With the launch of its small electric SUV, Volvo has recorded a +11.6 lift in brand equity among Gen Z adults from Q3 to Q4 2022. The Swedish carmaker has never really targeted Gen Z – 18- 19-year-olds but is now doing so with the smaller SUV, an electric crossover.
Jim Rowan, Volvo CEO, said Gen Z is their next market. “If you bring a small SUV, competitively priced, and you have that subscription-based ownership, you’re only signing up for three months at a reasonably lower cost.” As such, Volvo develops a direct relationship with the customers at a really young age. “An if we do our job properly, we’ll keep those customers and we’ll trade them up, because they get married and have a dog and have kids, and want a second car.”
Rowan revealed that Volvo’s target appeal evolved with the tease of the newest EV, which is set for launch in June. The latest offering is designed with sustainable materials – thus appealing to Gen Z’s passion for the environment. Volvo, in an effort to reach out to its target consumers, is offering an online buying experience and a short-term subscription-based ownership model. Consumers get more flexibility and they can get a Volvo without the large financial commitment of purchasing a car.
Volvo Loyalty Intent 2023
Moreover, Volvo has found itself among other top players like Cadillac, Land Rover, Mitsubishi, and Lincoln seeing significant shifts in Loyalty Intent. Volvo’s Loyalty Intent is in the top 10 of all covered auto brands, and second highest among the luxury car makers. This shows that the brand’s customers are acknowledging the company’s investments to boost electric vehicle sales, performance, and comfort of its vehicles broadly.
According to Hundredx, Volvo Loyalty Intent rose 17 percent from October 2022 through April 2023. The luxury carmaker also recorded its U.S. auto sales up by 10 percent YTD through April 2023. The boost in Loyalty Intent is largely attributed to hybrid and electric vehicles.