Leveraging Data for Profitability The Machinery Advisors Consortium notes several crucial Key Performance Indicators (KPIs) for dealerships to stay on top of, including return on assets, parts absorption, employee turnover rate, and others. These metrics aren’t just numbers. They’re stories. For example, ROA indicates how effectively a dealership is using its assets to generate profit. A higher ROA indicates efficient use of assets. If a competing dealership has an ROA of 5%, it indicates you're using your assets twice as efficiently to generate profits. Same with your employee turnover rate. If the rate is higher than industry or regional averages, it suggests there might be issues that need to be addressed, such as wage, work environment, or management.
In a DIS Survey of ag equipment dealers across North America , 61% stated they sometimes use data analytics and reporting, and a noteworthy 20% said they use it extensively. This points to a growing trend. As we move into 2024, leveraging data and analytics will become not just an added advantage but a necessary tool. Hence, it's paramount to ensure that you’re feeding your analytics with quality data. This might mean training staff to ensure they input data meticulously or investing in better data reporting tools, such as DIS Analytics , that turns data into actionable insights.
Do you use data analytics and reporting to guide decision-making at your dealership?
4 %
20 %
15 %
61 %
No, but want to start
Yes
Sometimes
No, and don't plan to
6
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