Whitepapers

Limiting Loyalty Defection with Conquest Marketing: What You Need to Know

Issue link: https://resources.automotivemastermind.com/i/1253268

Contents of this Issue

Navigation

Page 0 of 0

LEARN MORE ABOUT MARKET EYEQ automotiveMastermind.com 800.801.0018 | info@automotiveMastermind.com ©2020 automotiveMastermind®. All rights reserved. | A business unit of IHS Markit™ Ready to kickstart your conquest marketing efforts with Market EyeQ? Contact us today for a free demo. Limiting Loyalty Defection with Conquest Marketing: What You Need to Know Amplified Nomadic Behavior During Downturns A nomad is not loyal to any individual brand historically and jumps from brand to brand when buying a car. Data available through IHS Markit TM shows us that brand loyalty is challenged during times of economic downturn, which is when nomadic consumer behaviors tend to emerge. The good news is that the auto industry brand loyalty rate is at a historic high point from within the last 15 years at 55.3% across all major brands. However, nomadic behavior began to peak in the second half of 2009 following the 2008 recession, dropping loyalty rates from 47.5% to 42.1%. How Much Conquest Opportunity is Out There? IHS Markit data shows approximately 9 million nomadic households will be in-market for a new car in 2020, making up the highest volume of the mix at almost 53%. That means a dealership's current customers are potential flight risks, but also that they have a massive opportunity to grow their business if they can get ahead of the curve with personalized and effective conquest marketing. Looking back to historic data from the 2008 recession gives us some insights into what may potentially come for the remainder of 2020 and beyond. OEMs and dealerships alike need to be laser-focused on limiting brand and dealership defection as consumers return to the market for a vehicle purchase. Conquest marketing will be an integral part of maintaining market share and accelerating recovery throughout the remainder of the pandemic and beyond. EVERY 1% IN LOYALTY RATE DECREASE = AN AVERAGE OF 90 SALES UNITS LOST NEAR-TERM BUYERS OPEN TO SWITCHING 56% 59% RETURN-TO-MARKET MIX BY HOUSEHOLD TYPE 29% 53% 19% IHS Markit Time Period: February 2020 R12, IHS Markit Autotrader

Articles in this issue

Links on this page

view archives of Whitepapers - Limiting Loyalty Defection with Conquest Marketing: What You Need to Know