Loyalty Reigns -- General Motors Named Top Manufacturer in Automotive Loyalty Awards Presented by IHS Markit
21st annual Automotive Loyalty Awards recognize auto manufacturers and brands for loyalty leadership
Public Company Information:
Business information provider IHS Markit (NASDAQ: INFO) presented the 21st annual Automotive Loyalty Awards tonight during Automotive News World Congress. Winners in more than 30 categories were recognized, including General Motors for the evening’s top award, “Overall Loyalty to Manufacturer” and Ford brand for “Overall Loyalty to Make.” Automotive News World Congress is held alongside press and industry days for the North American International Auto Show.
The Automotive Loyalty Awards from IHS Markit are the industry’s only fact-based awards of their kind. Automotive manufacturers and brands were recognized for superior customer retention and conquest efforts during the 2016 model year (October 2015 through September 2016). IHS Markit analysis found that, with 17.5 million new vehicle registrations during the 2016 model year, 52.8 percent of customers returned to market to purchase another vehicle from the same make they already owned. This represents record loyalty rate and an increase of 1.3 percentage points from last year.
”We are proud to recognize so many loyalty leaders in the automotive industry,” said Joe LaFeir, senior vice president, automotive, for IHS Markit. “Our Automotive Loyalty Awards program highlights the ongoing successes of automakers and brands that continue to win back customers in this hyper-competitive environment. We commend those that are working to improve their efforts in this area.”
With the plateauing of the U.S. new vehicle market, there is an increase in the level of competition among automakers and brands. At the same time, loyalty rates to these manufacturers and brands are at all-time highs while incentive spending is also at record highs, with loyal customers receiving increased customer cash to repurchase -- up 1 percentage point of the vehicle transaction price since 2014.
IHS Markit has developed new tools to help automakers and marketers improve the efficiency of owner retention. Advanced analytics from IHS Markit now provide unprecedented insights into consumer loyalty behavior. When advising marketing leaders from across the industry, IHS Markit can now identify three distinct customer types -- super loyalist, loyalist and nomads. Super Loyalists are consumers who have a history of multiple repeat purchases and are the most likely to repurchase from the same manufacturer. Loyalists are consumers with a repeat purchase, and Nomads show no identifiable loyalty patterns to any manufacturer.
“Insights from these three populations now help manufacturers be more targeted and efficient with marketing efforts, and more informed when making critical marketing decisions, including incentive spending,” said Steve Had, vice president, sales and marketing solutions, IHS Markit.
Of the three populations, Super Loyalists are the smallest in size but tend to be the most loyal, repurchasing with the same manufacturer 76 percent of the time. Nomads, on the other hand, tend to be the largest in population size, but only stay loyal 52 percent of the time.
Brand and Model Level Winners Honored for Segment and Ethnic Loyalty
Ford achieved the highest loyalty rate of all makes during the 2016 model year, winning the Overall Loyalty to Make award. The award for Highest Conquest Percentage for the 2016 model year went to Jeep.
The Ford (brand) was honored for highest Ethnic Loyalty to Make among all ethnic groups combined, while it also led in loyalty among African American consumers. Toyota was awarded for loyalty success with Hispanic consumers, while Mercedes-Benz achieved highest loyalty among Asian consumers.
Tesla was honored for Most Improved Loyalty to Make for the model year, and Most Improved Super Loyalists went to Cadillac, and Volvo was recognized for Most Improved Conquest Percentage during the 2016 model year.
IHS Markit also recognized 24 segment-level winners for the 2016 model year for their efforts to bring customers back for another vehicle of the same make and model.
A complete list of winners from the program is as follows:
2016 Model Year Automotive Loyalty Award Winners
Manufacturer and Make Loyalty Awards
Overall Loyalty to Manufacturer
Overall Loyalty to Make
Most Improved Loyalty to Make
Highest Conquest Percentage
Most Improved Conquest Percentage
Most Improved Super Loyalists
Ethnic Market Loyalty to Make
African American Market Loyalty to Make
Asian Market Loyalty to Make
Hispanic Market Loyalty to Make
Segment Model Loyalty Awards
Luxury Compact CUV
Luxury Full-Size SUV
Luxury Mid-Size CUV
Luxury Mid-Size SUV
Luxury Sport Car
Luxury Traditional Compact Car
Luxury Traditional Full-Size Car
Luxury Traditional Mid-Size Car
Luxury Traditional Sub-Compact Car
Non-Luxury Compact CUV
Non-Luxury Compact SUV
Non-Luxury Full-Size Three-Quarter To One-Ton Pickup
Non-Luxury Full-Size Half-Ton Pickup
Non-Luxury Full-Size SUV
GMC YUKON DENALI XL
Non-Luxury Mid-Size CUV
Non-Luxury Mid-Size Pickup
Non-Luxury Mid-Size SUV
JEEP GRAND CHEROKEE
Non-Luxury Mid-Size Van
CHRYSLER TOWN & COUNTRY
Non-Luxury Sport Car
Non-Luxury Sport Mid-Size Car
Non-Luxury Traditional Compact Car
Non-Luxury Traditional Full-Size Car
Non-Luxury Traditional Mid-Size Car
Non-Luxury Traditional Sub-Compact Car
About IHS Markit (www.ihsmarkit.com)
IHS Markit (NASDAQ: INFO) is the automotive industry’s leading source for market-wide insight, expertise and advanced planning solutions. With a reputation of enabling better decisions and better results for nearly a century, the world’s leading OEMs, suppliers and their transportation partners rely on IHS Markit to power growth, improve efficiency and drive a sustainable competitive advantage.
Automotive offerings and expertise at IHS Markit span every major market and, the entire automotive value chain -- from product planning to marketing, sales and the aftermarket. Headquartered in London, our automotive team is part of IHS Markit’s information and analytics powerhouse that includes more than 15,000 colleagues in 150 countries, covering energy, chemical, aerospace and defense, maritime, financial, technology, media and telecommunications. For additional information, please visit www.ihsmarkit.com or email firstname.lastname@example.org.
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