Providing Auto Shop Management SOFTWARE Solutions Since 2005


6 Keys to Increasing Customer Acquisition Rates in Auto Repair

It’s always necessary to bring in new business in auto repair. If nothing else lost business must be replaced. To maximize profits the most must be made of advertising dollars. It’s important to have a clear definition of the target audience and employ marketing messages that will motivate them to make a purchase. Managing advertising venues and ensuring that the most cost effective sources are employed is equally as critical. The automotive repair business that makes the most of advertising dollars will be more competitive in the market place. Following are keys to achieving impactful customer acquisition rates:

  1. Know Your Target Market – A clear definition of the target market is critical to marketing success at any level. But when it comes to effective acquisition of new customers it can mean the difference between successful marketing and wasted advertising dollars. To acquire new customers that will offer repeat business define as specific a profile of the customer as possible.
  2. Employ Effective Marketing Messages – Successful marketing messages are directed at the correct target audience. They get the attention of the audience and result in the prospective customer making a purchase. The AIDA marketing model is an effective method for attracting new business.
  3. Track Sources of New Customers – When a new customer purchases services it’s important to record what brought them to the shop. This allows advertising sources to be evaluated.
  4. Measure Advertising Effectiveness – Advertising can be evaluated at its simplest level by the number of new customers acquired. Measuring acquisition based on the amount of dollars can be a little tricky as the price of needed repairs can vary from visit to visit. If advertising involves a loss leader such as a low price oil change the dollars become irrelevant and only the number of customers is meaningful.
  5. Evaluate Return on Advertising Investment Dollars – Return on advertising investment dollars can be measured by relating the value of business generated to advertising dollars spent. However, this measurement can become muddled because as soon as a prospect becomes a customer – retention marketing kicks in. So it’s best to measure the effectiveness of customer acquisition marketing by the number of customers acquired and not the initial sales dollars. So dividing the money spent on advertising by the number of new customers acquired will give the cost of acquiring a new customer.
  6. Direct Resources to Most Profitable Marketing Venues – Making the best use of finite marketing resources involves applying advertising dollars to the venue that’s most cost effective at attracting new customers.

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