J.D Power Customer Rentention Study
#1
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J.D Power Customer Rentention Study
Toyota owners most likely to buy another Toyota
Westlake Village, California - In the United States, Toyota has the highest number of owners who purchase another model in the Toyota brand when they purchase a new vehicle, according to the J.D. Power and Associates 2004 Customer Retention Study released Thursday.
The study, now in its second year, finds that while nearly one-half of vehicle owners overall purchase another vehicle from the same brand, Toyota retains 60.6 percent of its owners. The replaced models that drive Toyota's high retention rates include the Camry Sedan (64.8%), Corolla (64.5%), Sienna (68.6%), Highlander (68.4%) and Tundra (64.8%).
Toyota is followed in the ranking by Lexus, which retains 59.5 percent of its owners, and Chevrolet, with a customer retention rate of 58.9 percent.
"Not only does Toyota offer its owners a wide range of vehicles to move up to as their financial means and stage in life change, but also the brand is highly successful in attracting new customers to the lineup, due in large part to its strong reputation for vehicle quality and high vehicle resale values," said Neal Oddes, director of product research at J.D. Power and Associates. "The redesigned Sienna minivan has been particularly successful in capturing former owners of Plymouth Voyager, Honda Odyssey, Dodge Caravan, Mazda MPV and Oldsmobile Silhouette models."
In addition to measuring retention rates, the study also analyzes the reasons consumers defect from the brand they own and are captured by other brands when they purchase a new vehicle. An important factor in defection is based on owners' experiences with their previous vehicles. Owners often defect from their brand because they had problems with long-term durability, high maintenance costs or poor experiences with dealer service. Conversely, brands are often able to capture new customers with attractive rebates and incentive offers, better vehicle styling, more cargo capacity, high resale value and better fuel economy.
The study finds that brands such as Toyota and Honda not only maintain high retention rates, but also capture more customers from other brands than they lose. For every one customer Toyota loses, it captures six from other brands. Honda gains four customers for every one it loses.
"Subaru is an example of a brand that maintains relatively high levels of customer retention, yet currently captures fewer new customers than it loses to other brands," said Oddes. "While Subaru has been successful in attracting new customers with the Forester, it will need to rely heavily on the new models it is introducing over the next few years to offset the defection rate to other brands and to establish a healthy longevity for the brand."
The 2004 Customer Retention Study is based on responses from more than 171,000 new-vehicle buyers and lessees, of which 103,088 replaced a vehicle that was originally purchased new.
Westlake Village, California - In the United States, Toyota has the highest number of owners who purchase another model in the Toyota brand when they purchase a new vehicle, according to the J.D. Power and Associates 2004 Customer Retention Study released Thursday.
The study, now in its second year, finds that while nearly one-half of vehicle owners overall purchase another vehicle from the same brand, Toyota retains 60.6 percent of its owners. The replaced models that drive Toyota's high retention rates include the Camry Sedan (64.8%), Corolla (64.5%), Sienna (68.6%), Highlander (68.4%) and Tundra (64.8%).
Toyota is followed in the ranking by Lexus, which retains 59.5 percent of its owners, and Chevrolet, with a customer retention rate of 58.9 percent.
"Not only does Toyota offer its owners a wide range of vehicles to move up to as their financial means and stage in life change, but also the brand is highly successful in attracting new customers to the lineup, due in large part to its strong reputation for vehicle quality and high vehicle resale values," said Neal Oddes, director of product research at J.D. Power and Associates. "The redesigned Sienna minivan has been particularly successful in capturing former owners of Plymouth Voyager, Honda Odyssey, Dodge Caravan, Mazda MPV and Oldsmobile Silhouette models."
In addition to measuring retention rates, the study also analyzes the reasons consumers defect from the brand they own and are captured by other brands when they purchase a new vehicle. An important factor in defection is based on owners' experiences with their previous vehicles. Owners often defect from their brand because they had problems with long-term durability, high maintenance costs or poor experiences with dealer service. Conversely, brands are often able to capture new customers with attractive rebates and incentive offers, better vehicle styling, more cargo capacity, high resale value and better fuel economy.
The study finds that brands such as Toyota and Honda not only maintain high retention rates, but also capture more customers from other brands than they lose. For every one customer Toyota loses, it captures six from other brands. Honda gains four customers for every one it loses.
"Subaru is an example of a brand that maintains relatively high levels of customer retention, yet currently captures fewer new customers than it loses to other brands," said Oddes. "While Subaru has been successful in attracting new customers with the Forester, it will need to rely heavily on the new models it is introducing over the next few years to offset the defection rate to other brands and to establish a healthy longevity for the brand."
The 2004 Customer Retention Study is based on responses from more than 171,000 new-vehicle buyers and lessees, of which 103,088 replaced a vehicle that was originally purchased new.
#2
Go Giants
JD loves Hyundai for some reason.
#4
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Originally Posted by jlukja
I'm surprised there isn't more chatter on this. Why is Acura below average?
Notice that Infiniti is even worse than Acura. Unfortunately I think that people move up the price latter to BMW's, Merc and Lexus after they've owned an Acura or Infiniti. Having a tired old RL and no Luxury 2 dr coupe or convertible in the lineup doesn't help either.
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Originally Posted by domn
I know?
Notice that Infiniti is even worse than Acura. Unfortunately I think that people move up the price latter to BMW's, Merc and Lexus after they've owned an Acura or Infiniti.
Notice that Infiniti is even worse than Acura. Unfortunately I think that people move up the price latter to BMW's, Merc and Lexus after they've owned an Acura or Infiniti.
Acura hasn't had anywhere to go after you've got your TL or MDX. The old RL was a joke... we'll see if the new one changes this at all. I'm not holding my breath though.
#6
Not an Ashtray
I saw one study (I forget where) that showed that a larger percentage of BMW drivers had owned a Honda product at one time or another. That is one reason that Acura made such an effort to be a bit more sporty with its lastest line of sedans.
Personally, I think Acura probably turns off many owners with the lousy ownership experience (I'm talking about service and dealer support, not the actual vehicle). The TL transmission debacle probably also caused some defections.
Personally, I think Acura probably turns off many owners with the lousy ownership experience (I'm talking about service and dealer support, not the actual vehicle). The TL transmission debacle probably also caused some defections.
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#8
I don't think the North American "rebranding" of Honda's > Acura, Nissan > Infiniti really fools anyone. If you want a "premium" automobile, then like Domn said, you move up...
Lexus is a bit of an anomoly, but I would consider them premium over Infinti or Acura.
Lexus is a bit of an anomoly, but I would consider them premium over Infinti or Acura.
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Originally Posted by darth62
Personally, I think Acura probably turns off many owners with the lousy ownership experience (I'm talking about service and dealer support, not the actual vehicle).
#13
Old fart
Originally Posted by darth62
Personally, I think Acura probably turns off many owners with the lousy ownership experience (I'm talking about service and dealer support, not the actual vehicle). The TL transmission debacle probably also caused some defections.
My dealership sucked monkey ballz...
#14
The Acura dealers I have taken my TSX to have been sub-par to crappy. One of McGrath Acura's service techs almost broke my passenger side mirror backing out of the garage in the Summer of 2003....lucky the mirror folds!
#15
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It's interesting to see how many complaints there on about Acura dealer service. Perhaps Acura needs to seriously consider an overhaul of its current customer support/service areas to help bridge the ever larger gap between itself and Lexus.
As for Acura not being able to retain customers, it is likely a result of not having enough vehicles to step up to. The recent introduction of the TSX and TL should really help retention rates, particularly with RSX owners. The new RL should help with retention from TSX and TL owners. Eventually, Acura is going to have to produce a significantly larger vehicle to compete in the S-Class, LS, A8, and 7-Series class if it wants to continue to retain customers.
Biggest issue is to bring a lighter weight AWD chassis that can be used to underpin cars like the TSX to remove the FWD disadvantage but still keeping the weight under control. The introduction of ever more powerful engines, perhaps a couple of diesel based engines will also reduce complaints of lack of torque.
I think the best move Honda could make is to allow the Acura division to be a separate management entity from Honda, which will allow it to become like a separate brand, but still be able to draw on the resources of the parent company. That plus they could hire me to run things.
As for Acura not being able to retain customers, it is likely a result of not having enough vehicles to step up to. The recent introduction of the TSX and TL should really help retention rates, particularly with RSX owners. The new RL should help with retention from TSX and TL owners. Eventually, Acura is going to have to produce a significantly larger vehicle to compete in the S-Class, LS, A8, and 7-Series class if it wants to continue to retain customers.
Biggest issue is to bring a lighter weight AWD chassis that can be used to underpin cars like the TSX to remove the FWD disadvantage but still keeping the weight under control. The introduction of ever more powerful engines, perhaps a couple of diesel based engines will also reduce complaints of lack of torque.
I think the best move Honda could make is to allow the Acura division to be a separate management entity from Honda, which will allow it to become like a separate brand, but still be able to draw on the resources of the parent company. That plus they could hire me to run things.
#16
This may not be an accurate comparison, as they failed to disclose whether the percentages were normalized for all companies. Nevertheless, even a 51% retention rate, which MB scored, does not sound very good at all.
You lose approximately half your customers and you're considered above average? huh?
My biggest surprise, besides that for Acura , is Porsche. It's definitely not the cost of operation. And the long-term reliability is up there with Lexus, according to JD Power.
Can anyone explain this to me?
You lose approximately half your customers and you're considered above average? huh?
My biggest surprise, besides that for Acura , is Porsche. It's definitely not the cost of operation. And the long-term reliability is up there with Lexus, according to JD Power.
Can anyone explain this to me?
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Acura has 5 models (the NSX can't count as a mass-production vehicle anymore), only one with different engine choices (RSX). Lexus, MB, and BMW each have over a dozen different model configurations. To keep customers, you have to offer them a lot of choices to move up to. There is no car in the Acura lineup that is an 'upgrade' from the TSX. Sure, the TL and RL are more luxurious and more powerful, but they are owerweight and not as sporty. With BMW, for instance, you can spend more to get more sport (325i->330i->M3). Acura only lets you spend more to get more luxury.
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Originally Posted by pby
My biggest surprise, besides that for Acura , is Porsche. It's definitely not the cost of operation. And the long-term reliability is up there with Lexus, according to JD Power.
Can anyone explain this to me?
#19
Originally Posted by Godwhacker
One word: marriage
LOL, or kids. Chalk up another pro for having the Cayenne in Porsche's lineup.
#20
who's right, who's wrong?
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Taking into account the dealership/service experience, Honda should be MUCH lower on that chart. They're very quickly becoming as bad as these famed VW service departments we hear so much about (or maybe I just have really bad luck).
#23
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Funny thing is that my first car was an 87 Olds Cutlass when I got my license in 11/95. It was babied by its previous owner (my mom) and had absolutely no problems whatsoever. It was awesome the year or so that I drove it.
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This makes some sense... I would think Acura would be considered a "step" car. Many people who buy an Acura probably buy a much nicer car later, such as a Mercedes, BMW, or Audi after they are done with the Acura. I don't know many people who buy Acura and stick with it for multiple generations.
#25
Yup. Besides the 88K NSX, Acura needs another car above the RL, in the league of the MB S-Class, BMW 7-Series, etc. Otherwise, customers will have no choice but to go elsewhere. However, per the rumor mill, we will see such a car in the near future.
#26
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Originally Posted by wsklar
JD loves Hyundai for some reason.
The "stepping stone" theory is probably partially right in the case of Acura. Honda owners probably jump up to it, but then they might be able to move up to another brand.
My father still swears by Toyota... he is hell-bent on getting a Camry when he trades in his QX4 in three years or so.
As stated by everyone, I'm sure the dealer experience at Acura dealerships is a negative on most people.
Junkster, who thinks one good dealer out of four in CO is pathetic
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Originally Posted by Junkster
Junkster, who thinks one good dealer out of four in CO is pathetic
I went to Foothills Acura in Boulder with cash in hand, but the salesman I had met with earlier that month quit his job to work at another dealer and they hooked me up with their new guy. Let me tell you, he was the worst salesman ever. He didn't even have to sell me the car, as I was ready to buy it that day, but he couldn't answer a few simple questions and completely turned me away from that dealership. So, I ended up buying the car in Pennsylvania instead.
#28
Originally Posted by wsklar
JD loves Hyundai for some reason.
JD Power only has love because thats what consumers want. Jd doesn't decide what they want, they host a survey of consumer wants
.
#29
Go Giants
Originally Posted by heyitsme
JD Power only has love because thats what consumers want. Jd doesn't decide what they want, they host a survey of consumers.
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