Can Automakers Rebuild Customer Loyalty?
Have you ever seen those Calvin & Hobbes decals (usually on pick-up trucks) of Calvin, um, relieving himself, on a competitor's truck logo? While not the most mature of stickers, it shows that some people are fiercely loyal to their automakers. However, the epic collapse of the big three automakers -- the closing of dealerships, the shuttering or sale of popular brands -- may cause that loyalty to wane. Both automakers and dealers need to re-focus their efforts around customers if they want to sell any more Calvin stickers in the future.
Customer loyalty in the auto industry is possible, but building it is a marathon, not a sprint. In today's issue of 1to1 Weekly, experts explore what it will take for U.S. car makers to gain the trust of consumers again.
"In the past loyalty would often be based on the vehicle experience--did it meet my expectations? Was the dealer kind and fair?" says James Bell, executive market analyst at Kelley Blue Book. "I believe the future of automotive loyalty is going to be much more connected to a vehicle's economic performance. These are new factors based on trust and a belief that the purchaser made the right choice [over the long term] and not just the one that felt right at the time."
What do you think it will take for the auto industry to build customer loyalty?
Related Entries
- Loyalty Correlates with Brand Value
- Can Automakers Rebuild Customer Loyalty?
- Forrester's Bruce Temkin: Customer Service Attracts Loyal Customers
Auto companies have morphed into financial companies. Ads today focus on discounts, promotions, payments. The result is the customer experience is based upon the cost of ownership and not the experience of driving, handling, etc. Dollars are a differentiator only if you're wanting to build, deliver the lowest cost vehicle.
Good article on a complex equation. Begs a few questions. Does the often-adversarial manufacturer/dealer relationship contribute to poor customer loyalty? What does the dealers' model for pricing on service do to impact loyalty? What does success look like? As I read this I couldn't help thinking how my positive experiences at the Apple retail store affects my loyalty to my Mac.