Tuesday, July 29, 2014

4 Ways GPS Vehicle Tracking Drives Your Company's Revenue

The vast majority of limousine business owners and fleet managers think of the investment in GPS vehicle tracking technology as an expense. If used as the technology is intended to be, this couldn't be further from the truth.

The mindset that it is an expense is the one thing that holds back more businesses than anything else. It is the biggest misconception out there.

If you were asked to install and utilize a GPS tracking solution that was 100% free, wouldn’t you say yes? What if you were told it would actually add money to your bottom line? No one in their right mind would say no to free money with no catch. What 99% of business owners and fleet managers don’t understand is that GPS vehicle tracking is free and will improve your bottom line. The missing piece of the equation is the proof that, yes, your GPS vehicle tracking system is essentially free!

Every GPS tracking company will say that their platform will save fuel, labor and maintenance costs, but what they are missing is “how” and “where” the money comes back to the bottom line. This is a deep subject, but for those enlightened with the proof needed, it finalizes their decision. Make the GPS providers prove the ROI they are selling you on.

GPS tracking software is one of the best dollar-for-dollar ROIs a business can receive. Depending on fleet size, thousands if not millions of dollars are returned to your bottom line. The ROI can come from many different parts of your fleet operations.

GPS vehicle tracking helps management keep drivers on task, working for you, and not themselves or someone else’s business.


Over 100% ROI can be found from making small adjustments to the way your fleet operates such as reducing a few miles driven a day per vehicle, curbing idle time, and reducing a few labor hours a week per driver. Imagine if you had an extra few thousand dollars or even as much as a million dollars a year. What could you do with that money? The answer is “a lot.”

Here is an example of the savings you can expect from a GPS vehicle tracking system:
For a business with 20 mid-sized vehicles averaging 10 MPG with each employee making $15.00 per hour, reducing each vehicle’s miles driven on a daily basis by just 2 miles (due to better routing/dispatch a GPS tracking system will provide) looks roughly like this on the bottom line:

Maintenance: Vehicle Wear and Tear
  • 40 miles per day saved  (20 vehicles x 2 miles saved)
  • 880 total miles saved per month (22 working days per month x 40 miles saved per day)
  • $748 saved (880 miles x $0.85 vehicle cost/maintenance/etc. per mile driven)
Fuel: Reduced Mileage
  • $13 or 4 gallons of fuel saved per  day (20 vehicles each saving .2
    gallons per day x $3.25 per gal)
  • $286 saved per month in reduced mileage ($13 x 22 working days)

Reduced Idle Time
  • 15 minutes per truck per day (equivalent of three, 5 minute idle stops)
  • 110 hours of reduced idling per month (15 mins x 20 vehicles x 22 working days/60)
  • 55 gal saved per month (.5 gal per hour fuel burned x 110 hours)
  • $178 saved in reduced idle time per month (55 gal per month x $3.25 per gal)
Labor:
  • 5 Minutes of labor saved per day (25 minutes per week or 1.7 hours per month)
  • $25.50 per employee per month (1.7 hours x $15 per hour)
  • $510.00 in reduced labor per month ($25.50 x 20 employees)

Total Monthly Savings: $1,722.00

GPS Tracking System Monthly Cost (subscription/rental): $800.00
ROI in 1 month: 115%

In this example, we used conservative numbers to show you that small adjustments have a huge impact on your bottom line. We did not include quite a few other benefits that vehicle tracking offers that drive even more ROI.

These include reduced accidents due to improved safety, improved customer billing accuracy, increased new/return business due to improved customer service, insurance discounts and vehicle theft recovery. 

How to Generate Revenue with GPS Tracking Software:
Now that you have learned what you can expect from a return on investment or dollar savings perspective, it is time to dive into how to generate revenue for your business’ bottom line with GPS tracking. This can be done in three key ways: Increasing driver productivity, improving efficiencies and refining your customer service.

1) Increasing Productivity 
Unfortunately, unapproved usage of company vehicles is more common than most would like to admit or are even aware of. GPS vehicle tracking helps management keep drivers on task, working for you, and not themselves or someone else’s business.
You can use GPS alerts and reports to know when a driver is doing side jobs or personal errands throughout a shift. This will ultimately keep your employees productive for your business each day.

Keeping your vehicles on the road is an expensive part of fleet management that needs a close eye. GPS tracking will keep vehicle downtime due to maintenance at a minimum and help to prevent costly maintenance, which will keep your drivers working, leading to more revenue for your business. 

2) Improving Efficiency 
Although your business may not need a robust dispatch system, you still need to send drivers from point A to point B throughout the day. 

Dispatching your drivers to their next pickup and to customer destinations with the most efficient route will reduce travel time, reduce mileage put on each vehicle, give you a leg up on the competition and improve your quality of service to customers.

The ability to easily see where your vehicles are at all times and keep operations running smoothly from location intelligence is invaluable for your business and will ultimately drive revenue to your bottom line.

3) Refining Customer Service 
There is no question that there is a direct correlation between customer service quality and revenue. So any 
limousine business should be focused on finding ways to improve upon it.
GPS vehicle tracking gives your business the opportunity to serve more customers on a daily basis 
with more effective dispatch, as well as monitor and coach employees about expectations regarding time with customers and driver behavior. The more customers you can serve, the more money your business 
will make.

GPS vehicle tracking software will give your company the chance to be proactive instead of reactive. When drivers are running late, your team will know and can call the customer to notify them. When a driver or technician is within a mile of the customer location, you can even set up an automated text message or email to be sent to them, letting them know you are on the way.

Timely arrivals and improved customer service will make your customers happier, and happier customers lead to loyal customers that will refer you to their friends, and that equals more revenue for your business. 

Hopefully, the information from this article has helped you understand that tracking is not an expense for your business. GPS vehicle tracking technology will not only pay for itself and more by providing savings in a variety of areas, but it will also help drive revenue for your business. Who can say no to that? Do your due diligence and test out different GPS products before purchasing to ensure you make the best choice.

GPS Tracking Saves You Money


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Ryan Driscoll, GPS Insight

Ryan Driscoll has served as Marketing Director for GPS Insight since 2009. In this position, he is responsible for all marketing and PR activities. He works diligently to be a trusted advisor that provides thoughtful leadership in the areas of GPS tracking and fleet management. He is a graduate of Arizona State University, where he received a BS degree in Marketing.

For more information about GPS Insight, please visit www.gpsinsight.com.

2 comments:

  1. That is more than I realized!

    ReplyDelete
  2. Wow, here are a lot more benefits to GPS systems than one would think! Thank you for breaking this all down, it definitely puts things into perspective!

    ReplyDelete

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