Service Quality Continues to be Most Important Factor to Achieve Vehicle Owner Satisfaction in Mexico, J.D. Power Finds

MEXICO CITY: 7 Sept. 2023 — New-vehicle owners are very satisfied with the level of service franchised automotive dealers are delivering in Mexico, according to the J.D. Power 2023 Mexico Customer Service Index (CSI) Study,^SM released today. Satisfaction among owners of premium vehicles is 899 (on a 1,000-point scale) and 872 among owners of mass market vehicles.

The study has been redesigned this year to include a greater emphasis on measuring different service types, such as valet or traditional service visits. Other key additions include more detailed insight into customer preferences for various aspects of the service visit; factors that drive customer trust with dealers; and reasons why customers chose a dealership instead of a nondealer facility for service. 

“The quality of vehicle service at dealerships continues to be a key factor in increasing customer satisfaction,” said Gerardo Gomez, senior director and country manager at J.D. Power de Mexico. “More than half of mass market vehicle owners—and 42% of premium vehicle owners—return to the selling dealership for servicing and expect vehicle repairs to be performed correctly the first time around. Dealerships need to understand that this is key for customers.”

Following are some key findings of the 2023 study:

• Warranty coverage/no-charge services continue to increase: Market conditions are driving manufacturers to continue to improve the warranty service conditions. For example, nearly half (48%) of premium brand customers are receiving service via their warranty, without having to pay for any service. The percentage of customers of mass market brands who receive service via their warranty is 28%, down from 23% in 2022.
• Dealer service market has contracted: A reduction in frequency of dealer service visits and amount spent per visit, coupled with fewer one- to three-year-old vehicles on the road, has led to a potential significant contraction of the total value market from a year ago. This is estimated on the current service visits to authorized dealers and which could generate revenue of 12,480 million Mexican pesos—which is 17.7 % lower than a year ago.
• Back to basics: Once their vehicle is ready for pick-up, customers expect to be escorted to its location by facility personnel or have the vehicle retrieved for them, both resulting in high customer satisfaction. Satisfaction drops 136 points when facility personnel merely point out the location of a customer’s vehicle, which was experienced by nearly 10% of customers.
• Mass market dealerships closing satisfaction gap: Satisfaction among customers of premium brand dealerships is higher across all dealer processes than among customers of mass market brand dealerships. However, the overall satisfaction gap between premium and mass market dealerships has narrowed to 27 points. Customers of premium brand dealerships have higher satisfaction than those of mass market brand dealerships for service quality (+37 points); service advisor (+26); and service facility (+25).
• Influencing customer trust: New in this year’s study is a breakdown of attributes that affect customer trust with dealerships. Findings indicate that reassurance by dealerships that they will perform complex repairs correctly is affecting the quality of service, which is the main driver of overall customer trust with dealerships (20%). This is followed by customers’ ease and safety of dropping off their vehicles (17%). Premium brand dealerships score lowest in trust among customers when it comes to providing honest communication, while mass market dealerships lag in taking responsibility when a mistake is made and effectively resolving it.
• Room for improvement: Dealers can improve satisfaction by focusing on key aspects of the customer service journey, including vehicle pick-up; service facility; and service initiation. When an advisor handles the payment for service, there is a 69-point increase in satisfaction—but only 41% of premium brand dealerships and 29% of mass market brand dealerships achieve this task. There is a 47-point increase in satisfaction when wireless internet is accessible and a 32-point increase when advisors meet customers at their vehicles upon arrival.

Highest-Ranking Brands

BMW ranks highest in the premium segment with a score of 919. GMC (913) ranks second and Mercedes-Benz (904) third.

Jeep and Kia rank highest in the mass market segment, each with a score of 900. Honda (893) ranks third. 

Now in its eighth year, the Mexico Customer Service Index (CSI) Study is a comprehensive analysis of the service experience among owners of one- to three-year-old vehicles and evaluates customer satisfaction with their authorized dealer by examining five key measures (in order of importance): service quality (31%); service facility (20%); service initiation (18%); service advisor (17%); and vehicle pick-up (15%).

This year’s study is based on the evaluations of 4,906 new-vehicle owners of 2020, 2021 or 2022 model-year vehicles who took their vehicle for service to an authorized dealer facility in the past 12 months. The study was fielded from October 2022 through July 2023.

About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit https://mexico.jdpower.com/.

Media Relations Contacts
Fabiana Duran; Mexico City; +52 55 1012 0885; fabiana@mediaroom.mx
Geno Effler, J.D. Power; U.S.A.; 714-621-6224; media.relations@jdpa.com

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