Brand loyalty among customers is something all carmakers aspire to achieve, but sometimes that's easier said than done as proved by the results of J.D. Power and Associates' 2012 Customer Retention Study.
There's a lot to say about the survey that measures the rate at which automotive brands retain their existing customers and which is now in its ninth year, but we can't help but to start from the winner.
Amazingly, the brand that manages to keep most customers is Hyundai with a retention rate of 64%. The South Korean brand's feat is even more impressive if you consider that just two years ago it ranked below average with 47%!
“Hyundai’s increased retention rate is shaped by its expanding model lineup, as well as the fact that perceptions of the brand’s quality and appeal have continued to improve during the past decade,” said Raffi Festekjian, director of automotive product research at J.D. Power and Associates.
Hyundai is followed closely by Ford and Honda, each with a customer retention rate of 60 percent, and BMW and Kia, both with 59%.
While not in the top 10, Jeep recorded the greatest improvement in customer retention rate from 2010 (by 17 percentage points to 51 percent in 2012).
The study found that one in three new-vehicle owners who switched brands claim that previous brand didn’t offer the type of vehicle they wanted.
J.D. Power says that while the absence of a type of model is the primary reason for switching to another brand, it's not the only one. Other key reasons include high vehicle costs to own and/or maintain, various car problems and even low resale values.
“Many automotive brands are expanding their array of models in an attempt to capture more buyers, but this isn’t enough in and of itself,” said Festekjian.
“Manufacturers need to integrate specific attributes and features that delight vehicle owners to maximize their opportunity to both retain customers and conquest from other brands. Manufacturers also need to ensure owners are satisfied with the quality, residual values and ownership costs of their vehicles,” he added.
On a positive note, the survey found that overall customer retention has improved by one percentage point in 2012 to 49 percent (vs 48 percent in 2010) with 19 of the 33 ranked brands improving their numbers and 14 showing a decline over 2010.
According to the findings, women and younger vehicle owners between ages 23 and 47 are more prone to changing brands compared to men and older drivers.
“Women and younger vehicle owners are more likely to experience changes in their life circumstances, including growth in household size or changes in income levels, that would lead them to purchase vehicles that better accommodate their new lifestyle,” said Festekjian.
Finally, according to the survey, brands that perform particularly well in keeping women customers include Honda, Hyundai, Kia and Mercedes-Benz, while Ford, Kia, Lexus and Mercedes-Benz did well with customers in the Generation Y and X demographics.
Hat tip to Aikiv!
Story References: J.D. Power via Gizmag
