SANTA MONICA, CA — March 06, 2018 — Automakers who leverage emotional design, offer a wide array of SUVs and have a solid history of reliability hold the keys to keeping customers brand-loyal, according to the new 2018 Edmunds Trade-In Loyalty Report. The report leverages insights gleaned from more than 13.9 million vehicle transactions between 2007 to 2017 to explore what drives customer loyalty at both the segment and the brand level. Edmunds defined loyalty as the percentage of vehicles traded in to purchase a new vehicle that was the same segment, manufacturer, brand or model.
"There's been a dramatic shift in the last 10 years in the tastes of car buyers, and with auto sales on the decline, maintaining customer loyalty has arguably never been more important," said Jessica Caldwell, executive director of industry analysis at Edmunds. "Trade-in customers are a critical group for automakers to keep in the brand family, as in theory they should be among the easiest to retain."
This in-depth report uncovers the reasons why consumers have made such a dramatic pivot away from passenger cars in favor of SUVs, and the significant impact that's had on loyalty. It also identifies which companies are doing the best at keeping trade-in customers in the brand family, and what they're doing right.
Key findings include:
"We're heading into one of the most transformative periods in the automotive industry, and instability in the short term could severely jeopardize automaker success further down the line," said Caldwell. "Sales are cooling off from record highs, and the abundance of offerings on the market has created a new reality where nameplate loyalty no longer holds the same weight. It's going to be a delicate balance for automakers as they face the immediate challenge of keeping customers in the fold while also anticipating the demands of the future."
To read the full report, visit the Edmunds Industry Center: https://static.ed.edmunds-media.com/unversioned/img/industry-center/analysis/2018-edmunds-loyalty-report.pdf
Edmunds is the leading car information and shopping platform, helping millions of visitors each month find their perfect car. With products such as Edmunds Your Price, Your Lease and Used+, shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at more than 13,000 dealer franchises across the U.S. Edmunds' in-house team of unbiased car-shopping experts provide industry-leading vehicle reviews and shopping tips, and the company also has a 20-year-old forums community of car shoppers and enthusiasts, where members can get shopping advice and learn what others are buying and leasing cars for. The company is regarded as one of America's best workplaces by Fortune and Great Place to Work. Edmunds is based in Santa Monica, California, and has a satellite office in downtown Detroit, Michigan.