While AI adoption in dealerships is growing, many general managers and owners question whether its implementation is actually having the intended effect: saving money and increasing efficiency. The fear of investing in expensive tech without a clear return is real.
According to CDK’s AI in Automotive report from 2024, 52% of executives have considered incorporating artificial intelligence solutions into their dealership’s operations. The same survey also found an 8% decline in dealerships reporting a positive experience with Al.
For those who want to measure the true impact of artificial intelligence across their entire operations, from sales to the service bay, consider seven KPIs that provide a clear path to proving your ROI from AI.
Why your dealership can’t afford to ignore AI KPIs
It’s essential as a dealership leader to move beyond feeling like AI is helping to knowing its precise impact on your bottom line. This is crucial for three reasons:
- Staff adoption and motivation: Use KPIs to demonstrate to your sales and BDC teams how AI is helping them achieve their targets, and not replacing them, which is a common concern among employees.
- Vendor accountability: Hold your AI provider accountable for delivering real results.
- Smarter budgeting: Justify your tech spend and make data-driven decisions about future investments.
The 7 essential KPIs to measure your automotive AI success
If you want to prove that AI is making an impact on your automotive dealership operations, consider tracking these seven KPIs.
Lead response time and engagement quality
This metric refers to the average time it takes for your conversational AI platform to first engage a digital lead and the quality of that conversation (e.g., did it answer the customer’s question correctly?). Tracking this KPI matters because speed wins in auto sales. An instant, accurate AI response prevents a lead from clicking over to your competitor. This is a leading indicator of success.
STELLA’s conversational AI solutions—Service, Reception and Catalyst—are specifically designed to engage dealership leads and customers with quick response times and natural language understanding.
Appointment set rate and show rate
This metric refers to the percentage of AI-engaged leads that result in a scheduled appointment, as well as the percentage of those appointments that actually show up. It matters because while the appointment set is important, the show rate is where the money really comes in. A high-quality AI interaction results in a more committed customer who shows up, making intelligent solutions like STELLA more pivotal to success.
AI-influenced sales conversion rate
This metric refers to the percentage of sales that had a documented AI touchpoint in their journey. Tracking this KPI directly connects AI activity to closed deals — the ultimate proof of ROI for the sales department. STELLA AI, which offers a seamless integration with your dealership’s CRM, makes it easy to track AI-influenced vehicle and parts sales.
Cost per lead (CPL) and cost per acquisition (CPA)
This measures how much you spend on marketing to generate a lead and, ultimately, a sale. These costs are the CFO’s favorite metrics. Effective conversational AI should handle more top-funnel inquiries, allowing your marketing spend to be more efficient and lowering your cost to sell a car. With an AI solution that targets in-market buyers beyond your CRM with precision, your dealership maximizes the value of every dollar spent on ads.
Service department RO revenue and absorption rate
This refers to revenue from repair orders (ROs) generated via AI-powered service reminders/schedulers or conversational AI, and its impact on your service absorption rate. Leveraging AI for proactive service outreach, and not just reactive sales, gives your dealership an edge over competitors and helps you get more for your AI investment.
Customer satisfaction (CSAT)/Net Promoter Score (NPS)
This metric refers to how AI interactions impact customer happiness and their likelihood to recommend your dealership. Tracking this KPI matters because customer experience is key to success. Studies have shown that customers value quick and effective service. Showing a positive or neutral impact on CSAT proves the technology is enhancing, not hurting, the customer experience.
Employee productivity
This KPI refers to the amount of time your team saves by letting sales or service department AI handle repetitive questions, calls and other routine tasks, allowing them to focus on high-value activities like test drives and closing. AI is a tool that makes your existing team more powerful and efficient. When you use a tool like STELLA as a “digital assistant,” your team can be more productive.
Your roadmap to AI-driven success
Measuring success is the only way to maximize your AI investment. Tracking dealership KPIs like show rate, AI-influenced sales conversion rate and lead response time helps paint a picture of how artificial intelligence is affecting your operations.
Schedule a free demo with our team to help you identify which KPIs matter most for your dealership and how STELLA can help you see improvement.
