Key Dealership Performance Metrics You Should Be Tracking in 2024
Are you a dealership owner or sales department manager wondering what dealership performance metrics you should be tracking in 2024?
In this blog, we outline some key performance metrics you should be tracking, with the help of industry experts with 20+ years of experience.
As a dealership owner, it’s essential to have the right information at the right time. Keeping up-to-date with data allows you to reach your goals and hit your targets. Knowing which metrics to track can be overwhelming which is why we spoke with Bob Clements to hear his list for the top metrics your general and sales managers should know.
One of the most important things to evaluate monthly as an owner is an overview of sales from the top 10 customers. You want to make sure that you know exactly who your high performers are, that you’ve spoken to them, and you have the right salesperson assigned to them. Knowing these metrics can help ensure dealership success.
Key Metrics for Owners and General Managers:
- Sales by Department: total revenue of a single department
- Customer Count: total number of customers who came to the store that day
- Average Sale by Department: number of sales or transactions for a department
- Composite of Daily Records: A compilation of your daily reports
- Labor Costs as a Percent of Sales: Total Amount you pay employees in a given week compared to sales dollars for the same week
- Composite of Weekly Reports: A compilation of your weekly reports
- Total COGS: Amount you spend to sell your products
- Total Operating Costs: Amount you spend on employees, insurance and non-overhead
- Gross Profit: Amount you make less the costs required to sell
- Overview sales of Top 10 Customers: A list of the all the interactions your dealership had with it’s top 10 customers in a month
Tip: As an owner/general manager, once you get a hang of these reports, consider adding industry data into your regular routine to make sure you’re hitting industry benchmarks.
Metrics for Sales Managers:
In many cases, you as an Owner or GM might be the one responsible for managing the sales department. If so, add the below to your monthly review list.
One of the key statistics for the Sales Manager to monitor is your customer acquisition cost. While it’s important to fuel and monitor your marketing strategy budget, you need to understand how that relates to your customer acquisition cost to make sure that you spend on marketing is going the right place.
Here’s a full list of what your Sales Managers should be monitoring:
- Total Sales: Amount earned from all whole good sales.
- Total Transactions: Total amount of transactions that took place at your dealership on a given day.
- Average Transaction Value: Total value of all transactions divided by the number of transactions or sales.
- Composite of Daily Reports: A compilation of the daily reports.
- Overview of Trade-Ins and Cost to Dealership: The number of trade-ins on your lot and their overall cost to your dealership.
- Composite of Weekly Reports: A compilation of your weekly reports.
- Avg. Sales by Person: Total number of whole good sales revenues over the total number of transactions per employee.
- Avg. GPM by Category: Average number of dollars you make after deducting the costs associated with selling each whole good, categorized by whole good type.
- Total Marketing Cost: Total amount spent on marketing.
- Customer Acquisition Cost: Total cost of acquiring a customer.
On top of setting up recurring meetings to review these metrics, the best way to implement an effective process is to invest in a DMS that can automate this reporting for you. This way, the information will be readily available to you, whenever you need to review it. To learn more about Ideal reporting, click here to go through our self-paced demo.
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