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 YearDETROIT, 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.