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SalesJeep Nameplate Has Average Retention Rate
Posted by mike on 2006/12/7 8:07:24 (1319) reads

The annual J.D. Power and Associates 2006 Customer Retention Study was recently released and the Jeep nameplate finished in the middle of the pack with a 40.5% retention rate. This means that 40.5% of Jeep owners who purchased a new vehicle bought a new Jeep.

The list was topped by Toyota, Lexus, and Honda - each with a retention rate of over 60%. The bottom of the list had Pontiac, Mazda, and Isuzu. The Pontiac and Mazda retention rates were just under 30% while the Isuzu retention rate was less than 5%.

Here's a quick quote from the press release:

Now in its fourth year, the study measures the percentage of new-vehicle buyers and lessees who replace a previously purchased new vehicle with another from the same nameplate. As a whole, the industry registers a slight decline in customer retention, falling to 47.9 percent, from 49.6 percent in 2005.

The study finds that of more than one-half of the brands included in the rankings have shown some decline in retention rates since the study's inception in 2003.

"Declining customer loyalty results from considerable improvements in quality combined with a plethora of choices for consumers," said Neal Oddes, director of product research and analysis at J.D. Power and Associates. "In some instances, new models, such as those in the rapidly growing crossover segment, can have a significant impact on customer retention for a brand."

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Poster Thread
xjken99
Posted: 2006/12/7 19:59  Updated: 2006/12/7 19:59
Quite a regular
Joined: 2005/9/14
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Posts: 58
 Re: Jeep Nameplate Has Average Retention Rate
I too feel that with the rather small number of Jeep models available 40% sounds pretty good. I to am a recent Mazda 6 buyer and I am more surprised at their 30% than Jeeps 40. Mazda has been very successful over the last 4 or 5 years but, before that they were flying under most peoples radar.

Poster Thread
scottyc
Posted: 2006/12/7 16:28  Updated: 2006/12/7 16:28
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Joined: 2006/8/24
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Posts: 14
 Re: Jeep Nameplate Has Average Retention Rate
A much more useful statistic would be retention at the manufacturer level rather than the nameplate. As has been discussed, Jeep doesn't offer a sedan, a pickup, an SUV, and a coupe. Toyota does. If you want to switch types of vehicles, you can't stick with Jeep, but you could stick with DaimlerChrysler.

Poster Thread
ENBr
Posted: 2006/12/7 13:59  Updated: 2006/12/7 14:00
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Joined: 2006/7/17
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Posts: 20
 Re: Jeep Nameplate Has Average Retention Rate
I agree with MarkH.

Few families would want to own more than one 4x4. So for a family, the dad might want a Jeep Grand Cherokee for example. The mum would possibly want a BMW or a different car for different uses.

As Jeep only provides 4x4's, few people would buy more than one Jeep per family. It's nothing to do with not liking the car, it's just Jeep is specifically a narrow spectrum car manufacturer.

Poster Thread
hal2814
Posted: 2006/12/7 9:04  Updated: 2006/12/7 9:04
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Joined: 2006/5/23
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Posts: 49
 Re: Jeep Nameplate Has Average Retention Rate
This makes sense to me. Given the big sellers for Jeep (GC and Liberty), I can see how loyalty would be average. Personally, I like to have at least one Jeep in the family and then I really don't care about the other vehicle. Since I needed a gas sipper for my weekly commute, I ended up with a low scorer on this list: the Mazda. I don't have some sort of brand loyalty to them but the dealership was running a great deal and it was a fun to drive car (Mazda 6). Next time around I could see going a different direction with the car depending on the deals available. I really liked the Corolla and Scion tC but couldn't justify spending at least $2000 more for a smaller car and the Corolla wasn't as fun to drive as either the 6 or the tC. I would've considered the Patriot if Jeep would've had one available. I despise the styling of the Compass and they were just asking too much for the Nitro.

I can also see the high retention rates on Toyota and Honda drivers. With Honda especially, I know a lot of people who don't even consider other brands when trading in or selling their Honda. I'd almost think they were afraid to find out they liked another car better.

I'd really like to see how it breaks down based on model. Does the GC retain more than the Liberty? How good is Wrangler retention? Are Honda SUV drivers retaining the same as Honda sedan drivers? Is the Gold Wing factored in? Those are some of the most brand-loyal people I've ever known.

Poster Thread
MarkH
Posted: 2006/12/7 8:51  Updated: 2006/12/7 8:51
Home away from home
Joined: 2005/7/20
From: The Great White North
Posts: 494
 Re: Jeep Nameplate Has Average Retention Rate
Figures lie & liars figure...

Considering that, up until recently, the "JEEP nameplate" consisted of only 3 models (Wrangler, Grand Cherokee, Liberty), that 40.5% number seems much more impressive --when compared to other brands that have many more models.

Let's see what happens to that retention number in a few years with the recent additions of Patriot, Compass, Commander, and 4dr Wrangler...and Gladiator/Scrambler, we hope...

Poster Thread
trevorj
Posted: 2006/12/7 13:03  Updated: 2006/12/7 13:03
Just can't stay away
Joined: 2006/6/30
From: Kelowna, BC
Posts: 124
 Re: Jeep Nameplate Has Average Retention Rate
Its a shame this survey is so recent, I'd be curious to see the retention rate on C/Y/T series Jeeps. I know a LOT of Jeep owners who not only continue to buy from the same line, but never even sold their last model. I wonder how many Honda CRV drivers have 10 year old Honda SUVs still sitting in their backyard with a new one out front.... I'm guessing ZERO.
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