A recent study by J.D. Power has found that eight major automotive brands are struggling with customer conquest retention in the United States. Conquest retention refers to the ability of automakers to retain customers who have switched from a competitor brand.
The study, which analysed over 31,000 new-vehicle buyers, found that brands such as Fiat, Mitsubishi, and Mini had the lowest retention rates among conquest customers. Only 5% of customers who switched to a Mini vehicle stayed with the brand for their next purchase.
Other brands that struggled with customer conquest retention include Acura, Infiniti, Jeep, Smart, and Volvo. The study found that these brands were particularly challenged in retaining customers who switched from non-luxury brands.
According to J.D. Power, customer retention is crucial for automakers as it helps to reduce marketing costs and increase profitability. Conquest customers are particularly valuable as they represent an opportunity for brands to expand their customer base and win over new buyers.
The study also found that several brands, including Buick, Cadillac, and Lexus, had high retention rates among conquest customers. These brands were successful in retaining customers who switched from a competitor brand, with more than 40% of conquest customers staying with the brand for their next purchase.
J.D. Power noted that customer retention is becoming increasingly important as the automotive industry faces new challenges, such as the rise of electric vehicles and changing consumer preferences. Brands that are successful in retaining customers are better positioned to navigate these challenges and remain competitive in the market.
Overall, the study highlights the importance of customer retention for automakers, particularly in the highly competitive US market. Brands that can effectively retain customers are more likely to succeed in the long term, while those that struggle to do so may face challenges in remaining profitable and relevant.