Automotive Dealership Performance Benchmark

 Background

Benchmark analysis in automotive dealerships is a managerial methodology that allows the network manager to review the dealership's performance (through KPI's), compare between them and identify the automotive Best Practices within the business.

Most automotive dealerships measure accomplishments with no reference points other than a set of general objectives determined by management and past performance.

Using NG Group's Automotive Benchmark Analysis provides an overview of the network performance as a whole, as well as, the performance of each individual automotive dealership.

 Goals
* Monitor each individual automotive dealership performance
* Compare between different automotive dealerships
* Identify automotive best practices
* Identify leading and weak players within the automotive network

 Outcomes & Benefits

For the Automotive Dealership
* Is my performance reaching my potential?
* How am I doing compared to my past performance?
* How am I doing compared to the automotive network?
* How am I doing compared to the network's automotive best practices?
* What are my strengths and weaknesses?
* Get an educated set of objectives to analyze the network performance

For the Network
* Are my automotive dealerships meeting my objectives?
* Are my automotive dealerships meeting their potential?
* Who is the strongest link in my chain?
* Who is the weakest link in my chain?
* Set a more realistic, improved set of objectives to all automotive dealerships
* Set a tangible set of action items in order to level the network with automotive best practices
* Implement an effective rewards and penalties model
* Compare the network and automotive dealerships to other players in the local (or world-wide) markets

 Work Methodology
1. Define a set of measurements to analyze, and a method to calculate each measurement.
2. Define what data will be needed to calculate each of the measurement
3. Establish a unified language, in order to get correct and reliable data
4. Collect all data required
5. Develop an appropriate platform for the data analysis
6. Analyze data
7. Analyze results
8. Establish specific action items for further improvement

Appendix
Entries Compared to Company Trends

Purposed Measurements

▲ Analysis of entries to the Service Center in comparison to network trends and compared to a paralal period in the previous year

Calculation Method

* Each Quarter is Calculated Separately

 Interpretation of the Data

During all quarters, the number of entries to the automotive Service Center increased throughout the previous year

Actual number of entries to the automotive Service Center was lower than the expected based on network trends in the first two quarters of 2006

Actual number of entries to the automotive Service Center was higher than the expected based on network trends in the last two quarters of 2006

Possible Conclusions/Directions for Future Action

• Examine the marketing efforts made by the automotive Service Center
• Examine the professionalism of the diagnosticians/mechanics and their level of certification
• Analyze the customer satisfaction surveys to identify points that need improvement and which ones, if improved, might increase the number of entries

For more information on how NG Group Automotive Consulting can help you with Dealership Performance Improvement results, please Contact Us.