3 Ways Many Auto Repair Shop Owners are Wasting Their Marketing / Advertising Dollars

Robert O'Connor Jr.
October 16th, 2008
 

Each and every day of the week, auto repair shop owners are trying to decide where and how to most effectively spend their advertising and marketing dollars. Unfortunately, the majority of most marketing budgets fall flat when it comes to optimizing each and every dollar. Unless you employ three critical practices, unlike so many repair shops out there today, you will never see an actual "result" from your marketing and advertising efforts. Without tracking, planning, and staff coordination, most advertising and marketing is doomed to fall significantly below expectation and potential. 

#1 - Tracking is a critical key to knowing which advertising and marketing is working.  Ask yourself the following questions: 

• Do you know which customers are new and which are return customers?
  
• Do you know where the new customers came from? (referral, website, other)
  
• Do you know which return customers came in from a coupon, reminder, or other such notice or need?
  
• Do you know, of all of the return customers, which ones spent more dollars per repair order?
  
• Do you know which services generated the highest dollars per repair order?
  
• Do you know the answers to the previous questions for each day? Week? Month? Year? 

A simple way to begin tracking each day is using the schedule; take five minutes to review with your advisor the answers for each repair order and customer. Keep these in a specific file folder and, at the end of each week, tally the results and enter them into your marketing and advertising tracking sheet. This simple process guarantees a straightforward visual representation of precisely what your return on investment is. A simple tracking sheet gives you a visual representation of your marketing and advertising successes and allows you to make informed and productive changes and additions along the way. 

#2 - Lack of planning is typically the result of reactive marketing: today the shop is low and we need to generate some activity to drive more business in the door. So let's make some calls, send some emails, and mail some letters. Hopefully in a couple of days it will get better. Let's examine why this occurs and what can be done to improve results. 

Most marketing and advertising efforts are wasted with a single piece sent directly to the customer or through another advertising avenue (multi-pack mailers, bulk emails, etc.).  Typically, these are done by the shop owner using Microsoft Word or Publisher and are often mailed without careful review of how it could be enhanced and streamlined for optimal results.  Often this all-or-nothing mentality leads to gaining only what some refer to as "Bottom feeders" or reduced activity. This greatly decreased the potential return on your marketing and advertising investment. 

By carefully planning when to use each marketing piece, how the intended recipient will receive it, and what you intend to do before and after the sale, the average shop owner will find himself or herself improving their return on investment.  Set aside some time to do the following things with each planned advertisement: 

• Ask anyone and everyone you can to review it and give you feedback. Watch how the advertisement is read and how they react to it. Take all input, even the most ridiculous as positive. In many cases you will discover typing or grammatical errors that managed to evade your own editorial eye the first time you read through the piece. You will also find out that there may be other ways to improve or enhance the marketing piece simply by asking what people want, expect, and like.
  
  
• Review your tracking and see what your results were from the last time that you sent out a similar marketing piece. How successful was it? Have you added or removed anything that would make it more or less successful?
  

#3 – Coordination and partnership with your staff and providers is often the most difficult task a business owner will undertake.  If they do not clearly understand what you are intending to accomplish, and do not accept or acknowledge their part in the process, you will find that any effort you make is in vain.  Some of the following items are suggestions on how to reduce your frustration, and potentially achieve better results: 

• Make sure your staff is fully aware of any advertising piece that is being sent out or used. In many cases, you may find that your employees will recommend the coupon or special currently available to new and returning customers.
  
  
• Collaborate fully with your service advisor to track and review the results from each customer's activity on a daily basis.  The information that they provide may significantly improve your advertising and marketing efforts. In turn, this will also create a synergetic relationship providing both the advisor and business with successful results.
  
  
• Each month and at the end of your fiscal year review the companies you purchase marketing or advertising products from regularly. Ask yourself how you might streamline and best utilize the money you spend to improve your return on investment. Is there something more that can be done with each mailer that will give you better results? Is there a better way to target your database and reduce the number of mailings that are going out, thus gaining targeted results and less expense? Everyday these agencies are seeing new and competitive ways to produce better results for you. Make sure they provide coordinated results for you and your business.
  
  
• If you do not know the specifics of your marketing history, plan to use the information on your tracking sheets in order to strengthen your understanding.   Watch where your money is going and when, look for results on a daily basis, work closely with your employees as they are an asset to your business, and don’t hesitate to ask for input!