Automakers’ Loyalty Among Minorities Low: Polk
Automakers need to step up efforts to build brand loyalty among minorities, according to new data from auto research firm R.L. Polk & Co.
A survey by Polk found that fewer than 15% of African-American, Asian-American and Hispanic-American car buyers think automakers are “best in class” at developing customer loyalty.
Minority consumers represent an important growth segment for car companies.
New-car sales to minorities rose 18% from 2003 to 2005, despite a 1% decline in overall new-car registrations. And minorities’ buying power will climb 14% over the next four years.
“Winning and keeping minority customers will be a key element to success in the next decade,” said Lonnie Miller, Polk’s director of industry analysis, in a statement.
Brand loyalty averages 52% among general-market consumers, who will buy their newest car from the same manufacturer just over half the time. But Hispanic Americans will return to a manufacturer only 48% of the time, and Asian Americans only 42%.
Consumers’ biggest criteria for sticking with a company were whether they believed the manufacturer was reliable and trustworthy; how much they enjoyed driving a vehicle; and their overall experience with a dealership’s service department.
The real opportunity to build loyalty lies with dealers, Polk found.
“Aside from the joy of driving the vehicle, the majority of brand loyalty with ethnic groups is built on a dealership level,” Miller said. “There seems to be continued opportunity for automakers to connect with customers at the dealership level to encourage them to return for any needed repairs or routine maintenance, while leveraging cultural cues unique to each audience seeking individual attention.”
Southfield, MI-based Polk conducted an online survey in May of 812 consumers who bought a new car between January 2005 and May 2006. The results were presented at an auto-marketing seminar, “Multicultural Marketing 2006: Listening to a Diverse Marketplace,” in November.
