Tesla Keeps New Customers Better Than Any Other Brand

Industry News / 20 Comments

Dodge, Ram, Audi, and Volkswagen are considerably less effective at creating loyalists.

According to a study from S&P Global Mobility, Acura, Audi, Dodge, GMC, Mazda, Mercedes-Benz, Ram, and Volkswagen are struggling to retain nomad buyers, reports Automotive News. Nomadic customers are those that S&P's analysis considers having unidentifiable loyalty patterns.

This means that these eight brands may be able to attract a buyer from a rival automaker but are unlikely to turn these buyers into loyalists, with many such nomad buyers moving onto other marques after just their first taste of these brands.

By contrast, Tesla is by far the best at retaining first-time owners and has the lowest "one-and-done" rate of all the brands S&P measured in its study. If you see someone with a new Model S, you can reasonably assume they'll have another Tesla in five years.

2021-2022 Tesla Model S Driving Front Angle Tesla

Tesla leads the pack with an 83% share of first-time owners and the lowest one-and-done rate at 39%, with BMW, Hyundai, Kia, Jeep, and Subaru also performing well in the study.

"Brands that fail to transform nomads into loyalists not only lose out on the immediate sale to the nomad but also the future loyalty benefit they could have provided as loyalists," said the associate director of consulting for S&P Global, Erin Gomez.

The study also noted which brands struggled to attract first-time buyers, with Honda and Toyota, plus locals Chevrolet and Ford falling well below the industry average. Keep in mind, however, that these brands already have massive followings.

Lexus and Nissan also fell below but had a higher one-and-done rate, which means that these two companies find it challenging to attract new buyers; when they do, those buyers tend to move on to another brand with their next purchase.

S&P Global Mobility

The report adds that the brands mentioned at the outset exemplify an industry-wide trend, "with a decade-high recording of about 58% of nomads leaving their previous brand in the 12 months ending July 2022."

Looking at the lineups of each brand, these findings are not surprising. Ram only sells trucks and vans and is unlikely to attract new customers to a 1500 pickup if that person is already impressed with an F-150.

On the other hand, a company like Hyundai is filling all the gaps in its portfolio, attracting many new customers with innovations and designs that leave a lasting impression.

S&P Global Mobility

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