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Study recognizes the importance of loyalty to automakers

August 9, 2019
Customer loyalty could be the most important metric for vehicle manufacturers. The reason? It could lead customers to become "brand ambassadors," said Tyson Jominy.
"When a brand can connect emotionally with owners through the vehicle’s content, capabilities or prestige level, owners are much more likely to come back and purchase that same brand again," Jominy,  J.D. Power vice president of data and analytics, said in a news release.
Acknowledging the importance of loyalty as an automotive lifecycle component, J.D. Power announced the results of its inaugural J.D. Power 2019 U.S. Automotive Brand Loyalty Study. Ranking highest in their respective segments were Subaru for the mass market segment and Lexus in the luxury category. 
Lexus led luxury brands with a 47.6 percent loyalty rate, while Subaru came out on top in the mass market brands category with a loyalty rate of 61.5 percent. Following Subaru and rounding out the top five in the mass market category were Toyota, Honda, RAM and Ford. Following Lexus in the luxury brand category: Mercedes-Benz, BMW, Porsche and Audi ranked Nos. 2 to 5.
J.D. Power said brand loyalty is important to automakers because it could lead to a customer repurchasing or leasing another vehicle from the same manufacturer. Also, that customer could be more likely to recommend the brand to acquaintances and family members who are looking for a new vehicle.
The study used data from the Power Information Network, calculating whether an owner purchased the same brand after trading in an existing vehicle on a new-vehicle purchase or lease.
J.D. Power bases customer loyalty on the percentage of vehicle owners who choose the same brand when they trade in or purchase their next vehicle. The company bases the study’s calculations on transaction data from June 2018 through May 2019. It includes all model years traded in.