Customers are more loyal to automotive brands than they’ve been in 10 years.
Brand loyalty has reached a 10-year high during the first quarter of 2015, IHS Automotive has revealed. According to the company, brand loyalty reached 52.8 percent with numerous automakers experiencing 10-year highs in loyalty rates including Chevrolet, GMC, Infiniti, Jeep, Land Rover, Lexus, Lincoln, Mazda, Mitsubishi, Nissan, Porsche, Subaru and Volvo.
In the past 10 years, the number of models available in the U.S. has increased by 33 (12 percent), with customers returning to market now having a greater number of choices of models to choose from, increasing the chances that they’ll take to the same brand.
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Growing popularity of leasing vehicles has also contributed to increasing brand loyalty as well as improved new vehicle quality. Automakers are also putting a greater focus on loyalty and customer satisfaction over time as marketers are aware that it is more cost effective to retain a customer than to conquest one.
“The increased number of different models within brands makes it easier for households that may need a different type of vehicle to maintain their loyalty,” said Tom Libby, manager of automotive loyalty and industry analysis at IHS Automotive. “In addition, the increased popularity of leasing since the downturn has helped significantly as lessees are consistently more brand loyal compared to retail owners.”