Tesla remains a young company but is already playing in the market with longtime and popular automakers. But, even among the world’s largest automakers, Tesla appears to have a distinct advantage: it is not only excellent at retaining customers but also outstanding at stealing and retaining buyers from competitors.
According to S&P Global, car buyers are divided into three groups based on their loyalty: Super Loyalists, Loyalists, and Nomads.
Super Loyalists have a history of buying a particular car brand and are the most likely to persist in doing so. Loyalists have made repeat purchases throughout their purchasing history, whereas Nomads have no identifiable loyalty to any brand and are more ready to shift.
80% of Tesla owners are Nomads
According to American-based statistics from S&P Global, Tesla is far ahead of other automakers in terms of customer retention. According to the firm’s data, more than 80% of Tesla owners are Nomads who are new to the company.
This is not strange considering the carmaker’s relative inexperience in the industry. However, it suggests that many car buyers are considering electric vehicles as alternatives to combustion-powered vehicles.
What truly distinguishes Tesla from the competition is its “One and Done” rate, which signifies the number of buyers who own a brand of vehicle and then abandon it.
Approximately 58% of Nomad buyers in the U. S. left their vehicle brand in the 12 months ending July 2022, the highest “One and Done” rate in the last ten years.
One and Done rate of Tesla
On the other hand, Tesla’s “One and Done” rate is only 39%, implying that roughly 60% of the company’s customers will soon replace their current electric car with another Tesla.
While Tesla’s high share of first-time owners (83%) isn’t too surprising, their ability to keep those new customers is extraordinary. Tesla’s ‘One and Done’ rate is just 39% compared to 58% for the industry (remember, a lower number is better in this case). The next-best ‘One and Done’ rate goes to Ford at 50%. However, Nomad share of Ford’s return-to-market households in less than half of Tesla’s
S&P Global stated on Tesla’s customers
S&P Global Mobility’s associate director of consulting, Erin Gomez, released a statement on the company’s findings.
Aside from the massive, long-term undertaking of creating products in new segments, there are other ways automakers can increase loyalty from their current Nomads. By understanding the loyalty makeup of their customer base and where their Nomads are going, brands can take a more targeted and efficient marketing approach to retain them
Erin Gomerz, S&P Global Mobility’s associate director of consulting stated on Tesla’s findings
