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Automotive Franchises: Sample Objectives and Key Results (OKR)

January 22, 2024
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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 For Automotive Franchises

Objective: Increase franchisee revenue.

KRs:

  • Have a customer acquisition rate of 25% (new customers/total customers).
  • Have a quote capture rate of over 70% (total sales/total quotes).
  • Increase leads from online sources by 25%.
  • Get a conversion rate from service texting reminders of 20%.

Initiatives:

  • Launch campaign with current happy customers to get more reviews.
  • Enhance texting reminder campaign using new vendor.
  • Have home office sales coach talk to Service Manager about best practices.
  • Review quote capture rate on monthly FranConnect scorecard.
Objective: Increase franchisee efficiency.

KRs:

  • Have a productivity ratio of over 80% (hours clocked/hours available).
  • Decrease parts supplier costs by 10%.
  • Reduce marketing costs by 20%.
  • Reduce staff costs by 15%.

Initiatives:

  • Hire junior technicians at a lower rate to pick parts so senior technicians save time.
  • Reorganize the shop to improve technician workflow.
  • Review productivity ratio on monthly FranConnect scorecard.
  • Review marketing spending by lead source and eliminate ones with high Cost Per Lead (CPL).
Objective: Delight customers.

KRs:

  • Reduce cycle time by 10% (measured through Point of Sale from drop-off to delivery).
  • Have a Customer Satisfaction (CSAT) score of 75%.
  • Have 50% of customers come back for repeat business within one year.
  • Have Employee Satisfaction Score of 60% (happy employees lead to happy customers).

Initiatives:

  • Have two “Family Days” with staff per year (summer and holidays)
  • Eliminate the vendors with the slowest parts delivery record.
  • Send text reminders for service.
  • Conduct a self-audit

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:

About Objectives and Key Results in Franchising
How to be a Collaborative Franchise Business Coach (FBC)