Automakers spend countless amounts of money each year trying to attract buyers, and it can be easy to think that retaining those customers would be easier after an acquisition. Obviously, this is not the case. According to a new study, most luxury brands are experiencing a decline in brand loyalty and the new kid on the block, Genesisbucks that trend and tops them all.
We’ve already looked at brand loyalty here and even highlighted the overall result is a study by S&P Global Mobility. Now a deeper dive and a handy infographic from A visual capitalist helps us see how much brand loyalty is shifting.
S&P Global Mobility measured brand loyalty by looking at what percentage of buyers returned to a brand they already owned when trading in or buying a new car. The study was conducted from January 2020 to April this year. While the luxury segment saw an average decline of 4.5 percent, Genesis saw brand loyalty increase by 8.5 percent.
That’s almost twice as much as Maserati (4.3 percent) in second place. Only one other brand, Tesla, with 4 percent growth, saw a positive change in brand loyalty, according to the study. Of these three brands, Maserati is the surprise here. Genesis has a record (albeit short) of impressive quality and value for money, while Tesla is well known for its voracious following.
Brand Loyalty Winners
Land Rover, on the other hand, saw a 9.2 percent drop in brand loyalty during the study. Porsche was close behind with an 8.5 percent decline, while Lincoln rounded out the bottom three with a 7.9 percent loss. Each of these manufacturers has its own problems, but the industry, as a whole, is still lack details.
Instead of waiting for a car to be produced months or years from now, buyers seem to simply switch brands and buy earlier. However, times are changing, and many producers note that production will increase in the coming months. Some will just have to work hard to win back the customers they may have lost.