Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Josh Blick

Josh Blick Dir, Implementation & Learning

Exclusive Blog Posts

How Local Influencers Can Boost Your Business

How Local Influencers Can Boost Your Business

‘Live On Location’ radio shows are still a staple in Saturday morning car sales. It’s been an effective way of capturing an audience&…

Fast vs First to Market

Fast vs First to Market

In a business where speed wins, first steps can lose.   Reasoning being—the distinct possibility—like is the case in any race&mdas…

Powerful Sales Questions to Ask and Sell More Cars

Powerful Sales Questions to Ask and Sell More Cars

  Using powerful questions in sales is one of the best ways to build rapport while gathering important information about your customer. …

Ways in Which Automotive Dealer Management System Helps Boost Profits and Minimize Expenses

Ways in Which Automotive Dealer Management System Helps Boost Profits and Minimize Expenses

Although most of the industries of today are transforming digitally, some skeptics do exist when it comes to investing in an automotive dealership manageme…

The secret of effective Japanese human resource management

The secret of effective Japanese human resource management

Human resource management is critical to the success of your business. And it seems that Japanese businesses understand the importance of this most. Be…

3 Ways Business Intelligence Delivers ROI

Is data your best friend or your worst enemy?

Why do I ask? Well, if you work in a dealership, chances are good that you either review or are responsible for creating reports on a regular basis. For principals and managers, reports reveal important information such as how many units your dealership has sold this month, how many customer-pay ROs you've completed, or whether you're on track to hit quarterly revenue goals.

But knowing these numbers doesn't necessarily lead to improved operations or more revenue. Are you leveraging your business intelligence to increase ROI for your dealership?

In auto dealerships, business intelligence is defined as the analysis of data gathered from reporting applications, and the subsequent application of that knowledge to improve best practices and make better decisions.

Here are three ways that accurate business intelligence can deliver immediate ROI to your dealership:

1) Process Improvement

Business intelligence has proved time and time again, with many different dealerships, that when processes are followed you make money. Not only that, but the more adherence there is to established processes, the more money you will make.

If your Key Performance Indicators (KPIs) are set up correctly and your data shows that certain departments or individuals are not operating within those KPIs, then you know your processes are not being followed. It's as simple as that.

The nice thing about using KPIs as a process-checker is that you'll know beforehand if revenue goals are in trouble. So instead of having to go to your sales director and ask why your sales team had such a terrible month last month, you'll be able to approach them proactively. Halfway through the month you can say "these salespeople are not making enough phone calls," which gives the team time to correct their actions and play catch up so you don't get a nasty surprise at the end of the month.

2) Transparency

I’m sure that just about all of you have had a department manager and a GM look at the same numbers and come up with different projections, it’s a pretty common occurrence in dealerships. That's because often there isn't consistency or accountability in the reporting process.

One of the main benefits of business intelligence is that it can be harnessed into a format so everyone is looking at the same data in the same way. For example, if a service advisor provides a weekly report in an Excel spreadsheet, and one week sees an unusually high number of open ROs, he may be tempted to fudge that number. But when reports are generated in a consistent template using the data in your DMS, it becomes difficult to fudge the numbers. This creates transparency; everyone is looking at the same data, which can then be used to improve accountability and to apply discipline where necessary. Additionally, increased transparency often leads to increased motivation by employees, because it becomes impossible to hide poor performance.

When it comes to data, transparency is either your best friend or your worst enemy. If it's your worst enemy, chances are you like to procrastinate or don't like to follow processes. However for a dealer, transparency is in fact always your best friend because it gives you a more accurate picture of where you are, how you got there and how you can get to where you want to be next month, quarter or year.

3) Increased Productivity

The most accurate business intelligence is gathered from reports pulled from your DMS or from an enterprise reporting system that's integrated with your DMS. A side benefit of using this these types of reports for business intelligence is that they can be run quickly, which significantly increases staff productivity.

Do you really want each of your Internet Managers spending four hours a week creating reports in an Excel spreadsheet? Or would you rather have them spend that four hours following up with leads? Same with your service advisors; wouldn't their time better be spent training techs or following up on declined repairs?

Taking the extra time to dig into KPIs and glean business intelligence from them will deliver increased ROI in the form of process improvements, transparency and more productivity.

What story are your reports telling you? Focusing on rear view numbers tells you where you've been. Business intelligence can help you navigate to where you want to go.

 Unlock all of the community & features  Join Now