It’s been hard to ignore the immense amount of negative media attention directed at Toyota over the past several months. With millions of recalled vehicles due to acceleration issues and braking problems, topped with lawsuits and an abundance of bad publicity, it seemed as though Toyota might never bounce back. But even with its recall woes, the Toyota brand does have at least one thing to smile about these days: its loyal customers.
Not surprisingly, Toyota’s recall crisis has had a negative impact on the automaker’s sales. But, what we’ve found surprising is that Toyota’s loyalty scores – the number of people willing to purchase another Toyota – remain high, despite the crisis. According to a car brand loyalty survey conducted by the Corporate Research International, only 6.5 percent of current Toyota customers said they would not buy another Toyota because of the recalls. In contrast, that number is much larger for owners of other car brands.
Additionally, from that same survey, more than 60 percent of consumers seriously considering purchasing a Toyota in the next five years said that, even with all the recalls, they would still be willing to purchase a Toyota.
In an article in the Detroit News, Jim Lentz, president and chief operating officer of Toyota Motor Sales USA, noted that Toyota’s customers are remaining loyal to the brand. In fact, industry research firm Edmunds.com reported that almost 58 percent of people who traded in their Toyota cars in the first quarter of 2010 turned around and purchased another Toyota vehicle. Lentz said the real challenge now will be trying to gain new customers.
Although customer loyalty does not seem to be a problem for Toyota, the various rebates and incentives they have offered over the past few months likely have helped them hold on to current customers and attract new ones. Whether it is because of the automaker's incentive programs or its approach to solving its recall problems, Toyota remains at the top of the industry in customer loyalty – that’s a pretty good place to be!
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