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Using Statistical Data In Automotive Repair

AnalysisThe ways that statistical data can be used in an automotive repair environment are countless. There are so many activities that can be measured and improved that it would be impractical to attempt to list them all. But the key point is that activities can be measured in a number of different ways to determine the most effective way to utilize resources and continue to improve and grow. Following are examples of areas in which statistical data can be used:

  1. Capture Rates – Capture rates refer to the quotes and recommendations that turn into actual business. These rates can be measured and evaluated for the purpose of improving them. For example – if a large number of quote losses out of the population sample were determined to be the result of presentation – then corrective action could be taken.
  2. Productivity – This performance indicator is measured as efficiency (the ratio of actual labor hours to customer billed hours) and proficiency or labor utilization rate (the percentage of available labor hours spent working on vehicles). These 2 measurements can be employed to identify opportunities for improvement. For example if a low proficiency measurement is determined to be due to availability of parts – it may be addressed by stocking higher inventory levels in specific parts.
  3. Customer Acquisition – New customers are generally acquired through advertising and promotion. Statistical measurements of the effectiveness of promotion campaigns can help determine which advertising campaigns are the most profitable. This will allow marketing dollars to be put to the best use.
  4. Customer Retention – Business is earned and re-earned through relationship building. There are many facets to keeping customers and knowing which have the greatest impact will help direct resources to the most profitable areas.

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