Automotive dealerships across the UK are under financial pressure. The market is competitive to start with, but recent budget updates have increased the financial burden on businesses which will undoubtedly have an impact on the bottom line. Now, more than ever, there is a need to be efficient and ensure no money is being left behind and that your service department is running as efficiently as possible.
Here are some insights and strategies to help workshops identify and implement these impactful changes:
It is easy to get caught up in the daily demands of the workshop, but ensuring your team have a clear understanding and sight of key metrics will improve efficiency and provide focus for the future. Your Workshop Controller sets the pace, so it is vital that they have all the information needed to deliver against their KPIs.
By measuring metrics such as technician utilization, upselling at the service desk and ensuring awareness of gross margins, your team will quickly see possibilities for improvements. Then they can turn reports into actionable to-do lists.
Further to this, understanding benchmarks for these metrics will provide essential context. We enable our customers to avail of benchmarking data so they can compare their performance with other industry leaders. This valuable insight shows them where they are against their competition.
Service price promotions are an excellent way to quickly boost service bookings and workshop throughput. This not only improves technician productivity but also increases sales and gross profit. Think about offering part discounts and look at the margin on tyres. From analysing data, we typically expect to see a margin of about 22% here. If yours does not match this, it is an area to explore.
Measuring and growing your VHC process is fundamental. If your percentage of retail jobs checked is under 80%, there is substantial opportunity waiting for you here. Our customers often see an increase of up to £25,000 per year per workshop from focusing on this area alone.
Identify if you have any free capacity in your workshop bays. Link in with your CRM and Marketing team to promote VHCs and fill these spaces up. You will increase customer satisfaction while increasing your profits. Do not allow your workshop to be anything less than full.
Simple adjustments in workflow or task management can significantly reduce bottlenecks within your workshop. For example, having service parts pre-picked and ready for each job can minimize waiting times. Assigning jobs based on the type of work to specific technicians can also enhance efficiency. Put members of your team where they are at their most effective.
A key metric here is workshop efficiency – this is your sold hours vs hours clocked to jobs. Identify jobs which did not sell the hours worked and implement learnings from these.
Effective communication is often overlooked but can improve job turnaround times. Daily, actionable DOCs with a month end prediction of performance will ensure any issues are resolved as they arise.
We always recommend your team have equal and direct access to reports. If everyone understands where the business is against KPIs, they are more equipped to do their role. This is where a Business Intelligence solution like RWA Automotive can be extremely effective.
Regularly checking and calibrating workshop equipment in line with Health & Safety and ISO requirements is crucial. Keeping the shared workshop tool store up to date and maintaining an asset register ensures that the dealership is equipped to manage all vehicles and technical problems, improving efficiency and customer satisfaction.
Small improvements can also enhance the customer experience. The use of check-in kiosks allows customers to check in their cars and drop their keys quickly. Combining this with effective communication through email and SMS reminders can significantly enhance the overall customer experience.
Asking your customers for reviews and referrals is best practice. Your manufacturer may already be actioning this, but reviewing this information regularly internally will stand to your business.
Keeping your staff motivated should not be overlooked. The industry is still experiencing shortages in technicians and apprentices so retaining your employees is vital. Our customers find Service Advisor and Technician League Tables greatly beneficial to motivate teams by reporting progress against targets. They can also be used to incentivise teams for additional benefits or bonuses.
By focusing on these small but meaningful changes, workshops can significantly improve their efficiency and customer satisfaction, leading to better overall performance. If you are interested in learning more about what metrics could help your Aftersales department, explore our IgniteAftersales Solution.
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