Polk: Loyalty Will Be Key for OEMS, Dealers
manufacturers and dealers as they look to retain customers in the coming
years, according to upcoming new research from
Polk anticipates manufacturers, together with their dealers, will have
difficulty surviving in the future without a true commitment to a customer
retention strategy. Taking care of customers and dealers has never been more
important for manufacturers. With fewer U.S. sales expected, along with owner
loyalty rates of approximately 45 percent, these conditions pose an extreme
financial threat to any automaker, according to Polk.
“We’re confident
chairman, president and CEO of Polk. “Nearly every manufacturer will become
smaller and leaner as they look to drop poor selling vehicles and unprofitable
business units, most certainly changing the complexion of the automotive
industry,” he continued. “The research currently underway at Polk will enable
us to better help our customers – both manufacturers and dealers – through
this transition.”
Polk is currently conducting research to determine the impact on customer
loyalty when vehicle models, or even entire brands, are phased out. One of the
initial findings is that consumers of discontinued models leave a manufacturer
55 percent of the time when they make their next vehicle purchase. This is
approximately eight percent higher than the natural defection rate for an
automotive brand and has the potential to represent thousands of consumers.
In a shrinking auto market, losing one customer is even more painful,
especially when many consumers may not buy a new vehicle at the same rate they
previously have.
As a result, Polk is recommending its OEM and dealer customers employ
strategies to minimize the negative impact the potential rapid product
downsizing will have on their business. Consumer and dealer loyalty programs
must be taken more seriously than ever before by OEMs and they must make smart
investments, in order to keep and maintain their customer base. Customers at
the risk of being “orphaned” are the most susceptible to defection and should
be a primary focus. OEMs must consider these programs as important as a
crucial product launch, and invest in them, if they are to survive and thrive
long-term.
Based on its history in the automotive marketplace, together with its team
of automotive analysts, Polk is uniquely positioned to help its customers
address the challenges of the industry today. Over the next two months, Polk
will release a series of reports assessing the impact of challenges facing the
auto industry. Topics focusing on owner defection, vehicle demand scenarios,
implications for business in the vehicle parts and service arena and dealer
network planning will be further examined.
About
marketing solutions. Polk collects and interprets global data, and provides
extensive automotive business expertise to help customers understand their
market position, identify trends, build brand loyalty, conquest new business
and gain a competitive advantage. Polk helps automotive manufacturers and
dealers, automotive aftermarket companies, finance and insurance companies,
advertising agencies, media companies, consulting organizations, government
agencies and market research firms make good business decisions. A privately
held global firm, Polk is based in
and
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