This
KPI provides you with the rate and direction of growth of the Bodyshop by understanding the relationship between the sale of retail
hours and insurance hours.
Recovery Rates from Insurance Companies are often much lower than can be achieved within the retail sector, but once relationships are well established, taking additional insurance work may be the line of least resistance.
Example:
A) Retail Hours Sold = 870 B) Intsurance Hours Sold = 1031 C) Retail : Internal Ratio = 0.84:1 (A ÷ B)
Discussion:
If
the underlying trend of this KPI is demonstrating a higher dependence
upon Insurance work, it could mean that your Bodyshop is losing its
retail customers, or there are no effective marketing efforts in place to attract retail customers to you business.
Business growth is all well and good, but if most of the growth is from insurance companies you may wish to give some thought to your business's Gross Profitability and exposure. What would happen if an insurance company suddenly decided to place their work elsewhere?