22 Feb

Service and Parts Department Performance Metrics You Should Be Tracking in 2022

Service and Parts Department Performance Metrics You Should Be Tracking in 2022

Are you a service or parts department manager wondering what dealership performance metrics you should be tracking in 2022? In this blog, we outline some key metrics you should be tracking, with the help of industry experts with 20+ years of experience.

After speaking with Bob Clements, we’ve put together a list of key metrics each department manager should be tracking on a regular basis.

Metrics for Parts Department:

One of the most important things to evaluate as a parts manager is the average transaction value. At a quick glance, this value can help you track whether your technicians are effectively cross-selling or upselling and determine if there’s an opportunity to move that value up.

It’s also important to evaluate the total lost sales and total emergency orders, to get a sense of whether you are properly managing your inventory. With the prevalence of online ordering tools such as Amazon, you want to make sure that your able to get that customer the right part when they need it, to avoid losing sales. If you aren’t able to find the part at your dealership, consider using a tool like Ideal Parts Locator to find those parts at another dealership near you. 

Here’s a full list of what your Parts Manager should be monitoring:

Daily:

  • Total Parts Sales Counter/Service: The number of dollars you earn from all your parts sales – across the counter and to the service department.
  • Total Transactions: The number of transactions that take place each day.
  • Average Transaction Value: The total value of all transactions divided by the number of transactions or sales.

 

Weekly:

  • Composite of Daily Reports: A compilation of the daily reports.
  • Total Back Orders: The numbers of orders that have not been fulfilled yet.
  • Total Lost Sales: The number of times a product was not available when a customer wanted to buy it.
  • Total Emergency Orders: The number of times you had to order an out-of-stock product to meet customer demand.

 

Monthly:

  • Composite of Weekly Reports: A compilation of the weekly reports.
  • Average Sale by Parts Person: The total number of parts sales divided by the total number of transactions per person.
  • Average GPM: The average number of dollars you make after deducting the costs associated with selling your parts.
  • Average Transaction Time: The number of hours, on average, it takes your people to close a transaction – from the moment the customer approaches the counter to the moment they leave the store. This metric is important because it tells you how optimized your parts department is for serving customers.

Metrics for Service Managers:

Are you wondering what metrics you should be tracking at your dealership to ensure your service department is on track? There’s many factors you should be monitoring in your service department in order to get an accurate picture. After speaking with Bob Clements, we’ve outlined some of the most important ones below.

Since dealers tend to measure service department profitability in terms of dollars sold, it can be hard to maximize it. To make sure your technicians are on track, Service Managers should be evaluating the following metrics daily.

Daily: Each day, the Service Manager should be preparing a review of the total labor sales and the recovery rate.

  • Total Labor Sales: Personnel costs over sales.
  • Recovery Rate: The number of hours you pay for your tech over the number of hours you sell.

Weekly: Each week, the Service Manager should be reviewing the daily reports, as well as the average tech efficiency, the average completion time, the aging of open work orders and unfiled warranty claims amount.

  • Composite of Daily reports: A compilation of the daily reports.
  • Average Tech Efficiency: Number of hours spent on work orders versus billable time.
  • Average Completion Time: The average number of hours completed per work order. To determine the number of hours you still have to complete for all your outstanding work orders, multiply this number by the total number of work orders.
  • Aging of Open Work Orders: The amount of time a work order has been open.
  • Unfiled Warranty Claim $$: The number of dollars you need to retrieve on your unfiled warranty claims.

Monthly

  • Composite of Weekly reports: A compilation of the weekly reports
  • Efficiency and. Recovery by Technician: The actual percentage of the time each tech has recovered.

 

Monthly Checklist Banner

Having trouble keeping track of all your monthly duties?

Download our fully customizable Monthly Checklist for Service Managers.

Download Checklist

Curious what key metrics Owners and Sales Managers should be tracking? Click here to read our guide for Owners and Sales Managers.