Studies demonstratethat Tesla has forgeda unique bond with its customers. Last year, Consumer Reports found that Tesla hasthe 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 aretranslating 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)
WhileTesla plans tointroduce a lower-priced Model 3 option, its current vehicle line-up remainsrelatively expensive. Therefore, it's no wonderEVowners tend to be a well-heeled crowd. Experianreports that, "individuals with higher education and high home values are currently more likely to purchase EVs."Furthermore,if trends start in places like California, EVfever could be spreading. According to Experian, EV buyers "are also more likely to be found [see chart above] on the west coast."
Theseinsights intoelectric 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."
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Source: Experian
FAQs
A recent study from Experian also found that Tesla is the number one car brand for brand loyalty. According to the survey, 74.7% of people that disposed of a Tesla car bought a new one. Customer loyalty is having a big impact on growth. In the year to 2021, Tesla's revenue grew by over 70%.
What car brand has the highest customer loyalty? ›
The Toyota Prius emerges as the model with the highest brand loyalty. When shopping for their next car, more than 38% of current Toyota Prius owners opted to purchase another Toyota Prius. SUVs have expanded their loyalty over time with 71% of customers purchasing another SUV compared to 61% just six years ago.
What is the loyalty rate of Tesla? ›
According to the survey, Tesla maintains an impressive 87% brand retention rate, leaving competitors in the dust.
What is the customer satisfaction rating of Tesla? ›
In 2020, it scored 896 points, followed by 893 points in 2021, 887 points in 2022 and 878 points last year.
Why is Tesla NPS so high? ›
Also, Tesla's ability to keep a high NPS over the years shows its strong brand and focus on innovation and customer-centric approach. By selling directly to customers and providing over-the-air updates, Tesla ensures a smooth and satisfying experience, which makes customers more likely to recommend them to others.
Which brand has the highest customer loyalty? ›
Brands with the most loyal customers
In 2023, the company that ranked first in brand loyalty was Apple. Apple has been in the top spot since 2022, overtaking Amazon, which had held that position for several years.
What is Tesla brand loyalty rating? ›
In its post, S&P Mobility noted that among individual brands, “Tesla continues its run as the leader in brand loyalty with a rate of 67.8% for the first half of 2024.” Vince Palomarez, associate director of loyalty product management at S&P Global Mobility, also noted that Tesla's customer loyalty has remained constant ...
Why Tesla has the most loyal customers? ›
To start with, Tesla's customers are incredibly satisfied with the brand's products—thanks to a great driving experience and perks that are unique in the industry. For example, Tesla can repair cars remotely. If vehicle software plays up, engineers can often fix software at a distance.
Who is Tesla's biggest customer? ›
Unsurprisingly, the United States had the highest number of Tesla sales out of any country in the world.
What is the biggest complaint about Tesla? ›
The safety and quality of Tesla cars and services have been questioned. There have been hundreds of reports of sudden unintended acceleration, brake failures, and "whompy wheels" – collapsing wheels due to faulty car suspension.
Tesla Tops Consumer Reports 2022 Owner Satisfaction Ratings — But Mustang Mach-E Top EV. Even though the Mustang Mach-E is the most satisfied electric vehicle model in the world, Tesla still managed to come out on top when it came to brand owner happiness, according to Consumer Reports.
Why do customers like Tesla? ›
Tesla really understands the importance of being in the lead. It allows customers to stay in control of their own buying journey. And at the same time, it owns the entire customer relationship, from start to finish. Car companies often collaborate with dealerships for selling and servicing their products.
What is the NPS score for a Tesla? ›
Tesla's high NPS score
Tesla has some of the happiest, most loyal customers in the world. As of 2022, Tesla's NPS score was +97.
What is the #1 driver of customer loyalty? ›
1) Company Culture
When it comes to building customer loyalty, trust is absolutely crucial. In fact, a recent Statista report revealed that: 52% of consumers consider trust to be the key factor in their loyalty to a brand.
What Automaker has the best customer service? ›
Nissan (886) ranks highest in satisfaction among truck brands with a score of 886. Chevrolet (851) ranks second and GMC (843) ranks third. In the mass market car segment, Subaru ranks highest (866). Mazda (863) ranks second and Honda (855) ranks third.
What car has the most repeat buyers? ›
Mercedes-Benz
Their motto, “The best or nothing,” has been proven time and again, and buyers have noticed. Despite a slight dip in new sales worldwide for the year 2020, Mercedes increased sales in China. Current numbers show that Mercedes has one of the best percentages of repeat buyers worldwide.
Which cars have highest owner satisfaction? ›
Electric automaker Rivian makes a tiny lineup of just two vehicles but has the happiest owners of any car company, according to Consumer Reports. “This year, the EV automaker Rivian RIVN, with its R1S and R1T, takes Tesla's TSLA former perch at the top of our brand satisfaction list,” CR explains.
