J.D. Power 2020 US Automotive Brand Loyalty Study – Lexus and Subaru have the most loyal customers

J.D. Power 2020 US Automotive Brand Loyalty Study – Lexus and Subaru have the most loyal customers

Retaining the loyalty of customers is something that is very important to automakers, but which brands are more successful at doing so? To find out, J.D. Power analysed transaction data on vehicles sold in the United States from June 2019 through May 2019, including all model years traded in, to bring us an answer.

The company has since released its 2020 US Automotive Brand Loyalty Study, which is now in its second year, and uses data obtained from its affiliate 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 then determined based on the percentage of vehicle owners who chose the same brand when trading in or purchasing their next vehicle.

Among premium brands, the study revealed Lexus to have the highest loyalty rate at 48%, marking the second consecutive year the Japanese brand took the top spot. Coming in a close second is Mercedes-Benz (47.8%), followed by BMW (45.1%), Porsche (44.9%) and Audi (43.4%).

Below them, brands that didn’t breach the 40% mark include Land Rover (39.6%), Acura and Volvo (both 38.3%), Lincoln (37%), Cadillac (33.8%), Maserati (28.7%), Infiniti (27.7%) and Jaguar (20.7%).

Click to enlarge

Meanwhile, Subaru ranked highest among mass market brands and highest overall in the US automotive industry, also for a second year running, with a loyalty rate of 60.5%. In fact, the top three brands on the mass market list are Japanese brands, with Toyota (60.3%) in second place, while Honda (58.7%) took the third spot.

Three other mass market that exceeded the 50% mark include Kia (51.3%), Ford (54.3%) and RAM (57.3%). Further down the list, it was a close fight between Buick (27.5%), Mitsubishi (27.1%) and MINI (26.4%), with Dodge (17.8%), Chrysler (14.1%) and Fiat (10.4%) being below the 20% point.

“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,” he added.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • Bottom10 on Jul 17, 2020 at 12:12 pm

    Volvo, Mazda, Mitsubishi, Mini, Audi, Porsche and VolksWagen

    Don’t buy for long term

    Like or Dislike: Thumb up 2 Thumb down 4
  • Fordist on Jul 17, 2020 at 12:55 pm

    Meanwhile Ford F-150 is the best selling model in USA. Meh! No wonder this part of the world don’t trust JD Power stats anymore.

    Like or Dislike: Thumb up 1 Thumb down 2
  • Goffy on Jul 17, 2020 at 2:24 pm

    Subaru no.1 in mass market ranking? You must be joking!!

    Like or Dislike: Thumb up 3 Thumb down 2
    • Subie guy on Jul 17, 2020 at 2:40 pm

      US bruh.. subaru 2000’s year make are still many on the road.. guess what is next car for the owners? Subaru again.

      Like or Dislike: Thumb up 0 Thumb down 0
    • Cannot be trusted which is why this happen
      https://paultan.org/2019/11/21/j-d-power-to-exit-asean-and-australia-markets/

      Like or Dislike: Thumb up 2 Thumb down 0
    • Remember this is US market. They have different lineup from us. They also have more powerful engines with turbo there

      Like or Dislike: Thumb up 2 Thumb down 0
  • rally_fan (Member) on Jul 17, 2020 at 3:47 pm

    you guys dont seem to get it. its a “brand loyalty” survey. its not based on who is top sales, or who owns the car longer or shorter or whatever the case may be.. its just that if you own a subaru today, there is a 60% likelihood you will buy another subaru… even if subaru sell only 1000 cars(as an example), they still have higher brand loyalty.

    Like or Dislike: Thumb up 3 Thumb down 0
    • It doesn’t really matter if it is US or Asia market, a car brand still own by the same owner. I drive a 2014 subaru XV. Regret buying it even though maintained by agent, nothing but trouble one after another parts need replacing. Still low mileage and bearing hub gone, ABS master pump gone, brake caliper jammed, engine oil always low so keep on topping-up ETC ETC. This survey make me the remaining UN-LOYAL customers then!

      Like or Dislike: Thumb up 1 Thumb down 0
    • karam singh on Jul 18, 2020 at 10:34 am

      true that esteemed bro rally.. subaru alwiz the premium class in automotive engineering. to those who really knew their stuffs, subaru the one!

      Like or Dislike: Thumb up 1 Thumb down 0
  • Frederick on Jul 17, 2020 at 6:49 pm

    Not surprised at all by these 2 super brands. A brand takes many many years to build its trust and legacy to be well loved by their customers.

    Like or Dislike: Thumb up 2 Thumb down 0
 

Add a comment

required

required