Despite a challenging year, brand loyalty has surpassed Ford, marking another big win for the electric vehicle maker. At the S&P Global Automotive Loyalty Awards, it became the first all-electric brand to top the charts. There are many contributing factors that propelled Tesla to the top, including an ongoing shift in consumer behavior and parts shortages.
Brand loyalty is down across the board
In general, the past few years have been difficult for consumer retention. It has been dropping steadily since the beginning of the pandemic. This trend comes as a result of global and declining vehicle inventory. Formerly brand-loyal consumers began looking elsewhere rather than waiting months for a new car. Overall, the result was a 4% drop in loyalty among legacy automakers.
Easier than other brands. Of course, global EV chargers have faced their share of challenges. However, the Tesla Supercharger’s network is seen as a strong point for the brands.
Finally, the direct-to-consumer model interrupts the traditional selling experience that can leave many customers frustrated. In short, Tesla can retain its customers by providing them with an easier shopping experience, an easier EV adoption experience, and a comfortable ride.
General Motors holds an advantage
While Ford has lost its one-man lead over Tesla, rival General Motors has maintained its lead in manufacturer loyalty, according to the company. With brands like Chevrolet, Cadillac, GMC and Buick under its banner, GM customers have more options available under the same umbrella. Only Stellantis, with Dodge, Chrysler, Jeep, RAM, Alfa Romeo, and Fiat having more. However, these brands offer far more distinct experiences than those in General Motors’ lineup of brands.
Why is brand loyalty important?
Brand loyalty is seen as a sign of health in the long run, especially for a newer company. Tesla’s gain in both retention and conquest over its competitors means that the EV automaker is now a real player in the auto space.
Ultimately, the rise of electric vehicles from other brands may challenge Tesla’s current trajectory. For now, the brand is doing what it needs to do in order to move forward.
