Declining Cost-Effectiveness of Customer Acquisition Costs
First written in FY2017. 3 of 11 entries say "Mitigated", first in FY2021. Latest entry: FY2025.
The whole theme swung hardest in 2018: 5 of 18 companies on the "Worse" side.
2 other companies' latest entry also says "Other".
- FY2025Record retail volumes despite higher advertising expensesAnnual report
「Retail volumes to consumers at domestic company-operated stores during the consolidated fiscal year were 149,003 vehicles, up 3.1% year on year, a record high.」
Advertising expenses increased from ¥8.555 billion in the previous fiscal year to ¥9.218 billion, while consumer retail unit sales at directly operated stores in Japan rose 3.1% year on year to a record high. - FY2025-H1Record retail volumes despite higher advertising expensesAnnual report
「Retail volumes at domestic company-operated stores during the first half of the consolidated fiscal year were 75,917 vehicles, up 2.9% year on year. This was a record high for the first half.」
Advertising expenses increased from ¥3.773 billion in the same period of the previous year to ¥4.478 billion, while retail volumes at domestic company-operated stores increased 2.9% year on year to a first-half record high. - FY2025-Q1Retail volumes broadly flat despite higher advertising expensesAnnual report
「During the cumulative first quarter of the consolidated fiscal year (1 March 2024 to 31 May 2024), retail volumes at domestic company-operated stores were 38,842 vehicles, down 1.1% year on year. Compared with the same period of the previous year, when retail volumes reached a record high for the first quarter, retail volumes were broadly flat.」
Although higher advertising expenses associated with opening large-format stores were reported, retail volumes at domestic company-operated stores declined 1.1% year on year and were broadly flat compared with the record high recorded in the same period of the previous year. - FY2024Record retail volumes despite higher advertising expensesAnnual report
「The increase was due to higher advertising expenses associated with opening large-format stores, an increase in headcount resulting from additional hiring for the growth strategy, and higher personnel expenses, including recruitment costs.」
While advertising expenses increased, retail volumes to consumers reached a record high. No explicit assessment of the cost-effectiveness of the advertising investment was provided. - FY2024-Q3WorsenedAnnual report
「The Company also expected an increase in retail unit sales by investing in advertising expenses, but the anticipated increase in retail unit sales was insufficient.」
Although the company invested in advertising expecting retail volumes to increase, it stated that the increase fell short of expectations, again indicating that the impact of higher customer acquisition costs on increasing sales volumes was limited. - FY2022MitigatedAnnual report
「Meanwhile, individual advertising expenses declined through more efficient online customer acquisition, even as retail unit sales reached a record high.」
Retail volumes reached a record high, while advertising expenses declined through more efficient online customer acquisition, providing annual evidence of improved customer acquisition cost efficiency. - FY2022-Q3RestatedAnnual report
「Meanwhile, individual advertising expenses declined through more efficient online customer acquisition, even as retail unit sales reached a record high.」
The company continues to state that it reduced advertising expenses through more efficient online customer acquisition even as retail volumes reached a record high. - FY2022-Q2MitigatedAnnual report
「Meanwhile, advertising expenses declined through more efficient online customer acquisition, even as retail unit sales reached a record high.」
Retail volumes reached a record high while advertising expenses declined through more efficient online customer acquisition. This was cited as a specific result demonstrating improved customer acquisition cost efficiency. - FY2022-Q1AdvancedAnnual report
「Meanwhile, advertising expenses declined through more efficient online customer acquisition, even as retail unit sales reached a record high.」
Retail volumes reached a record high while advertising expenses declined through more efficient online customer acquisition. This was cited as a specific result demonstrating improved customer acquisition cost efficiency. - FY2021MitigatedAnnual report
「We have long regarded strategic decisions regarding store locations, improving the efficiency of customer acquisition through the internet, and rigorous inventory management as management priorities, and in recent years have worked to improve them.」
In response to the previous decline in customer acquisition cost efficiency, the company continues to improve store-location decisions and the efficiency of online customer acquisition. - FY2017First statedAnnual report
「Although purchases at all company-operated stores increased 2.9% year on year to 186,175 vehicles as customer acquisition costs were increased, customer acquisition cost efficiency declined.」
It was stated that increasing customer acquisition costs led to a decline in customer acquisition cost efficiency alongside an increase in the number of vehicles purchased.