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Automotive Series: Top 5 Metrics To Evaluate your Vehicle Lead Management
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Automotive Series: Top 6 Metrics To Evaluate Your Vehicle Sales
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Transforming Data into Value for a leading Automotive Dealer
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Automotive Series: Top 6 Metrics To Track For Your Inventory Management
Why is inventory management crucial for an auto retailer? Inventory can play a substantial role in the health of a business—having too much can cause problems, as can having too little. With an inventory management analytics, automotive retailers can get visibility into items across all channels, ensuring the right
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If you can’t measure it, you can’t improve it. As an auto dealer, you must create a digital sales funnel to evaluate and assess the success of your sales and marketing teams. Measuring the vehicle leads serves as a guide to new revenue opportunities to grow your business. It’s vital
Automotive Series: Top 6 Metrics To Evaluate Your Vehicle Sales
Financial KPIs That Drive Successful Vehicle Sales Strategy Tracking and measuring the performance indicators of your business is key to measure the successes and failures of your business and to make critical adjustments in your execution so you can achieve your strategic goals. In this post, we’ll outline 6 most
Transforming Data into Value for a leading Automotive Dealer
Client An authorized dealer of leading automobile brands such as Nissan, Infiniti, Renault, Great Wall and Dongfeng Motors, Ford and Lincoln. Being synonymous with quality automobiles in the GCC, the client has consistently set the standards for excellence, not only in sales, service and spare parts but also in customer
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DATA IS ONLY AS GOOD AS THE QUESTIONS YOU ASK Data Data everywhere, not a drop to act! Data volumes and types are growing at such a rapid rate. The immense resource makes it possible to be many things that previously could not be done and to do them significantly faster.
Auto dealer’s road to sustainability with effective burn rate analysis!
The automotive industry is already at the cusp of changes! Dealerships are looking at innovative ways to retain customers while also improving their bottom line. Some of the most popular schemes being applied are up-sell & cross-sell such as “extended warranty” and “service contracts” respectively.
These ensure dealerships “lock-in” customers ensuring long term loyalty!
But are the dealerships monetizing their strategy, right? What is the metric they need to be evaluating to ensure they are not incurring losses with their up-sell & cross-sell schemes.
This is where dealerships need to monitor their “Burn Rate” metric- which shows a spend trend of a dealership against a claimed amount either for an extended warranty or a service contract.
Calculating the burn rate will ensure a self-sustaining business modeland help dealerships understand and tweak their pricing strategy for an extended warranty or service contract implemented across the up-sell and cross-sell strategies respectively.
If the burn rate is high for an extended warranty that a customer receives from a franchise, then it implies frequent issues with a particular model or variant of a vehicle and needs to be addressed with the OEMs. Similarly, if the burn rate is high for a service contract, then it means the pricing strategy needs to be reworked which has been given by the dealership to their customers.
It’s crucial to understand whether a scheme is profitable or not.
Let’s look at the graph that explains how a dealership should be looking into the burn rate for a given timeline –
Our analytics team at NRoot Labs can help break the above analysis by franchise, model, year, variant, etc. Understanding when costs were high and taking appropriate actions to lower them requires insights into seasonal trend of burn rate.
Higher the burn rate, higher the chances of a dealership chasing behind cash to sustain their strategy!
We at NRoot Labs, specialize in comprehensive BI solutions. As a technology-neutral company, our team of BI consultants excels in delivering business solutions that leverage actionable insights supported by business data. Our commitment to understanding the complexities of business processes enables us to provide enhanced BI solutions for our clients.