Lexus Continues To Win the Loyalty of Its Customers

Loyal Customers

J.D. Power's U.S. Brand Loyalty Study just marked its second year of existence, and yet, it's already become a pretty important distinction for automakers. After all, when a vehicle's owner is loyal to a particular brand, it becomes harder for others to woo them away. And in that regard, Lexus is certainly hard to beat, as it has scored its second consecutive victory among all luxury brands.

Photos: Lexus

Luxury Winners

The study uses data from the Power Information Network to calculate whether an owner purchased the same brand after trading in an existing vehicle on a new vehicle. Customer loyalty is based on the percentage of vehicle owners who choose the same brand when trading in or purchasing their next vehicle. For 2020, Lexus took home top honors in the luxury car category with a 48% loyalty rate. Mercedes-Benz ranked second with a score of 47.8%, followed by BMW (45.1%), Porsche (44.9%), and Audi(43.4%). 

Photos: Lexus

>>Join the conversation about Lexus' customer satisfaction right here in ClubLexus.com.

Rounding Out

The rest of the luxury car category rounded out as follows: Land Rover (39.6%), Acura (38.3%), Volvo (38.3%), Lincoln (37%), Cadillac (33.8%), Maserati (28.7%), Infiniti (27.7%), and Jaguar (20.7%).

Photos: Lexus

>>Join the conversation about Lexus' customer satisfaction right here in ClubLexus.com.

Boosting Confidence

"There are many factors that contribute to brand loyalty, ranging from the experience a customer has when purchasing the vehicle to how driving it makes them feel," said Tyson Jominy, vice president of data & analytics at J.D. Power. "Automakers are really focused on customer retention, as evidenced by the payment plans and incentives they’ve offered since the COVID-19 pandemic broke out. Many have gone above and beyond to offer customers financial assistance during a period of economic uncertainty, which does a lot to bolster consumer confidence in their chosen brand and repurchase it in the future"

Photos: Lexus

>>Join the conversation about Lexus' customer satisfaction right here in ClubLexus.com.

Keep 'Em Happy

This is a critical win for Lexus, as it proves that most owners will simply return to one of the automaker's dealers when it's time to trade-in the old ride for a new one. Creating lifetime customers of any brand is the ultimate goal, as it keeps those dollars in one place and reduces the need to go out and capture hard-earned market share from others.

Photos: Lexus

>>Join the conversation about Lexus' customer satisfaction right here in ClubLexus.com.

Less Loyal

Regardless, it appears that luxury car buyers are a bit more fickle than those that purchase mass-market brands. The percentages in that category are much higher, as Subaru leads the way with a 60.5% loyalty rate, followed by Toyota (60.3%), Honda (58.7%), Ram (57.3%), and Ford (54.3%).

Photos: Lexus

>>Join the conversation about Lexus' customer satisfaction right here in ClubLexus.com.

Earning It

Regardless, the results of this study have to be encouraging for Lexus. Retaining customers isn't easy in this highly competitive market segment, and yet, they clearly do a good job of it. Plus, most importantly, customer loyalty isn't one of those things that you can just go out and buy - you have to earn it.

Photos: Lexus

>>Join the conversation about Lexus' customer satisfaction right here in ClubLexus.com.

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