Thorough Explanations Enhance After-Sales Service Satisfaction in Vietnam

Vietnam01New-vehicle owners in Vietnam prefer to have the type and scope of maintenance or repair work explained prior to their service visit and after the work is completed at the dealer or authorized service center, according to our 2013 Vietnam Customer Service Index (CSI) Study. When a service advisor provides explanations at the beginning and completion of work, satisfaction improves significantly—by 24 points (on a 1,000-point scale). Continue reading ›

After-Sale Service Satisfaction Rises in Indonesia; Ford Ranks Highest in CSI

Road in Jakarta, IndonesiaOverall customer satisfaction with the after-sale service experience in Indonesia improves by 15 points from 2012, to an average of 755 (based on a 1,000-point scale), according to the 2013 Indonesia Customer Service Index (CSI) Study. The largest advances come in two of five factors* evaluated—satisfaction with service initiation and service advisor.

The improvement in after-sale service satisfaction is noteworthy as there has been sales growth in the country during the past few years, which makes it critical to continue to manage customer expectations. Light-vehicle deliveries in 2013 are expected to increase by about 10% (to 1.1 million units) from 2012, based on a forecast from strategic partner LMC Automotive. Continue reading ›

Exceptional Service Advisors May Lead to Higher Satisfaction with Dealer Service in the Philippines

manila-trafficNew-vehicle owners in the Philippines this year put more importance on personal interaction and having exceptional service advisors as a first point of contact at the dealership, according to our 2013 Philippines Customer Service Index (CSI) Study.

The study, which measures overall customer service satisfaction among more than 1,800 vehicle owners who visited an authorized service center for maintenance or repair work during the first 12 to 24 months of ownership, finds that overall satisfaction with service at authorized dealerships improves by an average of 4 points in 2013 to 832 (on a 1,000-point scale) vs. last year. Continue reading ›

Customer Service Satisfaction Significantly Improves in All Factors

Sutton_Chris

Chris Sutton

At the industry level, overall satisfaction with customer service increases by 10 points from 2012, which is a pretty significant improvement, according to our 2013 Customer Service Index (CSI) Study. Dealerships are making marked improvements in customer service, as index scores in all five factors measured in the study have increased by double digits from a year ago.

Across-the-board improvements may be partly due to the fact that an even larger percentage of customers (77%) are returning to the dealership for maintenance visits rather than for repair work. A year ago, 72% of customers indicated that their most recent visit to a dealer service department was for an oil change or routine maintenance. In addition, due to a contraction in new-vehicle sales during the Great Recession years of 2008-2009, there is a smaller vehicle population and dealers are working harder to grow and retain service customers.

The 2013 CSI Study finds that there is a higher percentage of maintenance visits at the dealership vs. visits for repair work, which aligns with the fact that the quality of vehicles continues to improve, based on the record improvement in initial vehicle quality noted in our 2012 Initial Quality Study (IQS). In addition, we see that customers are coming back to the dealership for maintenance they can schedule in advance, which is definitely more convenient to them—rather than having to set up repairs times, which may be unexpected or unplanned. Continue reading ›

Accurate Cost Estimates Advance After-Service Satisfaction in the Philippines

Mohit Arora

Overall customer satisfaction with service at authorized dealers in the Philippines has improved by 25 points to 821 (on a 1,000-point scale) compared with 2011, according to our 2012 Philippines Customer Service Index (CSI) Study, which is based on responses from 1,822 new-vehicle owners who took their vehicle for service to an authorized dealer service center for maintenance or repairs during the first 12 to 24 months of ownership.

Our study finds that providing accurate cost estimates and consistently meeting these estimates are key to creating high levels of customer satisfaction with dealer after-sales service. Satisfaction among vehicle owners who claim the actual costs were the same or less than the original estimate is 828, which is 23 points higher than among owners who say they received no estimate (805) and 82 points lower than those owners who said the actual costs were higher than the estimate (746).

Service customers are particularly sensitive about transparency of service—notably through accurate cost estimates and how well dealerships meet their initial commitments before the service begins. In 2012, 82% of customers received cost estimates—the lowest rate in the past 5 years. Continue reading ›

Satisfaction with Dealer Service is Critical to Repurchase Intent in Canada

 

Ryan Robinson

The link between service satisfaction and future vehicle purchase intent is a critical one, according to results in our 2012 Canadian Customer Commitment Index Study, which measures service satisfaction and loyalty with both new-vehicle dealerships and aftermarket facilities among more than 18,000 owners of vehicles in Canada that are between 4 and 12 years old.

Our study finds that 42% of customers who rate their dealer service experience a 10 (on a 10-point scale) say they “definitely will” purchase the same make the next time they shop for a new vehicle. In contrast, only 7% of customers who rate their service experience between one and five on the same scale say they “definitely will” purchase the same make. Continue reading ›

CSI Snapshot: Service Advisor Interaction and Gen Y Service Satisfaction and Loyalty

Chris Sutton

The J.D. Power and Associates 2012 Customer Service Index (CSI) StudySM finds that dealership service advisors are not providing basic service processes to younger customers as frequently as they are to older, more established customers. While younger customers may have a tendency to “rate lower,” customer feedback suggests that younger customers have solid reasons for these lower customer satisfaction ratings.

When working with Gen Y customers (age 35 and younger), service advisors are less likely to perform a walk-around; review a technician-performed inspection; or to review the work done on the vehicle. In addition, service advisors are less likely to notify Gen Y customers when their vehicle will be ready or to keep them informed of the status of their vehicle service. Continue reading ›

UK Vehicle Owners Shop for Service; Jaguar Ranks Highest in Ownership Satisfaction

Vehicle owners in the United Kingdom are increasingly willing to shop around for service, as exhibited by the fact that aftermarket/independent service centers have increased their share of average total vehicle service visits to 39%—up 6 points from 2011, according to the 2012 UK Vehicle Ownership Satisfaction Study (VOSS). In contrast, authorized dealer service centers are losing share of service visits—down 5 points from 2011 to 61%.

The aftermarket/independent service centers have ramped up their efforts to expand and improve services. Additionally, these independent service centers are focusing on retail maintenance advertising and are creating more services to attract customers, including offering extended weekend hours and vehicle pick-up and vehicle delivery assistance. Continue reading ›

US CSI Rises Significantly in Line with Focus on Whole Ownership Experience

Zeeshan Hasan

Overall satisfaction among vehicle owners with the dealer service industry as a whole improves significantly—up 19 index points from 768 in 2011 to 787 (on a 1,000-point scale) in our 2012 US Customer Service Index (CSI) Study, which is based on responses from more than 84,000 owners and lessees of 2007 to 2011 model-year vehicles.

This improvement, which includes double-digit advances in all five factors* and all 16 attributes evaluated in the study, falls in line with the overall improvement (+13 index points) in overall satisfaction with the new-vehicle sales experience as measured in our 2011 US Sales Satisfaction Index (SSI) Study. Some 28 of 33 brands that are eligible for ranking in the 2012 CSI Study improve their performance from last year, and eight of these brands’ scores advance by at least 20 index points.

A few more highlights from our latest CSI Study:

• Despite stronger US sales volumes in 2011 than in 2010, the average number of service visits declined again this year. However, although service visits are down, satisfaction with dealer service is way up. Continue reading ›

A Suggestion to Chinese OEMs: Focus on Strengthening Existing Brands

 

Tim Dunne

China’s automotive market currently offers more than 60 locally produced brands and nearly 20 imported, or foreign, brands. As if that were not enough, we recently learned that several more entrants intend to join the fray. Among them are two new brands developed by Chinese domestic automakers.

The FAW Car Group unveiled the Olney brand in November. The company said that the brand would be targeted at younger consumers. The first Olney car will be priced between 80,000-100,000 RMB ($12,500-$15,600) and is scheduled to launch in March 2012.

Chery Automobile Co. also announced plans in November to launch a new passenger-vehicle brand named Qoros. The brand’s vehicle will be built by Qoros Automotive Co., a 50-50 joint venture between Chery and the Israel Corp., an investment firm based in Israel. The company said it has three passenger-car models under development, the first of which is scheduled to launch in late 2013. Continue reading ›