Posted on November 15, 2018 by Matt Pressman
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.
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, its 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. Experien 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."