General Motors Corporation retained its position as the leader in automotive manufacturer loyalty during tonights presentation of the IHS Markit Loyalty Awards, presented during Automotive News World Congress. The awards, now in their 23rd year, are presented annually by business information provider IHS Markit (Nasdaq: INFO).
IHS Markit honored winners in more than 30 categories, including General Motors for the evenings top award, Overall Loyalty to Manufacturer, with a loyalty rate of 68.3 percent, and Ford brand for Overall Loyalty to Make, with a loyalty rate of 63 percent. Automotive News World Congress is held alongside press and industry days for the North American International Auto Show in Detroit. The Automotive Loyalty Awards from IHS Markit are the industrys only fact-based awards of their kind.
Automotive manufacturers and brands were recognized for superior customer retention and conquest efforts during the 2018 model year (October 2017 through September 2018). IHS Markit analysis found that, in 2018, with approximately 17.6 million new vehicle registrations during the model year, 53.7 percent of customers returned to market to purchase or lease another new vehicle from the same make they already owned.
While this represents a record make loyalty rate, the increase was just one tenth of a percentage point from last year, demonstrating a flattening of loyalty rates in the industry after years of increases. However, the competition is stronger than ever at the top. In 2014, there was only one brand with a loyalty rate above 60 percent, and five percentage points separated the top three brands. During the 2018 model year, only three percentage points separated the top three brands, and now there are two brands with a loyalty rate above 60 percent, with the third only two tenths of a point away.
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Our Automotive Loyalty Awards program continues to showcase the achievements of the automakers, brands and their dealer networks to win back and conquest customers during such a competitive sales environment, said Steve Had, vice president of automotive product solutions at IHS Markit. We are honored to recognize these industry leaders that are working to improve their loyalty efforts year over year.
IHS Markit reviewed various additional influencers impacting loyalty metrics in this years analysis. As one example, make loyalty rates among those who financed through captive lenders were 57.8 percent during the 2018 model year, more than eight percentage points higher than loyalty rates of those who financed with non-captive lenders (49.4 percent loyalty). In addition, service experience played a role as well, resulting in a 4.5 percentage point lift in loyalty among owners that service within the dealer network.
Converting a customer from used to new can also impact loyalty rates. According to the analysis, 29.7 percent of used vehicle owners who returned to market for a new vehicle during the 2018 model year purchased the same brand. Likewise, customers returning to market with a Certified Pre-Owned (CPO) vehicle who purchased a new vehicle of the same brand did so at a rate of 38 percent.
As the market plateaus, insight from advanced analytics will enable OEMs and their dealers to engage with consumers more efficiently and effectively, through a better understanding of consumer buying behavior, said Kristen Balasia, vice president of automotive advisory services at IHS Markit.
Brand and Model Level Winners Honored for Segment and Ethnic Loyalty
Ford achieved the highest loyalty rate of all makes during the 2018 model year, winning the Overall Loyalty to Make award for the ninth consecutive year. The award for Highest Conquest Percentage for the 2018 model year went to Jeep for the second year in a row.
IHS Markit again honored Toyota for highest Ethnic Loyalty to Make among all ethnic groups combined, as it led in loyalty among all three ethnic groups “ African American, Hispanic and Asian.
Lincoln was a repeat winner in the Highest Loyalty to Dealer category, as more Lincoln owners returned to a Lincoln dealer for another Lincoln than any other brand during the 2018 model year.
Tesla was recognized for Most Improved Loyalty to Make for the model year and also was recognized for Most Improved Conquest Percentage during the 2018 model year.
IHS Markit also recognized 24 segment-level winners for their efforts to bring customers back for another vehicle of the same make and model in the 2018 model year.
A complete list of winners from the program is as follows:
|Overall Loyalty Awards||Winner|
|Overall Loyalty to Manufacturer||General Motors|
|Overall Loyalty to Make||Ford|
|Highest Conquest Percentage||Jeep|
|Ethnic Market Loyalty to Make||Toyota|
|Overall Loyalty to Dealer||Lincoln|
|Hispanic Market Loyalty to Make||Toyota|
|Asian Market Loyalty to Make||Toyota|
|African American Market Loyalty to Make||Toyota|
|Most Improved Loyalty to Make||Tesla|
|Most Improved Conquest Percentage||Tesla|
|Segment Loyalty Awards||Winner|
|Luxury Compact CUV||Lincoln MKC|
|Luxury Full-Size SUV||Lincoln Navigator|
|Luxury Mid-Size CUV||Lexus RX|
|Luxury Mid-Size SUV||Lexus GX|
|Luxury Sport Car||Porsche 911|
|Luxury Traditional Compact Car||Lincoln MKZ|
|Luxury Traditional Full-Size Car||Lexus LS|
|Luxury Traditional Mid-Size Car||Lexus ES|
|Luxury Traditional Sub-Compact Car||BMW i3|
|Compact CUV||Chevrolet Equinox|
|Compact SUV||Jeep Wrangler|
Full-Size Three-Quarter To One-Ton Pickup
|Full-Size Half-Ton Pickup||Ram 1500|
|Full-Size SUV||GMC Yukon Denali XL|
|Mid-Size CUV||Subaru Outback|
|Mid-Size Pickup||Toyota Tacoma|
|Mid-Size SUV||Jeep Grand Cherokee|
|Mid-Size Van||Honda Odyssey|
|Sport Car||Volkswagen GTI|
|Mid-Size Sport Car||Ford Mustang|
|Traditional Compact Car||Honda Civic|
|Traditional Full-Size Car||Toyota Avalon|
|Traditional Mid-Size Car||Toyota Camry|
|Traditional Sub-Compact Car||Mini Countryman|
About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the worlds leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
Automotive offerings and expertise at IHS Markit span every major market and the entire automotive value chainfrom product planning to marketing, sales and the aftermarket. For additional information, please visit www.ihsmarkit.com/automotive or email [email protected].
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