J.D. Power and Associates Reports:
Lexus Ranks Highest in Customer Retention
Press release:
WESTLAKE VILLAGE, Calif.: 8 December 2005 — Lexus leads the industry in retaining the highest percentage of new-vehicle owners, according to the J.D. Power and Associates 2005 Customer Retention StudySM released today.
The study, now in its third year, measures the percentage of new-vehicle buyers and lessees who replace a vehicle that was previously purchased new with a new vehicle from the same nameplate. With a 3.5 percentage-point increase from 2004, Lexus ranks highest, retaining 63.0 percent of its customers. The industry average is 49.6 percent.
Lexus is followed in the rankings by Toyota (62.6
, Honda (59.9
, Chevrolet (57.3
and Hyundai (56.3
, respectively.
"By satisfying its customers on many different levels, Lexus consistently enjoys high retention rates," said Neal Oddes, director of product research at J.D. Power and Associates. "Customer retention is extremely valuable in the auto industry because it costs manufacturers less to keep existing customers than to attract new ones, and strong retention fosters favorable word of mouth."
Although Suzuki retains just 28.6 percent of its customers, the brand records the greatest improvement, increasing its retention rate by 38 percent from 2003, which was the inaugural year of the study. Acura is also enjoying strong increases in retention rates, improving 25 percent from 2003 to retain 45.7 percent of its customer base in 2005.
"Suzuki has made tremendous strides in better retaining its customers, due partly to the fact that it has expanded its lineup to include more segments of the market, which offers buyers a wider variety of models in different segments as their needs and wants change over time," said Oddes. "Suzuki has also been focusing heavily on quality, improving its performance in the J.D. Power and Associates Initial Quality StudySM by 35 percent over the past five years."
The study finds that quality and customer service experiences play key roles in influencing customer retention. About 23 percent of respondents did not buy a vehicle from the same brand because they felt that too many things went wrong with their previous vehicle. In fact, the nameplates with the fewest customers leaving for this reason also performed relatively well in the J.D. Power and Associates 2005 Vehicle Dependability Study,SM which measures problems experienced during the first three years of ownership.
Experiences with the dealer service and sales departments also have an important impact on whether customers return to the brand when they are in the market to buy a replacement vehicle. Nameplates performing well in the firm’s 2005 Customer Service Index (CSI) Study, which measures satisfaction with the service department, and the 2005 Sales Satisfaction Index (SSI) Study, which measures satisfaction during the new-vehicle sales process, tend to have relatively few customers who cite poor service as a reason for defecting to another brand.
"Although acquiring new customers is an integral part of any OEM’s strategic plan, strong nameplate retention is essential to grow and expand its customer base over time," said Oddes. "Manufacturers cannot underestimate the power of excellent service and short- and long-term quality in convincing their customers to come back to the brand time and again."
The 2005 Customer Retention Study is based on responses from 177,941 new-vehicle buyers and lessees, of which 106,275 replaced a previous vehicle that was originally acquired new.
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
Quote:
J.D. Power & Associates 2005 Customer Retenion
Oops, it should be titled:
J.D. Power & Associates 2005 Customer (Retention)
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
im not surprised, lexus makes some awsome cars.....im kinda surprised hyundai is up there
Chev did better than I thought.. More than half. That's cool.
Red 2005 Saturn Ion-3 Coupe
why would u be suprised hyundai is there?
03+ hyundais are awesome cars. as has been proven initial quality after initial quality award. rising reliability ratings and now this
WOOOT hyundai!
:::
Creative Draft Image Manipulation Forum:::
I want a Lexus so bad! The prices don't go down much on them at all....even if they are a few years old.
Dude that's B.S. Goodwrench again you show your stupidity. I know for a fact the cobalt SS should be on there....stupid J.D. Powers, what do they know. The Cobalt SS is much faster than any Lexus rice burner....so since it's faster that makes it better automatically. So what if they're built better, use better materials, and hold resale better. They're ugly and the SS has a supercharger....it should be number one.
-Sorry just thought i'd beat Wesmanw02 to the punch on this post
LOL
Good for Huyndai, just goes to show you...that if a company really wants to, it can turn it's self around. GM should watch and learn from them.
"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net
^beat him to the punch? IDK i think he is still banned?lol
MikeGT wrote:^beat him to the punch? IDK i think he is still banned?lol
You retards are going to be the ones getting banned if you keep it up. I didn't even post in here yet you bring me into it. @!#$ off.
My CarDomain Page
I just followed this in sequence and I just
! Good one guys
Ya I am not surprised Hyundai is so well ranked. Last year Hyundai was ranked like 3rd most reliable company (Don't remember if it was long term/or initial quality) Toyota, Honda, Hyundai, GM.
Hyundai is a company that is rocketing upwards in recognition for good, valued packed, solid products at a reasonble price. Same formula used by Honda in the 80's. When they hit open wheel racing, that when you know they made it. Yes... I know about the Rally Tiburon too.
>>>For Sale? Clicky!<<<
-----The orginal Mr.Goodwrench on the JBO since 11/99-----
now the question really is......how did he know we were talking about him?
was he....
a) coming in here to say EXACTLY what i typed?
b) Stalking Goodwrench?
c) Knew his crazy off-the-wall Cartman like temper tantrums would just be the comic touch this post needed?
d) all the above.
and on to the topic. It really amazes me when i think back to Hyundai in the Excel era. those cars sold like a virus and then quickly disapeared. then even through the 90's they built poor cars. Sonatas with gigantic electrical problems, Scoupe/Tiburons with oil burning beta motors.....and so on. then it was like one day they got sick and tired of being the joke of the automotive world and said....F it, let's get this right tell everybody to blow us. And they've been kicking arse with no stop in sight. i seriously give my hats off to them. they fought their way out of one heck of a hole and came out a champ.
"Formerly known as Jammit - JBO member since 1998" JBOM | CSS.net
Did Hyundai solve their transmission woes.. My 97 Hyundai Accent went through 3 transmissions in the 7 years I owned it.. But the engine never gave me any troubles at all.. And Hyundai's awesome warranty covered all 3 transmissions, so I can't really complain about them..
Red 2005 Saturn Ion-3 Coupe
lone_wolf wrote:Did Hyundai solve their transmission woes.. My 97 Hyundai Accent went through 3 transmissions in the 7 years I owned it.. But the engine never gave me any troubles at all.. And Hyundai's awesome warranty covered all 3 transmissions, so I can't really complain about them..
Yes. A lot of the trouble used to be due to the fact that Hyundai and Kia used to get their drivetrains from Mitsubishi. Hyundai and Kia had a huge turnaround in 2000, with a good amount of raising in quality each year until they made another huge bound in 2004. Like it's been said already, they have been rising in quality each year since 2000, and recently celebrated being the 3rd in (I think) initial quality. Good cars, good warranty, and great prices.
First of all, I'd like to thank wesmanw02 for being such a Cobalt-nut-sucking tool.
Secondly, I'd like to thank Travis Kearny for being so entertaining.
I <3 falnfenix, JimmyZ, Borsty, NJHK, and all the other intelligent people on JBO
