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3 Strategies to Boost Profitability With Dealership Intelligence

3 Strategies to Boost Profitability With Dealership Intelligence

While we’ve seen a global slump in auto sales, the Australian auto market is bucking the trend — in fact, Australian demand is so high, that both used and new car dealerships are facing supply issues

Whether current demand for cars is high or low, most dealerships operate in a competitive landscape where thin profit margins are the norm. Like many industries, dealerships are embracing analytics and business intelligence tools to improve profitability. 

In this blog post, we unpack three top dealership intelligence strategies for boosting profit and thriving, no matter the state of the market. Let’s dive in. 

1. Use data to empower real-time decision-making

Dealership managers often have to weigh up difficult decisions. When demand is low, a manager might ask themselves, “is it worth keeping this inventory and incurring additional losses?” Or, “what do I lose by passing up the opportunity to sell today?”

To make lucrative decisions, dealers need easy access to real-time performance data and analytics that accurately forecasts profit. Traditionally, getting dealership performance requires pulling together data that’s scattered across departmental spreadsheets. And by that time, it might not reflect recent pipeline changes.

The right dealership intelligence solution centralises your data, creating a single view of performance and profit. From there, you’ll be armed with the knowledge needed to drive profit.

Easy access to real-time data has similar benefits for your teams. When stocking inventory, for example, your aggregated data will help you know which models to stock and which aftermarket deals to promote.

2. Reach more tagets with KPI tracking

Do you know how every department and individual in your dealership is performing? Tracking tools can measure your teams against Key Performance Indicators (KPI), giving you a clear idea of how they contribute to dealership profitability.

But KPI tracking isn’t about policing your staff. Rather, it’s about finding ways to unlock their potential. The first step is to establish baseline performance targets. When staff fail to meet their targets, then you’re given direction to pinpoint dealership issues. 

For example, you might have a workflow issue or a problem with your sales funnel that can be quickly fixed. Or there might be a deeper issue that will require effort to overcome. Without KPI tracking, these issues might have gone unrecognised, impacting profitability.  

Once you optimise your process and staff begin exceeding their KPIs, then you should consider setting higher targets — at this point, it’s important to build concrete strategies that help you meet new targets.    

Stay Competitive With Automotive Business Intelligence

3. Streamline and monitor your deal pipeline

From sales and financing to aftermarket purchases, your deal pipeline involves multiple revenue streams. Digital tools like SalesLogs can give your teams sightlines on this process, helping them optimise each step of the way. With the ability to closely monitor dealership pipelines, you can focus on building efficiency and improving profit margins. 

Importantly, monitoring your pipeline reduces a common dealership challenge — poor interdepartmental communication. As pipeline updates can be shared among departments, this eliminates guesswork and surprises. So no one will be surprised if car models or delivery times are changed. 

Boosting profit with dealership intelligence

With the right dealership intelligence tools, you can empower your decision-making, hit more targets and increase dealership efficiency. The result? 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 that is tailored to address dealership challenges.

At SalesLogs, we’ve helped drive profits for over 1,000 dealerships. Read our testimonials here.  

SalesLogs features include: 

  • KPI dashboards 
  • Dealership pipeline monitoring 
  • DataGrid — SalesLogs’ easy to learn data capture tool
  • Business intelligence that tracks your dealerships financial performance

But the best way to see how SalesLogs can boost your profits is to speak to a consultant and book a demo. To get started, click the button below.

BOOK A DEMO TODAY

 

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