Balanced Score Card, a major tool to upgrade the Auto dealer’s performance and profitability!!!

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In today’s highly competitive auto market in India, most of the Global players have their presence. Every OEM want their dealers to improve their performance and grow every year and make adequate profits. Growth of the dealers means the OEM’s improve their market share and bottom line.

Balanced Score Card (BSC) guides the dealers to achieve high productivity /efficiency, focus on the performance parameters and improve the customer satisfaction.

Customer retention has become the buzz word for most of the OEM’s/Dealers as large number of Multi- Brand dealers are mushrooming especially in the metro/mini-metro cities. All OEM’s/Dealers are giving due focus on customer retention offering services like pick up and drop , mobile service at home /office, creating 2-3 bays small workshop in the residential areas for customer convenience, strengthening the Customer Care Department etc. . Every OEM is striving to get more than 80% of the customers to their network for servicing /repairs and spare parts /Accessories.

Every auto OEM may have different strategy for the BSC core performance parameters, say an auto company may focus on upgrading the showroom infrastructure and new signage to improve the brand and higher customer walk-in.

In Service, Free and Paid Service Retention, Customer Satisfaction Index, Complaint Management System, Manpower Training and Retention are the major parameters that are measured for the BSC.

In Sales, Sales manpower & Training , Insurance Penetration ( new and renewal), Extended Warranty Penetration, Accessories Sales Per Vehicle, Exchange Growth, Sales Satisfaction Index and Complaints Management System are the focus parameters. Of course the most important parameter is Retail/Whole-Sales growth by the dealers.

The OEM’s also ensure that for the dealers P&L to be healthy, their Financial Performance must be monitored, Viz Debt to equity ratio, profit retained in the business etc.

In order to measure the various performance BSC parameters and regular monitoring of the same, Ramco DMS helps in terms of more than 100 ARI reports and Dash Boards.

Based on the BSC score and Band (Platinum/Gold/Silver/Bronze), the dealer can earn huge payouts from OEM’s (Rs 150 to Rs 600/- per vehicle sold during the year). This helps the dealer to improve their Balance Sheet and also motivate them for expansion of the dealership.