Experian Automotive Says Tesla’s Customer Loyalty Is Unmatched

NOV 15 2018 BY EVANNEX 21

EXPERIAN: TESLA HAS THE HIGHEST CUSTOMER LOYALTY OF ALL CAR BRANDS

Studies demonstrate that Tesla has forged a unique bond with its customers. Last year, Consumer Reports found that Tesla has the highest rate of customer satisfaction of all car brands. Now, according to more recent research conducted by Experian, it turns out these high levels of satisfaction are translating into exceptionally high rates of customer loyalty as well.

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Matt Pressman. The opinions expressed in these articles are not necessarily our own at InsideEVs.

Above: Tesla owners tend to be a satisfied and loyal (Image: Tesla)

In fact, electric vehicle owners (regardless of brand) have a high propensity for loyalty. According to Experian, “Once dealers have customers in an EV, there’s a good chance they get them back again in the future. Electric vehicle customers are showing early signs of being a highly loyal customer segment. When EV customers return to market, 62 percent buy another EV.”

So what about industry leader Tesla? Experian found, “Tesla owners show an even higher make loyalty rate than EV customers as a whole. More than 4 in 5 Tesla customers — 80.5 percent – buy or lease another Tesla when they return to market. Tesla has the highest level of make loyalty in the industry, ahead of Subaru at 72.1 percent and Ford at 72 percent.” Experian also found that, “Tesla led the industry with a Conquest/Defection ratio of 13.77 to 1.”

Above: Electric vehicle market share based on US EV sales in the first half of 2018 (Source: Experian)

While Tesla plans to introduce a lower-priced Model 3 option, it’s current vehicle line-up remains relatively expensive. Therefore, it’s no wonder EV owners tend to be a well-heeled crowd. Experian reports that, “individuals with higher education and high home values are currently more likely to purchase EVs.” Furthermore, if trends start in places like California, EV fever could be spreading. According to Experian, EV buyers “are also more likely to be found [see chart above] on the west coast.”

These insights into electric vehicles (and industry leader Tesla) are definitely encouraging. Experian concludes, “the auto industry should be enthusiastic about the electric vehicle segment’s future… as battery costs continue to come down, EV [pricing] will more closely mimic today’s vehicles. All things being equal, customers are likely to opt for a more environmentally friendly option in the future and eventually, the scales will tip in the favor of EVs.”

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Source: Experian

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers, free of charge. Our thanks go out to EVANNEX. Check out the site here.

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21 Comments on "Experian Automotive Says Tesla’s Customer Loyalty Is Unmatched"

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Had this discussion with a couple nay-sayers recently. I asked them if Tesla product is so bad, why do their owners stay with the brand so loyally? They said it was ego and insecurity- Tesla owners don’t want to admit they were wrong. THAT’S the reason Tesla owners stick with the product so loyally- they’re worried about how they’ll look when they admit they made a mistake.

As an owner, I can say John is full of sH!7. Every owner I know is honest and secure enough with themselves to not lie about their ownership experience. Are buyers of BMWs, MBs, etc also beset with ego and insecurity problems – they paid just as much for their cars, or are they just inherently more honest (according to John)?

That is not John’s opinion, it is the nay sayer’s opinions. Sheesh.

That’s not at all what John was saying. There is this concept called “critical reading”. It means engaging your brain and actually thinking about what you’re reading. You need to learn how to do that.

And you owe John an apology.

It’s not John that’s full of it, it’s the trolls.

Yeah… no.

This is called confirmation bias and is a well known phenomenon. It’s nothing new, so in Tesla’s case you can certainly say it exits but it’s only a partial explanation of the phenomenal popularity of the vehicle.
Usually confirmation bias wears off in time, but with Tesla’s, each OTA update reconfirms, extends, or reinforces it.

The fallacy with calling this confirmation bias is that, if other brands of cars were as good (in the subjective sense), then they would generate confirmation bias equally as strong.

Tesla’s cars are greater than the sum of their parts. A lot greater.

I am a Ph.D. in Cognitive Social Psychology, and if those “Tesla critics” you refer to are correct about not wanting to admit a buying mistake, how does that relate to ALL THOSE OTHER HIGH END VEHICLE BUYERS of legacy products not sticking with their original legacy models? The “rich” are notoriously fickle, and since they have such disposable income it is easier for “them” to jump around in their “conspicuous consumption.” That so many well-off Tesla buyers come back for a second (or 3rd or more) Tesla might just be quite the opposite of your “sources” behavioral choice process and actually be evidence of seeing a “new light to the future?”

Holy F? Juneau AK has higher EV rate than Santa Barbara or Seattle? What brand are they driving?

The Ice-Breaker? (ooh, a triple pun).

Ev drivers are starting to become Un-loyal to Big Oil and Un-loyal to Old Auto and their Stealerships.

It‘s somehow an Apple vs. the others discussion. Tesla does have shortcomings in traditional areas such as panel gaps or interior quality – just like Apple did with iPhone multitasking or Bluetooth support.

However, it seems those are non-issues to the customer, who prefers electric driving, software updates and easy charging over panel gaps. Just like Apple sold a lot of original iPhones because of the UI and despite not having 3G network.

I‘d like to see Tesla adopting more of the traditional features like a nice cabin, and legacy carmakers to unterstand Tesla‘s USPs and shift their products accordingly.

Seems like professional car reviewers obsess over tiny variances in panel gaps that ordinary car buyers don’t even notice, let alone care about.

I have never in my life heard anyone say “Well, I’d buy that car, but the panel gaps are just too uneven!” …and I very seriously doubt I ever will.

Only 62% of EV customers buy another EV? That doesn’t sound right…

Not buying that either!

Maybe buyers of old Nissan Leafs in places like hot Arizona can skew the results. It’s EVs in general, so experience could vary based on model, needs and location combinations.

I can see people who got a massively good lease deal for any of the sub-100 mile range EV’s deciding to wait for 200+ mile EV’s after their lease ended. In 2015/16 there was a lot of expectations set for longer range EV’s coming out, and so far the selection is few.

I believe they are loyal. Cult members are that way. What should get more publicity than customer loyalty is product quality – something Tesla has some issues with.

I am on my 3rd new Tesla, now a Model 3 Performance + after 2 Model S sedans. I have enjoyed the pleasure of a new car every 2-4 years for the last 50 years of my “career time.” Never have I bought the same type of vehicle 3 times in a row before. I am not a blind Tesla fanatic; I actually like what I see in the incoming Porsche Taycan better than anything right now esthetically from Tesla, BUT I am a ONE CAR household, and NOTHING other than a Tesla product as an EV can fully function as a SINGLE CAR SOLUTION for day to day errands AND actual road trips. I have been driving EV since 2011 starting with a Nissan Leaf (VIN #320 in the world) and Chevy Volt (VIN #679). My first Tesla, a 2013 Model S 85 was by far the MOST expensive car I had every owned….and instantly the most enjoyable and rewarding as well. As my personal financial situation improved a bit and Tesla announced the dual motor performance series, I sold the S 85 and migrated to a 2015 Model S P 85D, later upgraded to Ludicrous. Again a HUGE… Read more »

“NOTHING other than a Tesla product as an EV can fully function as a SINGLE CAR SOLUTION”
That’s game, set, match right there! That is the main reason for their wide customer base.