NUMBERS THAT MATTER

WATCH THESE METRICS FOR SALES GROWTH!

As part of our commitment to continual improvement, Lexus tracks the metrics that drive our wholesale parts business success. Key Performance Indicators (KPIs) for Lexus dealers are more than just numbers—they can help you map a path to wholesale parts sales growth.

LEXUSWHOLESALEPARTSHUB.com, your new wholesale parts business dealer portal, launching this February, will present data provided from your technology partner to give you quick access to KPIs specific to your dealership. Keep an eye on these monthly values to track sales performance and business growth.

KPIs Defined

Let’s review the basics of each of these KPIs so that you will be primed and ready to use the information to your advantage! Each month, the portal will report your metrics for the prior month. Each metric will reflect the total across all platforms. We’ll launch with these important indicators:

Number On-Program Parts Sold

When we refer to “On-Program” parts, we call out parts that are part of a Lexus rebate program, such as Trax, Microcat Partsbridge, CollisionLink, and RepairLink. The “Number On-Program Parts Sold” KPI is the count of all parts included in a Lexus rebate program that were presented to and sold to wholesale customers during the prior month.

Keeping an eye on the number of On-Program parts sold provides an understanding of how Lexus rebate program support helps grow your wholesale parts sales. Here are some ways you can use this information:

• To quantify your success, compare your sales of on-program parts to sales of the same part before participating in a rebate program.
• To identify opportunities, look at the number of shops you are actively engaging sales. If that number declines, review your pricing and look for gaps in your procurement and delivery process. Are your prices competitive with other suppliers that serve your market area? Are orders processed quickly and delivered on-time?

Think of the On-Program rebate as a carrot to entice additional sales of Off-Program parts, which we will explore next!

Number Off-Program Parts Sold

Off-Program parts are not included in a Lexus rebate program. The “# Off-Program Parts Sold” KPI is the tally of all parts not included in a Lexus rebate program that have been presented to and accepted by wholesale customers during the reporting period.

When a wholesale customer sees your competitive pricing for On-Program parts, they are likely to purchase not only On-Program parts but also Off-Program parts, fulfilling the entire estimate rather than cherry-picking. Your objective is to get as much of the estimate you can — with price matching, and you’re more likely to capture the whole estimate.

Total Dollars Sold at Dealer Cost

Total “Dollars Sold at Dealer Cost” represents your total expense for the purchase of Lexus Genuine Parts during the reporting period. It does not include your wholesale margin. Lexus presumes that you would not have had this opportunity if you were not participating in a Lexus price-matching program, which helps you capture additional sales that might have gone to the aftermarket.

Number of Shops Dealer Sold To

The “Number of Shops Dealer Sold To” is the tally of individual shops to which your dealership sold Lexus Genuine Parts during the reporting period. Keep an eye on this number. If it declines, review your performance in other key areas with your technology partner to explore countermeasures and tactics to increase market penetration. Refer to  Lexus WIN article Your Wholesale Customer Connection for dealer best practices to keep your dealership top-of-mind when wholesale customers are ready to order parts.

Using the KPI Data

Your LEXUSWHOLESALEPARTSHUB.com portal displays your parts department’s KPIs for the prior month each month. The dashboard compares your wholesale parts sales performance to your District’s, indicating whether you are above or below District average. Area and National average are also noted.

Keep a keen eye on these performance numbers month-over-month compared to your District averages. Look for trends, find wholesale parts sales improvement opportunities, and take appropriate action. Green indicates that you are at or above District average. Red signals that you may have some opportunities to pursue! Find performance gaps and work with your technology partner to create continuous improvement plans.

“Lexus believes that these wholesale parts KPIs illustrate the revenue potential for a dealer selling to collision centers and IRFs. The price matching tools provided by our Lexus Partner Program platforms effectively support conquest of sales that would not otherwise have made,” explains Kathy Wachs, Lexus Parts Sales Operations Manager. “We encourage participation from all Lexus dealers — for those dealers who have not yet adopted a wholesale parts sales mindset, these KPIs should ignite an interest and desire to grab a piece of the pie.”

To learn more about Lexus Partner Programs, contact your Lexus program partner or Lexus Wholesale Parts, Sr. Analyst, Rob McPhail at rob.mcphail@lexus.com