Lexus has ranked second in JD Power’s 2007 Customer Retention Study, retaining 63% of its new car buyers. This was only topped by Toyota, Lexus’ parent company, with 64.6%. This doesn’t surprise me at all, reliability and customer service holds a lot of weight in the minds of most car buyers, and Lexus has excelled at both since its inception.
What does surprise me is this:
Customer retention may become even more important to automakers in the coming years, as new-vehicle sales between 2007 and 2014 are expected to increase by only 8 percent, or about 1.2 million units.
“Competition for a dwindling number of new-vehicle buyers will likely intensify in the next seven years, meaning that brands will need to retain more of their existing customers in order to increase, or even maintain, market share,” said Oddes. “In addition, it is approximately four times more costly to attain a new customer than it is to retain an existing one, so in the face of a very competitive new-vehicle market, a strong focus on customer retention becomes particularly important.”
I imagine this small industry increase of 8% is for the United States only, but there isn’t a lot of room for error in such a tight market. Retaining customers is going to be all the more important, and Lexus’ rate of return only speaks well for its continued success.
[Via: The Truth About Cars]