Automotive Brand Loyalty Reaches 10-Year High
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.”
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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