A new study by J.D. Power reveals that brand loyalty is a key component of the automotive lifecycle, and towards the success for automotive sales.
The report, known as the J.D. Power 2019 U.S. Automotive Brand Loyalty Study, notes that automakers consider brand loyalty a key objective for two main reasons: it leads to a customer buying or leasing another vehicle from the same manufacturer, and it increases the possibility that a customer will recommend the brand to friends and family shopping for a new vehicle.
“Customer loyalty is perhaps the most important metric for manufacturers because it incorporates many factors that lead customers to become brand ambassadors,” said Tyson Jominy, Vice President of Data & Analytics at J.D. Power. “When a brand can connect emotionally with owners through the vehicle’s content, capabilities or prestige level, owners are much more likely to come back and purchase that same brand again.”
Based on the study, Subaru ranks highest among mass market brands. It also ranks highest overall with a loyalty rate of 61.5 per cent. Toyota came in second with 59.5 per cent, and Honda came in third with 57.7 per cent.
Lexus ranks highest among luxury brands with a loyalty rate of 47.6 per cent. Mercedes-Benz was listed in second place with 44.2 per cent, and BMW was third with 43.6 per cent.
J.D. Power calculates customer loyalty based on the percentage of vehicle owners who choose the same brand when buying another vehicle or trading in their current one. The study considered transaction data from June 2018 through May 2019.
