Dealership performance during the pandemic has been a challenge for most. In the recent months, car sales volumes are increasing for most brands. There is more optimism on sales coming back to (or going back to) “normal” levels. Sales performance is a key topic coming into the holiday periods of November and December with year-end sales focus, model year clearances and consumer incentives.
At iAuto, we believe dealership performance measurement and benchmarking must be simple. This is not news to many but it is worth our attention to ensure we are not caught up in the myriad of performance metrics – traffic, visits, eyeballs, actions, views, calls, emails, likes, follows, rating points and many others.
When measuring performance, there are 2 key metrics of highest importance – Sales Volume and Market Share. When looking at sales and share metrics, focusing on these best practices –
- Benchmark your dealership performance against dealerships you compete with. These are dealerships in your local market/sub-market. Your competitive set.
- Focus on year-over-year market share change compared to your competitive set.
- Assess both short term and long-term performance – month over month, quarter over quarter, YTD over Prior YTD.
- Analyze performance at a granular level – geographies, vehicle models
Understanding your dealership’s performance consistently will help you plan and execute better.