Recent investments
made by automakers and dealers in improving the customer service experience
are paying off in terms of more highly satisfied and loyal service customers,
according to the J.D. Power and Associates 2013 U.S. Customer Service Index
(CSI) Study ^ SM released today.
(Logo: http://photos.prnewswire.com/prnh/20050527/LAF028LOGO-a)
The study finds that overall customer satisfaction with service at a dealer
facility has increased to 797 (on a 1,000-point scale), a significant
improvement from 787 in 2012 and up by 29 points since 2011. Additionally,
overall satisfaction with dealer service facilities averages 44 index points
higher than satisfaction with independent service facilities, a gap that has
expanded by six points from 2012.
"Manufacturers have made large investments in their retail programs, and
dealers have made significant investments in key customer touch-points—people,
improved processes and customer waiting areas—which are having a profoundly
positive impact on their customers," said Chris Sutton, senior director at
J.D. Power and Associates. "Dealerships are placing more emphasis on the
service advisor's role, which is essential to effectively handling service
customers. Having a skilled, trained advisor is vital for a positive customer
experience."
The study examines satisfaction among vehicle owners who visit a service
department for maintenance or repair work. The CSI rankings are based on
dealer service performance during the first three years of new-vehicle
ownership, which typically represents the majority of the vehicle warranty
period. Five measures are examined to determine overall satisfaction with
dealer service (listed in order of importance): service quality; service
initiation; service advisor; service facility; and vehicle pick-up.
The study finds that owners visit a dealer service department an average of
2.6 times per year, most frequently for vehicle maintenance. The shift in the
proportion of maintenance work to repair work is one of the contributing
factors to the increase in overall satisfaction. More than three-fourths (77%)
of vehicle owners indicate that their most recent dealer service visit was for
maintenance, such as an oil change or tire rotation, an increase from 72
percent in 2012 and 63 percent in 2011.
Overall satisfaction among owners who took their vehicle to a dealership for
maintenance work averages 806, compared with 768 among those who took their
vehicle in for repair work. Among owners who visited an independent service
station, overall satisfaction averages 754 for maintenance work and 750 for
repairs. Satisfaction with both maintenance and repair work conducted at
dealer and non-dealer service stations is slightly higher among owners of
premium vehicles than among owners of non-premium vehicles.
"The service mix continues to shift to maintenance and away from repairs,
which is a testament to the improvement in vehicle quality and dependability,"
said Sutton. "Owner satisfaction is generally higher for maintenance than for
repairs for several reasons, primarily because maintenance tends to be less
expensive and time-consuming and can be scheduled and completed at the owner's
convenience."
When excluding complimentary service, service customers spend less
out-of-pocket per visit at their dealership, compared with 2012 ($118 vs.
$125, respectively); however, this amount remains higher than the average
spent per visit at an independent service station ($44). Owners of premium
vehicles spend an average of $198 per dealer visit, compared with $31 when
they visit an independent service station, while owners of non-premium
vehicles spend an average of $108 per dealer visit and $45 per visit to an
independent service station.
Higher Service Satisfaction Equals Higher Loyalty
The study finds a direct correlation between service satisfaction and loyalty.
Overall, 79 percent of vehicle owners indicate they "definitely will" return
to their dealership for maintenance and repairs covered under their vehicle's
warranty, and 64 percent indicate they "definitely will" return to the
dealership for service work after their vehicle's warranty expires. However,
loyalty increases dramatically among vehicle owners who are "delighted"
(satisfaction scores of 901 and higher) with their service experience, as 96
percent indicate they "definitely will" return to the dealer service
department while their vehicle is under warranty, and 89 percent indicate they
"definitely will" return post-warranty. Further, 38 percent of vehicle owners
overall indicate that they "definitely will" purchase or lease their next
vehicle from the same brand, and increases to 59 percent among owners who are
"delighted."
"The service experience has a profound impact on vehicle owners, not just
where they take their vehicle the next time they need maintenance or repairs,
but also on their next vehicle purchase," said Sutton. "Dealers know this, and
most are taking the appropriate steps to ensure their customers have the best
experience possible on both the sales and service sides of the store."
Overall Satisfaction with Service Improves
Overall satisfaction with dealer service improves by 10 points in 2013,
compared with 2012, with gains in all five study measures. Among the 30
rank-eligible brands, 28 improve in service satisfaction from 2011, with eight
brands improving by at least 20 points.
Additionally, overall satisfaction improves across all five study measures,
with the largest year-over-year gains in service facility and vehicle pick-up,
which also includes vehicle owner perception of the fairness of the charges.
"While there are a lot of things dealers can't control, such as the product
and the incentive levels on the sales side, one thing they can control is the
service they provide," said Sutton. "When new-vehicle sales dropped in 2008,
dealers increased their focus on service, and that attention on the service
customer continues today."
Highest-Ranked Nameplates
Lexus ranks highest in satisfaction with dealer service among luxury brands
for a fifth consecutive year. Lexus achieves an overall CSI score of 862 and
performs particularly well in service initiation, service facility and service
quality. Rounding out the five highest-performing nameplates in the luxury
segment are Cadillac (858); Jaguar (856); Acura (852); and Infiniti (848).
Three of the 11 luxury brands improve their index score by 20 or more points,
compared with 2012, with Land Rover achieving the greatest year-over-year
improvement (+29 points). Infiniti improves by 24 points and Lincoln by 23.
Among mass market brands, GMC ranks highest with a score of 819. GMC performs
particularly well in service initiation, service advisor, service facility and
service quality. Rounding out the five highest-performing brands in the mass
market segment are MINI (810); Buick (809); Chevrolet (806); and Volkswagen
(804).
Five of the 19 mass market brands improve their index score by at least 20
points, compared with 2012, with Scion improving 24 index points, Nissan and
Dodge each improving by 23 points. Mitsubishi improves by 22 points and
Chrysler by 20.
J.D. Power and Associates offers the following tips for consumers regarding
vehicle service at their dealership:
o When possible, schedule your dealer service appointment in advance.
Customers who have an appointment tend to be more satisfied with their
overall service experience than do those without an appointment due to
dealer ability to appropriately prepare for the visit.
o If your vehicle has to remain at the dealership for maintenance or
repairs, ask the service advisor for a loaner vehicle. Many dealerships
have a fleet of vehicles customers may borrow while their vehicle is in
for service.
o Following maintenance or repair work on your vehicle, ask for a vehicle
inspection report, and review it with your service advisor.
The 2013 U.S. CSI Study is based on responses from more than 91,000 owners and
lessees of 2008 to 2012 model-year vehicles. The study was fielded between
October and December 2012. J.D. Power and Associates measures dealer service
in various countries around the world, including Australia, Canada, China,
Germany, India, Indonesia, Japan, Malaysia, Mexico, the Philippines, Taiwan,
Thailand and the UK.
Customer Service Index Ranking J.D. Power.com Power Circle Ratings
(Based on a 1,000-point scale) For Consumers
Luxury Brands
Lexus 862 5
Cadillac 858 4
Jaguar 856 4
Acura 852 4
Infiniti 848 3
Audi 846 3
Luxury Brand Average 846 3
BMW 842 3
Lincoln 840 3
Mercedes-Benz 832 2
Volvo 830 2
Land Rover 825 2
Mass Market Brands
GMC 819 5
MINI 810 4
Buick 809 4
Chevrolet 806 4
Volkswagen 804 4
Nissan 797 4
Hyundai 794 3
Honda 792 3
Mass Market Brand Average 789 3
Ford 786 3
Chrysler 784 3
Mitsubishi 781 3
Toyota 780 3
Scion 776 2
Kia 774 2
Mazda 772 2
Subaru 772 2
Dodge 762 2
Ram 759 2
Jeep 752 2
Power Circle Ratings Legend:
5 – Among the best
4 – Better than most
3 – About average
2 – The rest
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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