Table of Contents
Executive Summary
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- Best friends for never
- Top Takeaways
- What automakers want to know
- Consumers are in need of reassurance
- Where automakers can succeed
- Reliability is critical to securing brand loyalty
- Where do we go from here?
The Market – What You Need to Know
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- US auto sales decline in 2019
- Consumer confidence in the US economy is shaky
Market Size
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- 2019 auto sales end on a decline
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- Figure 1: Total US unit sales and forecast of new cars, 2014-24
Market Factors
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- Auto tariffs continue to potentially affect auto prices
- Consumers are feeling confident in the US economy
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- Figure 2: Consumer sentiment index, November 2010-November 2019
- Consumers’ disposable income continues to shrink
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- Figure 3: disposable personal income, November 2019
Key Players – What You Need to Know
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- Trader Joe’s transforms loyal customers into brand advocates
- Ford and GM’s withdrawal from the sedan market came at a great cost
- Tipping point: what does the future of automotive loyalty look like?
Loyalty Across Industries
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- Can consumers be loyal to…..a pet supply company?
- How Lululemon got people amped about yoga pants
- Trader Joe’s transforms loyal customers into brand advocates
What’s Happening in Auto Loyalty
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- Ford and Chevy push car buyers into the arms of other sedan OEMs
- In an effort to meet consumer needs, automakers are decontenting vehicles and it’s not likely to work
What’s Next in Automotive Loyalty
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- Is the automotive market exempt from the changing landscape of consumer loyalty?
Four Pillars of Automotive Loyalty
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- Trust
- Transparency
- Understanding
- Reliability
The Consumer – What You Need to Know
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- Repurchasing from the same brand is a rarity
- Reliability is critical to securing repeat purchases
- Consumers don’t know if automakers care about loyalty
- Consumers have a desire to become brand loyal
- Young consumers see their vehicles as a self-reflection
Vehicle Purchasing Overview
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- Most consumers are already thinking about their next car purchase
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- Figure 4: Car purchasing timeline, October 2019
- Sedans and SUVs are the most-owned vehicle types
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- Figure 5: Vehicle type ownership, October 2019
- Truth hurts: consumers aren’t loyal to your auto brand
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- Figure 6: Post-purchase loyalty, October 2019
What Does Loyalty Look Like
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- Consumers struggle with the idea of auto brand loyalty
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- Figure 7: Consideration of auto brand loyalty, October 2019
- Reliability sets the foundation for repeat brand purchases
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- Figure 8: repeat brand purchase drivers, October 2019
- Familial loyalty still has some mileage
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- Figure 9: Subaru, Making Memories, May 2017
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- Figure 10: Personal relationships as repeat purchase drivers, October 2019
What’s Costing OEMs Loyalty
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- Poor vehicle experiences can cost automakers consumer loyalty
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- Figure 11: Reasons to purchase from a different brand, October 2019
- Consumers want to trust that their vehicle will work properly
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- Figure 12: Reasons to purchase from a different brand, October 2019
- Consumers have a pretty fractured relationship with auto brands
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- Figure 13: Consumer perception of automakers’ concern, October 2019
Opportunities for Creating Loyalty
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- Consumers see their cars as more than just “vehicles”
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- Figure 14: Liberty Mutual twitter campaign, December 2016
- Figure 15: Consumer sentiment toward their personal vehicles, October 2019
- Consumers are (still) asking for more transparency
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- Figure 16: Likelihood of preferred brand recommendation, October 2019
- Female car buyers can see themselves becoming brand loyal
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- Figure 17: Female attitudes toward being brand loyal, October 2019
- Men are more sentimental when it comes to their vehicles
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- Figure 18: Male sentiments toward personal vehicles, October 2019
- Brand name carries weight among consumers
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- Figure 19: Attitudinal statements of vehicle brand perceived value, October 2019
- Consumers would prefer to be brand loyal
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- Figure 20: attitudes toward repeat brand purchases October 2019
- OEMs need to show how they can grow with Millennials
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- Figure 21: Lifestyle changes, by generation, October 2019
- Vehicles serve as a form of self-expression
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- Figure 22: Vehicles as a form of self-expression, by generation, October 2019
- Understanding young consumer needs will be key to securing loyalty
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- Figure 23: Earned loyalty through understanding, by generation, October 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Consumer
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- Figure 24: Vehicle types in household, by repurchase statements, October 2019
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- Figure 25: Brand loyalty drivers, by parental status, October 2019
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- Figure 26: Repurchase statements driven by ads, by parental status, October 2019
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- Figure 27: Brand hopping likelihood, by parental status, October 2019
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- Figure 28: Brand conquesting drivers, by parental status, October 2019
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