Using Automotive Repair Marketing Key Performance Indicators

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Key performance indicators can be very effective in assessing the effectiveness of marketing efforts. Questions such as: Are we acquiring customers at an acceptable rate; Are we doing a good enough job of keeping existing customers; Are we performing the appropriate mix of repair vs preventive maintenance work can be answered. In any use of key performance indicators they must be compared to reliable benchmarks such as industry averages or same period previous year to determine whether action is needed. Following are key performance indicators that measure marketing effectiveness:

  1. Customer Acquisition Rate – This KPI is a measure of the percentage of customers that are added over a given time period – usually a year. It provides a good indication of the effectiveness of marketing efforts directed at bringing in new business. If this measurement is below applied benchmarks then changes in marketing programs are in order.
  2. Customer Retention Rate – This is a measurement of the percentage of customers that are still customers after a given period of time – usually one year. Keeping customers can be affected by a number of different variables however in this writing it is addressed in the purview of marketing efforts. In automotive repair customer retention management (CRM) marketing programs are directed primarily at encouraging customers to bring their vehicles in for recommended repairs. If the customer retention rate is above benchmark measurements then CRM programs are having the desired effect. If not then different marketing venues should be pursued.
  3. New vs Existing Customer Repair Orders – This KPI is a measure of the percentage of business during a given time period that is from new customers vs. existing customers. If this indicator compares favorably to applicable benchmarks then marketing programs are having the desired effect. If not marketing resources may need to be redirected to either new business acquisition or customer retention.
  4. Preventive Maintenance vs Repair Work – This is a measurement of whether or not the appropriate mix of PM vs repair work is being performed. If the measure is leaning more toward repair work the indication is that a higher percentage of customers aren’t bringing their vehicles in until something breaks. This would indicate that more CRM resources should be focused on service interval marketing.
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