Both those who lead a team and those who are in charge of a company need navigation tools to know where they are and where they are going; Key Performance Indicators (KPIs) make up that set of tools that you cannot do without.
The Sales Department is one of the critical areas of the dealership and for that reason managers require indicators that monitor, regularly and rigorously, the health of their processes. Sales KPIs are the basis for focusing on the sales team, and for applying changes and strategies that contribute to achieving a main objective of the company: to increase sales.
Why is this indicator important? Unsold vehicles degrade in value over time and generate warehouse and insurance costs. The Sales Manager should start analyzing the Stock Aging report in order to detect which vehicles are not selling. With this information, they can apply vehicle promotion strategies, showroom restructuring, etc.
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- Vehicles from 1 to 30 days old
- Vehicles aged 31 to 60 days
- Vehicles aged 61 to 90 days
- Vehicles older than 90 days
How to improve this KPI? Autologica DMS has an Aging Report to actively control and act based on the amount of money immobilized in inventory. In addition, strategies can be implemented to improve processes:
- Optimize purchases
- Prioritize the sale of vehicles already purchased from the factory
- Accelerate registrations
- Streamline delivery of invoiced vehicles
- Offer special offers on older vehicles
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Why is this indicator important? OEMs define registration goals that dealers must achieve. This KPI tells you in what state the dealership is in relation to the their goal, and see the number of vehicles that are in pre-registration instances.
Calculate your KPI: Registrations * 100 / OEM goal
How to improve this KPI? You need a trained team, the right tools and an insightful sales manager.
Sales staff must record all the details of each contact in the CRM, which will then allow them to have key information (family composition, hobbies, job type, favorite brand, etc.) to offer the right vehicle to each customer. Using CRM reports, the manager will be able to analyze the performance of each sales stage and detect where sales are lost, and improve the sales process.
Aftermarket potential per unit sold
Why is this indicator important? It indicates the size of the secondary market generated by each new vehicle sold.
Calculate your KPI: New aftermarket and service revenue / Number of units sold
How to improve this KPI? Sales staff must be trained to detect opportunities to sell accessories and upgrades on each new vehicle; in addition, after-sales, the service department must exploit the after-sales potential of each vehicle. Autologica DMS has a report that shows the after-sales potential of each customer.
By measuring these KPIs, managers can make decisions to improve department profitability. Anything that can be measured can be improved… this premise must be reflected in the culture of the dealership, and can be achieved with the appropriate technology.
Autologica DMS helps you measure and improve the key dealership KPIs; request a demo today.