General Motors various sub-brands finished in the middle of the pack in the recent 2020 J.D. Power Brand Loyalty study, which aims to rank automakers based on the percentage of vehicle owners who return to the same brand when trading in or purchasing their next vehicle.
The top-ranked GM brand for customer loyalty was Chevrolet. Chevy ranked seventh among non-premium brands for customer loyalty, with 49.8% of owners buying another Bowtie-badged vehicle when looking for a replacement. Second among GM brands was GMC with its customer loyalty percentage of 39% placing it 13th in the study, while Buick was third among GM brands and 14th in the study with a percentage score of 27.5%.
As for premium brands, Cadillac was tenth among all luxury automakers with 33.8% of its customers buying another Cadillac when looking for a replacement vehicle. This put Cadillac near the bottom of the premium brand ranking, it is worth pointing out, with the American brand only beating out three other brands: Maserati (11th), Infinity (12th) and Jaguar (13th).
One might wonder what factors can negatively impact a brand’s overall customer loyalty. According to Tyson Jominy, vice president of data and analytics at J.D. Power, some of the biggest driving factors include the dealership purchasing experience and how the customer feels when behind the wheel. Jominy says brands that offer appealing discounts on their vehicles also retain customers well.
“Automakers are really focused on customer retention, as evidenced by the payment plans and incentives they’ve offered since the COVID-19 pandemic broke out,” Jominy explained. “Many have gone above and beyond to offer customers financial assistance during a period of economic uncertainty, which does a lot to bolster consumer confidence in their chosen brand and repurchase it in the future.”
The top-ranked non-premium brand for customer loyalty was Subaru, which manages to retain 60.5% of its customers. Lexus was top among premium brands with a result of 48%.
J.D. Power says it used data from its internal Power Information Network (PIN) database to come to its results. The company’s PIN database gathers customer feedback via retail data from North American automotive dealerships.