Tesla is the most attractive brand for new customers who come to it, leaving other brands. The manufacturer also gains their loyalty more often than competitors, because it is able to retain customer loyalty longer than competitors.
More recently, Tesla was a young startup that was on the verge of bankruptcy. However, skillful management, which sought to create valuable products that would benefit the globe and capture the hearts of consumers, was able to make Tesla the most valuable automaker in the world. To date, the manufacturer's vehicles are among the most coveted, and its Model Y is on its way to becoming the best-selling car in the world.
The company's customer base is constantly growing, as owning a Tesla car is not only stylish, but also extremely beneficial for the environment. Now the company is putting millions of cars on the world's roads, and consumers are lining up to get one, while legacy automakers continue to lose customers. A study by S&P Global in the US found that Tesla is the brand that attracts new customers the most and is able to retain them longer than any other manufacturer in the industry.
According to S&P Global, car buyers fall into three groups based on their loyalty: Super Loyalists, Loyalists, and Nomads. Super Loyalists are consumers with a history of multiple repeat purchases and are most likely to repurchase from the same brand. Loyalists are consumers with a repeat purchase, and Nomads show no identifiable loyalty patterns to any brand and are most likely to defect. Automakers that have a wider product line tend to have a lower “One and Done” rating, indicating that customers are showing their loyalty to them.
According to S&P Global, 83% of Tesla owners are nomads who first purchased a car from the company. However, this is not surprising and not bad in this case, since the manufacturer is a young company with a short history. It also highlights the fact that many Tesla car buyers have abandoned their old brands in favor of the electric vehicle manufacturer. However, what really sets Tesla apart from the competition is its “One and Done” rating, which is significantly lower than other automakers. This highlights the company's extraordinary ability to keep those new customers.
“Tesla's 'One and Done' rate is just 39% compared to 58% for the industry (remember, a lower number is better in this case). The next-best 'One and Done' rate goes to Ford at 50%. However, Nomad share of Ford's return-to-market households in less than half of Tesla's,”writes S&P Global.
© 2023, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.