Study Shows The Worst Thing For Customer Loyalty Is Long Term Ownership

According to an Experian Automotive study, owners keeping vehicles longer are increasingly less likely to buy from that brand when they finally change the car.

For example, Dodge vehicle owners tend to keep their car longer than Ford buyers – but in turn the latter tops all other automakers when it comes to brand loyalty. Experian, a Chicago-area data analysis company, has conducted research that found consumers who keep their vehicles for just 12 months are 57% likely to go for the same brand when purchasing the next model. At the other end of the spectrum, those who kept their vehicles for 12 years only hit a 34% return to the brand. According to the study, the critical point is at 36 months of ownership, when brand loyalty fell almost 10%.

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Manny99 - 11/10/2014 4:53:40 PM

+2 Boost

This is a pointless study. The reason why brand loyalty falls significantly after 36 months is because when people return their car after a 36 month lease, the dealer nickle and dimes them for each little defect or offers to eat up those costs if the owner leases another car from the same dealership.

MDarringer - 11/11/2014 9:26:15 AM

+1 Boost

Which is why you buy the lease insurance that covers $4K in damages...The dealer finds all kinds of shit wrong but the customer pays nothing because there is no deductible.

mre30 - 11/10/2014 5:14:47 PM

+1 Boost

The fact of the matter is, that if you keep a car for 12 years, you either don't drive very much (i.e. you are a senior) or you can't afford a new car, or you are one of the "high-mileage" fanatics who is cheap and also makes a game of for how long they can keep their car running.

In most of those cases, (a) the people are terrible customers for the car company anyway, and/or (b) they are probably just plain sick and tired of the make they drove after keeping it for 12 years and seek a change, and/or (c) they can't afford that make of car anymore and need something cheaper.

Whatever way you slice it, carmakers shouldn't really care about these customers from a profitability standpoint. Though they do make nice marketing fodder if they drive their cars some inordinate amount of miles so they can be featured them in a "longevity" ad or internet testimonial.

Eyecarehawaii - 11/11/2014 2:14:33 AM

+1 Boost

Volvo?

MrEE - 11/11/2014 7:28:55 PM

+1 Boost

Not too surprising. I imagine frequent replacement would lead to same model purchase as long as to the original choice wasn't a disaster. Some people seem to want every new feature or improvement in the same model. A long term ownership more likely leads to vehicle type change when replacement comes. A change in vehicle type would normally lead to shopping other brands. The one exception would be full size pickups, but the majority don't seem to hold up for 12 years.