Are You Advertising Efficiently or Inefficiently? [E076] - Business By The Numbers
Last episode, I talked about factors that play into calculating customer acquisition cost for your business. This week, I'll explore how you can figure out what an appropriate acquisition cost is for your shop. As usual, it's not a one-size-fits-all answer, but I\u2019ll talk about a few factors that can help you decide:
\u2022\tAdvertising Spend as a Percentage of Sales: Many successful businesses allocate around 6% of their sales for advertising purposes, but does this apply to all shops?
\u2022\tHow much free demand does your shop have? From physical visibility to word-of-mouth, what kind of factors to consider when determining how much advertising you need to do.
\u2022\tUnderstanding how customer retention and loyalty relate to customer acquisition cost, especially from the perspective of Average Repair Order (ARO)
Thanks to our partners, NAPA TRACS and Promotive
Visit NAPATRACS.com and GoPromotive.com
Paar Melis and Associates \u2013 Accountants Specializing in Automotive Repair
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