Lexus, Subaru Have Most Loyal Customers Among New-Car Buyers: Study
Automakers are working hard to keep customers coming back, and growing competition is only making this job much more difficult. Some brands are more successful at building customer loyalty than others. J.D. Power’s 2020 American Auto Brand Loyalty Study for New Cars released this week shows which automakers are successful in building customer loyalty and who has a job to do.
Lexus leads the study on luxury brands with 48% of customers returning to the brand. This is closely followed by Mercedes with 47.8%, with BMW, Porsche and Audi behind respectively 45.1%, 44.9% and 43.4%. These automakers are crushing brands such as Jaguar (20.7%), Infiniti (27.7%) and Maserati (28.7%). For American brands, Lincoln beat Cadillac from 37% to 33.8%.
Mass market automakers who see a high percentage of return customers include Subaru, Toyota and Honda. The three Japanese automakers had a loyalty rate of 60.5, 60.3 and 58.7%, respectively. Ram was fourth with 57.3%, ahead of Ford with 54.3% and Kia with 51.3. Chevy came in at just under 50% – 49.1.
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Consumer brands that suffer from low loyalty include a trio of Fiat Chrysler Automobiles brands – Fiat, Chrysler and Dodge, which see 10.4, 14.1 and 17.8% of customers returning. Next is Mini with 26.8% brand loyalty. Mitsubishi and Buick are in similar boats at 27.1% and 27.5%.
J.D. Power calculated the brand loyalty percentages via the Power Information Network, by studying the percentage of vehicle owners who chose the same brand when upgrading to a new vehicle. The study calculated rates based on transaction data from June 2019 to May 2020.
JD Power vice president of data and analytics, Tyson Jominy, said that there are “many factors that contribute to brand loyalty,” including the buying experience and how the car does. feel the owners when they drive. Jominy noted that automakers have recently focused on customer loyalty – the various programs introduced to help customers who may have been affected by the coronavirus pandemic. “Many have gone above and beyond to offer financial assistance to their clients,” said Tyson. These types of programs build loyalty.
Brand loyalty increases among buyers of new vehicles, says J.D. Power
If a vehicle owner is loyal to a specific brand, it is increasingly difficult for another brand to seduce them when it is time to buy a new vehicle, according to the loyalty study of the American automobile brand JDPower 2020, SM published today.
“There are many factors that contribute to brand loyalty, ranging from a customer’s experience when purchasing a vehicle to how they feel about it,” said Tyson Jominy, vice president of data and analysis at JD Power. “Automakers are really focused on building customer loyalty, as evidenced by the payment plans and incentives they have offered since the outbreak of the COVID-19 pandemic.” Many have gone above and beyond to offer financial assistance to their customers during a period of economic uncertainty, which goes a long way to building consumer confidence in their chosen brand and buying it in the future. “
Using data from the Power Information Network, the study, now in its second year, calculates whether an owner bought the same brand after exchanging an existing vehicle for a new one. Customer loyalty is based on the percentage of vehicle owners who choose the same brand when exchanging or purchasing their next vehicle.
Lexus ranks first among luxury brands for the second consecutive year with a 48% loyalty rate. Mercedes-Benz comes in second (47.8%), followed by BMW (45.1%), Porsche (44.9%) and Audi (43.4%).
Subaru ranks first among consumer brands and highest in the automotive industry for a second consecutive year with a loyalty rate of 60.5%. Toyota ranks second (60.3%), followed by Honda (58.7%), RAM (57.3%) and Ford (54.3%).
The calculations for the 2020 U.S. Auto Brand Loyalty Study are based on transaction data from June 2019 to May 2020 and include all model years traded.
J.D. Power is a world leader in consumer insight, advisory services and data and analytics. These capabilities allow J.D. Power to help customers increase customer satisfaction, growth and profitability. Founded in 1968, J.D. Power has offices serving North America, Asia-Pacific and Europe.