U.S. Automotive Brand Loyalty Increases in 2023, according to LexisNexis Risk Solutions
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
