information. But is the data you’re reviewing relevant to the decisions you’re making every day? Is the right data being tracked in your systems to provide useful and actionable advice, or are you simply checking to see if a deal closed and moving on?
Marketers across every industry, including OEMs, are increasingly looking at metrics like loyalty rates to drive future success. However, all too often the only figures that dealership leaders and staff use in a dealership performance analysis are auto sales targets and conversion rates.
What if your dashboard didn’t just tell you where you’ve been and where you need to go? What if it helped you understand how to get there and where to start? In this post, we share four tips for taking your dealership reporting to the next level, including:
- Understanding your dealership’s sales
- Identifying service drive opportunities
- Maximizing your dealership’s existing customer portfolio
- Improving your staff’s individual performance
Understanding Your Dealership’s Sales
It’s easy for dealership leaders to get so focused on hitting sales targets that they fail to pay attention to other critical performance metrics that have a real impact on their bottom line. Your dealership is much more than just sales, so for the most comprehensive and useful reporting it’s critical to ensure your reporting dashboards integrate with data from your CRM, DMS and sales platform.
Integrating data from your dealership’s tools (as well as factors like cost accounting, labor cost, inventory, pricing and more) ensures your reporting isn’t artificially siloed into “sales and marketing” and “everything else,” providing more comprehensive insights and critical context when assessing your dealership’s performance.
Some examples of these comprehensive sales metrics include per-sale profit and marketing ROI, both of which get to the heart of making your dealership’s operations great not just at selling cars, but at doing so profitably. These metrics also demonstrate the value of integrating your DMS into your sales platform, as your dashboard will need data from both to generate these insights.
Identifying Service Drive Opportunities
These kinds of metrics are not just critical for measuring your dealership’s sales performance. As proactive dealerships increasingly look to their service drive to engage potential buyers and acquire in-demand trades, it’s critical dealers track how their service drive is contributing to their bottom line.
A reliably profitable and high-ROI service-not-sold conquest operation is crucial to running a profitable service drive in today’s automotive marketplace. Insight into those factors helps both sales and service leadership manage their operations accordingly. Ensure your dealership reporting tracks metrics like service-not-sold leads generated in your drive, as well as the profitability of these sales.
When assessing their process for working the service drive, it’s critical dealers analyze broader factors like the average size of repair orders, year-over-year sales and customer loyalty and service conquest marketing ROI to guide their approach with greater context.
Maximizing Your Dealership’s Existing Customer Portfolio
Amid evolving inventory challenges, dealerships around the country are increasingly finding value in taking a data-driven approach to maximizing their existing customer portfolio. The expanse of data and the reports generated by the advanced marketing tools allow your team to make countless decisions about keeping or wholesaling vehicles based on the wants and needs of your customers in real-time.
To build a more profitable pre-owned inventory, ensure your team is tracking localized trends and demands, including the makes and models that have sold consistently well over the last 30-90 days – and which vehicles have sat on your lot the longest.
This approach not only empowers dealers to make more profitable pre-owned acquisitions, it also enables dealers to maximize their most valuable asset: their loyalty customers. Mastermind data finds customers who serviced with a dealer were just over 2.5x more likely to purchase their subsequent vehicle from the same retailer.
Customers who remain loyal always yield the highest-profit sales, and keeping customers coming back for multiple vehicles and regular service means also ensuring they don’t end up as conquest customers for your rival. Ensure your car dealership’s reporting includes metrics related to retention, gross and net revenues to help identify opportunities to improve loyalty and project what even small improvements could mean to your bottom line.
Improving Sales Staff Individual Performance
Beyond assessing your team performance, it’s critical dealers report on and review individual salesperson numbers. Are they hitting their sales targets? Are they great at loyalty relationships but have challenges closing new customers? What’s working for them, and what isn’t?
Beyond just answering these questions, powerful reporting tools help you understand why salespeople are or are not hitting their sales targets and where there are opportunities for improvement and growth.
For example, one key feature Market EyeQ includes in the salesperson evaluation process is a user-by-user analysis of how each of your salespeople is using the data and analysis tools of Market EyeQ, including how well each is tracking to the Behavior Prediction Score®, whether on their own or compared to the rest of your sales team.
This enables you to both see how an employee is performing compared to their team, as well as whether they’re effectively using the auto dealer solutions you’ve invested in. When combined with reporting tools that break out Market EyeQ-driven sales and profitability, the result is a comprehensive set of insights that make you a more effective manager of your critical sales functions.
Making data-driven decisions inside the dealership requires more than tracking conversions and noting success in sales. Leveraging comprehensive reporting dashboards fueled by data from across your dealership and informed by best practices can take your dealership performance analysis past simply looking at what has already happened to a forward-looking view of what’s going to happen.
Interested in learning how Market EyeQ can strengthen the way you run your dealership and manage your team? Contact us for a free demonstration.