Here are the guidelines that Bob Cooper and Elite shares with the top shops in the country
In the world of auto repair and service, one thing is for certain: You are going to lose customers. They will move, no longer have a need for their automobile, turn to one of your competitors, or buy a new vehicle and then take it to the dealer for service.
Accordingly, you need a consistent stream of new customers, and since you more than likely have competition in your community, you need to help those potential customers see that your shop is the right shop. The way that you accomplish this goal is by identifying who your targeted customer is, and then investing in your marketing and advertising programs, along with your customer retention programs.
The question is, “How much money should you be investing in those programs?” Well, here are the guidelines that we share with the top shops in the country.
If you have a general repair shop, a good place to start is at 4-5 percent of your annual sales. If you have a transmission shop, you may find that you need to increase your budget to 6-8 percent. Bear in mind that your budget needs to be a percentage of your “targeted” sales, not your current sales. For example, if you are currently generating $800,000 in annual sales, but your target is $1,000,000 in sales, then your marketing budget would need to be 4-5 percent of $1,000,000, not $800,000.
Secondly, you should do something that very few shops do, which is invest at least 50 percent of your budget into what we at Elite refer to as non-traditional advertising programs. Whereas traditional programs include media such as direct mail, social media, radio and websites, etc., non-traditional programs are comprised of media such as fundraisers, car care events held at your shop, social causes, and any other advertising programs that are outside of the mainstream marketing channels typically used in your community.
Additionally, we have long recognized the Y Generation (born 1980 – 1990) as the emerging market. This generation is not only your customers of tomorrow, but since this they were brought up using search and social media on their smartphones, they are often turned to by older generations that are looking for a good auto repair shop.
Accordingly, we encourage shops to invest 50 percent of their non-traditional advertising budgets into programs that are specifically directed toward the Y Gen’s in their communities. We have to remember that the first to reach this emerging market will benefit the most, so why not you?
Since 1990, Bob Cooper has been the president of Elite, a team of industry leading shop owners that helps other fellow shop owners take their businesses to new levels of success, reach their goals, and establish a work/life balance that leads to a higher quality of life. The company offers service advisor training, peer groups, and coaching and consulting services. You can learn more about Elite by visiting www.EliteWorldwide.com, or calling 800-204-3548.
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