Customer Service Key to Dealership Sales Satisfaction Amidst Declining New-Vehicle Sales in Mexico, J.D. Power Finds
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Mercedes-Benz and Mazda Rank Highest in Respective Segments
MEXICO CITY: 4 April 2019 — Auto dealership salespeople who effectively explain key vehicle features and remain with the customer throughout the sales process are keys to high customer satisfaction, according to the J.D. Power 2019 Mexico Sales Satisfaction Index (SSI) Study.SM With a new-vehicle sales decline of 7.2% from 2018, dealers must focus on areas that drive customer satisfaction and increase service revenue.
“While the new-vehicle market is down slightly from 2018 due to market uncertainty, trade relations with the U.S. and other factors, an opportunity still exists for dealerships that commit to customer satisfaction,” said Gerardo Gomez, Senior Director and Country Manager at J.D. Power de Mexico. “Many Mexicans have curbed spending due to insecurity about the future. Providing attentive service and knowledgeable product information to customers is crucial to a dealership’s overall success.”
The study, now in its sixth year, is a comprehensive analysis of the new-vehicle purchase and delivery experience. It examines customer satisfaction with the selling dealer across five measures (listed in order of importance): vehicle delivery (26%); working out the deal (24%); salesperson (19%); dealership facility (18%); and test drive (14%). Overall satisfaction is calculated on a 1,000-point scale.
Following are some key findings of the 2019 study:
- Focus on areas of improvement: To increase satisfaction and retention, dealers should spend more time addressing basic processes that happen with less frequency, such as introducing customers to the service department; offering to complete the registration process; and explaining how to operate the audio system. For example, delivering a vehicle with a full tank of fuel only happens 30% of the time. Customer satisfaction scores are 60 points higher for those whose tanks are full vs. those whose tanks weren’t full.
- Make the introduction: Among customers who are introduced to someone in the service department during the sales process, 75% indicated they “definitely will” return to the dealer for vehicle maintenance. That figure drops to 63% if the car buyer doesn’t meet a service department staff person.
- Brand detractors show significantly lower satisfaction scores: Net Promoter Score®1, a metric introduced in the 2018 study, measures customer loyalty and predicts business growth. Customers are asked their likelihood to recommend both their vehicle make and model on a 0-10 scale. Based on their responses, customers are grouped into either the detractor (0-6), passive (7-8) or promoter (9-10) group. The percentage of promoters, passives and detractors changes little from 2018, and the vast majority (79%) are promoters of their make and model. However, satisfaction among detractors decreased 42 points for make and 49 points for model vs. 2018.
- Poor dealer treatment leads to lower satisfaction: Shoppers who reject a dealer based on product and price are generally more satisfied with their shopping experience than those who bypass a dealership due to treatment from staff. Dealers who are courteous and spend enough time with the customer to explain details of the product will stand to benefit the most in terms of overall sales satisfaction.
Mercedes-Benz ranks highest among luxury brands, with a score of 898. BMW (881) ranks second and Audi (872) ranks third. The average index score for luxury brands is 878, up 9 points from 2018.
Mazda ranks highest among mass market brands, with a score of 881. Toyota (877) ranks second and Ford (876) ranks third. The average index score for mass market brands is 854, down 2 points from 2018.
The 2019 Mexico Sales Satisfaction Index Study is based on the evaluations of 3,328 new-vehicle owners in Mexico after one to 12 months of ownership. The study was fielded from September2018 through February2019.
For more information about the 2019 Mexico Sales Satisfaction Index (SSI) Study, visit https://mexico.jdpower.com/es/resource/mexico-sales-satisfaction-index-ssi-mx.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.
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1Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.