When we talk about car sales, we typically look at units sold and profit made, but automakers and analysts look at deep metrics. S&P Global recently an overview of customer retention metrics in the industry, and it showed that many brands are having trouble holding onto customers beyond a single vehicle purchase.
According to the organization, Acura, Audi, Dodge, GMC, Mercedes-Benz, Ram, and Volkswagen are all struggling with “one-hit-wonder” syndrome, where buyers dip their toe into the brand for a vehicle purchase and then move on to other brands. Of course, some people move on out of habit and won’t stick with a brand no matter what they do, but it’s in automakers’ best interest to keep customers coming back.
Many so-called “nomad buyers” live in urban areas and have disposable income to support chasing the latest and greatest vehicles. Automakers try to hold on to those customers with loyalty incentives and other promotions, but a record number of car buyers switched brands last year, with 58 percent jumping the fence.
Tesla, BMW, Kia, Hyundai, and others have not had the same trouble keeping people coming back. Tesla did an excellent job holding onto buyers, with the lowest nomad rate of just 39 percent. Toyota and Ford performed decently, clocking low one-and-done rates with buyers.
[Image: Tesla]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
via Autobuzz Today
Comments
Post a Comment