Vehicle Dealer Service Drives Customer Loyalty, J.D. Power Study Finds
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Volvo Ranks Highest in Customer Satisfaction among Premium Brands; Toyota Ranks Highest among Volume Brands
MUNICH: 28 June 2016 — Providing a satisfying vehicle service experience has a profound positive effect on intended service and sales loyalty for dealerships, according to the J.D. Power 2016 Germany Customer Service Index (CSI) Study,SM released today.
Among customers who are delighted with their dealer service experience (overall satisfaction scores of 900 or higher on a 1,000-point scale), 82% say they “definitely will” return to the same service facility for future paid service. When satisfaction slips just slightly from delighted to satisfied (800-899), intended loyalty drops to 60%.
“The dealership service department can greatly influence customer satisfaction and dealership loyalty,” said Dr. Axel Sprenger, head of European automotive operations at J.D. Power. “Providing a first-class service experience is critical to retaining service customers and attracting new customers, not only for service, but also when they are in the market to buy another vehicle.”
Since vehicle service is often the most recent experience a customer has had at the dealership, the service department can be instrumental in driving sales, according to the study survey. Nearly three-fourths of customers who are delighted with their service experience say they “definitely will” purchase or lease their next new vehicle from the servicing dealer. When service satisfaction drops to between 800 and 899 points, intended purchase loyalty dips to 44% and plummets to 23% when it’s between 600 and 799 points.
“The service experience is a great way to build advocates, as happy customers are likely to recommend the dealership and brand to their peers,” said Sprenger. “Social media expands that sphere of influence, making it much easier for customers to share their dealer service experience with an audience that extends well beyond family and friends.”
Satisfaction and Brand Rankings
Overall customer satisfaction with dealer service averages 747 points in the premium brand segment in 2016, a 2-point decline from 2015, and 732 in the volume brand segment, a 5-point drop.
Volvo ranks highest among premium brands, with a score of 767, which is a 22-point improvement from 2015 when it ranked second. Toyota ranks highest among volume brands, with a score of 772, followed by Mazda with a score of 765 and Peugeot with 754.
2016 Germany CSI Study Methodology
The study, now in its second year in Germany, explores customer satisfaction with their service dealer by examining five measures (listed in order of importance): service quality (26%); service initiation (23%); service advisor (19%); vehicle pick-up (18%); and service facility (14%). Satisfaction is calculated on a 1,000-point scale. The study results are based on 9,874 respondents who registered their new vehicle from February 2013 through April 2015. The study was fielded from February through April 2016.
See the online press release at https://www.jdpower.com/press-releases/2016-germany-customer-service-index-csi-study.
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