These brands may be able to attract buyers from rival companies but are unlikely to turn them into loyal customers, with many nomadic buyers moving on to other brands after their first purchase.
Tesla, however, stands out as the best at retaining first-time buyers, with an impressive 83% share of first-time owners and the lowest "one-and-done" rate of just 39%, according to the study. Other brands that performed well in the study include BMW, Hyundai, Kia, Jeep, and Subaru.
"Brands that fail to transform nomads into loyalists not only lose out on the immediate sale to the nomad but also the future loyalty benefit they could have provided as loyalists," said Erin Gomez, associate director of consulting for S&P Global.
The study also found that some well-established brands, such as Honda, Toyota, Chevrolet, and Ford, struggled to attract first-time buyers, while Lexus and Nissan had a higher one-and-done rate, indicating that they find it challenging to attract new customers.
The findings of the study highlight an industry-wide trend, with a decade-high recording of about 58% of nomads leaving their previous brand in the 12 months ending July 2022, according to the report.
Source: Automotive News