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OWNER LOYALTY

IHS: Utility Vehicle Owners Drive Up Loyalty Rates

May 27, 2016 by admin 1 Comment

IHS Automotive analyzes 32 vehicle segments for auto trends loyalty.

2016 Honda HR-V

Subcompact CUV: Honda HR-V.

Keeping vehicle owners in the fold is a big deal for car manufacturers. With owner loyalty rates hovering just above 50 percent, that means there is nearly a 50-50 chance that consumers will move on to a competing brand the next time they buy new.

Losing customers can mean lost customers for life, especially if the replacement brand proves more appealing in the long run. GM, Ford, and Chrysler experienced this loss for much of the last century from the 1970s on as customers fled the Detroit 3 for products from Japan mostly.

Crossover Utility Vehicle Loyalty

But there is a bright spot manufacturers should take note of, one the IHS Automotive research firm recently noted. That bright spot has to do with sport utility vehicles — traditional SUVs and crossover utility vehicles (CUVs) alike. The IHS found loyalty rates among SUV and CUV owners in the United States has climbed to record levels.

Indeed, with a combined loyalty rate of 63 percent, CUV and SUV owners were much more likely to stay brand loyal than sedan owners, the latter coming in at a 53 percent loyalty rate for the same time. That timeframe covered the first quarter of 2016 (January-March). For all vehicle types, owner loyalty rates came in at 52.1 percent for the same period.

2016 GMC Yukon XL Denali.

Big SUV: 2016 GMC Yukon XL Denali.

Utility vehicles are more popular than ever before. The IHS noted that the increased interest in the segment means manufacturers are responding in kind. As a result, showroom traffic is up as customers flock to the latest models.

In particular, manufacturers are rolling out more models, especially in the subcompact category. New arrivals in the past year include the Honda HR-V, Jeep Renegade, Fiat 500X, Mazda CX-3, and the Chevrolet Trax. These models joined the Nissan Juke, Subaru Crosstrek, and the Buick Encore already serving the segment. Models from Ford and Toyota are planned and will tip the balance further to all things utility vehicle.

Meeting Changing Consumer Demand

Manufacturers are also providing some overlap, to ensure that both off-road and leisure drivers are served. For example, Toyota remains the only manufacturer offering a midsize SUV (4Runner) and a midsize CUV (Highlander). Ford offers two midsize CUVs — the two-row Edge and the three-row Explorer. Other differences extend to convenience features, technologies, connectivity, and powertrain choices.

Of course, some of this may never have happened if gas prices remained high. Where fuel economy were once a big concern for car owners when gas prices were high, it is much less so today, thus consumers continue to shift away from cars to crossovers.

2015 Audi Q5

Luxury Crossover: Audi Q5

Vehicle Segment Trends

The IHS surveyed 32 vehicle segments, finding that the top three loyalty segments were for CUVs. Notably, utility vehicles comprised 35.2 percent of all new vehicle registrations in the first quarter of 2011, surging to 41.8 percent five years later. At the same time, new car registrations dipped from 48.7 percent in 2011 to 40.9 percent five years later.

“The high loyalty rates for SUVs and CUVs lend credence to the current shift from passenger cars to utility vehicles,” said Christopher Hopson, manager, North America light vehicle sales forecast at IHS Automotive. “We expect this shift to be sustained, even when fuel prices are expected to rise back above USD $3.00/gallon by 2020.”

Lighter and More Efficient

Another point of good news for consumers is that even as fuel prices eventually reach higher levels, utility vehicles are becoming more efficient. Manufacturers are employing various lightweighting strategies, including utilizing aluminum and certain grades of steel in an effort to shed weight. Smaller engines paired with more efficient transmissions are helping matters too.


See Also — Polk, Owner of Carfax, Acquired by IHS

Filed Under: Automotive News Tagged With: AUTO TRENDS, crossover, HONDA HR-V, IHS AUTOMOTIVE, OWNER LOYALTY, sport utility vehicle, SUV

Ford Finishes First in Experian Automotive Brand Loyalty Report

January 16, 2013 by admin 1 Comment

Brand loyalty and new car purchases.

The Ford Motor Company enjoys the highest brand loyalty among automotive brands according to the Q3 2012 Loyalty and Market Trends report from Experian Automotive. The Ford Fusion took top honors and was one of seven Ford models to crack the top 10.

Experian Automotive Report

According to its latest report released this week, Experian Automotive discovered that 56.4 percent of Ford Fusion owners returned to the Ford brand to buy or lease another vehicle. Ford Flex owners offered a 55.3 percent loyalty rate followed by the Chevrolet Sonic coming in at 54.3 percent. The Chevy Sonic was the top finisher in the Q2 2012 Loyalty and Market Trends report published last fall.

four quartersSaid Jeffrey Anderson, director of consulting and analytics for Experian Automotive, Ford continues to perform exceptionally well in brand loyalty, with a range of products that are getting customers back to the showroom again and again. Anderson stressed that loyal customers help automotive brands increase market share as well as to make more money through improved profitability.

Top 10 Finishers

The Ford Edge and Kia Forte took the fourth and fifth spots, followed by four consecutive Ford models: Five Hundred, Fiesta, Escape and Focus. The tenth spot was occupied by the Cadillac DTS.

Across the brand, Ford enjoyed a 44.1 percent owner loyalty rate, edging out Toyota which came in at 43.3 percent. Kia at 39.9 percent, Hyundai at 38.6 percent and Honda at 38.1 percent followed. The sixth spot belonged to Chevrolet at an even 38 percent, followed by Subaru at 35.7 percent, Nissan at 34.7 percent, Mercedes-Benz at 34.6 percent and in the tenth spot, Lexus, at 34.1 percent.

Corporate Loyalty Leaders

The Experian Automotive report for Q2 2012 looked at corporate loyalty primarily, recognizing that Toyota Motor Sales, USA had earned the top spot for the first time since 2009. TMS includes all Toyota, Scion and Lexus models.

In second place was General Motors (Cadillac, Buick, GMC and Chevrolet) followed by the Ford Motor Company ( Ford and Lincoln) in third place. Hyundai and Honda occupied the next two positions.

Webinar Information

Among specific models, Ford took six of the 10 top spots for Q2, adding the Focus as its seventh top 10 finisher in the Q3 report. The Ford Focus along with the Cadillac DTS were new to the top 10 replacing the Toyota Prius and Chevrolet Cruze which fell out.

Additional report findings will be offered during a Jan. 23 webinar. You can learn more or sign up by visiting the Experian Automotive website.


See Also — Experian Automotive: Gas Buyer Trends

Filed Under: Auto Shows Tagged With: EXPERIAN AUTOMOTIVE, Ford Fusion, Ford Motor Company, OWNER LOYALTY, REPORT, Toyota

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