Why Is KPI Reporting For Car Dealers Important?

Cut down on costs, see your ROI sooner rather than later, and build a more efficient business with improved KPI reporting for car dealers. Every business needs accurate analytics and effective data-driven solutions to troubleshoot issues in every aspect of their operations.

Automated Metrics has devised a powerful and highly practical tool that can save car dealerships both time and money while helping them achieve their business goals. By automating KPI reporting, businesses will not only be able to cut down on administrative costs; they will also be able to easily track and monitor KPIs on a daily basis.

Surviving A Crisis

Many businesses in the car dealership industry have been hit hard by the COVID-19 pandemic and are either being forced to close down or struggling to stay afloat. While it’s now critical to cut down on costs and improve efficiency, it is also a good time to re-evaluate certain practices and make some changes that will help your dealership survive and thrive over the longer term.

Automating tasks

Entering data into a system, analysing the resulting mass of raw data, and distributing the results to teams can take a significant amount of time, manpower, and financial resources. By using new systems and tools to automate many of these tasks, dealerships will be able to dedicate their time to other tasks, which in turn will boost efficiency and productivity.

Streamlining paperwork

KPI reporting can take vast amounts of time and manpower when done manually, and having to rush these tasks due to pressures on time can lead to inaccurate and ineffective solutions. By automating paperwork and making reporting simpler, dealerships can improve their processes and even relieve their workforce of some of the more frustrating and demanding tasks that currently need to be carried out.

Investing in new tools

Dealerships can now invest in a new tool that will help improve efficiency and maximise time. With Automated Metrics, dealerships will be able to monitor cash flow, identify issues and solutions, and keep track of performance in a timely manner. Businesses will be able to boost sales and streamline their operations with just a small monthly investment in this powerful new tool.

Making The Most Out Of A Downturn

Understandably, many businesses are doing all they can at the moment just to tread water. However, it’s still possible to thrive during an economic downturn – if you play your cards right, that is.

It takes hard work and some serious strategising to not only weather the storm, but to grow through it as well. Eventually, downturns turn into upturns, and there is an opportunity for dealerships to come out better than ever in the end.

Automating data and KPI reporting for car dealer management teams can be beneficial in the following ways:

Evaluating current practices

Every business or organisation has established ways of doing things, and often, these practices continue because they work. However, situations can change, and sometimes, even long-held procedures have to change to accommodate them. Automating data can help assess whether current practices are still as effective as they used to be, and can contribute towards building new strategies when necessary.

Growth hacking

With the help of KPI reporting, you can try experimenting with different strategies that could help your business grow, even during a global crisis. Having access to live data will assist business owners and their employees in coming up with new strategies that won’t cost the business too much money. The same live data can show in real-time whether or not these strategies are working.

Optimising resources

With growth comes the need for more resources, especially equipment and manpower. However, now more than ever, it’s important not to let anything go to waste, and every resource needs to be fully utilised. Automated data can give you a clear view of which assets are not being used to their full extent and which ones are giving the most value. This kind of analysis can apply to various types of resource, from office space up to and including employees.

Exceeding Your Goals

The use of KPI reporting for dealer management teams isn’t necessarily a new thing, but the tools and platforms that can make it easier are certainly worth exploring.

You’ll find they are a small expense in exchange for huge rewards that can turn a global economic downturn into an opportunity for growth. Don’t just aim to survive this crisis – aim to grow through it.

The best way to start dealing with any issue is to get a clear and accurate view of what your current situation or position is. We can help you build realistic strategies for your dealership by helping you identify current problems and their solutions.

With Automated Metrics, growth is definitely possible. For a low-cost monthly subscription, you’ll be able to improve your cash flow and ensure your business flourishes despite any economic downturn. You can also opt for a 30-day trial, completely free. Additionally, there is a live demo of the platform that you can show to the rest of your team to get everyone on the same page.

Set up a consultation and a live demo by calling us on 02890 538252. You can also reach us via email at info@automatedmetrics.io.

Frequently Asked Questions

What is KPI in automobile dealerships?

Key performance indicators (KPIs) in general refer to specific values that can demonstrate how well a business is performing and achieving its goals during a set time. For example, car dealers can calculate certain KPIs by dividing aftersales profits by costs and expenses. If sales are low but the calculated ratio is over 80%, then the dealership has a better chance of staying afloat

What are key performance indicators (KPIs) for maintenance?

Every dealership should have maintenance goals that are based on realistic but high expectations. KPIs for maintenance take certain factors into account:

Employee performance
The performance of a team, department, or project
The performance of the company as a whole
How well every goal is achieved

Additionally, KPIs can also help identify things that a business can do in terms of achieving its goals and improving daily vehicle sales services.

How do I prepare a KPI report?

Dealer management KPI reporting is essential to give the leaders and employees of a dealership a better idea of how the business is progressing in terms of meeting its goals. Therefore, when writing a KPI report, it’s important to first define what these goals are, then identify the KPIs that will help evaluate the progress so far.

Make sure that the KPIs are realistic, practical, and rational. Also, keep monitoring the relevance of your KPIs as they’re likely to need changing as the needs of the business change. It’s important to make sure your KPI reporting for dealer management keeps up with the times.

How much do car dealers really pay for cars?

Generally, car dealerships make surprisingly little money from selling new cars. Many new vehicles are sold at what’s called invoice price – the price the dealer paid the manufacturer for it – and there is little to no profit on the car itself. Dealers usually do benefit from ‘dealer holdbacks’, a commission of around 1% or 2% on the car’s invoice price from the manufacturer.

They may also receive one-off bonuses, or ‘dealer cash’, when they sell off older models. But because the car market is so competitive, your local dealer is probably making very little money from the sale of the new car itself.

Why do we have car dealerships?

A lot of manufacturers sell their cars through dealerships so they’ll have a wider reach. Maintaining a dealership is a huge undertaking and can be quite expensive. It therefore makes sense for manufacturers to “outsource” the actual sales of their cars to dealerships.

What is a good KPI?

One example of a good KPI is an automobile daily sales indicator. A good KPI is one that positively affects the future of the business when achieved. Of course, KPIs should be directly related to the goals they help evaluate. More importantly, a good KPI has to be both measurable and quantifiable, which makes it easier to evaluate performance against goals, as you have hard data to inform your conclusions.

What is a KPI report?

KPI reporting for dealership management shows how a business is doing according to certain parameters, such as profits and losses.

Businesses use platforms like the CDK Autoline KPI reporting tool, though other software can be more efficient for car dealerships.

What is a good KPI?

KPIs At A New Car Dealership

If you’ve recently opened a new car dealership, there are a huge number of factors you need to keep an eye on so you can stay on top of things. However, here are some KPIs that you need to watch closely:

Closely monitoring these KPIs can help new dealerships ensure that they turn a profit each year. KPI reporting tools are daily vehicle sales improvement services that can help you increase margins annually.

Being a sales manager can be difficult at times, especially in terms of getting a good grasp of what’s actually going on in the field or on the floor. However, with the use of good KPIs, managers can gain a better and clearer insight into how their teams are doing.

Here are some KPIs that sales managers can focus on:

Team performance determines which team members are consistently performing, how often they reach their quotas, and so on.

Conversion rates determine how many potential clients actually turn into customers.

Sales volume shows which locations have higher sales margins and why. This can also serve as a daily vehicle sales indicator.

Average retail price can show how your prices compare with those of your competitors.

Client rapport can help determine how often your team is able to help out clients, and how often these clients approach you for help.

Employee satisfaction isn’t easy to quantify, but you can ask employees to rate their own job satisfaction. You can then compare the actual results to the ones you were hoping to get. Generally speaking, the more satisfied employees are, the better their daily vehicle sales performance.

Types Of KPI

Profit KPIs and financial KPIs can help give a clearer view of how a business is doing in terms of revenue, losses, and expenses.

Some dealers use KPI reporting for CDK Autoline to keep track of these KPIs, but there are other tools that may be more appropriate to your own dealership to keep track of its growth.

Important KPIs to Consider For Dealership Success

There are a lot of KPIs that it’s important to keep track of, but here are a few others that you may like to consider adding to your reporting schedule, to see whether they have a positive effect on your business’s performance:

Online presence

How active are your business’s social media pages? How often do you answer customer queries online? How positive are your online interactions with customers and how much negative feedback do you get?

Repeat customers

While it’s always good to get new customers, repeat customers are also an indicator of good service. You can also use the percentage of repeat customers to determine the positives and negatives in your business operations.

Referrals

Word of mouth referrals are often overlooked and not given much attention, but they are also an indication that your business is providing good service.

Employee efficiency

Compare the cost of your employees with your business’s gross revenue, and you’ll have a better idea of how well you’re maximising your employees’ time.

There is a wide variety of KPIs that you can use to measure how well your business is doing. With Automated Metrics, you’ll be able to improve automotive dealership KPI reporting, and thus, streamline your dealership’s operations.