Show notes
In this episode of the KPI Cafe, one of Reunion's Co-Founders and Client Success Manager Andrew Kocha dives into a recent analysis he conducted to accurately calculate lifetime customer value (LCV) for automotive retail. After explaining the importance of why dealers need to understand lifetime customer value, Andrew leverages a report by The Appraisal Lane to walk through the calculation, laying out actual numbers for consideration.He and host Dane Saville also address the obstacles dealers face when calculating LCV and advantages they have over other organizations that offer vehicle service and repair. Here's what you can expect:3:12 -- Why Understand Lifetime Customer Value?FamiliarityAdvertising Cost EfficiencyFamily BusinessWord-of-MouthGoogle Search5:35 -- Current Marketing Cost Per Car SoldShift to DigitalInefficient Strategies?Mandated Events7:50 -- Calculating Lifetime Customer ValueShoutout to Appraisal LaneSales and Service RevenueAverage LifespanAverage Duration between PurchaseAverage Services11:15 -- The Role of Team MentalityCross-Department RewardsBreaking Down Silos12:05 -- Ideal Profit from Repeat Customers13:12 -- Dealer Obstacles Calculating a Realistic NumberMany Line Items - All VariablesThings Outside Dealers' ControlThings Dealers Can Control22:04 -- What Can Dealers Do They Currently Aren't?Do Things Jiffy Lubes Can'tAndrew Turns the Table on Dane26:39 Andrew's Final Thoughts
