Paying attention to customer satisfaction is paying off in the U.S. market.
Customer loyalty to automotive brands reached a 10-year high at 52.8 per cent during the first quarter of 2015, found IHS Automotive.
Tom Libby, manager of automotive loyalty and industry analysis at IHS Automotive, said more choices for models has made households more loyal to a particular brand.
An increase in lease penetration and improved new vehicle quality has also led to higher loyalty, added Libby.
IHS analysis found customers who returned to market for a new vehicle after driving brands that had been discontinued also account for some of the uptick in loyalty.
Vehicle content, expanded product lines and financing offerings helped OEMs and dealers retain customers, said IHS.
Analysis from the study noted it’s crucial brands continue their “conquesting activities,” though IHS anticipates conquesting owners of competitive products will only get more difficult as the share of defectors declines.
In 2014, most brands lost more customers than they kept, said IHS.
IHS said OEMs and dealers will need to understand ownership cycles, including the ability to predict which customers will return to market, as a key competitive advantage moving forward.
IHS Automotive loyalty defined loyalty as a household that owns a new vehicle returns to market and purchases or leases another new vehicle of the same make, model or manufacturer.
