68% of auto dealerships are losing loyalty, here’s why

What you need to know

• New survey data shows dealerships are losing loyalty because communications feel irrelevant and disconnected.
• The core issue isn’t pricing or inventory; it’s the lack of accurate, unified customer and vehicle data.
• Dealers can fix the problem by grounding their outreach in factual, VIN-verified insights that improve recognition and relevance.
• This article explores how better data strengthens automotive customer loyalty across generations.

In the hyper-competitive automotive market, dealerships obsess over the details: inventory, pricing, F&I, and service bay efficiency. But what if the single greatest threat to your customer loyalty isn’t your competition, it’s your own data?

A new nationwide survey commissioned by Data Axle reveals a staggering disconnect between dealerships and the customers they serve. The findings are a wake-up call for the industry: 68% of consumers report that dealership communications are inconsistent or lacking personalization.

This isn’t just a minor annoyance; it’s a silent killer of loyalty. Nearly half of all consumers (46%) say they’ve received duplicate offers from the same dealer. The data suggests that for every dollar spent on marketing, a significant portion is not only wasted but actively eroding the customer relationship.

The survey, which polled 1,000 U.S. consumers, pinpoints a blind spot that has nothing to do with what you sell, but everything to do with how you engage the people you serve.

The disconnect: What customers expect vs. what they get

The root of the problem is a fundamental gap in recognition. Customers don’t just want a good price; they want to feel known.

• The Recognition Gap: Nearly two-thirds of consumers (64%) expect dealers to recognize them and know what vehicle they drive. This expectation is especially high for service visits (56%) and email communication (47%). When a loyal service customer gets an email pitching them the same car they already own, the relationship feels transactional, not valued.
• The Relevance Crisis: Consumers don’t want more marketing; they want better marketing. A striking 10% of respondents said dealership outreach is “always relevant.” The rest describe it as a gamble—sometimes, rarely, or never personalized. Each irrelevant offer is a missed opportunity that chips away at your credibility.
• The Trust Deficit: Data handling is no longer a back-office IT issue; it’s a core component of your brand. Just 41% of consumers consistently trust dealerships to protect their information, and 39% say they would likely switch dealers if their data were breached.

There is a silver lining. Nearly half (46%) say they would remain loyal if a breach were handled transparently and responsibly. The takeaway? Trust isn’t built on perfection; it’s built on accountability and smart data management.

Good data is the foundation of good relationships

“We’ve known for decades that the customer relationship is a dealer’s greatest asset. What this survey shows is that poor data hygiene and irrelevant outreach are a silent killer of that loyalty. The good news is that these are solvable problems.”
Andrew Frawley, CEO of Data Axle

These problems are amplified across generations. Gen Z and Millennials expect seamless recognition across digital and in-person channels. Gen X and Boomers prioritize simplicity, consistency, and meaningful in-person recognition.

You can’t meet these diverse expectations with a disconnected, error-filled database. The only solution is a data-first approach.

Stop guessing. Start knowing.

The core issue for most dealerships isn’t a lack of data; it’s a lack of connected, accurate data. Most vehicle datasets are modeled or inferred, leading to educated guesses that result in sending a lease offer to someone who just bought, or a service reminder for a car they traded in six months ago.

The solution is to build your marketing on a foundation of fact.

Data Axle’s Vehicle Data, for example, is one of the most accurate and comprehensive automotive datasets available. It’s not modeled. It’s not inferred. It’s factual.

• It’s built from 190+ million vehicle ownership records, validated at the VIN level.
• It’s sourced from real transactions, including service events, warranty registrations, and maintenance records.
• It’s matched against Data Axle’s industry-leading consumer data, appending crucial details like household composition, income, lifestyle, and verified contact points.

When you have this single, unified view, you can finally stop the “silent killer” of loyalty.

How factual data transforms your marketing

Moving from a “sometimes relevant” to an “always relevant” strategy has tangible results. Instead of guessing, you can:

• Identify true in-market buyers: Stop blasting your entire list. Target only the households whose vehicle data (like ownership duration or recent service) signals they are ready for an upgrade.
• Personalize service outreach: Retarget customers with precision. Instead of a generic “come in for service” email, send a “Your 30,000-mile warranty check-up is due” message that reflects their actual vehicle and history.
• Match inventory to buyers: Connect your actual inventory to a pre-qualified, high-propensity audience nearby, turning redundancy into relevance.

This level of precision is already driving real-world results:

• Auto manufacturer: Improved conquest campaign ROI by 30% by pairing in-market signals with real-time inventory.
• Insurance company: Increased policy conversions by 22% by identifying lapsed policyholders ready for renewal.
• Retail brand: Boosted foot traffic by 18% by targeting households with vehicles older than 5 years within driving distance.

The survey is clear: customers are frustrated by marketing that doesn’t know them. They are willing to be loyal, but they expect you to do the work. The era of “spray and pray” is over. The future of automotive loyalty will be won by dealerships that build their customer experience on a foundation of data-driven, factual, and authentic recognition.

Learn how Data Axle helps the automotive industry.