The 4 Top Automotive KPIs to Drive Your Business Forward
Posted on 30th May 2017 in KPIs
Written by Freya Hughes
When selling cars, you need to be aware of various metrics and their importance. Are you selling new or used cars, or both? Read on to see how measuring these KPIs will make you understand the figures coming into your business.
The automotive industry encapsulates five key areas: design, development, manufacturing, marketing and selling. We’ve chosen to focus these KPIs on the selling part of the industry. If you’d like to find out more about the other elements of industry, feel free to peruse our other KPI lists here.
As you’ve probably guessed, we’re obsessed with metrics! After reading these, be sure to stop by our KPI Library to give yourself some inspiration on which other metrics you should be keeping an eye on.
1. Opportunity-to-win ratio
People have different strengths, and this is no different on a sales team. Some of your sellers might be fabulous at networking and starting off a deal but somehow are unable to close – and vice versa. By measuring this metric, you can work out how you can utilise your team most effectively.
If you are noticing some deals aren’t being closed, why not reshuffle your team into sales people hunting leads and those who nurture them and close? You’ll find there’s less reason to hire more staff and will see an uptick in closed deals. You need people working for you to be jumping on every available opportunity to sell so let them play to their strengths and your bank account will thank you for it.
2. New vehicles sold vs used vehicles sold
Tracking these sales separately will give you a great idea of what stock you have currently, how much is going out (from each category) and how much new stock you’ll need to order in. Of course, best practice is to have new and used stock logged separately already.
Are your used cars selling better than your new models? If yes, you need to work out why. There might be issues with pricing (be it too low or too high) which will impact your bottom line. Benchmarking against others in the automotive industry will give you an immediate comparison against pricing throughout the rest of the industry so is the best way to target this.
3. Customer satisfaction
This reputation metric evaluates how customers see the quality of your products. If you’re getting this right, you’ll notice brand loyalty and things should look good with your cash flow. If you’re not, you risk losing customers to your competitors.
If you’re wondering how to improve this metric, follow up with customers and see how their experience rated. It might be a frightening thought to ask but it will give you a really strong idea of where you need to improve. Learn more about calculating this metric here.
4. Referrals per sale
You need to focus on your customers’ satisfaction to be able to obtain referrals, therefore this is strongly linked to your customer satisfaction metric.
If you have nailed the above, then there’s no reason to be missing out on referrals. Make sure your customers really know and understand what you’re offering and how it can help others.
If the traditional route isn’t working for you, get creative. Ask customers for a testimonial or case study – taking just a minute or two of their time on the phone will appeal to them more than asking them to write anything for you. If you treat referees as partners in your business then they’ll feel a sense of appreciation and are much more likely to do as you ask them. And, lastly, don’t forget to thank them!