How NCM Data Analytics Can Help Identify Revenue Opportunities
In a competitive automotive market, leveraging data-driven insights is essential for boosting dealership performance and profitability. Greg Gagorik, Moderator at NCM Associates, emphasizes the power of analytics in identifying revenue opportunities and enhancing overall business outcomes. At NCM Associates, our comprehensive platform helps dealerships uncover areas for growth, while our consulting services provide the expert guidance needed to drive results.
Spotting Profit Leaks with Profit Trend Analysis
One of the most valuable tools we offer at NCM is the Profit Trend Analysis (PTA). Published monthly for 20 Group members, the PTA provides dealerships with detailed feedback on potential revenue opportunities across all departments—new and used vehicles, service, parts, and the body shop.
The PTA identifies key performance indicators (KPIs) for each department and compares them to monthly and three-month average performance. We benchmark these metrics against OEM performance levels, offering a clear view of where improvements can be made. By achieving these benchmarks, dealerships can pinpoint specific dollar amounts they stand to gain in profitability.
Setting the Industry Standard with Proprietary Benchmarks
Our proprietary Benchmarks set the industry standard for dealership performance analysis. We collect thousands of dealership financial statements each month and calculate top-tier performance levels for hundreds of data points. This allows dealers to compare their results to the top 25th percentile within their franchise.
Dealerships can use our benchmarks to:
- Set realistic objectives for performance improvement
- Track measurable progress over time
- Identify actionable insights that lead to increased profitability
Unlike generic industry tools, NCM’s tailored data offers significant value, helping dealerships target specific areas of improvement.
Improving Sales Margins Through Data Insights
Gross profit margins as a percentage of total sales are crucial for a dealership’s profitability. Our composites provide detailed sales and margin analytics, group averages, and benchmark targets so dealers can pinpoint improvement areas. Here’s how:
- Sales Margin Analysis: Identify where margins can be improved across departments, such as sales and service.
- Targeted Solutions: Address the root causes of lower margins, such as inefficiencies in processes, misaligned compensation plans, or outdated workflows.
- Actionable Metrics: Drill down into departmental metrics to find specific actions to boost margins, such as adjusting pricing or improving upselling strategies.
By utilizing NCM’s composite data, dealers can optimize their sales margins, leading to a more profitable business.
Data Analytics Scale Revenue for Small & Mid-Sized Dealerships
Small to mid-sized dealerships face unique challenges that often require improvements across multiple data points to achieve meaningful growth. NCM’s analytics tools help these dealerships identify opportunities to:
- Increase sales
- Improve gross margins
- Optimize expense structures
For example, a smaller dealership might use NCM’s data to identify areas where personnel costs can be reduced while increasing productivity. By addressing these areas, dealerships can enhance efficiency and profitability without compromising service quality.
Get Expert Guidance from NCM Consultants
We know that interpreting complex data can be challenging, but at NCM, our experienced consultants make it easier. As Greg puts it: “The numbers are telling a story, and NCM Consultants help the dealer operator decipher what that story is telling.”
With extensive real-world dealership experience and advanced analytical skills, our consultants help dealer operators uncover critical issues and provide actionable feedback for developing effective strategies.
Unlock New Revenue Opportunities with NCM Data Analytics
NCM Data Analytics provides dealerships with the tools and insights to uncover hidden revenue opportunities and improve profitability. From our Profit Trend Analysis to expert consulting services, we empower dealers to make data-driven decisions that yield tangible results based on your business goals.
Contact us to take the first step toward optimizing your dealership’s performance with NCM Associates’ analytics solutions.