Managing the Cost of Marketing

Managing the Cost of Marketing in Auto Repair
Marketing and advertising expenses are part of any business. In auto repair, marketing efforts focus on two primary objectives – customer retention and customer acquisition. Further, marketing expenses tend to rise and fall in correlation with business volume. In times when business is good people tend to be less concerned with marketing. Conversely when business is slow people will pay more attention to marketing. The result is that marketing expenditures tend to increase when there are less funds available. Thus the importance of developing and maintaining marketing plans becomes increasingly important. And since the availability of resources for marketing is dependent on business revenue it’s important to make sure they’re being used effectively. Effective marketing will increase sales, reduce sales cycle times, lower sales costs, increase profit margins and facilitate long term relationships with customers. So measuring the cost effectiveness of marketing is essential to success.

Measuring Sales Increase and Reduced Cycle Times
Effective customer retention marketing should result in an increased number of visits with shorter periods of time between. Thus existing customers should bring their vehicles in more often for recommended services and/or incentives based on marketing efforts. Actual ratios can vary based on a number factors but any shop should be able to establish a baseline by which to measure results. If the optimum percentage of customers visits within the desired frequency and sales goals are reached then marketing efforts are working.
The effectiveness of customer acquisition marketing is measured by the number of new customers gained within a given time period and the readiness with which they agree to do business with your company. The easier it is to win business when a prospective customer makes initial contact is a reflection of the effectiveness of marketing. So there are 2 primary measures of customer acquisition marketing. First is the measure of the number of inquiries made within a given time period. And second there is the capture or conversion rate. This is measured by the ratio of inquiries or quotes versus the number that become sales. As in retention marketing the anticipated volume and ratio can vary according to circumstances but a shop should be able to establish a baseline for evaluation purposes. If the desired goals are reached then customer acquisition marketing is effective.

Evaluating the Impact of Marketing on Sales Costs and Profit Margins
Effective marketing whether it is focused on acquisition or retention will result in increased sales volume and better profit margins without increasing sales costs. In other words front line personnel will spend less time in the sales process because much of the relationship with the customer has been built through marketing. They’ll be able to win business without incentives as marketing has enforced the value of the service offering thus resolving cost concerns in the customer’s mind. The result is that sales people can handle greater volume for better margins thus reducing the sales cost of each transaction. Providing quality sales support is critical to establishing long term relationships so it’s important to consider this factor when evaluating this aspect of marketing impact. So if marketing efforts result in greater sales volume, improved profit margins and quality sales support without increasing sales expenditures then marketing is having the desired impact on sales costs.

Measuring the Impact of Marketing on Customer Loyalty
Establishing and maintaining long term profitable relationships is the key to success in the automotive repair industry. Customer loyalty is measured by the average lifetime and average lifetime value of customer relationships. If marketing is effective in this area these values will both be trending upward over time. So the measure of these factors is to compare them to the same measurements in a previous time period. In making this measurement it’s important to include business that was stimulated by the same marketing efforts.

Making the Most of Marketing Evaluations
The primary purpose of evaluating the effectiveness of marketing efforts is to maximize marketing expenditures. It’s important to record the source of business to support these measurements. And when the measurements are taken the result should be improved allocation of marketing resources. If a marketing strategy or campaign is effective it may make sense to direct more resources toward it. Conversely if marketing doesn’t achieve the desired results a reduction in expenditures may be warranted. Measurement of the effectiveness of marketing should be done on an ongoing basis and adjustments should be made based on results.

Article by: Maria

Working happily with National Merchant Services

www.processnms.com

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Article source: http://www.fasttrakauto.com/blog/2012/10/22/managing-the-cost-of-marketing-in-auto-repair/

How to Find Restaurant Investors

How to Find Restaurant Investors

Finding an investor for a new restaurant can be a daunting task. Persuading friends, family or strangers to lend you money will be much easier with a business plan that covers all aspects of your proposed venture. If your plan has been thoughtfully researched and includes market demographics, business strategy, marketing plans and realistic financial budgets and projections, it will go a lot further toward securing investors than just pitching an idea.

1. Complete a thorough and comprehensive business plan. Investors are going to want a professional accounting of where their money is going and what they can expect in return. Business resources such as the Small Business Administration or SCORE can help you develop a plan. Business plan software such as Business Plan Pro, Biz Plan Builder and Quick Plan can help organize your research and financial calculations into a professional proposal.
2. Approach people familiar with your work ethic and experience. These are the people who will require the least amount of selling as to your abilities and character. Family members and previous customers can be helpful allies in helping you achieve your goal.
3. Network with affluent crowds. Doctors, lawyers and other business people are often looking for investment opportunities. Join business groups and attend functions where these people are present. Take opportunities to set up private meetings where you can pitch your proposal and get your business plan in their hands.
4. Talk to your bank. While restaurants are considered a high-risk business venture, if your plan is solid and you've managed to secure a portion of the needed funds, bank lending may be an option to help put you over the top with start-up capital and launch your new business.

Article by: Maria

Working happily with National Merchant Services

www.processnms.com

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Read more: How to Find Restaurant Investors | eHow.com http://www.ehow.com/how_6521004_restaurant-investors.html#ixzz2LduAEHhJ

Managing the Cost of Tire and Auto Repair Sales

Managing the Cost of Tire and Auto Repair Sales

The key to controlling sales costs lies in process efficiency. If sales people are properly incentivized they will always strive to sell more. But if the sales process imposes limitations due to inefficiencies sales volume will be restricted. Prior to the beginning of the sales process marketing can have a significant impact on efficiency in sales. For example if customers repeatedly ask the same questions upon initial engagement the business would be better served by promoting the answer via marketing. However certain information the customer seeks is better off supplied by the sales person and being able to supply it quickly and accurately is paramount to earning business. And finally efficiency and timeliness in communications with customers during the repair process can have a huge impact on the cost of selling. Each of these factors should be evaluated when endeavoring to control sales costs.

Maximizing New Business Opportunities

When a potential customer requests information or a quote an opportunity to build a relationship occurs. Many times a purchase may not occur right away but there is always a possibility for future business. So when a prospect contacts the shop it’s important to get contact information such as name, phone and email then follow up periodically. Monthly emails and newsletters can be effective ways to stay in front of prospects and customers. If sales people are going to spend time calling people to stimulate sales – people that have previously expressed interest can bring the best results. Not pursuing these prospects can result in missed opportunities.

Streamlining the Sales Process

The sales process must be both efficient and effective. A front line employee must have the information they need to communicate with the customer in a timely fashion. Any time a front line employee has to have a customer wait in order to reply to an inquiry is an example of inefficiency. The goal of making the sales process as efficient as possible involves eliminating any parts of the process where this occurs

Making the Most of Existing Relationships

Sales to existing customers are generally the most readily available opportunities. Assuming that marketing is effective and existing customers have their vehicles serviced at frequent intervals then the sales person will have the opportunity to increase sales by providing value the customer can recognize. For example offering nitrogen to fill tires will result in better gas mileage and lower vehicle maintenance costs. The customer will spend money to reduce future expenditures. It’s important to record the result if the customer declines an offer because if the sales person repeatedly promotes the same offer it’s an indication that they don’t remember the customer.

Reducing Customer Attrition Rates

A sales person’s primary responsibility is to support sales initiation and work in process. Given that, even in busy times if the sales process is efficient there will be time available. This time can be utilized to follow up with customers that the shop may be in danger of losing. Utilizing available minutes in this fashion will always be time well spent. Keeping a customer can be viewed as cost avoidance as the need to acquire new business will be averted.

Keys to Controlling Sales Costs

Efficiency in the sales process allows sales to be earned at a lower cost and promotes customer loyalty. Making the most of sales opportunities with prospective and existing customers allows business to be earned that requires lower expenditures. And working to avert customer attrition avoids the cost of customer acquisition.

Article by: Maria

Happily working with National Merchant Services

www.processnms.com

Happy Processing!!!

Article source: http://www.fasttrakauto.com/blog/2012/10/23/managing-the-cost-of-tire-and-auto-repair-sales/