Research on Car Dealership Customer Loyalty Through Consumer Behavior

Utilizing car buyers’ feedback, data analytics, and consumer intelligence expert J.D. Power & Associates recognizes auto brands that inspire the greatest loyalty. Tyson Jominy, vice president of data and analytics at J.D. Power, believes brand loyalty is the most significant key to CRM.

Winners of the Latest Brand Loyalty Study

J.D. Power put together the top brands that enjoy the most loyalty. These automakers led the pack.

• Subaru: 60.5%
• Toyota: 60.3%
• Honda: 58.7%
• RAM: 57.3%
• Ford: 54.3%

Loyalty Programs Matter

It wasn’t long before the COVID shutdown had a negative impact on every industry in the world. Auto dealers certainly relearned how vital customer loyalty is. We mustn’t forget. We have to use a customer rewards program for auto dealerships to inspire retention and give customers reasons to have it.

• Customer reviews and testimonials can be the foundation for launching loyalty discounts and reward platforms.
• We should continue offering free sanitizing and detailing services.
• Social media can highlight perks of loyalty programs.
• We can build associations with neighboring local businesses to develop comprehensive rewards.

Trading Up

VP Jominy, referring to J.D. Power’s 2020 U.S. Automotive Brand Loyalty Study, says, “There are many factors that contribute to brand loyalty, ranging from the experience a customer has when purchasing the vehicle to how driving it makes them feel.”

The study looks at the owners buying the same brand after trading in an existing vehicle. There is no more significant sign of loyalty than a customer choosing the same brand for their new car.

Here are customer loyalty rankings when it comes to automaker same brand trading.

• Lexus: 48%
• Mercedes-Benz: 47.8%
• BMW: 45.1%
• Porsche: 44.9%
• Audi: 43.4%

Rankings for mass-market brands.

• Subaru*: 60.5%
• Toyota: 60.3%
• Honda: 58.7%
• RAM: 57.3%
• Ford: 54.3%

* Subaru’s topped the list for two consecutive years.

Never Underestimate Loyalty

Jominy says, “Automakers are focused on customer retention, as evidenced by the payment plans and incentives they’ve offered since the COVID-19 pandemic broke out. Many have gone above and beyond to offer customers financial assistance during a period of economic uncertainty, which does a lot to bolster consumer confidence in their chosen brand and repurchase it in the future.”

AutoAwards creates and manages customer rewards programs for auto dealerships. We promise benchmarking, turn-key support, real-time info, and comprehensive staff training. Our collaborative efforts with local auto dealers have produced success stories for over two decades. Contact AutoAwards to find out the best ways to implement your customer rewards program. Reach out online or call us at 302.696.6000.