General Motors Receives Top Honor for Loyalty to Manufacturer
General Motors received the top honor for Loyalty to Manufacturer a the 20th Annual Automotive Loyalty Awards . The awards ceremony took place during the Automotive News World Congress, held in conjunction with the North American International Auto Show (NAIAS). The automotive loyalty awards recognize auto manufacturers and brands for customer retention and conquest efforts during the 2015 model year.
“Other customers with less frequent repeat purchase behavior are almost twice as likely to defect compared with Super Loyalists The use of our insight and analytics to further understand these consumers can be key to bringing them back into showrooms for repeat purchases.”
The Automotive Loyalty Awards recognize automotive manufacturers and brands for customer retention and conquest efforts during the 2015 model year (October 2014-September 2015). They are the only fact-based awards of their kind in the industry.
In this timeframe, more than 8.2 million consumers returned to market for a new vehicle, and IHS finds record loyalty rates for both make/brand and manufacturer. 51.5 percent of consumers who returned to market during the model year re-purchased their new vehicle from the same brand as their previous new vehicle purchase. 59 percent re-purchased from the same manufacturer in the timeframe. Both are up more than one percentage point over last year, and IHS expects loyalty rates will continue to increase.
“With the number of consumers returning to market expected to peak in 2017, and conquest efforts and competition on the rise, an increased level of focus will be required to continue driving higher volumes of loyal customers in the market,” said Steve Had — vice president, sales and marketing solutions from IHS Automotive — during the ceremony. “The good news is that manufacturers are consciously emphasizing loyalty programs and dedicating resources to loyalty and conquest efforts as they fight for every point of market share.”
Last year, there were just 11 makes that kept more customers than they lost during the model year. This year, there are 14, according to IHS analysis. Additionally, IHS has identified unique groups and independent traits among consumers that must be considered by OEM marketers.
Super Loyalists: Those consumers that have returned to market three times to purchase from the same manufacturer – representing 14 percent of the industry — and are 76 percent loyal to a manufacturer
Loyalists: Those consumers with a pattern of behavior showing them returning two times to purchase from the same manufacturer – representing 26 percent of the industry — and are 63.6 percent loyal to a manufacturer.
“Our analysis, which leverages the insights of Strategic Vision’s New Vehicle Experience Study (NVES), finds that Super Loyalists and Loyalists are far less susceptible to defection following a disappointing ownership experience,” Had said. “Other customers with less frequent repeat purchase behavior are almost twice as likely to defect compared with Super Loyalists The use of our insight and analytics to further understand these consumers can be key to bringing them back into showrooms for repeat purchases.”
IHS Automotive analysis indicates that Ford was the only brand that achieved a loyalty rate of more than 60 percent in the model year, winning the Overall Loyalty to Make award. The award for Highest Conquest Percentage for the 2015 model year went to Jeep, which achieved a 27.8 percent conquest rate.
The Ford and Toyota brands were honored for loyalty success with ethnic consumers, with Toyota leading in the Asian and Hispanic consumer markets and Ford achieving highest loyalty among African American consumers.
Tesla was honored for Most Improved Conquest Percentage and Most Improved Loyalty to Make, which as a new manufacturer, helps demonstrate that Tesla is now able to compete in the mainstream market for new conquests while retaining their current customers.
IHS Automotive also recognized 25 segment-level winners that achieved loyalty among consumers compared to others within their vehicle segment.
Filed under: Brand Loyalty