Honda’s Customer Retention Second to Hyundai

The 2012 Customer Retention Study was released earlier this week and placed Honda just 4% behind Hyundai for second place in customer retention.

There are many reasons why people decide to change the type of car they drive – it’s old, more space is needed, or they just want an upgrade. Unfortunately, when people change the type of car they drive – many times they will also change brands. 33% of people who switched vehicle brands during their last vehicle purchase said that their previous brand did not offer the type of vehicle that they wanted. Other key reasons contribute to their decision for switching as well, including vehicle cost (both cost of ownership and service), too many problems with the vehicle and lack of resale value.

“Many automotive brands are expanding their array of models in an attempt to capture more buyers, but this isn’t enough in and of itself,” said Raffi Festekjian, director of automotive product research at J.D. Power and Associates. “Manufacturers need to integrate specific attributes and features that delight vehicle owners to maximize their opportunity to both retain customers and conquest from other brands. Manufacturers also need to ensure owners are satisfied with the quality, residual values and ownership costs of their vehicles.”

Over the past few years, Honda has made great strides with their vehicles, especially when it comes to being green. Honda has a long history of environmental leadership, including the introduction of America’s first mass-produced hybrid, the Honda Insight, and the first vehicle to meet California’s Low-Emission Vehicle standards, well in advance of regulatory requirements.

In addition to being environmentally friendly, Honda does a great job retaining women buyers. This is important because “women and younger vehicle owners are more likely to experience changes in their life circumstances, including growth in household size or changes in income levels, that would lead them to purchase vehicles that better accommodate their new lifestyle,” said Festekjian. As women become more of the decision maker in the household, they will most likely hold the key to customer retention success for Honda.

Shockley Honda in Frederick, MD  also serving Charlestown WV, Damascus, Mt Airy, Gaithersburg. Leesburg VA, Westminster, Martinsburg WV and Boonsboro.. We offer a great selection of new and used cars, trucks, crossovers, and SUVs. We also provide service and parts for all Honda models. For more information, please visit Shockley Honda

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