Here at Crosscheck we’ve been working closely with the automotive industry for 35 years and are proud to announce the release of our free guide called - How to Increase Parts Sales at Auto Dealerships. Below, find a brief overview of key points. Click through for the full guide.
Dealer Management Systems (DRM)
Dealer management systems provide a framework for controlling the functionality behind parts sales and the means to analyze every manner in which parts sales influence dealership revenue.
More specifically, DMS platforms include suites where changes affecting parts sales can be implemented: accounting, service, sales, F & I, CRM (customer relationship manager), marketing, advertising, social media, ecommerce and web content management. For example, the accounting suite can provide the reports and key performance indicators (KPIs) enabling informed decisions about parts purchasing, pricing and inventory; CRMs can identify potential parts buyers among hundreds of existing service department customers; and web content management can reach thousands of new parts customers worldwide.
DMS platforms also include suites that don’t directly impact parts revenue: human resources and payroll, contracts and forms, auditing and tax returns, vehicle inventory and registration, lender management, warranty claims, reference sources such as Kelly Blue Book and much more.
Customer Relationship Managers (CRM)
Customer relationship management programs (aka CRM or customer relationship managers) organize and optimize contact lists and interactions with business-to-consumer (B2C) and business-to-business (B2B) customers. Salesforce and Zoho are among the leading stand-alone programs, but CRM suites are major components in most DMS platforms.
At the hands of creative individuals, CRMs offer unlimited potential for in-creasing parts sales at auto dealerships. Consider this scenario: a dealership receives a memo from the manufacturer that it will be producing a new accessory to augment existing luggage racks on luxury SUVs. Knowing that his/her dealership has customers owning those same luggage racks, a parts department manager searches the CRM for individuals who purchased the racks in the past 24 months. Those customers are now the target market for this focused marketing campaign.
In a perfect world, someone who understands direct marketing pens a short pitch to introduce the item — and depending on the capabilities and automation of the DMS’ communications suite — a postcard, text message, or email containing an image of the accessory, or an automated voice mail message, is sent to each person in the target market. Some dealerships may send all four!
Merchandising and Key Performance Indicators (KPI)
CRM are also loaded with financial and inventory management capabilities that can be used to boost parts sales at auto dealerships.
Whether they are stock or customized calculations, a variety of reports and key performance indicators (KPI) can be generated to provide insight into parts department profitability: slow-moving inventory, obsolete parts, turnover rates, supply days, fill rate, fixed expenses as a percentage of total gross profit, purchase performance, gross profit margins (by department or individual), sales mix, monthly sales
(by department or individual), sales per salary, internal versus external sales, sales revenue per square foot of retail space, and so on. They can also be tracked by time period (day, month, quarter, year), period to period (month-to-month, etc) or by industry standards.
Parts department managers can expect help from the executive team, business office or accounting department in this instance. Those individuals can explain the significance of KPIs in terms of stocking strategies, pricing and promotions.
Get our full guide below:
Our full guide covers not only DRM, CRM, and KPI's in-depth, but also online sales, framework, merchandising, customer service, and CrossCheck’s Multiple Check and Remote Deposit Capture (RDC) services.
Click on the graphic below for the full guide!