Satisfying Service Experience Drives Customers Back to the Dealership
MEXICO CITY: 28 October 2015 — Honda ranks highest among non-premium automotive manufacturers and Mercedes-Benz ranks highest among premium manufacturers in customer satisfaction with vehicle service at a franchised dealer facility for maintenance and repair work, according to the J.D. Power 2015 Mexico Customer Service Index (CSI) StudySM released today.
The CSI Study is a comprehensive analysis of the vehicle service experience and is conducted by J.D. Power in 16 countries worldwide. This is the inaugural edition in Mexico, which replaces the J.D. Power Mexico Vehicle Ownership Satisfaction StudySM (VOSS), providing a deeper and more detailed after-sales solution for automakers and dealerships.
The study explores customer satisfaction with their service dealer by examining five measures (listed in order of importance): service quality (25%); service initiation (24%); service advisor (20%); service facility (16%); and vehicle pick-up (16%). Satisfaction is calculated on a 1,000-point scale.
Honda ranks highest among non-premium brands in satisfaction with a score of 841. Jeep (837) ranks second, followed by Toyota (834), Nissan (793) and SEAT (792). Mercedes-Benz ranks highest among premium brands in satisfaction, with a score of 900. BMW and Audi rank second in a tie with 896 each.
Service Satisfaction and Sales
New-vehicle sales in Mexico are expected to reach 1.33 million units in 2015, up from 1.14 million in 2014.
The study finds that satisfaction with dealer service contributes to sales through customer loyalty and advocacy. Among customers who are highly satisfied with their dealer service (overall satisfaction scores of 900 and above), 63 percent say they “definitely will” purchase their next vehicle from that dealer and 65 percent “definitely will” recommend the dealer to friends and family. In contrast, among customers less satisfied (score of 700-899), only 33 percent say they “definitely will” purchase their next vehicle from that dealer, and only 37 percent “definitely will” recommend the dealer to others.
“Providing a consistently positive customer experience is possible when the brand and the dealership make it a priority and have the people and processes in place,” said Gerardo Gomez, director and country manager at J.D. Power de México. “Brands and dealerships that are able to satisfy their service customers likely will see an increase in revenue and will be able to build customer loyalty not only for their service department, but also in sales.”
The service advisor plays a critical role in customer satisfaction. For example, 72 percent of customers indicate their service advisor recommended additional work. Satisfaction among the 30 percent of those customers who had the work done jumped to 820. Even among the 42 percent who received the recommendation but did not have the work done, satisfaction is 784, higher than the 773 among customers whose advisor did not recommend additional work. Additionally, owners who had the work done spent an average of MXN 730 more per visit than owners who did not receive a recommendation.
“Even if they elect not to have the work done, vehicle owners appreciate the advice they receive from their advisor,” said Gomez.
- Service departments in Mexico do a good job offering such traditional amenities as snacks, reading materials and television for their waiting customers. Yet, there is a gap between what vehicle owners want and what dealerships offer when it comes to electronics and connectivity. For example, only 26 percent of dealer service facilities offer wireless Internet access. When Wi-Fi access is offered, overall satisfaction averages 846, compared with 772 when it is not available. Similarly, only 13 percent of dealerships provide computers with Internet access for their service customers. Satisfaction is 850 when computers are available, compared with 779 when they’re not.
- Service quality satisfaction is 807 among the 95 percent of owners who say their service work was completed right the first time. Among the remaining 5 percent, satisfaction drops significantly to 557.
- Seventy percent of owners indicate their vehicle was returned after service cleaner that when they took it in, resulting in a service quality satisfaction score of 835. Among the 29 percent of owners who say the vehicle was returned the same as when they brought it in, satisfaction averages 715, but when the vehicle is not as clean when it’s returned, satisfaction plummets to 487.
- Service quality satisfaction drops 131 points when the vehicle’s settings for items such as the radio, seat or climate controls are adjusted during service.
- Among the 72 percent of owners who say the dealer contacted them after their service was complete, service quality satisfaction averages 825, compared with 724 among those who were not contacted.
- Only 11 percent of owners of 2015 model-year vehicles visited a non-dealer for service in the past 12 months. However, 35 percent of owners of 2012 model-year vehicle had service work done at a non-dealer in the past year, indicating that non-dealer service usage increases rapidly as the vehicle ages.
The 2015 Mexico Customer Service Index (CSI) Study is based on the evaluations of more than 4,900 interviews with new-vehicle owners in Mexico approximately 12 to 36 months after purchase. The study was fielded from June through September 2015.
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