Honda #1 in Customer Retention
12-10-08, 04:21 PM
#1
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Honda #1 in Customer Retention
Honda Takes Top Spot from Toyota in Customer Retention Study
J.D. Power and Associates released its U.S. 2008 Customer Retention Study on Wednesday, with Honda knocking of Toyota for the top spot. The survey measures the percentage of customers who replace vehicles with models from the same automaker.
Honda’s 64.7 percent of customers that came back for a second helping just edged out Toyota’s 63.2 percent. Toyota’s Lexus brand finished third in the study, followed by Mercedes-Benz and BMW.
“Honda’s reputation for creating safe vehicles with high resale value has been instrumental in retaining owners,” Debbie Ortuno, product research and analysis manager at J.D. Power, told Automotive News. Honda’s lineup of fuel-efficient vehicles probably didn’t hurt, either.
Only 11 brands ranked above the industry average of 48 percent, with four of those spots going to Japanese automakers. The only domestic brands above the industry average were Ford, Chevrolet and Cadillac.
The study also found that customer retention slipped in 2008 – a sign of increased competition — with the industry average falling from 49 percent.
J.D. Power and Associates released its U.S. 2008 Customer Retention Study on Wednesday, with Honda knocking of Toyota for the top spot. The survey measures the percentage of customers who replace vehicles with models from the same automaker.
Honda’s 64.7 percent of customers that came back for a second helping just edged out Toyota’s 63.2 percent. Toyota’s Lexus brand finished third in the study, followed by Mercedes-Benz and BMW.
“Honda’s reputation for creating safe vehicles with high resale value has been instrumental in retaining owners,” Debbie Ortuno, product research and analysis manager at J.D. Power, told Automotive News. Honda’s lineup of fuel-efficient vehicles probably didn’t hurt, either.
Only 11 brands ranked above the industry average of 48 percent, with four of those spots going to Japanese automakers. The only domestic brands above the industry average were Ford, Chevrolet and Cadillac.
The study also found that customer retention slipped in 2008 – a sign of increased competition — with the industry average falling from 49 percent.
12-10-08, 05:27 PM
#4
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I think Toyota won the last 2 years and Honda was close behind. Honda and Toyota has a very loyal audience, no matter what they make, how ugly, odd, how un-trucklike, how inefficient, **** poor interiors,etc people buy them. Its the "sheep" mentality that kills some good competition like from Pontiac, Mazda, VW (and tons of other brands with BETTER or comparable products). Honda and Toyota have built this image of SUPREMECY in the non-luxury segment. They BOTH have expanded their lineups where you simply don't have to leave the brand, more so in Toyotas case. Bottom line is they know how to run a business, 65% is an incredible figure for Honda in particular. That means 65% of their customers don't even consider another brand. Amazing.
Kudos to Toyota, Lexus, BMW, Benz as well. Goes to show with all the bishing we do about car comparos in magazines, the majority of these brands buyers ALREADY want a specific brand. Infiniti rose, from 27% to it looks like 37% but still dismal. As VW, Pontiac, Mazda and Audi. Acura continues to drop and is lower (barely) than Infiniti. Not a good sign. Their customers are leaving them.
The comments there are hilarious. lol
Kudos to Toyota, Lexus, BMW, Benz as well. Goes to show with all the bishing we do about car comparos in magazines, the majority of these brands buyers ALREADY want a specific brand. Infiniti rose, from 27% to it looks like 37% but still dismal. As VW, Pontiac, Mazda and Audi. Acura continues to drop and is lower (barely) than Infiniti. Not a good sign. Their customers are leaving them.
The comments there are hilarious. lol
Last edited by LexFather; 12-10-08 at 06:53 PM.
12-10-08, 05:34 PM
#5
Good for them IMO they deserve it as much as many hate the "look" of the new TL they are building some solid cars
I would buy any car from the line up they offer. Someone mentioned the service. I get just as good of service if not better from the Acura dealer then I do from the Lexus dealer. But I am sure not matter what brand we can all find a dealer that doesnt offer good service. I know I have been there in the past
I would buy any car from the line up they offer. Someone mentioned the service. I get just as good of service if not better from the Acura dealer then I do from the Lexus dealer. But I am sure not matter what brand we can all find a dealer that doesnt offer good service. I know I have been there in the past
Last edited by LexFather; 12-10-08 at 05:39 PM.
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12-10-08, 05:56 PM
#8
Lexus Fanatic
Consumer Reports has ranked Honda as its highest overall-rated brand, based on their test results, reliability records, and Government crash testing all combined. Toyota and Subaru are close behind.
12-10-08, 06:01 PM
#9
Lexus Fanatic
I think Toyota won the last 2 years and Honda was close behind. Honda and Toyota has a very loyal audience, no matter what they make, how ugly, odd, how un-trucklike, how inefficient, **** poor interiors,etc people buy them. Its the "sheep" mentality that kills some good competition like from Pontiac, Mazda, VW (and tons of other brands with BETTER or comparable products). Honda and Toyota have built this image of SUPREMECY in the non-luxury segment.
12-10-08, 06:04 PM
#10
Super Moderator
More detailed article ...
J.D. Power and Associates Reports: Honda Ranks Highest in New-Vehicle Buyer Retention
WESTLAKE VILLAGE, CA USA
As New-Vehicle Sales Continue to Fall, Customer Retention Becomes Critically Important
WESTLAKE VILLAGE, Calif., Dec. 10 /PRNewswire/ -- Honda leads the automotive industry in retaining the highest percentage of new-vehicle purchasers, according to the J.D. Power and Associates 2008 Customer Retention Study(SM) released today.
Now in its sixth year, the study measures the percentage of new-vehicle buyers and lessees who replace a previously purchased new vehicle with another from the same brand.
Improving by nearly two percentage points from 2007, Honda leads the customer retention rankings (64.7%), followed by Toyota (63.2%) and Lexus (60.4%).
"Honda has historically been a strong performer in terms of customer retention, but 2008 marks the first time since the inception of the study that the brand has achieved the highest retention rate in the industry," said Debbie Ortuno, manager of product research and analysis at J.D. Power and Associates. "This comes at a time when all manufacturers are facing challenges presented by current market conditions, including sales declines and tight credit. In particular, Honda's reputation for creating safe vehicles with high resale value has been instrumental in retaining owners."
Overall customer retention declines slightly to 48 percent in 2008 from 49 percent in 2007. In 2008, 13 of the 36 ranked brands have improved in customer retention rates from 2007, while 18 have declined and five have remained stable. Land Rover posts the greatest improvement in customer retention rates from 2007, improving by 18 percentage points in 2008. This improvement is driven primarily by incentives, attractive sales deals and the look and styling of Land Rover models.
The study finds that, among retained customers, the importance of safety, fuel economy and deals/incentives have increased as reasons for repurchasing, compared with 2007. Among conquest customers -- those owners whose new vehicle replaced a vehicle of a different brand -- fuel economy, ownership/maintenance costs and deals/incentives have the greatest increases in importance since 2007 in their decisions to change brands.
"In 2008, new-vehicle buyers have become increasingly concerned with monetary factors when deciding whether to repurchase a vehicle brand -- a reflection of current economic conditions," said Ortuno. "Manufacturers with vehicle lineups that adequately address these concerns will be poised to retain a greater share of customers and to win conquests."
Customer retention will become even more critical to automakers in the coming year, as new light-vehicle sales in 2009 are projected to decline to below 12 million units.
"Educating potential buyers about models that have good fuel economy and low ownership costs will help manufacturers retain their customer base and attract new customers, particularly for those brands that may be curtailing new-model introductions and redesigns, which traditionally generate customer interest," said Ortuno.
The 2008 Customer Retention Study is based on responses from 147,238 new-vehicle buyers and lessees, of which 88,971 replaced a vehicle that was previously acquired new. The study was fielded between November 2007 and May 2008.
Base: The percentage of customers who replaced a vehicle previously purchased new and acquired a new vehicle of the same make.
SOURCE J.D. Power and Associates
WESTLAKE VILLAGE, CA USA
As New-Vehicle Sales Continue to Fall, Customer Retention Becomes Critically Important
WESTLAKE VILLAGE, Calif., Dec. 10 /PRNewswire/ -- Honda leads the automotive industry in retaining the highest percentage of new-vehicle purchasers, according to the J.D. Power and Associates 2008 Customer Retention Study(SM) released today.
Now in its sixth year, the study measures the percentage of new-vehicle buyers and lessees who replace a previously purchased new vehicle with another from the same brand.
Improving by nearly two percentage points from 2007, Honda leads the customer retention rankings (64.7%), followed by Toyota (63.2%) and Lexus (60.4%).
"Honda has historically been a strong performer in terms of customer retention, but 2008 marks the first time since the inception of the study that the brand has achieved the highest retention rate in the industry," said Debbie Ortuno, manager of product research and analysis at J.D. Power and Associates. "This comes at a time when all manufacturers are facing challenges presented by current market conditions, including sales declines and tight credit. In particular, Honda's reputation for creating safe vehicles with high resale value has been instrumental in retaining owners."
Overall customer retention declines slightly to 48 percent in 2008 from 49 percent in 2007. In 2008, 13 of the 36 ranked brands have improved in customer retention rates from 2007, while 18 have declined and five have remained stable. Land Rover posts the greatest improvement in customer retention rates from 2007, improving by 18 percentage points in 2008. This improvement is driven primarily by incentives, attractive sales deals and the look and styling of Land Rover models.
The study finds that, among retained customers, the importance of safety, fuel economy and deals/incentives have increased as reasons for repurchasing, compared with 2007. Among conquest customers -- those owners whose new vehicle replaced a vehicle of a different brand -- fuel economy, ownership/maintenance costs and deals/incentives have the greatest increases in importance since 2007 in their decisions to change brands.
"In 2008, new-vehicle buyers have become increasingly concerned with monetary factors when deciding whether to repurchase a vehicle brand -- a reflection of current economic conditions," said Ortuno. "Manufacturers with vehicle lineups that adequately address these concerns will be poised to retain a greater share of customers and to win conquests."
Customer retention will become even more critical to automakers in the coming year, as new light-vehicle sales in 2009 are projected to decline to below 12 million units.
"Educating potential buyers about models that have good fuel economy and low ownership costs will help manufacturers retain their customer base and attract new customers, particularly for those brands that may be curtailing new-model introductions and redesigns, which traditionally generate customer interest," said Ortuno.
The 2008 Customer Retention Study is based on responses from 147,238 new-vehicle buyers and lessees, of which 88,971 replaced a vehicle that was previously acquired new. The study was fielded between November 2007 and May 2008.
Code:
2008 Make Retention Rates
Honda 64.7%
Toyota 63.2%
Lexus 60.4%
Mercedes-Benz 58.6%
BMW 58.5%
Ford 52.5%
Chevrolet 52.0%
Nissan 51.3%
Subaru 50.5%
Cadillac 50.4%
Land Rover 49.0%
Industry Average 48.0%
Scion 47.2%
Hyundai 46.7%
HUMMER 43.7%
Jeep 42.8%
Suzuki 40.7%
GMC 40.6%
Lincoln 40.6%
Dodge 39.7%
Volkswagen 39.7%
Porsche 38.2%
Infiniti 37.9%
Audi 37.2%
Saturn 37.1%
Acura 37.0%
Chrysler 32.8%
Kia 32.5%
Volvo 32.5%
Buick 31.3%
Mazda 30.7%
SAAB 30.5%
Mercury 30.2%
MINI 29.3%
Mitsubishi 28.1%
Pontiac 27.2%
Jaguar 26.2%
SOURCE J.D. Power and Associates
12-10-08, 06:49 PM
#12
Lexus Fanatic
Honda 64.7%
Toyota 63.2%
Lexus 60.4%
Mercedes-Benz 58.6%
Toyota 63.2%
Lexus 60.4%
Mercedes-Benz 58.6%
The #4 position of Mercedes-Benz is interesting, considering their noted unreliability and the grief they cause many of their owners. This may be a case of what Mike was talking about, above, in the "sheep mentality" comment.......people buying (and repeat-buying) the brand with little thought to anything other than just "image".
12-10-08, 09:02 PM
#13
Lexus Fanatic
Great cars at a great price. The motors are bullet proof. They stand the test of time and serious abuse. The birth of the entire import scene started with honda tuning . They have many fans... youg and old. I am a little in love with the NSX-R or the rarest honda ever made , the NSX-R GT ( only 5 made.... they think )
12-11-08, 06:05 AM
#14
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Honda is a solid brand. They make some of the best small cars out there. That being said, Acura is a mess...
Is it because they don't have a V8?Their new designs, especially the TL is not as good looking but look is subjective. One man's shiet is another man's gold
.
12-11-08, 06:15 AM
#15
Lexus Fanatic
Iam curious why Acura is a mess. Is it because they don't have a V8?
Is it because they don't have a V8?
No.....it has nothing to do with a V8. There are some who believe that, but I disagree.
Here's your main reason. There's simply too much of THIS in their production cars:
Another reason is the the cheapening of recent MDX and TSX interiors. They also dropped the RSX models that appealed most to younger people.