- 28 Jun 2024 Author: Doug Wyton
Despite growing inflation and threats of interest rate rises, the Australian auto market is thriving. High demand for both used and new cars is creating supply challenges for dealerships. In this competitive environment with typically thin profit margins, dealerships are increasingly turning to analytics and business intelligence tools to boost profitability.
1. Leverage Real-Time Data for Informed Decision-Making
Dealership managers frequently face tough decisions, such as whether to retain inventory at the risk of incurring additional losses or seize current sales opportunities. Easy access to real-time performance data and analytics is crucial for making profitable decisions. Traditionally, performance data was scattered across departmental spreadsheets, often outdated by the time it was consolidated.
A centralised dealership intelligence solution provides a single view of performance and profit, equipping managers with the knowledge needed to drive profitability. For teams, real-time data helps in stocking inventory, understanding which models to prioritise, and promoting lucrative aftermarket deals.
2. Expand Your Reach with Effective KPI Tracking
Are you aware of how each department and individual in your dealership is performing? Tracking tools measure your teams against Key Performance Indicators (KPIs), providing clear insights into their contributions to overall dealership profitability.
KPI tracking is not about policing staff but unlocking their potential. Establish baseline performance targets, and when these targets are not met, pinpoint issues such as workflow problems or sales funnel inefficiencies. Once processes are optimised and KPIs are consistently exceeded, set higher targets and develop strategies to achieve them.
Stay Competitive With Automotive Business Intelligence
3. Optimize and Monitor Your Deal Pipeline
Your deal pipeline, encompassing sales, financing, and aftermarket purchases, includes various revenue streams. Digital tools like SalesLogs provide visibility into this process, helping teams optimise each step. Close monitoring of dealership pipelines allows you to enhance efficiency and improve profit margins.
Monitoring your pipeline reduces poor interdepartmental communication, a common challenge for dealerships. Sharing pipeline updates among departments eliminates guesswork and surprises, ensuring everyone is informed about changes in car models or delivery times.
Maximise Profits with Dealership Intelligence
By implementing the right dealership intelligence tools, you can make informed decisions, achieve more targets, and enhance overall efficiency, leading to increased profit margins.
Once you've decided to invest in dealership intelligence, the next step is to research your options. Fortunately, many companies have built software tailored to address dealership challenges.
At SalesLogs, we've helped drive efficiency and productivity for over 1,500 dealerships. You can hear from some of our customers here.
SalesLogs features include:
- KPI dashboards
- Streamlined communication across all departments
- Dealership pipeline monitoring
- DataGrid — SalesLogs' easy-to-learn data capture tool
- Business intelligence that tracks your dealership's live financial performance
The most effective way to discover how SalesLogs can enhance your dealership is to speak to a consultant and book a demo. To get started, click the button below.
