Retaining and Poaching Customers: Automaker’s Expertise
Tesla recently acquired several accolades at the recently observed S&P Global Mobility Loyalty Awards, winning across different classes including the Overall Fidelity to Manufacturer.
Between January and December 2022, S&P tracked buying trends and uncovered some intriguing insights that shed light on the preferences of the American car buyer. Joe LaFeir, President of Automotive Insights for S&P, commented, “The past three years have been a difficult period for the automotive industry. As customers come back to the market post-pandemic and inventory levels gradually recover from last year’s lows, it has become increasingly challenging to keep loyal customers.”
In spite of these impediments, Tesla has been able to pass through the year 2022 with numerous accolades including Alternative Propulsion, Loyal Manufacturing, and Highest Conquest Ratio. Previous information from S&P indicated that buyers had moved away from Honda and Toyota and were rabidly acquiring the Model Y and Model 3.
Tesla’s remarkable customer commitment and devotion has its origins in its connection with ethnic customers. Ensuring they continue to purchase the brand is essential for success; a reality supported by figures showing more than 40% of all private vehicle purchases were conducted by this cohort in 2020.
“It’s clear that ethnic buyers have been steadily increasing their market share over the last decade, and as such, they are a key demographic for companies looking to build loyalty success in the foreseeable future,” remarked Vince Palomarez of S&P. Tesla, for example, has seen more than half of its loyal sales volume come from ethnic consumers.
Although Tesla Motors gained recognition this year, General Motors has had a much more consistent winning streak. For 19 out of the past 27 years, GM has taken the prize in the ‘Overall Loyalty to Manufacturer’ category – and it has consecutively done so for the last eight years! Companies like the Volkswagen Group can still be eligible for such an accolade, however this distinction is not available to individual VW brands.
Elsewhere, the Equinox, Silverado 2500/3500, Bolt EV, and Corvette all earned segment loyalty honors for their respective car classes. The Bolt and Corvette successively been honored.
Meanwhile, after an absence of several years, Subaru made a triumphant return to the index with winning the revered Easiest Tech to Use honor.Mercedes-Benz and Subaru, companies which once boasted hugely devoted fanbases, have had a return to fame, bagging prizes after being removed from S&P’s field of vision for a lengthy period. Because of the modern EQS being presented, Benz obtained the Most Improved Alternative Powertrain Loyalty to Manufacture accolade, showing their ability to retain consumers to the mark and its all-electric or hybrid system. Furthermore, following a few years gone amiss, Subaru triumphantly came back to the index, winning the esteemed Easiest Technology to Use award.
For the initial time, Subaru accomplished an impressive first-place placing in the Overall Loyalty to Dealer classification with a staggering 38% of proprietors going back to the same dealership when it came time for them to buy another vehicle.
Victors in other classes included the Tesla Model 3 and Model Y, which are relatively new arrivals. The analysis remarked that cars with a good reputation have befitting capability to win the loyalty of customers; products such as the Mercedes S-Class and Lexus ES managed to garner repeat awards in the Luxury Full-Size Car and Luxury Mid-Size Car divisions, respectively.