Evaluating Auto Repair Shop Marketing Campaign Results

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At the start of a new year it’s important to review the results of marketing campaigns and determine how well they’re working. Marketing campaigns are generally directed at either customer retention or customer acquisition. In order to evaluate their effectiveness retention and acquisition rates must be calculated and measured against one or more benchmarks to determine trending patterns. The information gathered in measuring marketing campaigns will support decisions on marketing resource allocation in the upcoming year. Following are keys to measuring marketing campaign effectiveness:



  1. Calculate Customer Retention, Attrition and Acquisition Rates – In order to evaluate marketing campaign effectiveness the rates at which customers are gained, kept and lost are necessary. It’s important to be aware that customer attrition may not always be attributable to marketing campaign effectiveness. Retention, attrition and acquisition rates are standard calculations…Read More>>
  2. Compare the Calculated Rates to Benchmarks – Customer retention, attrition and acquisition rates should be measured against previous year results to determine trends. If possible they should be compared to industry averages as well. If trends are improving marketing campaigns are effective – if not adjustments may be needed.
  3. Determine Causes of Customer Attrition – Customer retention can be improved by reducing the rate of attrition. Knowing the cause of lost customers can provide intelligence that leads to improvement. When contacting customers to determine why they haven’t returned it’s not necessary to contact every lost customer. Statistical analysis guidelines tell us that a sample of 25 or more will provide a reasonable picture.
  4. Calculate the Cost of Customer Retention – The cost per customer of retention marketing is an important component in measuring campaign effectiveness. This value is calculated by dividing the amount spent on retention by the number of customers retained. This value can be measured against the previous year to evaluate trends and estimate future costs.
  5. Calculate the Cost of Customer Attrition – Knowing the actual cost of lost customers can emphasize its importance and define the impact of improvements in this area. To calculate the cost per lost customer – divide the average annual sales per customer by the number of lost customers.
  6. Calculate the Cost of Customer Acquisition – This value will indicate the amount being spent per customer to attract new business. It’s calculated by dividing the amount spent on advertising for new customers by the number of customers acquired. This value can be measured against the previous year to evaluate trends and estimate future costs.
  7. Evaluate Trends and Allocate Resources Accordingly – Knowing customer retention, attrition and acquisition rates then evaluating their trends and cost per customer will support determining the best appropriation of marketing resources in the upcoming year. If any of these indicators are trending in the wrong direction allocation of more resources may be required.
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