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What are Key Performance Indicators (KPI’s)?

13th March 2017

Key Performance Indicators, or KPI’s as they are more commonly known, are a fundamental part of a business for any car dealer to understand, with the success, or failure of them, crucial in helping dealers understand how to run a profitable operation.

All KPI’s adhere to the basic rule that they are a quantifiable measure that can be assessed over a set period of time.

While some dealers may choose to focus on their year-on-year growth in the sales department, others may wish to choose KPI’s that allow them to gauge their performance against the industry standard or their competitors. No matter the priority though, all KPI’s should be relevant and realistic otherwise they are simply just distorting the dealer’s view on the performance of their business.

In the motor trade specifically, KPI’s have traditionally been used to help dealers monitor the performance of a number of key areas, including stock turnover, sales, service efficiency, costs and much more.

Once dealers are able to track the performance of these key areas within their business, using the measurable criteria of their KPI’s, dealers should be able to gain a better understanding of their business and what is required to make it a more profitable operation.

While it is a decision for dealers themselves, in terms of what KPI’s they choose to specifically focus on, our Dealer Management System users are able to benefit from a comprehensive reports module, which features statistics on everything from Vehicle Sales and Service, to Attendance and Advertising, designed to help dealers measure their performance and take action to improve it.



Dragon2000 have been helping dealers and garages drive their businesses forward since 1995. Talk to our team today on 01327 222 333 or email sales@dragon2000.co.uk to find out how our dealer management system, car dealer websites and mobile apps can help your business increase profits and reduce costs.

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