Achieving and maintaining high sales levels in order to sustain your business is an ongoing task in the auto repair industry. Being proactive in this area will make sure that you are always one step ahead of the game, but there are going to be times when the unexpected happens and even the best of plans are put to the test. A great way to stay on top of things even when sales are not what you want them to be, is to keep track of key performance indicators. You can do this with a shop management system; when performance is not as you would have hoped, you can take corrective action. Here are some of the key performance indicators you should pay attention to.
Quote capture rate
This is how many quotes turn into sales within a certain time frame. So, if you provide 20 quotes in a month, and 4 of them turn into repair orders, your quote capture rate is 20 percent. You can provide quotes for existing and potential customers. You will typically find that the capture rate for existing customers is much higher than for old customers. If you notice a decline in this area, you will need to take the necessary steps to correct it. You may need to send your employees on a sales training course to teach them how to effectively close deals. This is simply one of many possible solutions.
Customer retention rate
The percentage of customers that come back to your store for another service is referred to as the customer retention rate. The best companies have an endless stream of regular customers. The worst are constantly spending money on marketing to bring in new customers. Once you understand that customer retention is the most effective way to run a business, not only will you reduce your marketing budget, but your profits will also increase. The shop management system will keep track of returning customers, if there is a decline in the customer retention rate, you will need to take the necessary steps to improve performance.
Recommendation capture rates
Any time you ask a customer how they found your business, and they say a friend, family member or co-worker recommended your store; the shop management system will record this information and compile recommendation capture rates. Recommendations are often a large percentage of revenue for auto repair shops.
If you feel that a shop management system will be good for your company, but you are not sure about making such a large financial investment, you can try some of them out for free prior to making a purchase. Tekmetric is offering a free trial until the end of 2018, you will have access to all features as if you were a paying customer. You are not required to sign a contract, there are no hidden costs and there is no cancellation fee if you decide that it is not for you at the end of the year.