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Customer loyalty is determined by the experience they have of servicing departments, according to the JD Power 2016 UK Customer Service Index Study.
The survey also named Toyota as the highest performing volume brand for CSI with Mercedes-Benz as the top ranked premium brand.
Among the highly satisfied customers 92% said they will definitely return to the same service facility for future warranty service, for which there is no charge, and 83% said they would return for future paid service. The survey found that when satisfaction slips just slightly the intended loyalty drops to 74% for warranty service and 58% for paid service.
The second annual survey was based on 8,478 respondents who registered their new vehicle between February 2013 and April 2015. The study was carried out between February and April 2016. Overall satisfaction scores were based on a 900 to 1,000-point scale. The study explored customer satisfaction with their dealer’s service department by examining five measures: service quality (26%); service initiation (23%); service advisor (19%); vehicle pick-up (17%); and service facility (16%).
“When auto dealerships manage to get the service department’s customer service equation right, they earn incredibly loyal customers,” said Dr Axel Sprenger, senior director of European automotive operations at JD Power.
“The service event is also instrumental in driving sales, as it is likely the most recent experience the customer has had at the dealer prior to shopping for a new vehicle.”
As the top performing premium brand Mercedes-Benz scored a total of 774 points, an 18-point improvement from 2015 when it ranked fourth, followed by Land Rover (773), Audi (761), BMW (748) and Volvo (740) was rated The premium brand average was 761.
Toyota topped the volume brands with a score of 776, a 17-point improvement from 2015. Honda ranked second (775), followed by Kia (765), Mini (757) and Suzuki (753).
Key findings
Service advisors can make or break satisfaction: When the service advisor greets customers immediately upon their arrival, it can improve service satisfaction by as much as 48 points; yet, 61% of customers indicate they had to wait for a greeting. When the service advisor knows the customer’s vehicle history and the customer says the service advisor is completely focused on their needs, service satisfaction can increase by as much as 46 and 56 points, respectively. Additionally, while only 34% of customers indicate their service advisor used a tablet during their service visit, overall satisfaction can increase by as much as 31 points when the advisor uses this device.
Pick-up process is important: Service customers in the UK spend an average of 9 minutes to finish the paperwork and pick up their vehicle after maintenance or repairs. Overall satisfaction is highest (778) among the 53% of service customers who indicate the pick-up process took 5 or fewer minutes. Satisfaction drops to 750 among the 28% of customers who say the process took 6 to 10 minutes and dips to 714 among the 9% who say it took 11 to 15 minutes.
Transparency on work and cost is valued: Overall satisfaction averages 742 among the 81% of customers who received an explanation of the charges after service was completed, compared with 653 among those who did not receive an explanation. Similarly, overall satisfaction is 741 among the 84% of customers who received an explanation of the work performed on their vehicle, compared with 637 among those who did not receive an explanation.
Satisfaction and brand rankings: Overall customer satisfaction with dealer service, which is based solely on the first three years of ownership, averages 761 in the premium brand segment in 2016, the same as in 2015, and 744 in the volume brand segment, up from 737.