S&P Global has revealed the automakers which succeed the most at transforming first time buyers into brand loyalists.
The study, published Monday, used consumer behavior trends to rank brands in terms of their ability to turn “Nomads” (first time buyers who don’t have allegiance to any company) to “loyalists” (repeat customers). Of the 25 brands studied, researchers discovered that Tesla had the highest rates of new customer retention, compared to overall make loyalty, followed closely by Ram, Jeep and Dodge. In last place, the analysts placed Chevrolet, Ford and Lincoln.
However, while the numbers give insight into which brands are able to recruit loyalists, the most important question for automakers, and dealers, is why. The answer, suggests S&P Global’s analysts, is market segmentation. The researchers note that manufacturers who know their different customer demographics, and how to promote their products based on their needs, have better success in keeping new customers.
For example, Tesla markets towards high-income earners, tech enthusiasts and those who live in suburban environments. This collection of individuals comprise a market segment, and the EV manufacturer’s advertising is carefully calculated to impress buyers within. The same principle can be applied on a dealership level. A dealer which knows what consumers in its area need can carry vehicles and offer promotions that address their needs.
Brand loyalty is important for both automakers and dealerships to cultivate. However, building trust and name recognition is infinitely more difficult for businesses which don’t know their customers. Struggling storeowners can use the data and recommendations presented by S&P Global to consider new customer retention strategies which are better suited for their audience.
Did you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at email@example.com.