Elon Musk’s Tesla has loyalty other car brands could only wish for
Loyalty in the car business is an incredibly difficult thing to attain and brands spend millions each year on it. Like trust, loyalty is hard fought over many years by building positive brand experiences and so easily lost the instant a customer has a bad one. ALSO READ: Report confirms new-car quality is getting WORSE. But […]
Loyalty in the car business is an incredibly difficult thing to attain and brands spend millions each year on it.
Like trust, loyalty is hard fought over many years by building positive brand experiences and so easily lost the instant a customer has a bad one.
ALSO READ: Report confirms new-car quality is getting WORSE. But why?
Now, S&P Global Mobility has released findings from its 27th Annual Automotive Loyalty Awards. Tracking buying activity from January to December, 2022, its fact-based analysis looks at 11.7 million new retail vehicle registrations.
Loyalty is determined when a household that owns a particular vehicle returns to market and acquires another new vehicle of the same make, model or manufacturer. It’s that simple.
With this in mind, the firm says overall loyalty fell for the third year in a row. From pre-pandemic 2019, overall industry average loyalty has decreased from 54.6% to 50.2%.
WHO HAS THE MOST LOYAL CUSTOMER?
S&P Global Mobility found that Tesla owners were number 1 in ‘Overall Loyalty to Make.’ This was despite industry-wide inventory shortages which prompted many consumers to shop for other brands in the face of insufficient stock.
ALSO READ: Got STANCE? Meet the world’s lowest car
Tesla also scored wins for ‘Highest Conquest Percentage’ and ‘Alternative Powertrain Loyalty to Make.’ The fact that Elon Musk’s EV brand controls a majority share of BEV sales was a big factor in Tesla’s success this year, too.
Mercedes-Benz, with the successful launch of the EQS, walked away with the ‘Most Improved Alternative Powertrain Loyalty to Make’ award. This recognises the brand’s improvement to retain an owner in the BEV/hybrid segment.
Subaru walked away with the ‘Overall Loyalty to Dealer’ category win. The findings state 38% of Subaru owners returned to the same dealer they acquired their vehicle from.
Notable vehicles that showed a high-level of repurchasing from customers were the Subaru Outback, Mercedes-Benz S-Class, Lexus ES and Range Rover, amongst others.
MANUFACTURER LOYALTY AWARDS
*Besides Tesla, we’ve omitted brands/vehicles not in South Africa.
Overall Loyalty to Make: Tesla
Most Improved Make Loyalty: Tesla
Overall Loyalty to Dealer: Subaru
Highest Conquest Percentage: Tesla
Alternative Powertrain Loyalty to Make: Tesla
Most Improved Alternative Powertrain: Mercedes-Benz
SEGMENT MODEL LOYALTY AWARDS
Mid-Size Utility: Subaru Outback
Van: Mercedes-Benz Sprinter
Luxury Full-Size SUV: Land Rover Range Rover
Luxury Mid-Size Car: Lexus ES
Luxury Full-Size Car: Mercedes-Benz S-Class