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?
5:35 -- Current Marketing Cost Per Car Sold
7:50 -- Calculating Lifetime Customer Value
11:15 -- The Role of Team Mentality
12:05 -- Ideal Profit from Repeat Customers
13:12 -- Dealer Obstacles Calculating a Realistic Number
22:04 -- What Can Dealers Do They Currently Aren't?
26:39 Andrew's Final Thoughts