Essay on Customer Lifetime Value and Return on Marketing

Words: 1475
Pages: 6

Case Study: Conroy’s Acura: Customer Lifetime Value and Return on Marketing

Case Summary:
Conroy’s Acura was founded in November 1986 by Ross Conroy, a veteran of the car industry who also owned a General Motors dealership to open in Toronto and one of the first in North America. Located in downtown Toronto, Conroy’s Acura sold both new and pre-owned vehicles, and its service department was dedicated to Acura Products. Conroy’s Acura was an independently owned dealership that held a franchise agreement with Honda Acura’s parent company. It has been a successful company amidst the number of competitors since 1986. And now, it needs to create less expense or cost efficient strategies to increase the number of customers and most
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The company is not selling at a loss because they have competitive prices and they maintain their customer’s lifetime value.
S5. The owner is hands-on. Terrence Conroy, the president of the company, still has control over the company and he also does hands-on work to help the employees some of the times.
W1. Too traditional on promotional efforts. Conroy’s Acura is currently not using new ways to promote their business.
W2. Doubting the decisions or suggestions of the Employees
W3. Data between Marketing Efforts and Amounts spent is Inaccurate. They are not taking into account the possibility of their customers buying again sometime in the future in their dealership.
W4. Some/more marketing Ideas did not produce a tangible financial return.
W5. Too many Expenses to be spent. The company spends too much on advertising than product innovation especially on internet advertising.
O1. Internet. It allows the company to attract potential customers that doesn’t fully know about the company’s opportunities and products.
O2. Customer Loyalty. The loyalty that they have from their customers gives them the assurance of profit in the future.
O3. Competitive Price on Products. Based on the company’s product prices, they have the most affordable prices of the products than the other competitive companies.
T1. Trends. There may come a time that they may be too late for innovation that will be the start