09 Jul When Data is Not Such a Bad Thing…
Data analytics affect everything in our world. Everything from what shows we binge on Netflix to how hard we hit the brakes on our car. We hear the media talk about ‘Big Data’ intruding in our lives and see the negative effect of companies knowing too much about all of us.
In the automotive world, data drives (forgive the pun) everything within the dealership environment. You know how long it takes a technician to finish a day’s worth of RO’s and you know which trim levels your store should stock for maximum sales.
But what about F&I? Can data insights help increase PRU? Are there limits to the impact of analytics and is it worth the effort to do a deep dive into the stats for your F&I department?
Data can help….here’s how-
- A Peek Into Performance: Other than the end-of-month PRU for each F&I manager, does your store dive into exactly HOW the staff is performing? Data analytics can show how well they are executing their duties. Check chargeback percentages (who has the highest amount…could be a HUGE problem). Product penetration levels (who is selling what).
- What Sells, What Doesn’t: One market may have a higher GAP penetration and another could sell more appearance packages. Data analytics can help F&I use the past to help prepare anticipate the products tomorrow’s customers are more likely to buy. Knowing this helps arm the F&I staff to focus sales efforts on the products that they KNOW will sell.
- Types of Deals: It’s important to understand on a weekly or monthly level what the spread is among F&I deals. Cash deals, lease, or finance…knowing the makeup of deals gives your store information it can use to change up marketing messages or help train staff on the cash-deal TO. If you have a system that can give you these insights on a weekly basis, it helps the store be more proactive in changing the sales focus now rather than waiting until month-end.
With the right provider, there should be few limits on the amount of data that can be looked at each week. Most providers or administrators offer data analytics now that can work well within your existing DMS. Pulling data from F&I should be fast, easy to understand, and easily presented to staff to help with training or in some cases, corrective action.
For a look at how easy this is to set up at your store, click here to take a look at TruReports.