The J.D. Power Brand Loyalty Study, which is now in its second year, ranks automakers based on the percentage of vehicle owners who buy another product from the same brand when trading in or purchasing their next vehicle. The higher percentage of customers who buy another vehicle from the same brand, the greater the brand loyalty.
According to J.D. Power’s data, only 33.8 percent of Cadillac owners replace their vehicle with another Cadillac product. Compare this with Lexus, which was first for brand loyalty among premium brands with a 48 percent retention rate. Just behind Lexus was Mercedes-Benz at 47.8 percent, followed by BMW in third with 45.1 percent.
Cadillac’s performance was enough to earn it tenth in the overall ranking for premium brands. This put it right behind crosstown Detroit rival Lincoln, which has a customer retention rate of 37 percent. Last among premium brands was Jaguar, with only 20.7 percent of Jaguar buyers opting to purchase another vehicle from the British luxury brand.
As a whole, GM brands fared only average in the study. Among non-premium brands, Chevrolet was seventh, with 49.8 percent of owners getting another Chevy when trading-in or buying. Second among GM brands was GMC with its customer loyalty percentage of 39 percent, placing it 13th in the study, while Buick was 14th with a percentage score of 27.5 percent.
J.D. Power’s vice president of data and analytics, Tyson Jominy, says some of the biggest driving factors behind customer retention include the dealership experience and how the vehicle made them feel throughout their ownership experience. Jominy also said automakers will be eager to ensure they retain any new customers they get in the coming months, as economic hardship brought on by the COVID-19 pandemic will make any and all customers highly valuable.