2012 Brand Loyalty and Conquest Cited by Polk

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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