First Automotive Brand Loyalty Study of the
Year Offers Automakers an Exhaustive View into Car Brand Affinity
Based on Vehicle Sales and Ownership
ATLANTA, Jan. 8, 2024
/PRNewswire/ -- LexisNexis® Risk Solutions, a leading provider
of data and analytics for the insurance and
automotive industries, announced today that U.S. consumer
automotive brand loyalty increased in 2023, according to data
compiled throughout the year. Through a methodology-based
automotive brand loyalty study, LexisNexis Risk Solutions offers
automakers (OEMs) a comprehensive view about a vehicle owner's
repurchase behavior with a brand they currently own.
LexisNexis Risk Solutions analyzed vehicles and owners that make
up a garage. In the U.S., 107 million garages were used to
calculate automotive brand loyalty from January 2023 through December 2023. The study focused on vehicle
purchases in 2023 and vehicles currently owned. LexisNexis Risk
Solutions found that new vehicle buyers in 2023 stayed loyal to the
new car brands they own at a rate of 51.3%, a 1.6% increase from
49.7% in 2022. Tesla led in brand loyalty with a rate of
60.7%, almost two percentage points up from 59.0% in the prior
year.
"We found that seven additional brands also had loyalty rates
above the industry average," said Mike Yakima, product principal,
U.S. Connected Car, LexisNexis Risk Solutions. "The brands above
the industry average are retaining more customers than they are
losing. Their retention strategies are working to engage current
owners in the brand as they look to grow market share."
Trade-in vehicles were associated with approximately 62.3% of
new vehicle purchases. Twenty-six percent of garages added a
vehicle to their garage in 2023. The remaining 11% of the new
vehicle purchases were made by owners that did not have a vehicle
in the garage, representing either first-time buyers or people who
have gone an extended period without a vehicle.
Lastly, drivers who currently own a used vehicle and bought a
used vehicle tended not to repurchase the same brand again, with
their brand loyalty rate at 21.1%, representing a one percent
increase from last year. Used vehicle owners buying new vehicles
stayed with their brands 26.1% of the time.
"Automakers can further build brand loyalty by connecting with
used car owners and offering services to them as if they were the
original owners," said Dave Nemtuda,
head of OEM products, U.S. Connected Car, LexisNexis Risk
Solutions. "That connection could be the shift that automakers need
to see an uptick in brand loyalty and customer engagement with
their brand on many levels."
To learn more about the 2023 Automotive Brand Loyalty study and
the LexisNexis Risk Solutions expanding suite of automotive
solutions that remove blind spots for automakers, helping them
offer value-added benefits to their drivers, visit LexisNexis Risk
Solutions Brand Loyalty.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data and
advanced analytics to provide insights that help businesses and
governmental entities reduce risk and improve decisions to benefit
people around the globe. We provide data and technology solutions
for a wide range of industries including insurance, financial
services, healthcare and government. Headquartered in metro
Atlanta, Georgia, we have offices
throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a
global provider of information-based analytics and decision tools
for professional and business customers. For more information,
please visit www.risk.lexisnexis.com and www.relx.com.
Media Contacts:
Annalysce Baker
Manager, Global Communications
Insurance and Connected Car
LexisNexis Risk Solutions
Phone: +1.678.436.1579
Annalysce.Baker@lexisnexisrisk.com
Dean Carney
Brodeur Partners for LexisNexis Risk Solutions
Phone: +1.646.746.5607
Dcarney@brodeur.com
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SOURCE LexisNexis Risk Solutions