Great Business

Harley-Davidson overcame a turbulent past by building customer 

loyalty—one of its most enduring assets. It was one of America’s 

foremost motorbike manufacturers but, by the 1980s, sales fell 

dramatically following tough competition from affordable, high￾quality Japanese machines. Harley-Davidson improved quality 

using the production techniques of Dr. W. Edwards Deming. The 

next challenge was to win back, and maintain, market share (it now 

enjoys a customer loyalty rate of 90 percent).

Knowledge of customers’ needs and appealing to customers’ 

emotions helped Harley-Davidson to build trust and bond with 

customers. Their managers meet customers regularly at rallies, 

where new models are demonstrated. Advertising reinforces the 

brand image, to promote customer loyalty. The Harley Owner’s 

Group (HOG) is a membership club that entrenches customer 

loyalty, with two-thirds of customers renewing membership.