What Your GM Can Learn From MLB GMs
- MLB GMs rely on complex data to guide thier decisions.
- Learn how your dealership can do the same.
wRC+, BABIP, WPA, MB/9, IR-A. Is this a foreign language? Did I just bang on the keyboard a few times? What does this have to do with your dealership?
Over the past 15 years, professional baseball has undergone a major shift. Gone are the days of basic metrics like home runs, batting average, RBIs, and intangible qualities dictating roster and in game decisions. Digitized stat tracking and improved measurement precision have created the world of advanced metrics. MLB teams now utilize oceans of data points to put the best players on the field and in the right position for every play of the game.
The more metrics they can collect and analyze, the more information they have to prepare for each at bat and uncover underlying issues with the roster. Encouraging your managers to utilize metrics to drive decisions could make all the difference between being just another dealership and being number 1 in your region.
What are some steps you can take to make metric utilization a priority?
Step 1: Centralize all your data points in one system. Parts, service, sales, F&I, and the business office need to be measured relative to each other to give the data context. This also eliminates time spent pulling data from multiple systems (or applications).
Step 2: Automate the process. Set up your reporting tool to pull reports for each department automatically. This eliminates the need to compile and sort the data daily.
Step 3: Utilize the data. Take the time you would normally spend compiling the reports to have conversations with department managers about the metrics. Coach service advisors with measurable goals in mind. Have discussions about specific transactions. Less time spent at the computer also means more time interacting with employees and customers.
Although your reports are now pulling automatically, they’re not quite like a rotisserie chicken; you can’t just set it and forget it. Keep finding new metrics to improve on. Your retail technology partner should be improving the tools available to you so you can understand your dealership’s performance in greater depth. The better you understand it, the more equipped you are to manage it.
Equip your managers with a tool that enables them to understand the performance of each department and make actionable decisions based on the information.
Automotive News recently published an article discussing why dealerships are sourcing lower-grade used vehicles to fill their lots.