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Return on InvestmentBack

ROIMotor retailing has always been a low margin enterprise and with increasingly expensive demands for facilities it’s never been more true to say that every penny counts.

As NFDA Trusted Dealers is owned by and run for its members, we’re really interested in evaluating the return on marketing investment and the value of a customer. With that in mind, we’ve created a new return on investment (ROI) calculator to help our members compare used car advertising media. In addition with a view to aftersales, we’re looking at customer lifetime value and the short- and medium-term value associated with an aftersales booking.

Whilst marketing will always demand activity around brand awareness, and all media will generate walk-ins as well as trackable enquiries, it’s important that when you can draw comparisons, you’ve got the tools to do so.

To ensure we’re maxing out our return on investment, we have to look a customer’s habits which in this increasingly digital era are unlikely to match traditional office hours. With this in mind we’ve invested in an out-of-hours contact centre and chat to support our members, and we’ve also published a best practice guide on responding to emails. There’s no point in focussing on cost per lead if they’re not properly managed and followed up.

When it comes to aftersales leads, the focus on selling service plans has certainly increased retention in 0-3 year old vehicles and as with mobile phone contracts it’s likely that these contracts evolve to reflect the aspects of the service the customer wants. For example, someone who needs a courtesy car you would expect would be prepared to pay more than someone who is content to have a cup of coffee and wait in the showroom.

We’ll be picking up on these themes – plus “Don’t panic it’s just the FCA” at our Driving Digital 3 roadshow held in Newcastle on Tuesday 13th May and Newbury on Thursday 15th May. For further details or to book tickets, visit In the meantime, if you’d like a copy of our email guide or our ROI calculator, please drop me a line on 01423 506272 or email

Posted by Neil Addley on 14/04/2014