Automotive manufacturer loyalty levels—or how many vehicle customers
repeatedly buy the same brands—dropped from 49.1% in 1998 to 39.9% in 2008,
according to data from an Experian study that showed various ironies in the
area of customer loyalty.
While the Toyota brand scores highest (59.8%) in consumer loyalty to an automotive nameplate,
its kid-brother brand Scion scores lowest (19.8%).
Another irony is that customer satisfaction does not necessarily equal
loyalty. The Lincoln and Jaguar brands scored highest in customer satisfaction, yet ranked 11th and
14th respectively among 20 brands in loyalty.
That satisfaction-loyalty disconnect may stem from customer satisfaction
scoring often being swayed by dealerships that “coach” buyers to rate them
highly on surveys sent to auto makers.
Scott Waldron, president of Experian Automotive, a division of Experian
plc., an information-services company.
Another irony is that despite their economic disparity, the most-affluent
car buyers ($200,000 and over household income) and the least-affluent ($25,000
and under) showed similar corporate loyalty levels — which on both ends were
lower than allegiance demonstrated by consumers in middle income brackets.
Rich people have more auto brand choices open to them, Waldron says, while
the least affluent are not particularly loyal because so few vehicle choices
are available to them.
The No.1 highest loyalty driver was leasing. Also, auto makers’ captive
financing companies help boost consumer loyalty to the manufacturer and dealer
alike, says the study. Captive financing gave a 20% loyalty boost to auto
companies and a 27% boost to dealers compared with financing from outside
sources.