Brand Loyalty and other Lost Arts
When your father and grandfather bought cars, they stuck with the previous brand they had been driving. In short, there was brand loyalty. Now a days, well.... It just ain’t there anymore.According to a study done by Experian Automotive, brand loyalty levels have said to have dropped to 39.9 percent this year. It appears that the overall decline in brand loyalty is due to the overwhelming number of brands available in the market -- 45. There are 30 vehicle segments and a whopping 300 models out there. A deeper look at the study show some quirks. For example, Toyota’s brand scores are highest at 59.8 percent. Yet Scion, which is a Toyota spin off, has the lowest loyalty brand score of 19.8 percent. It’s funny, because Scion was formed to create loyalty for the brand from youth in the market. Customer satisfaction doesn’t necessarily translate to brand loyalty. For example, Jaguar and Lincoln scored highest in customer satisfaction, yet Lincoln ranked 14th and Jaguar ranked 11th in a survey of loyalty among 20 brands. The study concludes that it would be in the auto makers’ interest to figure out a way to increase that number of brand loyalists. An auto maker with 10 million consumers driving its vehicles will see about 15 percent or 1.5 million of them come back to the market each year to buy a new car. If the loyalty rate went up just 1 percent that would translate to 15,000 units of additional sales. It is said that the average revenue per car starts at $27,000. So all of this can translate into an increase in revenue for a brand of $405 million. via Wards Dealers
DETROIT – For 2009, General Motors offers 18 models in the U.S.