Influenced by a number of recent issues, consumer loyalty to automotive brands has had a profound effect. The only exception to this, however, is the American manufacturer Tesla, the manufacturer of electric cars. That says Tom Libby, a customer loyalty specialist at S&P Global Mobility consultant.
Libby shows that interesting array Tesla has expanded, but according to analyst, the personality of Elon Musk, CEO of Tesla, should also be considered.
Tesla won three Luxury Brand Awards with mentor Kelley Blue Book earlier this year. But also outside of its automotive industry, Tesla seems to be achieving high marks in the field of customer loyalty. “If you look at all the sectors, Disney is the only one that can deliver the best results in terms of consumer engagement,” Libby insists.
“It should also be noted that Tesla’s customer commitment shows no sign of loosening the cord. That is a shocking message for another automotive industry, which hopes to steal part of the market from Tesla in the sale of electric vehicles.
“Overall, however, the automotive industry has lost a lot of ground in terms of customer loyalty,” notes Libby. “Brand trust in the industry has declined sharply since developers began to address inventory shortages in March last year.”
“Famous brands recorded a decline in customer loyalty from 54.8 percent to 52.1 percent in the twenty-eighth month around that date. The luxury brands – branded such as Lincoln, Jaguar and Porsche – were the most affected. The industry was reported to have averaged 4.7 percent to 46.3 percent.
Tesla, which along with smaller brands such as Genesis and Maserati has been shown to be different from declining customer loyalty, has managed to reduce customer loyalty in the luxury car industry to some extent, according to Libby.
“If Tesla were removed from the statistics, luxury cars would fall by 5.5 percent to 45.4 percent in twenty-eight months,” he explains.
Libby adds that Tesla is also owed its growing popularity alone. “It was generally assumed that Tesla would take customers specifically from competing brands,” he said.
“However, that was not the case. The model is Tesla Model 3. The car had a 62.2 percent mark in terms of customer loyalty. That represented an increase of more than 7.5 percent over the past twenty-eight months.”
According to Libby, Tesla’s continued popularity should include the personality of Elon Musk, a top car manufacturer. “Musk is a very talented salesman,” notes Libby.
“He has managed to build his image into a complete brand.” In addition, according to the analyst, the manufacturer also benefits from its offer, which extends to a large number of market segments.
“Tesla owners love branding,” Libby insists. “Many drivers seem to be choosing Tesla again for their next car. In addition, the brand also attracts a growing number of new customers. That should be cited as a negative trend for the entire industry.