Customer Management

Business a look at Toyotas Customer Retention Strategies

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Normally accredited with some of the most roadworthy vehicles on the market, Toyota have had more of their share of bad publicity lately. Toyota has recalled approximately 8 million cars in a very short period of time. They’ve taken a direct hit in the financial dept yet they are adamant that safety is their number one priority.

First there was the recall of the 2010 Toyota Prius. Some of these specific models of vehicle showed to suffer from a software glitch which gives the sensation of failing brakes for a few seconds when driven on slippery or bumpy roads. This has led to fatalities which they are extremely concerned about. They are taking no chances and are addressing all safety concerns.

Another recall began a voluntary safety recall on certain 1998-2110 Model Year Siennas to address the potential corrosion of spare tire cables. Toyota Motor Sales (TMS), U.S.A, Inc announced on April 16th that they were to launch a voluntary recall which involved approximately 600,000 first and second generation Sienna 2WD minivans sold in the United States. This was in order to address the possible corrosion on the spare tire carrier cable. The worse case scenario is that the carrier cable could fail and the spare tire could break away form the vehicle. This is a possible road hazard Toyota do not wish to risk. They are currently working on a remedy. Until they have a solution, customers are being asked to bring their vehicles in for a preliminary inspection. Once a solution has been found customers will be immediately notified.

Steve St Angelo, who is Toyota’s Chief Quality Office for North America, is quoted as saying “Toyota is listening to its customers attentively, and we want to make sure their voices are heard. As part of that commitment, we are providing free inspections of the spare tire carrier cable even in states that are not included in this recall.” Thus he goes on to explain that Toyota is working diligently to find a remedy as quickly as possible. And while Toyota’s many recalls have increased sales for Ford, Hyundai and Honda in particular, loyal customers are going nowhere. Toyota have earned excellent customer loyalty over the years and that is not wavering.

In fact a recent survey has shown that a myriad of current as well as previous Toyota owners are sticking with Toyota because of the professional type of service they receive as well as the vast array of excellent products they have to offer. Car sales are currently in the red and this will definitely continue to decline for quite some time. But Toyota are not sitting on their haunches doing nothing about the situation. With a vast array of new marketing incentives, intense scrutiny of safety features, extended warranties and increased attention to customer retention strategies. And according to data from J.D. Power and Assoc, Toyota Motor Company ranks number 1 in customer loyalty retention strategies. Toyota does a much better job than any other car company in America of keeping its customers coming back. And Toyota are insistent that things won’t change. Toyota have shown their integrity and honesty by admitting to the fact that action should have been taken earlier. With this acknowledgement comes high praise from consumers and a step in the right direction for initiating successful customer retention strategies.

The Toyota company has certainly grabbed the bull by the horns and with a vast array of successful marketing incentives have retained customer loyalty whilst luring others to their doors. Very aggressive promotional marketing campaigns and customer retention strategies are in force and Toyota are holding their heads up with pride, knowing they have never failed to put their customer’s first at all times. Their reputation is still intact irrespective of the recalls. So what are some of their new marketing incentives? Toyota have included a 0% financial for sixty months, they also offer a no fee 24 month maintenance plan for established customers and low APR offers are part of the marketing plans as well. Add to that the best comprehensive leasing program Toyota have ever had and you can see why consumers are sitting up and taking notice. These incentives are primarily  focused on keeping the old customers for now. Thus Toyota are going that extra mile to ensure that the established customers are made to feel appreciated, respected and special. They will focus more on luring new customers at a later date. Knowing how to successfully appease customers is imperative when speaking of successful retention plans.

The name Toyota has always been associated with customer trust, loyalty and respect. This is due to their reputation for offering vehicles of the highest quality. But it never ever stopped right there. Right from day one, Toyota has worked on assuring their customers that they have a wonderful support network. And this goes both ways, you get what you give.

In return for utilizing smart retention tools everyone wins, the company as well as its customers. Good service, going that extra mile is always appreciated. Satisfied customers inform friends, family and acquaintances. The word gets spread further and before you know it the name on everyone’s lips is the reputable company which shows so much integrity, just can’t ignore it. Knowing how to gain positive feedback is a highly prized customer retention tool all successful businesses are aware of. There is no doubt whatsoever that the vast array of vehicles Toyota has to offer is another excellent marketing strategy as well. With such a diverse range of vehicles customers are confident that all their wants, needs and so forth are being well catered to. When one takes the global economic crisis into consideration as well, they appreciate the fact that Toyota offers them excellent value for money and that’s important in any business. We all look for economical vehicles during and economic crisis, Toyota are delivering the goods. Toyota expected and is receiving sensational support from loyal customers. Is there any wonder? They are bending over backwards to do all they can to satisfy customers and address all the negatives.

The Toyota Precepts are:

1. Be contributive to the development and welfare of the country by working together, regardless of position, in faithfully fulfilling your duties.

2. Be ahead of the times through endless creativity, inquisitiveness and pursuit of improvement.

3. Be practical and avoid frivolity.

4. Be kind and generous; strive to create a warm, homelike atmosphere.

5. Be reverent, and show gratitude for things great and small in thought and deed

With these precepts as their primary focus, there is little wonder Toyota are highly praised and have managed to maintain their customer’s loyalty irrespective of the problems they have faced.

More about this author: Janette Waldron

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