Detroit Bureau on Twitter

Posts Tagged ‘Owner Retention’

Hyundai Tops J.D. Power Owner Retention Chart

But Ford leads in Polk Loyalty study.

by on Jan.12, 2012

The Hyundai Elantra won N.A. Car of the Year this week while Hyundai itself took honors in a new survey for having the highest owner loyalty rate.

Apparently, it depends on who you ask and how you ask it.  When it comes to owner loyalty, one new study puts Hyundai in the lead, while Ford tops the list in another.

Both makers list customer retention among the most important issues they face today.  Industry analysts insist that customer loyalty not only translates into more sales, but also into reduced marketing costs, as it typically is less expensive to keep a buyer within a vehicle family than going out to “conquest” a new customers away from one of your competitors.

Your Winning News Source!

It also translates into higher residual values, according to Ford global marketing chief, Jim Farley, as products with loyal owners tend to retain more of their original price when it comes time to trade in.


Mercedes-Benz Ranks Highest in Owner Retention

Resale value, vehicle quality increase as reasons for loyalty.

by on Dec.10, 2009

Click to enlarge.

Click to enlarge.

Resale value and vehicle quality have become increasingly important reasons for new-vehicle buyers to remain loyal to an automotive brand, according to the J.D. Power and Associates.

In its latest Customer Retention Study just made public, resale value as a reason for loyalty has increased by 12 percentage points in 2009, compared with 2008.

The importance of vehicle quality has increased by 6 percentage points. In comparison, in 2008, the reasons with the largest increases in importance for staying loyal to a brand were safety, fuel economy and deals/incentives.

The study measures the percentage of vehicle owners and lessees who replace a previously purchased new vehicle with another from the same brand.

If you just look at the industry average of less than 50%, it means that the average car brand has to find more than half of its sales from new people, an  enormously expensive marketing challenge.

“Although there are some signs of economic recovery, the outlook remains uncertain, so for many new-vehicle buyers, high resale value and quality are particularly important considerations that are driving purchase behavior,” said Raffi Festekjian, director of automotive product research at J.D. Power and Associates.

Mercedes-Benz ranks highest among automotive brands in retaining vehicle owners when they buy a new-vehicle, and improves its retention rate by 8 percentage points from 2008 to 67% in 2009. Following in the rankings are Honda (64%) and Toyota (61%).