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Have you seen The Customer-Focused Marketing Playbook?

This comprehensive and practical guide to the latest ideas in customer-focused marketing hands you over 200 packed pages of strategy, best practices, do's and don'ts, practical know-how, facts and figures, and ideas to optimise your marketing strategy, boost sales, market share, increase ROI and profit.

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Study reveals what drives car owner loyalty

Resale value and vehicle quality have become increasingly important reasons for new vehicle buyers to remain loyal to an automotive brand, according to the '2009 Customer Retention Study' by J.D. Power and Associates.

The study measured the percentage of vehicle owners and lessees who replace a previously purchased new vehicle with another from the same brand, and found that the importance of resale value as a reason for owner loyalty has increased by 12percentage points in 2009, compared with 2008.

Meanwhile, the importance of vehicle quality has increased by 6percentage points. In comparison, in 2008, the reasons with the largest increases in importance for staying loyal to a brand were safety, fuel economy and deals/incentives.

Resale value and quality have also increased in importance as reasons why brands conquest new customers from their competitors, as has the importance of appearance and styling.

"Although there are some signs of economic recovery, the outlook remains uncertain, so for many new vehicle buyers, high resale value and quality are particularly important considerations that are driving purchase behavior," said Raffi Festekjian, director of automotive product research for J.D. Power and Associates. "Whether manufacturers are striving to increase loyalty or conquesting buyers from other brands, offering attractively styled models and having strong customer perceptions of resale value and quality are critical."

Mercedes-Benz ranked highest among automotive brands in retaining vehicle owners when they buy a new vehicle, having improved its retention rate by 8percentage points from 2008 to 67% in 2009. Following in the rankings were Honda (64%) and Toyota (61%). According to Festekjian, "Customers cited the resale value and appearance and styling of Mercedes-Benz models as primary reasons to remain loyal to the brand."

Overall customer retention in 2009 remained stable (at 48%) compared to 2008. In 2009, 13 of the 36 ranked brands improved their customer retention rates while 20 declined and three remained stable.

MINI and Porsche posted the greatest improvements in customer retention rates since 2008, with both improving by 14percentage points in 2009. For MINI, this improvement was driven primarily by incentives and customer perceptions of resale value of the brand's models. For Porsche, the increase was due mainly to resale value, fuel economy and quality.

Sources: J D Power; Associates / The Marketing Factbook.
Copyright © 2009 - 2025 The Marketing Factbook.

Categorised as:

Customer Loyalty
Knowing The Customer
Marketing Know-How

Have you seen The Customer-Focused Marketing Playbook?

Learn the insider's tricks and techniques to turn every customers into a 'super spreader' for your brand. It's better than free advertising. Once you start this ball rolling, your brand can grow rapidly through word-of-mouth, advocacy, influencers, and customer loyalty. Super-charge your company's marketing strategy, build up your market share, and make more sales through repeat business and customer loyalty.

Find out what works - and what doesn't - and who's succeeded, and how they did it. See how the world's top brands keep their competitive edge against all odds.

The Customer-Focused Marketing Playbook walks you step-by-step through the techniques, metrics, reporting, analysis, marketing models, technologies, tools and innovations for successful marketing strategies - both traditional and emerging - with expert guidance from thought leaders in every major market. Find out the best ways to gather, analyse, and act on customer data to increase profitability, build your brand, empower your customers, beat the competition, reduce churn, and increase customer profitability. This is a marketing book you simply can't afford to be without.

This book aims to hand you all the facts, figures and research data you need for the best decisions for a more profitable, more engaging marketing strategy. It also highlights all the facts, forecasts and trends identified by our experts from the global Marketing Factbook's vast database of market data, news, studies, research and articles, and presents you with an invaluable library of ideas and practical support you can call upon at will.

With The Customer-Focused Marketing Playbook at your side, you'll have instant access to a true goldmine of easily adaptable and up-to-date strategies, walk-throughs, trends, research and market data, plus all the supporting arguments you need to build a solid, profitable marketing strategy.

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