Tesla Takes Customers From Rivals While Industry Struggles At Retention
Tesla has kept 83% of its first-time owners and has the lowest number of customers who buy once and then leave for rival brands.
https://insideevs.co...s-at-retention/
A recent report published by Automotive News draws attention to eight automotive brands that are struggling to retain customers. Car shoppers sometimes referred to as "nomads" tend to leave brands, such as Acura, Audi, Dodge, GMC, Mazda, Mercedes-Benz, Ram, and Volkswagen after one purchase more often than other automakers. Meanwhile, Tesla is the taker of rivals' customers, and it tends to keep them.
The details in the article come from a study put together by S&P Global Mobility. It breaks automotive brands into different categories to show how their customers either remain loyal to or leave the brands. One primary goal of any automaker is to gain customers and keep them. Associate director of consulting for S&P Global Erin Gomez explains:
"Brands that fail to transform nomads into loyalists not only lose out on the immediate sale to the nomad but also the future loyalty benefit they could have provided as loyalists."
This is the reason for conquest incentives, which offer a special deal to customers who buy or lease a vehicle from a new brand. Loyalty incentives are also at work, which provide promotions to people returning to buy or lease another vehicle from their current brand.
Edited by Victoria Watcher, 30 January 2023 - 12:40 PM.