Tagged: customer acquisition costs
Does your automotive service center have a marketing budget to acquire new customers? What channels are you advertising in? And have you determined what your customer acquisition costs are?
Channels could include facebook advertising, display ads, search engine, direct mail, value-packs, radio, local papers, email list rentals, other?
What is your customer acquisition costs per channel?
Example: Direct mail ($0.74/mail piece) x 4,000 mailers sent. Total cost = $2,960. Total of 20 new customers closed.
Customer acquisition costs for direct mail = $148 ($2960/20).
All of my clients have a budget based on total sales. (3%)All advertising is done through their website and adwords. Almost none of my clients use their entire budget.
This is a 3 month period. 1347.00 for website. 418.37 for adwords= 1765.37. Generated 249 leads and 99 new customers. For a conversion rate of 39% Total cost of leads generated=7.08 cost of New Customer= 17.83
Total Cost =1765.37
Revenue Generated= 30500.87
New Customer Cost=17.83
ARO for those customers=308.08
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