Polk Announces Increase in GM Loyalty Performance
21 July 1998
Polk Announces Increase in GM Loyalty Performance; GM Holds No. 1 Position in Four Categories After First Half of 1998 Model Year DETROIT, July 20 -- General Motors improved its
loyalty standing during the first six months of the 1998 Model Year, according
to results released today by The Polk Company. The loyalty study findings
showed GM and Ford Motor Company each lead in four of the nine
categories, while Honda holds the other top spot.
First-half 1998 results showed marked improvement for GM from the 1997
model year when it led in only one category: Overall Manufacturer Loyalty.
Other noteworthy performances are Honda Accord's improvement in the midsize
car category (replacing 1997 winner Toyota Camry), and Ford's continued
superiority in four categories. Ford won six of nine categories during the
1997 model year.
The findings were announced as a semi-annual update of automotive loyalty
rankings. The 1998 Polk Automotive Household Loyalty Award Winners will be
announced later this year, upon completion of the model year.
Leaders through six months of the 1998 model year include:
Category Leader Loyalty % Avg. Segment
Loyalty %
Overall Categories:
Manufacturer Loyalty General Motors# 69.65% 57.59%
Make Loyalty Ford Division # 59.19% 45.14%
Model Categories:
Large Car Mercury Grand
Marquis # 43.38% 27.95%
Midsize Car Honda Accord 36.16% 21.16%
Small Car Ford Escort# 25.61% 17.09%
Luxury Car Cadillac DeVille 49.09% 23.84%
Pickup Truck Ford F-Series# 35.74% 26.97%
Minivan Oldsmobile
Silhouette 30.79% 18.46%
SUV Chevrolet Tahoe 30.69% 22.85%
# - Won 1997 Polk Automotive Household Loyalty Award.
The rankings are based on Polk's proprietary household loyalty methodology
which determines loyalty among households to a model, make or manufacturer.
Household loyalty is measured by examining all new vehicle owning or leasing
households who returned to market during the 1998 model year to purchase or
lease a new vehicle (based on registration information).
"General Motors took action to build brand image and loyalty during the
1998 model year and their efforts proved to be successful," said Karen
Piurkowski, managing director of Polk's loyalty group. "The loyalty
performance for their leading luxury car -- Cadillac DeVille -- rose nearly
eight percentage points during the first six months of the year (from 41.4% to
49.09%). DeVille emerged number one in model loyalty performance assuming the
lead from Lincoln Town Car.
"One of the values of using the Polk Loyalty measurement system is that
manufacturers may analyze loyalty behavior throughout the entire year to
better understand fluctuations in behavior. As manufacturers implement
loyalty building programs, they are able to assess impact on performance
during every month and quarter of the year."
Loyalty Trending by model year showed GM's Manufacturer Loyalty rate has
increased steadily for the past several years. In fact, loyalty to GM has
increased more than three percentage points since 1995.
Manufacturer Loyalty 1995 MY 1996 MY 1997 MY 1998 MY
(6 Months)
General Motors 66.6% 68.2% 68.8% 69.7%
"This improved loyalty performance was observed prior to the recent UAW
Strike and the massive launch of General Motors' Owner Loyalty rebate
program," said Glenn Forbes, Polk vice president of transportation business
development. "In upcoming months, Polk will determine the impact of the
strike and the Owner Loyalty rebate program on customer retention. Prolonged
contract negotiation efforts, and depleted supplies of inventory on dealer
lots, will translate into lost customers. The industry emphasizes customer
loyalty because winning customers back is so costly and difficult."
Polk's Manufacturer Loyalty Excelerator(TM) product, which is the basis
for the Polk Automotive Household Loyalty findings, provides the latest
insight into this type of consumer behavior.
Polk's Manufacturer Loyalty Excelerator(TM) study was introduced to the
automotive industry in 1995 and was created to provide household loyalty
information to manufacturers at many different levels. This report is being
used to determine award winners; to provide loyalty percentages for the entire
automotive industry; to allow for cross-industry comparisons of loyalty
behavior; and to examine loyalty at various levels, e.g., from the industry
level down to the vehicle-line level. The study measures loyalty throughout
the entire model year so manufacturers may keep abreast of loyalty trends as
they occur in the industry.
Polk has served the automotive industry for 75 years and is the oldest
curator of automobile records in the United States. Founded in 1870, Polk
launched its motor statistical operations in 1922 when the first car
registration reports were published.
Polk provides multi-dimensional intelligence solutions to companies as a
statistician for the motor vehicle industry; a direct marketing resource; a
supplier of demographic and lifestyle data and database marketing services; a
publisher of city directories; and a data enabler for geographic information
systems. Polk is a privately held firm with facilities around the world
including the United States, Canada, England, Germany, Barbados and Costa
Rica.
