Jeep – Most Improved for Customer Retention

The 2012 Customer Retention Study was released earlier this week – and showed Jeep having a 51% customer retention rate which was up an amazing 17% over 2010.

There are many reasons why people decide to change the type of car they drive – it’s old, more space is needed, or they just want an upgrade. Unfortunately, when people change the type of car they drive – many times they will also change brands. 33% of people who switched vehicle brands during their last vehicle purchase said that their previous brand did not offer the type of vehicle that they wanted. Other key reasons contribute to their decision for switching as well, including vehicle cost (both cost of ownership and service), too many problems with the vehicle and lack of resale value.

"Many automotive brands are expanding their array of models in an attempt to capture more buyers, but this isn't enough in and of itself," said Raffi Festekjian, director of automotive product research at J.D. Power and Associates. "Manufacturers need to integrate specific attributes and features that delight vehicle owners to maximize their opportunity to both retain customers and conquest from other brands. Manufacturers also need to ensure owners are satisfied with the quality, residual values and ownership costs of their vehicles."

Over the past few years, Jeep has stepped up its game and revamped many of its models. The all new 2011 Jeep Grand Cherokee has won numerous awards, including a top safety pick from the Insurance Institute for Highway Safety and a 5 star overall side crash rating from the U.S Government. The Jeep Wrangler has been flying off of sales lots as Kelly Blue Book announced the Wrangler it’s pick for having the highest residual value. According to KBB a 2012 Wrangler will retain 55 percent of its sticker price in 2017.

It’s no surprise why Jeep has increased their customer retention rate 17%, and we’re excited to see an even bigger increase over the next few years as the brand continues to improve.