Category: APAC

Car Shopping Is Less Satisfying for Trade-In Customers, JD Power Study Finds

2016-08-17

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SINGAPORE: 31 August 2016 — The Commodity Tax Act has more consumers in Taiwan trading in their old vehicle for a new one, yet those with a trade-in are significantly less satisfied with the new-vehicle sales experience than those without a trade-in, according to the JD Power 2016 Taiwan Sales Satisfaction Index (SSI) Study^SM mass market segment, released today.

Now in its 18th year, the study examines six factors that contribute to overall customer satisfaction with the new-vehicle purchase experience. In order of importance, they are delivery process (20%); dealership facility (20%); salesperson (19%); deal (16%); delivery timing (13%); and sales initiation (12%). Sales satisfaction performance is reported as an index score based on a 1,000-point scale, with a higher score indicating higher customer satisfaction. The study examines sales satisfaction in the mass market segment.

The Commodity Tax Act grants consumers a NT$50,000 tax deduction for trading in their old vehicle for a new one. As a result of the government’s measure, designed to stimulate the Taiwan economy, the proportion of consumers trading in a vehicle when they purchase a new one has increased to 33% in 2016 from 24% in 2015. Yet, overall satisfaction with the sales process among customers who trade in a vehicle is 748, significantly lower than the 795 among those who do not trade in a vehicle.

“Enthused by this stimulus measure, vehicle shoppers are entering dealerships feeling positive and upbeat about buying their next new car,” said Kaustav Roy, director at JD Power. “While shoppers are optimistic when they enter a dealership, they are often quickly discouraged by the sales experience. Dealers need to be prepared for the increase in showroom traffic and streamline their trade-in processes in order to improve customer satisfaction.”

Perceived pressure from salespeople is contributing to lower satisfaction among customers who are trading in a vehicle. The study finds that 7% of all trade-in customers say the salesperson tried to persuade them to pay a higher down payment; pay more than their original budget; and purchase car accessories they did not want.

Additionally, trade-in customers wait a median of 12 days to receive delivery of their new car, compared with 10 days for those without a trade-in vehicle. As a result, 39% of trade-in customers indicate they did not receive their vehicle on the date promised by the dealer, compared with 23% of those without a trade-in who say the same. 

“Taking care of their customers, whether or not they have a trade-in vehicle, enhances satisfaction and also goes a long way toward building a strong brand image,” said Aaron Lee, country manager at JD Power. “Brands benefit from higher rates of loyalty and advocacy, which better positions them for future profits.”

Among highly satisfied customers (SSI scores of 880 or higher), 43% say they “definitely would” purchase the same brand of vehicle and 48% say they “definitely would” recommend the brand to family and friends. In contrast, among customers who are highly dissatisfied (SSI scores of 687 or lower), only 10% say they “definitely would” repurchase the same brand and only 25% say they “definitely would” recommend the brand to others.

Following are additional key findings of the study:

• Price of Cars in Taiwan Increases: The median price of a car in Taiwan is NT$780,000 in 2016, a 4% increase from 2015.
• Customers Demand Timely Updates on Delivery Status: Overall satisfaction is significantly higher among customers who are kept informed of their new car’s delivery status than among those who do not get any notifications (791 vs. 751, respectively).
• Percentage of First-Time Car Buyers Decreases: Less than half (42%) of all customers are first-time new-car buyers, down from 44% in 2015. Among all first-time car buyers, 47% are women, among whom satisfaction is lower than among men (781 vs. 791, respectively).

Study Rankings

Overall sales satisfaction in the mass market segment averages 786 points in 2016. Among the 10 brands included in the segment, Nissan ranks highest in satisfaction for a second consecutive year, with a score of 797. Nissan performs particularly well in the sales initiation, dealer facility, deal, salesperson and delivery process factors. Luxgen ranks second with a score of 793, performing particularly well in delivery timing. Toyota ranks third with a score of 790.

The 2016 Taiwan SSI Study is based on responses from 2,465 new-vehicle owners in the mass market segment who purchased their vehicle between July 2015 and March 2016. The study, which was fielded from January through May 2016, measures new-vehicle owner satisfaction with the sales and delivery experiences from authorized dealers in Taiwan.

About JD Power in the Asia Pacific Region 

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the Internet at asean-oceania.jdpower.com.

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

As Customer Satisfaction with Dealer Service Improves in Indonesia, Brands Must to Find New Ways to Differentiate Their Service, JD Power Study Finds

2016-08-22

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SINGAPORE: 31 August 2016 — As customer satisfaction with the dealer service experience improves, and auto brands perform within close range of each other, the way for brands to differentiate themselves in an ultracompetitive environment may lie in how they engage customers at their waiting lounges, according to the JD Power 2016 Indonesia Customer Service Index (CSI) Study^SM mass market segment, released today.

Overall customer service satisfaction averages 765 on a 1,000-point scale in 2016, up 4 points from 2015. Competition stiffens as the four highest-ranked brands are separated by a mere 4 points.

Dealerships are also displaying high operational efficiencies, as 96% of customers are able to get an appointment on their desired day; 93% have their cars serviced within the same day; and 99% indicate that the work was done right the first time. 

Additionally, the study finds that Indonesia has one of the highest percentages of customers in the ASEAN region who stay at the dealership the entire servicing time, with 80% of all customers spending an average of two hours waiting at the facility while their cars are being serviced. 

“Dealerships can use that time as an opportunity to engage their customers while they wait for their vehicle,” said Kaustav Roy, director at JD Power. “This is a chance to not only build relationships with their customers, but also to create new business opportunities. However, customers need to be approached in a thoughtful manner in order to respect their need for space and privacy.”

The study shows that when customers enjoy basic amenities such as sufficient seating space, air-conditioned lounges and TV, satisfaction inches up by only 2 points, but the impact of not providing these amenities can result in a 16-point plunge in satisfaction scores. Consequently, dealerships have been quick to add amenities in order to provide a comfortable stay. The highest rollout of amenities across dealers in 2016 are Internet access (+14%); valet parking (+12%); and free food (+9%). 

“For years, dealerships have been gradually adding amenities to improve satisfaction, but services that were previously niceties are now regarded as necessities,” said Srabani Bandyopadhyay, manager at JD Power. “Piling on more amenities may just create more strain on dealerships as they struggle to keep up with the raised bar.”

Following are additional key findings of the study:

• Service Advisors More Thorough in Their Explanations: Ninety-five percent of customers indicate that their service advisor was thorough in explaining the work that was to be performed on their vehicle, up from 82% last year. The percentage of customers who say their service advisor provided a thorough explanation on cost has increased to 79% in 2016 from 70% in 2015. Customers are increasingly expecting this as a basic requirement from their service advisor, as not fulfilling these two activities can lower satisfaction scores by 28 points and 6 points, respectively.
• Rise in the Cost of Servicing: The median price customers paid for their last service in Indonesia is IDR 650000, an 8% increase from 2015. 
• Cost of Overall Ownership Increases: The cost of ownership has increased 25% to IDR 1114 per km in 2016 from IDR 894 per km in 2015.
• Satisfied Customers Are More Loyal: Among customers who are highly satisfied with their dealer service (overall service satisfaction scores of 797 or higher), 65% say they “definitely would” revisit the same dealership for post-warranty service, compared with only 47% of those who are highly dissatisfied (scores of 737 or lower).   

Now in its 16th year, the study measures overall service satisfaction among owners who took their vehicle to an authorized service center by examining dealership performance in five factors (in order of importance): service quality (30%); service initiation (27%); service facility (15%); vehicle pick-up (15%); and service advisor (12%).

Study Rankings

Toyota ranks highest in overall service satisfaction among mass market brands, with a score of 769. Toyota performs particularly well in the service advisor, service facility and service quality factors. Nissan ranks second (767), followed closely by Mitsubishi (766) and Daihatsu (765).

The 2016 Indonesia CSI Study is based on responses from 3,041 vehicle owners who received delivery of their new vehicle between February 2014 and June 2015 and took their vehicle for service to an authorized dealer or service center between August 2015 and June 2016. The study was fielded from February through June 2016.

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

More Women Are Buying Cars in the Philippines But Their Satisfaction Is Dropping, JD Power Study Finds

2016-08-31

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SINGAPORE: 31 AUG. 2016 — As the purchasing power of women in the Philippines increases, women make up nearly half of the car-buying population, but their overall satisfaction with the sales experience is deteriorating, according to the JD Power 2016 Philippines Sales Satisfaction Index (SSI) Study,^SM released today.

The study finds that the proportion of women buying new vehicles has steadily increased in recent years to 45% in 2016 from 31% in 2013. While overall satisfaction among men and women is nearly the same, trends for women are on the decline (758 on a 1,000-point scale in 2016, down 7 points from 2015) while those for men are going the other direction (757 in 2016, up from 752). This should be a concern for automakers and dealerships, as more and more women are purchasing new vehicles.

The study also finds significant differences in the shopping behavior between women and men. Women rely more on recommendations from friends, relatives and other owners of the same make, while men tend to spend more time on the Internet researching performance features and technical specifications. Additionally, only 7% of women visit a dealership alone—the others are accompanied by a friend or family member—compared with 21% of men.

However, what is similar between the two genders is that the majority of both women (91%) and men (88%) say they knew the exact car model or make they wanted to purchase prior to visiting the dealership.

“As more women are buying cars in the Philippines, dealers have to understand that what may appeal to men in the shopping process may not resonate with women,” said Loïc Péan, senior manager at JD Power. “Satisfaction is critical since willingness to recommend and repurchase is more than double for customers who are highly satisfied.”

Further, the study finds that female salespeople are more effective in engaging with female customers, as they exhibit more empathy and concern for their needs. Satisfaction is higher among women who are served by female staff than among women served by male staff (777 vs. 754, respectively). 

“The problem at dealerships is that there are too few female employees on the showrooms to cope with the increasing number of female shoppers,” said Sigfred Doloroso, country manager at JD Power. “Female salespeople have the edge in making the emotional connection with women, as they help to make car shopping less intimidating for them.”

Now in its 16th year, the study examines six factors that contribute to overall customer satisfaction with the new-vehicle purchase experience. In order of importance, they are sales initiation (20%); delivery process (18%); delivery timing (18%); salesperson (17%); dealer facility (15%); and deal (12%). 

Overall satisfaction with the sales and delivery process is 758 in 2016. Satisfaction improves in sales initiation and delivery process—essentially due to significant improvements made by dealers in reducing the greeting and vehicle handover times—but decreases in each of the other factors. 

The following are additional key findings of the study:

• Dealer Website Usage Increases Dramatically: More than half (58%) of all new-vehicle buyers used the Internet to shop for their vehicle. Among them, 69% visited their dealer’s website, a 32 percentage point increase from 2015. In contrast, fewer customers have visited vehicle manufacturers’ official websites year over year (42% vs. 48%, respectively). The information most often sought by buyers is vehicle price (69%); vehicle features and accessories (43%); and dealer information (34%).
• Test Drives at Purchase Dealer Increase Significantly: The proportion of customers who took a test drive at their purchase dealer has increased to 64% in 2016 from 42% in 2015. However, the test drive is failing to impress customers, as only 7% of customers are delighted (providing a rating of 10 on a 10-point scale) with their experience in 2016, down from 19% in 2015.
• Customers Are Getting Better Deals, but Paperwork Problems Lower Satisfaction: More shoppers are negotiating their vehicle price, up to 92% in 2016 from 77% last year. Furthermore, 81% of them were successful in getting a cash discount. Additionally, the proportion of customers taking a car loan has increased to 84% from 76% year over year, further compounding the amount of paperwork involved and leading to lower satisfaction with the timeliness of completing the final paperwork process.
• Satisfied Customers Are More Loyal and Provide More Recommendations: Among highly satisfied customers (overall satisfaction scores of 834 and higher), 44% say they “definitely would” purchase the same brand of vehicle and 51% say they “definitely would” recommend the brand to family and friends. In contrast, among customers who are highly dissatisfied (scores of 708 and lower), only 21% say they “definitely would” repurchase the same brand and only 34% say they “definitely would” recommend the brand to others.

Study Rankings

Among the 11 mass market brands ranked in the study, Toyota ranks highest in new-vehicle sales satisfaction in the Philippines for a third consecutive year, with a score of 766. Toyota performs particularly well in the dealer facility, deal, salesperson and delivery process factors. Isuzu ranks second (763), followed by Kia in third (760).

The 2016 Philippines Sales Satisfaction Index (SSI) Study is based on responses from 1,679 new-vehicle owners who purchased their vehicles from August 2015 through April 2016. The study was fielded from February through June 2016.

Media Relations Contacts 

Xingti Liu; JD Power; Singapore; 65-6733 8980; [email protected] 

John Tews; JD Power; Troy, Michigan, USA; 001-248-680-6218; [email protected] 

About JD Power in the Asia Pacific Region 

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the Internet at asean-oceania.jdpower.com. 

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info 

 

Vehicle Buyers Primarily Focused on Price Are Less Satisfied, JD Power Study Finds

2016-09-14

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MELBOURNE: 20 Sept. 2016 — Almost a third (31%) of all new-vehicle buyers choose a dealer based on receiving the best deal or the lowest price, but in doing so, customers shortchange themselves by missing out on a rewarding sales experience, according to the inaugural JD Power Australia Sales Satisfaction Index (SSI) Study,^SM released today.

The study examines six factors that contribute to overall customer satisfaction with the new-vehicle purchase experience (in order of importance): salesperson (19%); deal (18%); delivery timing (17%); delivery process (17%); dealer facility (16%); and sales initiation (14%). Sales satisfaction is calculated on a 1,000-point scale.

There is significant disparity in satisfaction levels when examining different motivations behind customers’ choices of their dealer. Among customers who choose their dealer based on getting a good deal, overall satisfaction is 812, which is 5 points below industry average. Additionally, the study finds that 20% of all customers choose a dealer based on its proximity to their home or workplace. Satisfaction among these customers is only 788.

In contrast, satisfaction scores are higher when customers choose a dealer because they know someone there (853) or because the dealer has a good reputation (839).

“Customers who make the effort to find out more about their dealer stand to benefit from a better shopping experience,” said Mohit Arora, regional vice president at JD Power. “While it is important that customers receive a good deal from their dealer, the monetary savings they receive is momentary. It is far more gratifying for the customer to have the support of a reliable sales dealer in what may be the beginning of a long-term relationship—a relationship that also benefits the dealer, as the customer may recommend or even buy again from the same dealership in the future.”

The study also finds that even though six in 10 customers have already decided on the vehicle they want to buy, it is still beneficial for them to ask their salesperson to make comparisons with other models. More than half the time, salespeople do not proactively offer to make relevant comparisons if customers do not ask for it. Satisfaction is 30 points higher among customers who request this information from their salesperson than among those who do not (837 vs. 807, respectively).

“Customers in Australia conduct a massive amount of research while shopping, but they still need someone to help them through the information overload,” said Loi Truong, senior country manager at JD Power. “Salespeople who proactively offer model comparisons convey concern for their customers to purchase a vehicle best suited to their needs, thereby increasing their level of satisfaction with the shopping process.”

Following are additional findings of the 2016 study:

• Customers in Australia Are Information Gatherers: More than 8 in 10 (84%) customers indicate they check the internet during the shopping process. Nearly half (45%) of them indicate they search and verify information while at a dealership. However, even when armed with extensive research, customers rely on their salesperson’s recommendation, which improves satisfaction. Overall satisfaction is higher among customers who rely on their salesperson’s recommendation than among those who depend on websites (842 vs. 817, respectively).
• Customers Should Be Wary of Verbal Price Quotes: Satisfactionamong the 32% of customers receiving verbal price quotes from their salesperson is only 802, compared with 856 among those receiving quotes on a computer or tablet.
• Explanations of Vehicle Features at/after Delivery Are Critical: Nearly 15% of customers indicate they were not provided with explanations of their vehicle features either at or after vehicle delivery. Satisfaction among these customers is a significant 134 points lower than among those who were provided with explanations.
• Loyalty and Advocacy Linked to Sales Satisfaction: Among highly satisfied customers (overall satisfaction scores of 924 and higher), 83% say they “definitely would” purchase the same brand of vehicle and 88% say they “definitely would” recommend the brand to family and friends. In contrast, among customers who are highly dissatisfied (scores of 743 and lower), only 31% say they “definitely would” repurchase the same brand and recommend the brand to others.

Study Rankings

Among the 12 brands ranked in the study, Mazda ranks highest in new-vehicle sales satisfaction in Australia, with a score of 840. Mazda performs well in all factors, particularly in the delivery process factor. Hyundai and Honda are tied at second (832), followed by Toyota in fourth (825).

The 2016 Australia Sales Satisfaction Index (SSI) Study is based on responses from 2,477 new-vehicle owners who purchased their vehicles from September 2015 through June 2016. The study was fielded from March through June 2016.

Media Relations Contacts

Xingti Liu; JD Power; Singapore; 65-6733 8980; [email protected]

John Tews; JD Power; Troy, Michigan, USA; 001-248-680-6218; [email protected]

About JD Power in the Asia Pacific Region

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com.

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

After-Sales Service Satisfaction in Malaysia Remains Flat as Satisfaction with Service Advisors Declines, JD Power Study Finds

2016-07-27

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KUALA LUMPUR: 29 July 2016— Car owners intolerant of service advisors not tending to their needs personally and quickly at service centers can significantly lower customer satisfaction levels, according to the JD Power 2016 Malaysia Customer Service Index (CSI) Study^SM released today.

When a customer is greeted by someone other than the service advisor, satisfaction scores decline by as many as 26 points. Furthermore, when service advisors take 15 minutes or more to complete the process of vehicle handover (discussion of service work, vehicle inspection and paperwork), satisfaction scores decline by as many as 29 points. This year, the percentage of customers who completed the drop-off process in 14 minutes or less has declined to 58% from 67% in 2015.

The study, now in its 14th year, measures overall service satisfaction among owners who took their vehicle to an authorized service center by examining dealership performance in five factors (in order of importance): service quality (32%); service initiation (22%); vehicle pick-up (18%); service advisor (15%); and service facility (13%). Brand service performance is measured on a 1,000-point scale.

Overall customer service satisfaction averages 751 points this year, up 2 points from 2015.  While all factors have improved in the low single-digit figures, satisfaction with service advisors has declined by 1 point.

“The saying, ‘You only get one chance to make a good first impression,’ is a very accurate description of the customer-service advisor interaction,” said Rajaswaran Tharmalingam, the country head of Malaysia for JD Power. “With the stresses of modern living, Malaysian car owners are clearly more time-constrained and demand to complete this important but time-consuming errand in a hassle-free manner. Hence, it is critical for dealerships to ensure they have the right ratio of service advisors who exhibit high quality customer-handling skills to meet customers’ expectations.”

Additionally, customers expect to be personally managed by their service advisors at the end of the service experience. For example, when the task of locating and picking up the vehicle is delegated to someone else, or if no assistance is rendered, satisfaction levels drop to 734 points as opposed to 762 if the service advisor does it himself.

“From beginning to end, the service advisor is the person with whom customers want to interact,” Tharmalingam said. “Service centers are wise to recognize this and to equip their advisors the skills to deal effectively with customers.”

Study Rankings

Toyota ranks highest in overall service satisfaction among mass market brands, with a score of 763. Toyota performs particularly well in the service initiation, service advisor and service quality factors. Mazda ranks second with a score of 760 and Mitsubishi ranks third at 758.

Following are additional key findings of the study:

• Malaysian National Brands Show Improvement: Overall customer service among the Malaysian national brands within the mass market segment averages 747, up 5 points from 2015.
• Service Centers Sending More Service Reminders:  More customers indicated they received routine maintenance notification (41% vs. 30%) from the previous year. An increase of 4 percentage points (26% vs. 22%) was seen in customers’ specific service needs being discussed with the service center prior to taking the vehicle in.
• Longer Waiting Time for Service by Appointment: Customers waiting three or more days for an appointment (31% of respondents) average an overall satisfaction score of 743. Furthermore, the percentage of customers who waited three days or more has increased by 10 percentage points. Customers waiting two days or less for an appointment (69% of respondents) average an overall satisfaction score of 768.
• Delighted Customers Raise Loyalty and Advocacy: Among customers who are highly satisfied with their dealer service (overall satisfaction scores of 823 and above), 46% say they “definitely would” return to their dealer for post-warranty service and 50% “definitely would” recommend their dealer to friends and family. In contrast, among customers who are less satisfied (scores of 690 and below), only 15% say they “definitely would” return to the dealer for post-warranty service, and only 11% say they “definitely would” recommend the dealer to others.

About the Study

The 2016 Malaysia Customer Service Index Study is based on responses from 3,257 new-vehicle owners who purchased their mass market brand vehicle between February 2014 and May 2015 and took their vehicle for service to an authorized service center between August 2015 and May 2016. The study was fielded between February and May 2016.

Media Relations Contacts

XingTi Liu; JD Power; Singapore, 068811; 65-67338980; [email protected]

John Tews; JD Power; Troy, Michigan 48083 USA; 001-248-680-6218; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Australian Credit Card Issuers Battle for Customer Satisfaction

2016-07-13

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Melbourne: 14 July 2016 — Credit card issuers in Australia need to make their rewards programs more attractive for customers or else they may face a significant reduction in consumer spending, according to the JD Power 2016 Australia Credit Card Satisfaction Study^SM. And even as the Big 4 make small strides in improving their customer satisfaction scores, the other competitor banks outpace their improvement by a significant margin. The study also finds that American Express customers are the most satisfied with their cards.

However, while overall credit card satisfaction continues to improve, a large percentage of customers still report that their rewards program is either unattractive or only slightly attractive. Only one-fourth of cardholders say that the cards’ rewards program resonates with them. Furthermore, nearly one in five cardholders thought that the value of their rewards had declined in the last 12 months. This presents a double setback for card issuers as a lackluster rewards program not only depresses satisfaction scores but also has the effect of lowering monthly spend by as much as 300%.

“Clearly Australian customers are not getting enough from the loyalty and rewards programs offered by credit card issuers in Australia; or simply don’t know how to access the benefits or understand them,” said Dr. Gordon Shields, director at JD Power. “The overall decline in value of some programs should prompt consumers to look around for the best offerings in order not to squander the potential benefits they can get from cards.”

The most popular rewards amongst Australians are gift cards, airline tickets and cashback offers. Special events, hotel stays and donations are least preferred.

The study also reported an increase in cardholders (26%) actively using a bank app to track their credit card activities, up from 15% in 2015. On average, eight of 10 cardholders also are visiting their banks’ website to service their accounts.

“With the increasing use of digital channels, card issuers have a greater opportunity than ever to reach out to customers and inform them directly about the benefits attached to their cards,” said Loi Truong, senior country manager, “Issuers should personalise customers’ online experience as much as possible. Those that can effectively communicate the value of their products to customers will not only gain in terms of increased satisfaction, but more importantly, greater loyalty, spend and word-of-mouth.”

About the Study

This study, now in its second year, measures customer satisfaction with their credit card issuer by examining six key factors: interaction; credit card terms; billing and payment; benefits and services; rewards; and problem resolution. Satisfaction is calculated on a 1,000-point scale.

Study Rankings

American Express ranks highest in credit card satisfaction with an overall score of 755. American Express performs particularly well on the benefits and services; and rewards factors in the study.

Bendigo Bank, last year’s top-ranked issuer, ranks second with a score of 748, performing well in credit card terms; interaction; billing and payment while Coles follows at 737.

Additional Findings

• Cardholders spend an average of $1,311 each month on their primary card. However, cardholders who have an attractive rewards program, spend much more at an average of $2,036.
• Low recall of card benefits: Half of all cardholders cannot recall a single benefit that comes with their cards. Only a very small percentage (7%) can name seven or more benefits. The most commonly recalled benefits are travel insurance, fraud protection and annual fee waiver.
• Four main reasons for Australians making the jump: Amongst cardholders who have switched credit card issuers, the most often cited reasons are to avoid paying an annual fee (35%); a better rewards program (34%); lower interest rates (33%) and better benefits (32%).
• Delighted customers pay dividends: Sixty-three per cent of cardholders who are delighted with their card issuer (overall satisfaction of 900 or higher) say they “definitely would” recommend their card to a friend or colleague, compared with the study average of 17%.
• Cardholders are ignorant of the fine print: Nearly three-fourths of credit cardholders don’t fully understand the credit card terms on their cards. Foreign currency and transaction fees (30%); interest rates (22%) and balance transfer conditions (20%) are the most commonly cited areas in which they exhibit weak understanding.

The 2016 Australia Credit Card Satisfaction Study is based on responses from 3,825 credit card customers. Coverage includes 21 major credit card issuers, 13 of which are rank eligible, in the market with scores based on the cardholder’s primary card used. The study was fielded in May 2016.

Media Relations Contacts

Mark Detre, PPR +61 (03) 8643 1631; [email protected]

XingTi Liu; JD Power; Singapore; +65-6733 8980; [email protected]

John Tews; JD Power; Troy, Michigan USA; +1 248 680 6218; [email protected]

About JD Power and Advertising/Promotional Rules http://www.jdpower.com/about/index.htm

 

Satisfaction Levels Falls; Influx of Younger Car Buyers Creates New Challenges for Automotive Dealers, JD Power Study Finds

2016-07-22

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SINGAPORE: 29 July 2016 — The rapid pace of change in the Philippines automotive market – booming car sales and fast-changing consumer profiles – requires automakers and their dealers to scrutinize and refine their network strategies as satisfaction levels falls to the lowest levels since 2012, according to the JD Power 2016 Philippines Customer Service Index (CSI) Study^SM released today.

The study, now in its 16th year, measures new-vehicle owner satisfaction with the after-sales service process at an authorized service center by examining dealership performance in five factors (in order of importance, updated in 2016): service quality (29%); service initiation (26%); vehicle pick-up (17%); service facility (14%); and service advisor (14%). Brand service performance is measured on a 1,000-point scale, with a higher score indicating higher customer satisfaction.

Overall service satisfaction averages 822 points this year, down from 837 points in 2015 with declines recorded across all customer service factors. In particular, satisfaction with service facility suffers the greatest drop of 24 points year-on-year, indicating that the large influx of customers into the service centers is straining capacity.

“Despite more service reminders being sent to customers for routine maintenance, customers are not reciprocating by making appointments for their service visit,” said Loïc Pean, senior manager at JD Power. “We still see six in 10 walk-in customers and this exacerbates the capacity crunch at the dealerships. Dealerships have to be resolute to educate their customers to get into the habit of making appointments else it will be a formidable task for dealers to manage unscheduled workload and maximize throughput.”

Adding to the complexity of the business environment are the dramatic shifts in customer demographics. Nearly three-fourths (72%) of customers are first-time new-vehicle owners, up from 49% in 2015. The percentage of younger car owners (under 40 years) has also increased to 62% in 2016, compared with 52% in 2015. In addition, women constitute a larger proportion of new-vehicle owners this year at 43%, up from 31% last year.

“As these changes happen in a fairly short span of time, dealers need to continually stay a step ahead to anticipate the changes so as to effectively address the multi-faceted needs of the younger generation. Those who are successful in meeting customers’ expectations will reap the rewards of higher advocacy and loyalty,” said Sigfred Doloroso, country manager at JD Power.

Among customers who are highly satisfied with their dealer service (overall satisfaction scores of 870 and above), 59% say they “definitely would” return to their dealer for post-warranty service and 62% “definitely would” recommend their dealer to friends and family. In contrast, among customers who are less satisfied (scores of 774 and lower), only 44% say they “definitely would” return to the dealer for post-warranty service, and only 48% say they “definitely would” recommend the dealer to others.

Study Rankings

Among the 11 mass market brands ranked, Mazda performs highest for the first time since the study’s inception, with a CSI score of 845. Mazda performs particularly well in all five CSI factors. Honda ranks second (831), followed by Nissan in third(827).

Following are additional key findings of the study:

• Customers Are Waiting Longer at Every Service Juncture: The vehicle handover process time has increased by 5 minutes from 2015. Nearly half (49%) of customers say it took 4 hours or more to get their car serviced, up from 39% in 2015. Even the time taken to finish the paperwork and pick up the vehicle after service has increased, as 63% of customers say this process took more than 10 minutes, up from 49% in 2015.
• Service Initiation Is Critical to Overall Satisfaction: Service initiation gains in importance in the study and accounts for 26% of overall satisfaction, yet it is the lowest-scoring factor in the study.  Trying to arrange a service visit with ease is the main pain point for customers.
• Fewer Customers Are Contacted To Check If They Are Satisfied: Only one third (34%) of customers are contacted after service to check if the work was performed up to their satisfaction. The incidence rate of this follow-up work has come down significantly from last year (45%).

The 2016 Philippines Customer Service Index (CSI) Study is based on responses from 1,838 new-vehicle owners who purchased their vehicle between February 2014 and May 2015 and took their vehicle for service to an authorized dealer or service center between August 2015 and May 2016. The study was fielded between February and May 2016.

Media Relations Contacts

Xingti Liu; JD Power; Singapore; 65-6733 8980; [email protected]

John Tews; JD Power; Troy, Michigan, USA; 001-248-680-6218; [email protected]

About JD Power in the Asia Pacific Region

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the Internet at asean-oceania.jdpower.com.

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

After-Sales Customer Satisfaction Improves; Next Opportunity for Dealers Is to Strengthen Trusted Relationship with Customers, JD Power Study Finds

2016-07-26

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BANGKOK: 29 July 2016 — New-vehicle owner satisfaction with authorized after-sales service improves for a third consecutive year, but the quality of interaction with service advisors deteriorates, according to the JD Power 2016 Thailand Customer Service Index (CSI) Study,^SM released today.

The study, now in its 17th year, measures new-vehicle owner satisfaction with the after-sales service process at an authorized service center by examining dealership performance in five factors (in order of importance): service quality (29%); service initiation (26%); vehicle pick-up (18%); service advisor (15%); and service facility (12%). Brand service performance is measured on a 1,000-point scale, with a higher score indicating higher customer satisfaction.

Overall satisfaction with mass market brands averages 873 in 2016, up from 865 in 2015, with improvements in all factors examined in the study. Although overall satisfaction increases, the proportion of customers who indicate their service dealer staff was completely focused on them and their needs decreases to 81% in 2016 from 91% in 2015. Furthermore, the proportion of customers who say that their service advisor did not provide valuable advice increases to 19% from 10% in 2013, indicating that customers are increasingly challenging the credibility and expertise of service advisors.

As car sales in Thailand decline due to an economic slowdown, authorized dealers are focusing on increasing after-sales service revenue to ensure business viability. Dealers are adopting an aggressive multipronged approach to drive traffic to their service centers, such as sending more reminders and promoting express service; however, in doing so, service centre staff need to continue to focus on the importance of having quality conversations with their customers. The impact of service advisors not putting their customers at ease can depress satisfaction levels by as much as 69 points. 

“The majority of service customers are first-time car owners, so they need someone to assist them throughout the entire service experience,” said Siros Satrabhaya, country manager at JD Power. “Even as service staff exhibit remarkable efficiency in completing service in the shortest time possible, they need to strategize how to emotionally connect with their customers during that limited time span. Doing so can help build trust with the brand and increase customer retention rates both during pre- and post-warranty periods.”

Among customers who are highly satisfied with their dealer service (overall satisfaction scores of 921 and above), 48% indicate a strong intention to return to their dealer for post-warranty service and 85% “definitely would” recommend their dealer to friends and family. In contrast, among customers who are less satisfied (scores of 834 and lower), only 24% affirmed that they would return to the dealer for post-warranty service, and only 40% say they “definitely would” recommend the dealer to others.

Study Rankings

Honda and Toyota rank highest in a tie in overall customer service satisfaction among mass market brands, with a score of 882 each. Honda performs particularly well in the service quality factor. Toyota performs particularly well in service initiation and vehicle pick-up. Isuzu ranks third at 875, performing particularly well in the service advisor and dealer facility factors.

Additional Key Findings

• Service Reminders Effective in Boosting Appointments: Nearly three-fourths (73%) of  customers received a service reminder message or call in 2016, a 10 percentage point increase from 2015. Service reminders are mutually beneficial to dealers and customers: they help dealers better plan their workload and increase throughput and help customers enjoy quicker service. 
• Repeat Buyers Have a Better Service Experience Than First-Time Buyers: Nearly two-thirds (65%) of service customers are first-time new-vehicle buyers; however, satisfaction with their most recent service visit is higher among repeat buyers than among first-time buyers (882 vs. 869, respectively).
• Revisit Intentions Drop; Service Defection Increases: Revisit intentions during pre- and post-warranty periods are noticeably down. Customers who say they “definitely would” revisit the dealer for warranty service decreases to 67% in 2016 from 74% in 2015. Similarly, customers who say they “definitely would” revisit their dealer post-warranty has dropped to 38% from 57%. Furthermore, the proportion of customers who have defected to a non-authorized facility has increased to 7% in 2016 from 4% in 2015.

The 2016 Thailand Customer Service Index (CSI) Study is based on responses from 2,846 new-vehicle owners who purchased their vehicle between January 2014 and May 2015 and took their vehicle for service to an authorized dealer or service center between July 2015 and May 2016. The study was fielded from January through May 2016.

About JD Power in the Asia Pacific Region 

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the Internet at asean-oceania.jdpower.com.

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

 

Hong Kong Cardholders Lack Understanding of Cards’ T&Cs and Reward Programmes, JD Power Study Finds

2016-06-08

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Hong Kong: 14 June 2016 — Credit card customers in Hong Kong show financial discipline when using their cards, with 86% of cardholders indicating they pay off their credit card bills in full every month, according to the inaugural JD Power 2016 Hong Kong Credit Card Satisfaction Study^SM, released today.

Cardholders in Hong Kong are significantly more disciplined in terms of debt avoidance than their counterparts in the United States, where 57% of customers pay their credit card bills in full each month, Australia (56%) and Singapore (80%).              

Yet even as Hong Kong cardholders fare well in avoiding debt, their levels of understanding of credit card terms are contrastingly low. The study finds that nine in 10 cardholders say they do not fully understand their cards’ terms. Moreover, two-thirds of cardholders say they do not thoroughly understand the process of earning and redeeming credit card rewards, indicating wasted opportunities for cardholders to yield the maximum value from their cards.

The inaugural research, modelled after the established study that has been conducted for a decade in the United States, measures customer satisfaction with their primary credit card issuer by examining six key factors: interaction; credit card terms; billing and payment; rewards; benefits and services; and problem resolution. Satisfaction is calculated on a 1,000-point scale.

“Considering that card issuers in Hong Kong are vigorously promoting the advantages of their cards, it is disappointing to see that so few people know how to make the most of the rewards programme they have joined,” said Dr. Gordon Shields, director at JD Power. “That said, there is considerable incentive for banks to communicate with and inform their customers more effectively: those who are familiar with their cards’ terms and rewards programmes are significantly more satisfied with their card issuers; spend more money on them; and are more likely to recommend them to others.”

Overall, there is a 36-point gap in satisfaction between customers who fully understand their card terms (728) and those who do not (692). With respect to awareness of benefits attached to the card, there is an upswing in monthly spend of HK$2,168 amongst the 27% of cardholders who are aware of having seven or more benefits.

Study Rankings

American Express ranks highest in credit card satisfaction with an overall score of 745. American Express performs particularly well across all six factors in the study. DBS, a relatively new entrant into Hong Kong, ranks second with a score of 693, while HSBC follows closely at 691.

ADDITIONAL FINDINGS

• Most Consumers Hold Multiple Credit Cards: On average, Hong Kong cardholders have four credit cards, but have used just three of them in the past 12 months.
• Average Monthly Card Spend Just over HK$9,000: Cardholders spend on average of HK$5,469 each month on their primary card, and HK$9,055 across all of their cards.
• Preference Shown for Gift Cards/ Vouchers over Cashback Rewards: The most common rewards that can be redeemed by cardholders in Hong Kong are gift certificates/ cards/ vouchers (55%), cashback (47%), merchandise (22%) and airline tickets (22%).
• Rewards and Benefits Pivotal to Switching: Amongst cardholders who have switched credit card issuers, the most often cited reasons are for a better rewards programme (40%); better benefits (30%); and to get discounts and promotions from a retailer (22%).
• Delighted Customers Pay Dividends: Sixty-four per cent of cardholders who are delighted with their card issuer (overall satisfaction of  900 or higher) say they “definitely would” recommend their card to a friend or colleague, compared with the study average of 15%.

The 2016 Hong Kong Credit Card Satisfaction Study is based on responses from 2,878 credit card customers. Coverage includes 10 major credit card issuers, nine of which are rank eligible, in the market with scores based on the cardholder’s primary card used. The study was fielded in April and May 2016.

Media Relations Contacts

Wai Hoi Tsang; Ketchum, Hong Kong; +852 31418110; [email protected]

Crystal Tang; Ketchum, Hong Kong; +852 31418101; [email protected]

XingTi Liu; JD Power; Singapore; +65-67338980; [email protected]

John Tews; JD Power; Troy, Michigan USA; 001-248-680-6218; [email protected]

 About JD Power and Advertising/Promotional Rules http://www.jdpower.com/about/index.htm

 

Salesperson’s Knowledge and Care Are Increasingly Critical To Satisfaction Among New-Vehicle Buyers in Vietnam

2015-11-24

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SINGAPORE: 1 December 2015 — The relative importance of the salesperson in the overall purchase experience of new-vehicle buyers at authorized car dealerships in Vietnam has nearly doubled from 2014, according to the JD Power 2015 Vietnam Sales Satisfaction Index (SSI) Study,^SM released today. 

Now in its seventh year, the study has been redesigned in 2015 and examines six factors that contribute to overall customer satisfaction with their new-vehicle purchase experience in the mass market segment. Listed in order of their impact on overall sales satisfaction, these factors are salesperson (21%); delivery timing (18%); dealer facility (17 %); sales initiation (17%); delivery process (14%); and deal (14%). Sales satisfaction performance is reported as an index score based on a 1,000-point scale, with a higher score indicating higher satisfaction with the new-vehicle sales and delivery process. Due to the study redesign, the 2015 index scores are not directly comparable with 2014. Overall sales satisfaction for mass market brands averages 786 in 2015.

New-vehicle domestic sales in Vietnam grew by 52% in the first nine months of 2015 compared with the same period in 2014. The Vietnamese market is projected to reach 223,000 new-vehicle units sold by the end of the year, a record high for the country.[1]

Four in five (81%) new-vehicle owners in Vietnam are first-time buyers, with nearly all of them researching information online before visiting showrooms. New-vehicle buyers’ expectations are not being fully met, as satisfaction is notably lower among customers who request comparative data on competitor models than among those who do not make such a request (776 vs. 802, respectively). Nearly two-thirds (61%) of buyers ask their salesperson to compare their target vehicle with other competitor models while shopping at their purchase dealership. Satisfaction declines even more when the salesperson is unable to answer the buyer’s questions (768).

“As competition in Vietnam’s rapidly growing market intensifies, new-vehicle shoppers seek more product advice and personal attention from their salesperson when selecting a vehicle,” said Loïc Péan, senior manager at JD Power. “With numerous model launches and an increase in the number of shoppers researching vehicles online before visiting a dealer, the salesperson’s product knowledge is being put to the test as customers want pertinent model-by-model descriptions and comparisons. However, product knowledge isn’t enough to make a sale: the salesperson must convey their personal interest in the shopper to enhance the customer experience and ultimately drive sales.”

Price is no longer the main purchase differentiator as the deal has the lowest importance to customer satisfaction compared with other aspects of the purchase experience. However, the brand’s good  reputation is most frequently cited as the purchase decision factor for the brand (23%) and the dealer’s reputation is most cited for selection of the dealer (28%). 

“A skillful new car salesperson can provide a satisfying purchase experience for the customer and further the dealer’s good reputation by communicating the vehicle’s virtues in courteous and friendly way without placing too much sales pressure on the customer,” said Péan. “Satisfaction is where good word of mouth begins.”

KEY FINDINGS

• Internet Usage Increases Among New-Vehicle Shoppers: Internet usage among new-vehicle shoppers has increased to 99%—up by 21 percentage points from 2014—and 72% of new-vehicle shoppers indicate they used their phone or tablet to search/ verify information while at the dealership.
• Model Purchase Consideration: More than one-third (38%) of new-vehicle buyers seriously considered purchasing another model in 2015, which is 17 percentage points higher than in 2014.
• Social Media and Satisfaction: More than one-third (37%) of new-vehicle owners post to blogs, forums or social networking sites about their recent purchase experience, up by 15 percentage points from 2014. Satisfaction is higher among owners who share their feedback online than among those who do not (794 vs. 781, respectively), thereby rewarding high-performing dealers by helping them strengthen their reputation.

Study Rankings

Among the eight mass market brands ranked in the study, Toyota ranks highest in overall sales satisfaction with a score of 792. Toyota performs particularly well in the sales initiation and delivery timing factors.  Mazda (791) ranks second and performs well in the deal and delivery process factors. Honda (789) ranks third, performing well in the dealer facility, salesperson and delivery timing factors.

The 2015 Vietnam Sales Satisfaction Index (SSI) Study is based on responses from 1,290 new-vehicle owners who purchased their vehicle between September 2014 and July 2015. The study was fielded from April through July 2015.

Media Relations Contacts

Xingti Liu; JD Power; Singapore; Phone 65-6733 8980; [email protected]

John Tews; JD Power; Troy, Michigan, USA; 001-248-680-6218; [email protected]

About JD Power in the Asia Pacific Region

JD Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power and its products can be accessed through the Internet at asean-oceania.jdpower.com.

About JD Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

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