Category

Automotive

Sample Objectives and Key Results (OKR) for Automotive Franchises

By | Automotive, Franchise Business Plans
Objectives and Key Results for Automotive Franchises

Automotive franchises make a significant impact on the economy. According to IBISWorld, there are 263,000 auto mechanic businesses running in the U.S., with industry employment counting over 500,000. Although the changing landscape is affecting these businesses, they are still making a meaningful contribution to the economy.

OKRs

  1. O: Increase franchisee revenue.
    1. KRs:
      1. Have a customer acquisition rate of 25% (new customers/total customers).
      2. Have a quote capture rate of over 70% (total sales/total quotes).
      3. Increase leads from online sources by 25%.
      4. Get a conversion rate from service texting reminders of 20%.
  1. Initiatives:
    1. Launch campaign with current happy customers to get more reviews.
    2. Enhance texting reminder campaign using new vendor.
    3. Have home office sales coach talk to Service Manager about best practices.
    4. Review quote capture rate on monthly FranchiseBlast scorecard.
  1. O: Increase franchisee efficiency.
    1. KRs:
      1. Have a productivity ratio of over 80% (hours clocked/hours available).
      2. Decrease parts supplier costs by 10%.
      3. Reduce marketing costs by 20%.
      4. Reduce staff costs by 15%.
  1. Initiatives:
    1. Hire junior technicians at a lower rate to pick parts so senior technicians save time.
    2. Reorganize the shop to improve technician workflow.
    3. Review productivity ratio on monthly FranchiseBlast scorecard.
    4. Review marketing spending by lead source and eliminate ones with high Cost Per Lead (CPL).
  1. O: Delight customers.
    1. KRs:
      1. Reduce cycle time by 10% (measured through Point of Sale from drop-off to delivery).
      2. Have a Customer Satisfaction (CSAT )score of 75%.
      3. Have 50% of customers come back for repeat business within one year.
      4. Have Employee Satisfaction Score of 60% (happy employees lead to happy customers).
  1. Initiatives:
    1. Have two “Family Days” with staff per year (summer and holidays).
    2. Eliminate the vendors with the slowest parts delivery record.
    3. Send text reminders for service.
    4. Self-audit using the Customer Care Audit with FranchiseBlast.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and automotive franchises by checking out the following:



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8 Important Automotive KPIs

By | Automotive, KPI
automotive kpi

According to Franchise Direct, there’s almost 32,000 auto franchise units among over 100 concepts currently operating in the United States. These concepts include aftermarket parts and accessories, maintenance and repair and cosmetic and paint. We took a look at the most important KPIs in this segment of the franchise community.

Sales and Marketing

Star Rating

87% of consumers will not consider working with a business with only 1-2 stars, according to SearchEngineLand. Franchisees who don’t stay on top of reviews could pay a heavy price. Tracking their star rating on Google, Yelp and similar sites is a key marketing metric.

Quote Capture Rate

Quote capture rate helps you track what percent of people are buying after they are quoted. If this number is too low, dig into sales or do some competitive analysis on what is happening in the local market.

Quote Capture Rate = Total Sales ÷ Total Quotes

Customer Acquisition Rate

A strong automotive business has a combination of new customers and retained customers. The customer acquisition rate, as a ratio, tells you how good the business is at sales. In the world of “hunters vs. farmers”, these are the hunters.

Customer Acquisition Rate = New Customers ÷ Total Customers

Operations

Customer Retention Rate

As a complement to the sales metric above, the customer retention rate tracks how well your service team is performing. Automotive businesses rely on repeat customers, so you want to keep this KPI strong.

Customer Retention Rate = Repeat Customers ÷ Total Customers (a complement to customer acquisition rate)

Productivity

Productivity measures how much free time your technicians have. If this is low, it shows there is not enough work to support the staff that you have.

Productivity = Hours Clocked ÷ Hours Available

Efficiency %

If a tech takes 4 hours to complete a 5 hour repair, his efficiency is 125%. This number tells you about the systems you have in place, the accuracy of quotes and your team performance as a whole.

Efficiency % = Sold Hours ÷ Worked Hours x 100

Sales Mix %

As a franchisor, you may see advantages of franchisees performing one service over another. Usually these services are higher-margin and can enhance the profitability of the business overall.

Sales Mix % = Revenue from X Service ÷ Total Revenue x 100

Cycle Time

Cycle time can be measured in many ways, but the most practical one according to experts is from time from drop-off to delivery. This can be measured based on the POS or other operational systems.

 



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