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February 1, 2012
Hyundai Ranks Highest in Customer Retention among 33 Automotive Brands
Photo: 2012 Hyundai Accent SE Five-Door.
Photo: 2012 Ford Focus Launch—Ford Motor Company celebrated the launch of the 2012 Ford Focus with employees, dealers, suppliers, media and other invited guests at the Michigan Assembly Plant. Photo by: Sam VarnHagen/Ford Motor Co.
Photo: 2012 Honda Fit Sport.
Photo: 2012 Toyota Camry - Daytona 500 Pace Car 002.
Photo: Chrysler Group LLC introduces Mopar ‘12, a custom Chrysler 300 that goes from 0-60 in the low five-second range. 2012 marks the 75th anniversary of Mopar, Chrysler Group’s service, parts and customer-care brand.
Photo: 2012 Chevrolet Corvette Grand Sport Convertible.
Photo: 2012 Cadillac CTS Touring Edition.
Photo: 2012 Jeep Wrangler Arctic.
One in three new-vehicle owners who switched brands say their previous brand didn’t make the type of vehicle they wanted, indicating that striking the right combination of model offerings and vehicle appeal is critical to retaining customers, according to the J.D. Power and Associates 2012 Customer Retention Study. [J.D. Power and Associates, a business unit of The McGraw-Hill Companies, is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions.]
Now in its ninth year, the study measures the rate at which automotive brands retain their existing customers and examines the reasons why customers remain loyal. Customer retention is critical to a brand’s market success, particularly during the current period of market recovery, in which each new-vehicle sale is vital. In addition to customer retention, the study also measures the rate at which each automotive brand captures customers from its competitors, known as conquesting.
Among new-vehicle owners who switched vehicle brands for their latest purchase, 33 percent indicate that their previous brand didn’t offer the type of vehicle they wanted. Although this is a primary reason for switching, other key reasons relate to dissatisfaction with the previous vehicle, including the vehicle costs too much to own or maintain; there are too many problems with the vehicle; and the vehicle didn’t retain sufficient resale value.
“Many automotive brands are expanding their array of models in an attempt to capture more buyers, but this isn’t enough in and of itself,” said Raffi Festekjian, director of automotive product research at J.D. Power and Associates. “Manufacturers need to integrate specific attributes and features that delight vehicle owners to maximize their opportunity to both retain customers and conquest from other brands. Manufacturers also need to ensure owners are satisfied with the quality, residual values and ownership costs of their vehicles.”
According to Festekjian, brands that strike the right combination of all of these aspects stand the best chance of being reconsidered by current vehicle owners for their next new-vehicle purchase.
Hyundai ranks highest among automotive brands in retaining customers when they buy a new vehicle.
“Hyundai’s increased retention rate is shaped by its expanding model lineup, as well as the fact that perceptions of the brand’s quality and appeal have continued to improve during the past decade,” said Festekjian.
Following Hyundai in the rankings are Ford and Honda, in a tie, each with a customer retention rate of 60 percent. Jeep posts the greatest improvement in customer retention rate from 2010, improving by 17 percentage points to 51 percent in 2012.
|GlobalGiants.Com|
Edited & Posted by the Editor | 2:04 AM | Link to this Post
