How to build top-performing auto dealerships

A survey of US auto dealerships finds that top-performing ones are more than three times as profitable as their average counterparts and highlights three ways in which top performers distinguish themselves.
Top dealerships make use of formal, consistent practices to develop talent and promote customer loyalty and spend more time with the automakers’ field representatives on business performance and planning than low-performing dealerships do.
The result? Top-performing dealerships have lower employee turnover and higher profits than low-performing dealerships, and they are more likely to exceed the automakers’ sales goals for new vehicles.

Exhibit 1: Internal dealership practices can substantially affect performance.
Exhibit 2: The more profitable dealerships focus on practices in the service department that promote customer visits.
Exhibit 3: At top-performing dealerships, automakers’ field representatives devote more time to coaching, performance reviews, and long-term business planning.