To improve your processes and grow your revenue, you first need a clear picture of how your car dealership is performing. Because data never lies, dealers are adopting analytical tools and business intelligence platforms to gain a competitive advantage. This post will unpack what car dealer analytics are, how they benefit dealerships and what you should be tracking.
With a recent slump in auto sales, car dealerships are embracing data to cut costs and improve revenue.
Car dealer analytics reorganises business data into accurate and actionable dealership information. With easy access to the inner workings of your dealership, such as sales performance and revenue per vehicle, you’re better positioned to develop and achieve meaningful long-term goals.
Consider sales rep productivity. Who on your sales team sells the most cars? Who sells the least? Car dealer analytics offers a granular view of your sales team’s performance, which can then be used to inform training and boost revenue.
Imagine a Volkswagen dealership in Sydney that’s run by an owner named Sam. After looking at the numbers, Sam discovers that only 10% of her car-buying customers secure financing with her dealership. Armed with this information, she sets a goal to increase this number to 40% within two years. To get there, she sets sales-related KPIs for her finance teams.
With car dealer analytics, Sam can measure how successful her plan is. After a year, she might tweak the targets or offers depending on the results she’s getting. By tracking her progress, Sam removes the guesswork from her decision-making process — giving her a strong base to improve the performance of her finance team while increasing dealership profitability.
Many dealerships track and analyse their data using whiteboards and spreadsheets. But this is inefficient and increases the risk of error, as your data is spread over different files. It’s like having each of your puzzle pieces in separate filing cabinets. To construct a true picture, you need everything in one place.
You can gain far greater insights by using business intelligence tools that are designed for the automotive industry. A business intelligence tool like SalesLogs stores data for multiple departments in one place. This means all internal stakeholders have access to the same data, insights and visualisations. You can also control who has access to which data through multi-level permissions.
As analytics can maximise your profits by improving processes, every aspect of your business can benefit from dealer analytics. With so much to track, here are four of the most impactful ways that analytics can boost your revenue:
Car dealer analytics play a vital role in improving dealership efficiency and raising profits. Automotive business intelligence solutions, like SalesLogs, are ideal choices for running your dealership analytics.
SalesLogs has been developed with direct input from dealerships. Over 1,000 dealerships have used analytical tools to innovate how they do business.
Key features include:
Contact us for a free demo to see what SalesLogs can do for your business.