Study: Nine Brands Suffer Loyalty Issues Among Their Customers
Honda, Ford and Toyota all have one thing in common as far as Kelley Blue Book knows: All three inspire brand loyalty among over half of its customer base. Alas, nine other brands wish they could be just as inspirational.
In its study of KBB data from 33 brands regarding customer loyalty, 24/7 Wall St. says the following nine brands are likely to see their customers jump ship to another brand come trade-in or lease time:
- Mitsubishi: 21.77 percent average
- Chrysler: 22.72 percent average
- Dodge: 22.88 percent average
- Jaguar: 25.45 percent average
- Scion: 25.79 percent average
- Lincoln: 27.49 percent average
- Infiniti: 28.25 percent average
- Volvo: 29.41 percent average
- Buick: 29.45 percent average
The study notes the brands with the highest loyalty averages also move the most units off the lot, while low-loyalty brands have sales to match; six of the nine listed sold less than 100,000 units during H1 2014.
As for what inspires loyalty in the first place, KBB senior manager of marketing intelligence Arthur Henry says price and reliability play the most important roles in whether a customer will stick with a brand. However, luxury makes like Jaguar, Infiniti and Buick suffer not from perceptions of poor reliability, but fierce competition from within the U.S. luxury market.
That said, Arthur notes customers can switch loyalties no matter how a brand is perceived, citing economic conditions and changing consumer preferences as factors in switching.
Nrd515 on Aug 21, 2014
A friend of mine buys nothing but Ford. Even after a Windstar van that ate EIGHT transmissions. Even after the F-150 that had a long long series of electrical issues. Even after the Explorer that had a bad connecting rod punch a hole in the block. He just keeps buying. I don't get it. He did nothing but complain about the above vehicles and the F-250SD he had that cost him a bunch in after warranty repairs. The only car I ever remember him having that wasn't a Ford was a '88 Corvette that he had for a couple of years. The only thing that died on it was the cassette deck. It was pretty quick after it got some mods. Suddenly, it was replaced by a '92 Mustang which he did nothing but complain about. It had all kinds of creaks and groans. I've never had a Ford (The F150 is the only thing they make that really appeals to me), but I've had both GM and Chrysler cars. Only one really bad one, a '77 Power Wagon. The last three Dodges have been pretty damn good. Looks like it will be another one in a couple of years, unless the upcoming Camaro looks a lot better than the one out there now.