2012 Brand Loyalty and Conquest Cited by Polk

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R. L. Polk - March 8, 2013

Both automak­ers and deal­ers reached out for cus­tomer sat­is­fac­tion, says Polk ana­lyst, all adopt­ing prac­tices to keep cur­rent cus­tomers and win over new ones.

Get the details on buy­ers most loyal to their brand in 2012.

in 2012, we began to wit­ness OEMs plac­ing greater empha­sis on cus­tomer loy­alty and owner con­quest strate­gies at both brand and deal­er­ship lev­els. OEMs are rec­og­niz­ing that in order to achieve the growth objec­tives set; they must focus on their exist­ing own­ers. Adopt­ing best prac­tices in cus­tomer sat­is­fac­tion and under­stand­ing the dri­vers of owner defec­tion are at the fore­front of every OEM busi­ness strategy.

Improve­ments in brand loy­alty were dom­i­nated by the import brands. Toy­ota, Lexus, Honda, Acura and Nis­san all achieved loy­alty improve­ments with the launch of all new prod­ucts (Altima, Accord, ILX, GS, ES, etc.) in late 2011 through the mid­dle of 2012. Fur­ther­more, the improve­ments from these brands were also slightly inflated when com­pared to 2011 due to lack of inven­tory dur­ing that time.

The major­ity of domes­tic brands dis­played a decrease in owner loy­alty when com­pared to 2011. Chrysler Group is hav­ing greater suc­cess in con­quest of own­ers from com­pet­i­tive brands rather than in the reten­tion of their exist­ing cus­tomers (there is also high migra­tion between inner man­u­fac­turer brands, e.g., Chrysler, Dodge). Gen­eral Motors is see­ing heavy losses of its brand own­ers to Hyundai, Volk­swa­gen and Subaru.

Even though Ford saw its brand loy­alty rate decrease by 1 per­cent­age point vs. 2011; it still con­tin­ues to be the indus­try leader at 61.3%. Mercedes-Benz leads the indus­try from the lux­ury brand stand­point with loy­alty of 58.6%.

 

 

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