Very true. It is often said that it costs a lot more to attract a new customer than to retain a current one. Not sure of the numbers when discussing expensive cars, but the spending examples you give point to it being a significant difference.

 

It depends on the product.

 

Yes it does, but in this case that us against you. If all Porsche was was small sports cars, or were another type of product, your assumption would have greater weight. Here, it is more complex.

Porsche sells cars in a number of classes and the are hoping current 911 and cayman/boxer owners will replace a family car with a Porsche - is that a new buyer or an old? It also makes millions on the brand and licensing and that takes work and money. They are selling cars and image and that requires investment and constant care.

 

One point to note is that PCA is the largest car club in the world. That attests to the strength of the Porsche brand.

IMO, Porsche has found a sweet spot in the market. Much of the appeal of exotic cars (eg, Ferrari), but at prices that are just one notch above brands like MB, BMW, etc., and thus affordable for the many people who are affluent but not rich.

 

Really...In the US doesn't the BMW club have more members?

 

PCA claims they have the largest membership of any marque in the US.

 

A person buying a new Porsche, replacing the old one, is an existing customer, new sale. This is a different demographic (and easier to maintain) than a person who owns another brand, and Porsche is trying to lure them over with additional marketing (which I haven't really seen a lot of, outside magazines, reviews, etc..., until the commercial released a few years ago).

 

OK, but my point is that it is more complex and more multi-dimensional than just new and old customers. Once you have made a sale, you want those buyers to trade-in and buy the next one so you have to convince them that it is newer and better. On the one level, they, hopefully, already like the brand and the product that they have. On the other, if they are happy with what they have, and are not, like new buyers, actually in the market, you must do a good deal of selling to get over their satisfaction, without destroying their satisfaction, or getting them to say, ok, now that I am thinking of upgrading, what else is out there - maybe the new GT-R?

A brand and an image need constant care and lots of cross-marketing. You may market at Porsche events to go after current owners, at racing events to go after anyone who is interested in motorsports, whether current Porsche owner or not, or general media to go after everyone. And the content and focus may change somewhat depending on the audience. But if you are doing things correctly, everyone knows and trusts the brand and its trademarks as an indication of origin and quality. that alone is a great deal of work So your other markinting is really directed to trying to generate actual puchase decisions and that can be difficult, even in satisfied Porsche owners, because of that satisfaction.

I was a very satisfied 997.2 owner. It took alot for me to even consider trading up, only ten months later, to a 991 - and for me they did it. But Porsche was always aspirational, becuase of its brand and image, oh yeah, and its cars!

 

A little late to this thread, but excellent write up. Thanks for posting!