Tesla Tops All In Customer Loyalty

NOV 5 2018 BY DOMENICK YONEY 23

Surprised?

Some brands are well known for their customer loyalty. Subaru customers, for instance, are famously devoted and, according to Autoline host Sean McElroy (forward to the 3:31-minute mark) who cites a report from Experian Automotive, 72.1 percent return to that brand when it’s time to get a new vehicle. That’s just high enough to edge out Ford, who sees 72 percent of its customers return to the Blue Oval. Despite these high customer retention numbers, they don’t have anything on the industry leader in this metric. Tesla beats them all and it’s not even close.

McElroy says, “Over 80 percent of people who buy a Tesla, go back and buy another one.” While it’s obvious there’s is a great advantage to having so many owners return to the big electric T — the precise figure is 80.5 percent — McElroy points out that, for traditional companies, at least, there is another reason to celebrate this kind of loyalty: advertising expense. To get new customers, the established automakers spend a lot of money on ads and other things to convince consumers to darken their doorways.

The California automaker famously doesn’t buy ads. You won’t see a Model X during half-time of the Superbowl, for instance. At least, not on Tesla’s dime. Instead, they rely on giving customers a positive experience. There are no intense sales pitches from staff in their stores. For many issues, Tesla service can come to the customer rather than the other way around. And then there are the vehicles.

Not only do Tesla owners enjoy the experience of an electric drivetrain, but the software in the cars is constantly improved, sometimes dramatically. For free. This is something that company CEO Elon Musk contends is responsible for the value retention of its vehicles. Said he on Twitter recently (embedded below) “Continuous, free over-the-air software updates is a big part of why a Tesla retains so much value over time.”

Of course, being a human endeavor, the California automaker is not perfect, but as these numbers show, it’s definitely doing something right.

Source: Autoline via YouTube

Categories: Tesla, Videos

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23 Comments on "Tesla Tops All In Customer Loyalty"

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Serra Motadr

Customer loyalty means little. On quality rankings, Tesla is near the bottom.

pjwood1

I don’t really care about CS quality, ranking the little things like they were a big deal.

Tesla’s customer loyalty is being dragged over a pretty big shift in their software UI. If IEV, or Electrek, or anyone else doesn’t want to report on it, fine, but it has in fact become an ongoing family squabble within the Tesla community. Thought I’d bring it back up, because someone said “loyalty”.

This is just from the first patch, of the original problem of wiping out features in Version 8. 36 page thread, since 10/24: https://teslamotorsclub.com/tmc/threads/software-update-2018-42-x.133008/
People can down-vote me, but there won’t be anything you can do to bring customers back, once they give up trying to send a message through these threads.

vdiv

Ostensibly the biggest criticism of having the rearview camera view stuck at the bottom of the screen got addressed, it can now be moved to the top. However other flaws with the UI and missing features remain. Criticism of the misguided changes was communicated strongly and directly to Tesla, not just on the forums. Tesla seems to have missed on their biggest asset, people get attached to their cars very emotionally and any change, actual or perceived is felt amplified and as a rejection if not worse, as a breach of trust or even theft. The exhibited “our way or the highway” approach will indeed leave some estranged looking for their next car from another automaker.

rey

Most customers are not loyal to STEALERSHIPS after being shafted by the salespersonel and the Service Dept.,been there and not going thru that pain again. FOOL ME ONCE ………

ModernMarvelFan

You can always go to another dealership that aren’t as crocked. Most of them are, but smart people will always find the few rare decent ones.

Mark.ca

Give me yours….i want proof that it exists.

ModernMarvelFan

Loyalty ranking actually matters more than anything else to an automaker.

Quality ranking only “suggests” that you will get their money again.

Loyalty ranking means they will buy your car again and again and again. That is “future cash” in the bank!

ffbj

What’s ironic is that one of commercials they run, by DOW automotive, features a Tesla.
So other companies are advertising Tesla for them. I mean if that’s not ironic, then I don’t know what is.
Check the commercial at 5:09.

Andy

These guys?

https://www.dow.com/en-us/markets-and-solutions/automotive

Why is that Ironic? Presumably Tesla buy adhesives from them, like many other manufacturers?

cfox

It’s actually ironic because when you look at the fly-around x-ray view of that model S, the DOW people for some reason put an ICE engine in the front. I can’t understand why they’d do that — the most recognizable EV on the planet, and they put an ICE engine in it. Why not use literally any other car?

Andy

I see, haha. I didn’t notice that!

eferg

Why does that “Tesla” have an ICE engine and driveshaft ???

Nozuka

Well it probably helps that any other available EV is (currently) a downgrade 😉 What would people switch to?

Bla blubb

I don’t think most Tesla buyers have ever bought another Tesla, the quote of 80% is nonsense. I am not saying that Tesla buyers are not loyal, but most have not had an option to upgrade after buying their S or X, or just bough their 3 a few month ago. It somehow does not make much sense. Maybe people were asked for their intent instead? Or you have a massive sample bias to a few fans that flip their cars quickly and maybe should check in again in a few years at the end of people’s cars lifetime.

KumarPlocher

Hm, Bla blubb doesn’t think it so. Duly noted.

Pinewold

The Model S and X have been around long enough for short leases to expire so second car numbers can be obtained. Roadster owners bought Tesla as their next car. From a quality perspective, Tesla’s are getting better. I would not be surprised to see these numbers go up!

cfox

It’s probably similar to the Consumer Reports customer satisfaction survey, which also put Tesla at #1 — it’s whether or not you *would* buy another one, now that you’ve owned one and know what the ownership experience is like.

rey

There is that survey that asks present owners if they would buy another Tesla and responders say yes

ModernMarvelFan

Lots of S and X owners either have upgraded to the latest S/X model or bought a Model 3. That counts toward loyalty survey.

DrDauger

I thoroughly enjoy my Model S since buying it almost 6 years ago:
http://tesla.dauger.com

And in September I bought my wife an AWD Model 3, and she is so happy with it.
That counts.

My father is on his second Model S.
That counts.

My father bought my mother a Model 3.
That counts.

And I look forward to my next S to succeed the S I have today.
Maybe that’ll count again.

Henry

I have bought cars from legacy auto dealers who delivered to my home, but none of them would offer to fix minor problems at my house or work place. I don’t recall any of them would offer to move up the service schedule due to availability. Only Tesla does that – on all accounts mentioned above. That alone would score a 10 out of 10 from me.

abasile

This is wonderful, but what about the ~19.5% of customers who may not be sticking with Tesla? I wonder what they are buying. Given more Tesla vehicle offerings in the future (Y, Pickup, etc.), I’m guessing that many will return to the brand.

Rightofthepeople

Elon’s comment on the OTA updates is spot on. I recently took my wife’s Volvo in for the 60k Mike service and the dealer said it would be $480. I was like, $480?!!! For what? Oil change, air filter change, a ton of “check this and check that” items that probably amount to 30 minutes of a tech’s time but nothing being done, just inspecting. And then the service manager said, “and there’s a software update your car needs that is included in the price.” I nearly lost it. My freakin Model 3 just got a software update…in my garage overnight…for free!

It’s early days for me as I have owned my Tesla for only 11 days but so far I am very impressed. If I had to replace the wife’s Volvo tomorrow we would be looking hard at another Model 3.