Drive to Success: Bottom Line Efficiency
In an industry as competitive as auto sales, dealerships must think creatively to find efficiencies and increase profits. From a focus on fixed ops and F&I to hiring and retaining the right employees, dealerships that find extra ways to boost their bottom lines are those that pull ahead of the competition.
Automotive News: Dealerships retain only about half of their car-buying customers and perform only about 30% of service work each year across the country. These numbers show that not enough dealerships are focusing on service lanes as a way to retain customers, increase efficiency, and improve bottom lines. As new and used vehicle margins decline, increasing focus on fixed ops can improve efficiency and increase revenue.
Auto Dealer Today: By embracing new advances in technology, dealerships can improve relationships with customers and become more attractive in the auto sales marketplace with less effort. Embracing innovation includes improving the dealership mobile experience, developing connections through social media, and using technology to increase efficiency.
CBT Automotive Network: The F&I process is a chance to educate buyers and earn their trust. By implementing online F&I tools such as payment calculators, a glossary of popular F&I terms, and lease vs. buy ROI tools, dealerships can engage customers and direct buyers to their websites. Other features like blogs and online chats about F&I can help dealerships reach a wider audience and increase profits.
Dealer Marketing: Employees are both a dealership’s largest operating expense and its most powerful sales and customer service tool. But, according to a Cox Automotive Dealership Staffing Study, although 67% of people are actively looking for new employment opportunities, only 1% would consider working at an auto dealership. Knowing how to find and retain the right employees leads to increased efficiency, productivity, and revenue for dealerships.
CBT Automotive Network: Having access to real-time data can help dealerships improve efficiency and get ahead of the competition. Dealerships can maximize profitability through their data by monitoring customer satisfaction, predicting sales, and ensuring the correct amount of stock to meet customer demands.
Check back next week for another Drive to Success: Dealerships Sales Strategies. You will learn more about dealership work culture.
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