How do I measure the ROI of a Business Intelligence solution?

The access to the data is invaluable once you start to utilize the power of stories that it unlocks.

Business Intelligence for many dealerships is a new venture. Measuring the ROI however is not a perfect science and therefore one number cannot be assigned to answer this question.

Some dealerships may think that the solutions are too highly priced for something that doesn’t directly produce profit. Ask yourself, how much does it cost for me to lose a customer? What is it worth to improve my customer satisfaction within my dealership and develop long term relationships with customers?

Analytic insights can help you make decisions in your business that improve your opportunity for business. For example, in the car sales department, a sales manager may be able to see a VAuto report that states 30 people are looking at the Ford Fusion on their lot, however no one is coming in to dealership or requesting more information. Knowing this information up front, the sales manager can take a look at their pricing and make adjustments. When they make those adjustments, they see five sales on Ford Fusion the next month. This same principle applies, when you are able to have access to the information, you can make adjustments to your pricing, or strategy that help improve your business.

Another great opportunity that you wouldn’t have without the access to the data provided within a BI solution is the realization of missed opportunities. Within LinkIQ for example, the dashboard reports can tell you how many of your shops are ordering, and what the opportunity is from the sales. This may tell you that your shops are either not using the technology to order parts, or it could also tell you that they are not sending over all of the aftermarket parts for their orders, which makes it impossible to capture that part of their business. If you know that information with a quick read of their data report, you can have an educated conversation with that customer and explain the benefits of sending over the complete order.

Finding ways to create even more profit for your business and convert aftermarket parts to OE on their orders will increase your bottom line because its realizing profits that before were unavailable to you.

By keeping customers happy and catching them before there is a problem, as well as capturing business that otherwise was unavailable to you before, this will help realize the return on your investment for a BI solution.

Your data can tell a powerful story; BI pulls that data together to provide accurate insight and replace guesstimates.
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DMS Integration means linking your DMS to the online parts selling solution you use to sell parts.
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