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Increasing Aftersales Profitability – Analysing Vehicle Health Checks

There has been a significant increase in the uptake of Vehicle Health Check (VHC) systems within Dealerships over the past 5 years. There are several providers in the market at present who all provide an excellent solution in helping service departments identify essential maintenance required on vehicles. All come with the promise of increasing ‘your bottom line’.

Sounds perfect, implement a VHC solution and watch the profits flow in! Unfortunately, from a Dealers perspective it is not that simple and there is a significant culture change required to implement a successful VHC solution.

It is not easy keeping technicians motivated and have them carry out checks in full, or upskilling Service Advisors sales techniques without compromising on their customer service skills. Once performance can be easily tracked and opportunities are highlighted, then the revenue can be maximised.

This can be quite complex due to the amount of disparate data to be collated. In order to get full measurement of performance the following datasources are required:

  • VHC Check data
  • Labour Sales
  • Parts Sales
  • CRM data
  • Workshop Clocking/Availability
  • Targets/Budgets

This complexity has caused many reporting solutions to fail, and in some cases caused the whole VHC implementation to fail. Not delivering accurate insightful information to all levels of the business causes a lack of belief in the system and the opportunity to not alone maximise, but even increase revenue falls through the cracks and becomes a missed opportunity.

A true reporting solution will inspect all elements of VHC and present it in a simple legible format so decision makers at all levels can take faster actions. This information will be delivered to the right people with the correct level of detail at the right time.

Some key measures include:

  • Throughput vs VHC Checks completed
  • Red & Amber work identified converted to Parts and Labour Sales
  • Revenue & Conversion rate per Service Advisor
  • Revenue Identified per Technician
  • Average time per VHC
  • Revenue generated by vehicle year
  • Deferred Work by month

As mentioned before, this information needs to be presented at different levels of detail depending on the reader. An Aftersales Director will only want an overview of performance by Dealer so they know which Service Manager they need to speak with, yet a Service Manager will want to dig into the detail to manage the performance of their Service Advisors and Technicians.

VHC Summary:

VHC Summary


If you would like to improve your VHC performance, please email auto@realworldanalytics.com.

Real World Analytics delivers the right information, at the right time, to the right person to make strategic decisions to improve overall efficiency and profitability in the business. Enabling automotive dealer groups to increase their profitability with cloud solutions by unlocking actionable insights using their data.