NOTE: There are various methods for calculating loyalty, please understand your 'corporate' definition 
           prior to attempting any form of loyalty analysis.

In general, loyalty analysis is performed with new vehicle buyer studies by examining the percentage of new buyers that had formally disposed of the same vehicle, brand, segment, etc. Moreover, the definition of 'disposed' is often qualified in some way, for example, to consider only the disposed vehicles that had been previously purchased new.

The most typical way of running a loyalty analysis within mTAB™ would be to select the question representing disposal as columns and the question measure representing new purchase as rows. The column percentages then represent the percentage loyalty. If the same vehicle (brand, segment, etc.) list is used for both the column and the row questions, the diagonal of the tab (i.e. where the column and row are the same response label) represents the loyalty percentage.

When performing this analysis, it is easy enough to compare any given column's loyalty measure to other columns. However, the question often arises, how do all columns compare against the loyalty measure across ALL columns. When all columns represent the entire industry, then the missing measure is the 'industry loyalty percentage'. Unfortunately, this measure can not be directly determined with a single mTAB™ tab run. However, it is easy enough to perform, the required steps are outlined below.

Step 1: Select the column and row questions that you will be using to determine loyalty. Format the row question as Weighted Counts rather then column percentages.

Step 2: Run the tab and export to a spreadsheet. Sum up the Subset Total count for each column in the tab. Sum up the intersection value, where the row and column labels are the same, for each column of the tab. Divide the sum of the intersections by the sum of the column subset totals.

We have provided a link to a spreadsheet example that illustrates this process. Please feel free to download and review the spreadsheet example and let us know if you have any further questions.

Calculating Industry Loyalty