Streamline and automate your DMS data – optimize your business.
Key Performance Indicator (KPI)
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the business, while low-level KPIs may focus on processes in departments such as sales, marketing, HR, support and others
KPI for Auto Dealerships
Used-to-new ratio gives you a glimpse into the condition of the vehicles in your inventory. Find out what your data is telling you.
Price to Market
Price to market is built on supply and demand. If you understand the demand for a car, you can determine the appropriate price for it.
Inventory Turnover Rate
With inventory run rate, you can compare in-stock inventory to monthly sales. See how you compare to the market average.
Aged Wholesale Loss
Auto dealerships want to sell every car as soon as it becomes available. Successful dealerships evaluate aged wholesale loss to determine how much they lose due to unsold inventory for an extended period of time.
Gross Return on Investment (GROI)
GROI is calculated as a portion of a car sale multiplied by turn rate. For instance, if you sell a car for $10,000 at a profit of $1,000, you generate 10% GROI. You must also account for the length of time it takes to sell a car relative to GROI, too. So, the ideal GROI is 120, based on a 12-turn equivalent; this figure would account for selling a car in one month.
Web Response Time
Most successful dealerships have websites that let consumers shop for cars online. If you do as well, it’s important to monitor your website performance. If your dealership wants to succeed online, it must find out how web shoppers engage with its brand. This will require understanding the number of visitors who view different pages, how often visitors check out your site, and other pertinent data.