Category: Germany

Lack of Technology Commitment for Customer Service Proving Costly to Dealerships in Germany, JD Power Finds

2019-04-25

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MUNICH: 26 April 2019 — Forward-thinking dealers whose personnel use tablets during service inspections to show a menu of vehicle service options can boost customer loyalty and spend, according to the JD Power 2019 Germany Customer Service Index (CSI) Study,^SM released today.

On average, overall satisfaction is higher among dealers who use tablets in the service process, due in part to the transparency it creates for customers. For instance, when dealer personnel use a tablet in the service drive, overall satisfaction averages 812 (on a 1,000-point scale), 68 points higher than if a tablet isn’t used. More specifically, satisfaction with the vehicle pick-up is 74 points higher when a tablet is used (808 vs. 734, respectively).

“Customers respond to dealers using technology in a really positive way—and there’s a direct correlation to dealer profitability,” says Josh Halliburton, Vice President and Head of European Operations at JD Power. “Customers spend more when they believe their dealer is transparent about pricing and the work completed. Tablets can be instrumental to this transparency because they give customers confidence that the dealer is committed to a customer-first approach to servicing their vehicle.”

Slightly more than three-fourths (76%) of customers accepted additional work recommendations when the advisor knew their vehicle service history, and 78% accepted additional work when the dealer performed an assessment of components. Nearly three-fourths (71%) accepted additional work when the dealer provided an explanation of charges. However, the biggest driver to increased spend on additional work is when customers asked service personnel to explain the vehicle’s features or technology.

“When customers accept recommendations, they spend more than when no recommendations are made—typically €226 compared with average revenue of €178,” Halliburton said. “Despite what we see as a direct correlation among tablet use, satisfaction levels and increased spend, dealers are still slow to adopt technology to boost their business and win customer loyalty. For example, using a tablet when conducting inspections and showing a menu of service options are done only 22% and 14% of the time, respectively.”

Following are additional key findings of the 2019 study:

• Let the web take the strain: Younger customers have a stronger preference for internet scheduling, yet there has not been a significant increase in preference for internet scheduling among older generations during the past five years. There is a significant and relatively consistent gap between customers who prefer to book an appointment via the internet (14%) and actual internet scheduling (6%) behavior. Satisfaction is lowest among Gen Z¹ customers, and they are more likely to visit a non-dealer for service (44%) than Boomers (12%). Increasing internet scheduling would align more closely to Gen Z customer desires and bring their satisfaction closer to that of other generations.
   
• Phone calls lose favour: Not unexpectedly, younger customers increasingly want to be contacted via text message or messaging app. While 41% of customers under 25 still prefer to be contacted via telephone, 31% of them want to receive a text or message via an app. This gap has significantly narrowed to 10 points from a 30-point gap in 2017.
   
• Convenience is king: Dealers who take the strain out of servicing by offering a valet pick-up service achieve higher overall satisfaction scores than those who rely on customers dropping off their vehicle themselves. Service initiation satisfaction among customers who use a valet pick-up service is 48 points higher than when such a service is not used.
   
• Helpful advice in Germany lags behind UK and United States: Service customers in Germany are far less likely to say that their advisor provided helpful advice than service customers in the UK and the United States. Notably, just 66% of service customers in Germany indicate their advisor provided helpful advice, compared with 86% of customers in the UK and 88% in the United States, according to the JD Power 2019 UK Customer Service Index (CSI) Study^SM and the JD Power 2019 U.S. Customer Service Index (CSI) Study.^SM
   
• Key comparisons: In comparing metrics across nations, German dealerships lag behind U.S. and U.K dealerships in arrival responsiveness, with service advisors in Germany speaking to customers within two minutes of arrival 49% of the time compared with 70% in the United States and 62% in the UK. However, German dealerships fall short in terms of contacting their customers after service is completed (44% in Germany, 65% in the United States and 62% in the UK). Just 60% of customers in Germany say that paperwork is finished and their vehicle is retrieved in 10 minutes or less, compared with 91% in the United States.

Highest-Ranked Brands

Mercedes-Benz ranks highest among premium brands, with a score of 787. Among volume brands, Citroën and Toyota rank highest in a tie with a score of 798. Nissan (782) ranks third.

The Germany Customer Service Index (CSI) Study, now in its fifth year, measures customer satisfaction with their service experience at a franchised dealer facility for maintenance and repair work. The study 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%).

The study is based on data collected from 6,980 respondents who registered their new vehicle between November 2015 and January 2018. The study was fielded from November 2018 through January 2019.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Ricky Vazquez, RVi Communications; London; +44(0)7501 589612; [email protected]
Geno Effler, JD Power; 714-621-6224; [email protected]

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

¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.

 

Overall Dependability Rises in Germany but Buyers of German Brands Less Satisfied, JD Power Finds

2019-05-15

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MUNICH: 15 May 2019 — Vehicle brands in Germany are making notable strides in vehicle reliability, according to the JD Power 2019 Germany Vehicle Dependability Study,^SM released today.

The study, now in its fifth year, measures problems per 100 vehicles (PP100, in which a lower score indicates a higher performance) across 177 problem symptoms in eight categories: vehicle exterior; driving experience; features/controls/displays (FCD); audio/communication/entertainment/navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; and engine & transmission.

This year’s study shows lower PP100 scores across every category from 2018, the best overall industry performance in Germany since the study’s redesign in 2015, and outperforming the UK market for the first time. However, while the study shows increased overall dependability, some of Germany’s own brands are failing to live up to expectations. In fact, in this year’s rankings, all three German premium vehicle brands—Audi, BMW and Mercedes-Benz—languish below industry average.

“Vehicle buyers in Germany appear to be particularly loyal to German premium marques, but this will not last if the product experience does not hold up to the initial delight at the time of purchase,” said Josh Halliburton, Head of European Operations at JD Power. “Volvo—the leading premium marque—and most major volume brands rank well above the German brands. Audi, BMW and Mercedes-Benz need to improve the reliability and robustness of the premium features and materials before customers look elsewhere.”

The poor performance of these top German brands is despite the fact that owners of premium vehicles are more forgiving of quality issues than are owners of volume brands.

Following are key findings of the 2019 study:

• ACEN loses its way: ACEN problems increase by 2 PP100 for volume and premium brands, compared with 2015. At an industry level, just one ACEN problem has improved since 2015: audio system—broken/not working. In the premium segment, the main problem to worsen is navigation system—difficult to operate, while in the volume segment, the highest problem area to worsen is built-in voice recognition.
   
• The heat is on: HVAC problems have the greatest influence on APEAL satisfaction. APEAL (Automotive Performance, Execution and Layout) Index satisfaction scores among owners who experience HVAC problems is 72 points lower (on a 1,000-point scale) than among owners who experience no HVAC problems.
   
• Satisfaction—no guarantees: Despite experiencing fewer PP100 than owners in the UK, buyers in Germany are less satisfied with their vehicles. APEAL scores for both volume and premium segments in Germany are lower than those in the UK.
   
• More problems yet higher satisfaction: Owners of premium brands cite more problems than owners of volume brands—but have higher overall APEAL Index satisfaction—typically due to additional features and technology found in premium models. Satisfaction among owners of volume brands also declines at a faster rate than among owners of premium brands as quality issues are encountered.
   
• Familiarity breeds loyalty: More than one-third (35%) of owners say they have had a previous experience with the brand they purchased. These loyal customers have the advantage of familiarity with a vehicle’s systems, operations and features. The study reveals such owners cite 28 fewer PP100 across all categories.

Brand Rankings

Overall dependability is determined by the number of problems experienced per 100 vehicles, with a lower score reflecting higher quality. The top 11 brands for vehicle dependability are volume brands, with Mitsubishi ranking highest in overall vehicle dependability with a score of 85 PP100. Among volume brands, Škoda (88 PP100) ranks second and Hyundai (89 PP100) ranks third.

Volvo is the highest-ranking premium brand with 111 PP100, though it ranks 12th overall. German premium brands BMW (129 PP100), Mercedes-Benz (137 PP100) and Audi (142 PP100) rank 17th, 19th and 20th, respectively.

Another metric for dealers to consider is the Net Promoter Score® (NPS).1 Introduced with the study last year, it measures customers’ likelihood to recommend their vehicle model on a 0-10 scale. Customers are segmented into three groups: detractor (0-6), passive (7-8) or promoter (9-10). NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. The NPS score for the volume segment in this year’s study is 48 (58% promoters vs. 9% detractors). For the premium segment, it is 54 (63% promoters vs. 9% detractors).

The 2019 Germany Vehicle Dependability Study is based on responses from 12,854 owners of vehicles first registered between November 2015 and January 2018. The study, which measures problems experienced during the past 12 months by original owners of vehicles in Germany after 12-36 months of ownership was fielded from November 2018 through January 2019.

Additional study results are published in the AUTO TEST supplement to SPORT BILD, on newsstands May 22, and in the June 2019 issue of AUTO TEST – Der Kaufberater, on newsstands May 29.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

AUTO TEST is a member of the international AUTO BILD group published by Axel Springer. Since 2003, AUTO TEST has been the leading special magazine for readers who are planning to buy a new car. More than 500 cars are tested each year, with more than a million kilometers driven to provide readers with detailed and objective model reviews to help them choose the best car for their money. Readers can also find tips on cutting running costs, used car, service, finance and accessories.

Media Relations Contacts
Ricky Vazquez, RVi Communications; London; +44(0)7501 589612; [email protected]
Geno Effler, JD Power; 714-621-6224; [email protected]

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

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1Net Promoter® and NPS® are registered trademarks and Net Promoter SystemSM and Net Promoter ScoreSM are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld.

 

Word of Mouth Key to Attracting Younger Customers for Dealer Service, JD Power Finds

2018-06-26

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MUNICH: 27 June 2018 — Young vehicle owners are less likely than older owners to have a dealership to which they are loyal for service, so they often rely on recommendations from friends and family, according to the JD Power 2018 Germany Customer Service Index (CSI) Study.^SM  Additionally, overall satisfaction scores, which are based on a 1,000-point scale, improve 8 points from 2017.

“As word of mouth recommendations continue to grow in importance compared with personal experience, it’s crucial that automobile brands and dealerships provide highly satisfying experiences that turn customers into active promoters,” said Josh Halliburton, Vice President and Head of European Operations at JD Power. “Manufacturers and dealerships also need to understand the motivation of younger owners now in order to develop long-term loyalty.”

Following are some key findings of the 2018 study:

• Customer recommendations: Only 25% of “Generation Z”^[1] vehicle service customers indicate choosing their servicing dealer based on having prior experience with a service department, while 52% of “Boomers” say they chose their servicing dealer based on prior experience with a service department. However, “Generation Z” customers are more likely than “Boomers” to choose a servicing dealer based on a recommendation from a friend or relative (38% vs. 25%).

• Brand promoters are loyal customers: Customers who fall into the promoter category—customers who give a 9 or 10 on a 0-10 scale for likelihood to recommend their vehicle—are three times as likely to return to the dealer for service, and nearly five times as likely to repurchase the same brand of vehicle than detractors. Dealers that provide highly satisfying service experiences are likely to benefit from positive word of mouth, which is vital to attracting new, young customers and creating repeat customers for vehicle servicing and new-vehicle sales.

• Communication is time well spent: Customers derive good value from having their service and charges explained to them. Among customers who spend 11-15 minutes to finish their paperwork and receive an explanation of the work, vehicle pick-up satisfaction averages 773. Among customers who spend 0-5 minutes to finish their paperwork but receive no explanation, satisfaction averages 753.

Satisfaction and Brand Rankings

BMW ranks highest among premium brands, with a score of 787, a 29-point improvement from 2017. Mercedes-Benz (781) ranks second and Audi (770) ranks third.

Peugeot ranks highest among volume brands with a score of 797, a 36-point improvement from 2017. Citroën ranks second (789) and Nissan (779) ranks third.

The Germany Customer Service Index Study, now in its fourth year, measures customer satisfaction with their service experience at a franchised dealer facility for maintenance and repair work. The study 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%).

The study is based on data collected from 8,732 respondents who registered their new vehicle between February 2015 and April 2017. The study was fielded in February-April 2018.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Dr. Thomas Grethlein; Agentur Freundeskreis; Nuremberg, Germany; +49-911-8946-7777; [email protected]
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]

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

 

Vehicle Owners in Germany Cite More Problems with Premium Vehicles than Volume Vehicles, JD Power Finds

2018-07-16

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MUNICH: 17 July 2018 — Despite identifying more problems with their premium vehicles during the first three years of ownership than owners of volume vehicles, premium vehicle owners in Germany are more likely to repurchase the same brand of vehicle, according to the JD Power 2018 Germany Vehicle Dependability Study^SM (VDS).

The study, now in its fourth year, measures problems experienced during the past 12 months by original owners of vehicles in Germany after 1-3 years of ownership. The study examines 177 problem symptoms across eight categories: vehicle exterior; driving experience; features/controls/displays (FCD); audio/communication/entertainment/navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; and engine and transmission. Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

“Owners are a bit more tolerant of new-technology issues than traditional vehicle problems, and the result is a less-negative effect on satisfaction and brand loyalty,” said Josh Halliburton, Vice President and Head of European Operations at JD Power. “However, as new technologies become more commonplace, the tolerance for these kinds of issues will decline. Manufacturers should get in front of this and solve customer complaints early on to avoid a decline in satisfaction and loyalty.”

While they may experience more problems, premium owners tend to be more forgiving than volume owners and are more likely to purchase the same brand in the future. However, as manufacturers continue to develop new features and technology, they need to consider and address what owners perceive as issues.”

A new metric for the 2018 Germany VDS is the Net Promoter Score^® (NPS),[1] which measures customers’ likelihood to recommend both their vehicle make and model on a 0-10 scale. Customers are segmented into three groups: detractor (0-6), passive (7-8) or promoter (9-10). NPS is calculated by subtracting the percentage of detractors from the percentage of promoters.

Following are some key findings of the 2018 study:

• Excessive fuel consumption causes low satisfaction: Owners who report experiencing excessive fuel consumption are the least satisfied owners in the study. Only 20% of owners citing this problem say they “definitely will” repurchase the same brand again. Owners rate any problems they experience on a severity scale of 1 to 5, with 5 being the most severe. Excessive fuel consumption is the highest-rated severity problem (4.0). The problems with the highest severity tend to be issues that are dangerous or costly to repair, both of which create stress for owners.

• Engine and transmission problems among the most severe: Seven of the 10 highest-rated problems for severity are in the engine and transmission category. While no category increases in PP100 from 2017, engine/transmission decreases by 1.5 PP100, which is the second-lowest decline in the number of problems among all categories. Engine/Transmission problems comprise 5% more of the total problems reported for volume brands than premium brands.

• Majority of owners are promoters of their vehicle brand and model: Vehicle satisfaction among owners who are promoters of their specific model is 185 points (on a 1,000-point scale) higher than among those who are detractors. While the NPS for owners of premium brands is higher than for volume brands, both are significantly affected by the total number of problems experienced. There is a steady decline in the NPS after the first problem is experienced and a very steep decline among both premium and volume owners when three or more problems are experienced.

• Brand loyalty affected by high problems and low satisfaction: Low quality scores reduce the likelihood to purchase the same brand by 39% between owners who experience no problems and those who experience three or more problems. Owners citing even one problem trend 4% below the 51% study average of owners who say they “definitely will” repurchase the same brand. When APEAL Index scores drop below 500 points, repurchase intent decreases to 7%. Brands that achieve higher satisfaction and fewer problems can reap the benefits of greater brand retention than those that do not.

The industry average for vehicle dependability is 133 PP100, an improvement from 151 PP100 in 2017. The improvement is due to problem score reductions in all eight categories, particularly in vehicle exterior and features/controls/displays.

Study Rankings

Toyota ranks highest in vehicle dependability among all brands, with a score of 101 PP100. SEAT and Volvo rank second in a tie, with 103 PP100, followed by Škoda with 104 PP100 and Hyundai with 105 PP100. Volvo is the highest-ranked premium brand.

Mercedes-Benz has two models (E-Class and CLA) that receive segment awards. Audi Q5, Ford C-MAX/Grand C-MAX, Mazda Mazda3, Opel Adam and Toyota Yaris each receive a segment award.

The 2018 Germany Vehicle Dependability Study is based on responses from 14,292 owners of vehicles first registered between February 2015 and April 2017. The study was fielded from February through April 2018.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Additional study results are published in the AUTO TEST supplement to SPORT BILD, on newsstands on July 18, and in the August 2018 issue of AUTO TEST – Der Kaufberater, on newsstands July 25.

Media Relations Contacts
Mark Lendrich; JD Power; Munich, Germany; Tel: +49 (0)89-288 03 66-11; [email protected]
Tobias Franzke; AUTO TEST; Tel: +49 (0)9122 63 13 100; [email protected]
Geno Effler; JD Power; Costa Mesa, Calif., USA; +1 714-621-6224; [email protected]

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

About AUTO TEST
AUTO TEST is a member of the international AUTO BILD group published by Axel Springer. Since 2003, AUTO TEST has been the leading special interest magazine for readers who are planning to buy a new car. More than 500 cars are tested each year, with over a million kilometers driven to provide readers with detailed and objective model reviews to help them choose the best car for their money. Readers can also find tips on cutting running costs, used cars, service, finance and accessories.

 

Technology-Related Problems Limit Improvement Gains in Germany Vehicle Dependability Study

2016-07-19

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MUNICH: 20 July 2016 — A decline inengine/transmission and interior problems is helping drive a slight improvement in vehicle dependability in Germany, according to the JD Power 2016 Germany Vehicle Dependability Study^SM (VDS), released today in association with AUTO TEST.

The study measures problems experienced during the past 12 months by original owners of vehicles in Germany after 12-36 months of ownership. The study examines 177 problem symptoms across eight categories: engine and transmission; vehicle exterior; driving experience; features/controls/displays (FCD); audio/communication/entertainment/navigation (ACEN); seats; heating, ventilation and cooling (HVAC); and vehicle interior.  Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

The overall industry average is 127 PP100, down from 129 PP100 in 2015. The improvement is due in large part to a 2 PP100 decrease each in the engine/transmission and interior categories. On the other hand, four of the six most frequently reported problems are related to ACEN—the most prevalent of which pertain to Bluetooth connectivity and radio reception—with the problem count in this category as a whole 0.5 PP100 worse than last year.

“Automakers are focused on the quality of their vehicles, so it’s encouraging to see a modest improvement in dependability,” said Dr. Axel Sprenger, senior director of European automotive operations at JD Power. “The increase in technology-related ACEN problems has two sources: usability problems that owners are reporting and the fact that market penetration as well as usage rates of these features are increasing. We expect technology in vehicles to continue to expand, making this a key area of concentration for auto manufacturers.” 

Sprenger noted that dependability is critical, not only in helping automakers manage warranty costs, but also in fostering customer loyalty and advocacy.

“Dependability has a direct impact on purchase decisions and brand loyalty,” said Sprenger. “Customers in Germany expect their vehicle to be problem-free, not only in the first 90 days, but also during the first three years of ownership. When owners experience even a single problem with their vehicle, this can be the initiation of losing confidence in the vehicle and the brand.”

Among owners who experience no problems with their vehicle, 55% say they “definitely will” purchase/lease the same make again and 68% say they “definitely will” recommend the make/model to others. In contrast, among owners who experience one problem with their vehicle, only 46% say they “definitely will” purchase/lease the same make again and 60% “definitely will” recommend the make/model to others. Intended loyalty and advocacy continue to decline with each additional problem. Among customers who experience five or more problems with their vehicle, loyalty drops to 28% and advocacy drops to 32%.

Not All Problems Are Created Equal

When customers take their vehicle to a dealership to address the problems they experience, there is a wide discrepancy in the ability of dealers to fix these issues based on the problem being serviced. The VDS measures both defect and design problems. Defect problems are things that break or do not work as expected, while design problems are those that work as engineered but do not meet the owner’s expectations. Defects, such as a light bulb or battery failure, can usually be fixed at a dealership. However, design problems, which include excessive wind noise and most ACEN problems, are often difficult, if not impossible, for a dealer to fix, and thus remain throughout the life of the vehicle.

“This illustrates the critical nature of ACEN problems, as there is little that can be done to correct them. And getting closer to the decision to replace their car, customers continue to struggle with these issues,” said Sprenger.

Rankings

Škoda has two models (Fabia and Superb) that receive segment awards, each for a second consecutive year. Opel (Adam), Kia (Sportage) and Toyota (Auris) each receive one award.

Mitsubishi ranks highest with a score of 77 PP100. Peugeot ranks second with 92 PP100, followed by Škoda with 95 PP100; Volvo with 96 PP100; and SEAT with 99 PP100.

The 2016 Germany Vehicle Dependability Study is based on responses from more than 15,000 owners of 2013-2015 model-year vehicles. The study was fielded from February through April 2016. 

Additional study results are published exclusively in the 5/2016 issue of “AUTO TEST – Der Kaufberater, which will be on sale beginning July 27, 2016.

Media Relations Contacts

Mark Lendrich; JD Power; Munich, Germany; Tel: +49 (0)89-288 03 66-11; [email protected]

Tobias Franzke; AUTO TEST; Tel: +49 (0)9122 63 13 100; [email protected]

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

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

About AUTO TEST

AUTO TEST is a member of the international AUTO BILD group published by Axel Springer. Since 2003, AUTO TEST has been the leading special interest magazine for readers who are planning to buy a new car. More than 500 cars are tested each year, with over a million kilometers driven to provide readers with detailed and objective model reviews to help them choose the best car for their money. Readers can also find tips on cutting running costs, used cars, service, finance and accessories. 

 

Vehicle Dealer Service Drives Customer Loyalty, JD Power Study Finds

2016-06-20

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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 JD 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 JD 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 http://www.jdpower.com/press-releases/2016-germany-customer-service-index-csi-study.

Media Relations Contacts

Patricia Kneis; Edelman GmbH; München; +49-(0)89-41 301-822; [email protected]

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

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

 

Mercedes-Benz Ranks Highest in Customer Satisfaction among Premium Brands and Mazda Ranks Highest among Volume Brands in Inaugural Germany Study by JD Power

2015-09-15

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MUNICH: 16 September 2015 — Mercedes-Benz ranks highest among premium brands and Mazda ranks highest among volume brands in customer satisfaction with vehicle service, according to the inaugural JD Power 2015 Germany Customer Service Index (CSI) Study^SM released today.

The CSI Study—conducted by JD Power in 16 countries worldwide—delivers a comprehensive analysis of the service experience among customers who take their vehicle to a franchised dealer facility for maintenance and repair work.

The 2015 Germany CSI Study 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.

Mercedes-Benz ranks highest in satisfaction among premium brands with a score of 770. Mazda (781) ranks highest in satisfaction among volume brands, followed by Toyota (775) and Nissan (765).

Maintenance comprises the majority of dealer service work, with the most common work performed being oil changes (47%), tire maintenance (28%), brake work (19%) and other scheduled maintenance (18%). In general, satisfaction is higher with maintenance work than with repair work. 

“Customers expect to take their vehicle in for routine maintenance, but having to make an unexpected repair can negatively impact satisfaction with their vehicle overall,” said Dr. Axel Sprenger, senior director of European automotive operations at JD Power. “Dealers can mitigate customer dissatisfaction and increase the odds of retaining that customer for their next vehicle purchase by delivering a highly satisfying service experience.”

The service advisor is critical to satisfaction, and delivering on such key service activities as knowing the vehicle’s service history, keeping the customer informed of the status of the maintenance or repair work and providing helpful advice all contributing to a positive service visit.

Although only 29 percent of service advisors recommend additional service work to their customers, when they do, 64 percent of customers have the recommended work done. Satisfaction is substantially higher among customers who accept the additional service work recommended by their advisor, compared with those who do not have the recommended work done (752 vs. 694, respectively).

On average, customers who accept additional work on their vehicle spend €380 on their service visit, compared with €236 among those who do not receive additional work recommendations. 

Satisfaction and Loyalty

Satisfaction with dealer service leads to customer loyalty and advocacy. Among the 15 percent of customers who are highly satisfied with their dealer service (overall satisfaction scores of 900 and above), 76 percent say they “definitely will” purchase their next vehicle from that dealer and 83 percent say they “definitely will” recommend the dealer to friends and family.

“Providing a positive service experience not only increases dealer revenue, there is a distinct correlation between satisfaction and loyalty and advocacy,” said Dr. Sprenger. “When customers recommend a dealership it is more influential and impactful—not to mention less expensive—than promotions and advertising.”

The study finds that 13 percent of customers select a dealer for service based on recommendations from family or friends. Conversely, promotions/coupons (2%), newspaper advertising (1%), radio advertising (1%) and television advertising (1%) have much less influence on selection of a dealer for service. 

KEY FINDINGS

• ŸWhile 14 percent of customers indicate they prefer to schedule a service appointment over the Internet, only 4 percent actually do. The Internet as a method to schedule an appointment is expected to increase with the emergence of mobile apps, which make the process faster and easier.
• ŸThe most frequent reason for choosing a dealer for service is prior experience with the service department (42%), followed by location (39%) and prior experience with the sales department (35%).
• Among customers who stay at the dealership while their vehicle is serviced, the average reported wait time is 1.4 hours.
• ŸWhile 47 percent of dealerships provide newspapers and current magazines in the customer waiting area, only 15 percent offer wireless Internet access and only 9 percent have a workspace to plug in computers.

The 2015 Germany Customer Service Index (CSI) Study is based on 9,430 online evaluations by vehicle owners in Germany whose vehicles were originally registered new between April 2012 and March 2014. The survey was fielded in Germany from April 2015 through June 2015.

This annual JD Power study provides consumers with information to help them make purchase decisions about vehicle models sold in Germany, and helps manufacturers understand the factors that drive high levels of satisfaction among their customers.

Media Relations Contacts

Patricia Kneis, Edelman GmbH; München; +49-(0)89-41 301-822; [email protected]

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

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

About McGraw Hill Financial www.mhfi.com

 

Mazda Ranks Highest in Vehicle Dependability in Inaugural Germany Study By JD Power in Association with AUTO TEST

2015-09-15

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MUNICH: 16 September 2015 — Mazda ranks highest in vehicle dependability among all nameplates in Germany, according to the JD Power 2015 Germany Vehicle Dependability Study^SM (VDS) released today in association with AUTO TEST.

The study measures problems experienced during the past 12 months by original owners of vehicles in Germany after 12-36 months of ownership. The study examines 177 problem symptoms across eight categories: engine and transmission; vehicle exterior; driving experience; features/controls/displays; audio/communication/entertainment/navigation (ACEN); seats; heating, ventilation and cooling (HVAC); and vehicle interior. Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

Mazda ranks highest with a score of 87 PP100. Mitsubishi ranks second with 90 PP100, followed by Škoda with 93 PP100; Dacia with 96 PP100; and Toyota with 98 PP100. The overall industry average is 129 PP100. Porsche, which ranks ninth (106 PP100), and Volvo, which ranks 11^th (112 PP100), are the only premium brands to rank above industry average.

Three of the top five problems in the industry are related to technology in the ACEN category. The most frequently reported ACEN problem is the navigation system being inaccurate, followed by built-in Bluetooth mobile phone/device frequent pairing/connectivity issues and poor or no radio reception.

“As we’ve seen in studies in the UK, the United States and other markets, vehicle owners’ expectations of advanced technology capabilities are growing,” said Dr. Axel Sprenger, senior director of European automotive operations at JD Power. “When they have a problem with the technology—and the definition of dependability is increasingly influenced by usability—owners are disappointed.”

Highest-Ranked Models

Škoda has two models (Fabia and Superb) that receive segment awards. BMW (X1), Mazda (MAZDA3) and Volkswagen (Up!) each receive one award.

KEY FINDINGS

• Volume brands fare better than premium for dependability; the overall average score among premium nameplates is 147 PP100, which is 26 PP100 more than the volume average of 121 PP100.
• Overall, the most frequently reported problems are in the exterior category (22.2 PP100), followed by interior (20.7 PP100) and features/controls/displays (18.9 PP100).
• In addition to reporting problems experienced with their 1- to 3-year-old vehicles, owners also rate the severity of each problem they experience. The scale for problem severity ranges from 1 (very minor problem) to 5 (very serious problem). Eight of the 10 most severe problems are in the engine/transmission category. These severe problems have a negative impact to intended loyalty. For example, among owners who experience a problem in which their “engine doesn’t start at all,” only 34 percent say they “definitely will” purchase the same brand of vehicle, compared with 49 percent among owners those who do not experience the problem.
• Among owners who experience most of these problems, less than 80 percent—depending on the problem—take their vehicle to their dealer to service the problem. For example, only 71 percent of owners who report that their engine “doesn’t start at all” take their vehicle to the dealer for service to address the problem. OEMs could work on improving the percent of people who visit dealerships to address these problems. 

The 2015 Germany Vehicle Dependability Study is based on 14,605 respondents who purchased their vehicle between April 2012 and March 2014. The study was fielded April through June 2015.  The Germany VDS, along with the JD Power 2015 Germany Customer Service Index (CSI) Study,^SM replace the JD Power Germany Vehicle Ownership Satisfaction Study^SM (VOSS), providing deeper and more detailed insights into vehicle dependability and after-sales solutions for automakers, suppliers and dealerships. 

Additional study results are published exclusively in the October issue of AUTO TEST, which will be on sale beginning on September 30, 2015.

Media Relations Contacts

Mark Lendrich; JD Power; Munich, Germany Tel: +49 (0)89-288 03 66-11; [email protected]

Tobias Franzke; AUTO TEST; Tel: +49 (0)9122 63 13 100; [email protected]

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

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

About McGraw Hill Financial www.mhfi.com 

About AUTO TEST

AUTO TEST is a member of the international AUTO BILD group published by Axel Springer. Since 2003, AUTO TEST has been the leading special interest magazine for readers who are planning to buy a new car. More than 500 cars are tested each year, with more than 1.8 million kilometers driven to provide readers with detailed and objective model reviews to help them choose the best car for their money. Readers can also find tips on cutting running costs, used cars, service, finance and accessories.

 

Volvo Ranks Highest in Customer Satisfaction Among Premium Brands, Honda Ranks Highest Among Volume Brands in Inaugural UK Study

2015-08-10

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MUNICH: 12 August 2015— Volvo ranks highest among premium brands and Honda ranks highestamong volume brandsin UK customer satisfaction with vehicle service, according to the JD Power 2015 UK Customer Service Index (CSI) Study^SM released today.

The inaugural study measures UK customer satisfaction with their service experience at a franchised dealer facility for maintenance and repair work. The study 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 (17%); and service facility (16%). Satisfaction is calculated on a 1,000-point scale.

The CSI Study is a comprehensive analysis of the vehicle service experience and is conducted by JD Power in 16 countries worldwide, providing detailed after-sales solutions for automakers and dealerships. 

Volvo ranks highest among premium brands in satisfaction with a score of 779. Volvo is followed by Land Rover (767) and Audi (762). Honda ranks highest among volume brands in satisfaction with a score of 768.  Suzuki and Toyota rank second in a tie (759 each), and Kia and Skoda rank fourth in a tie (758 each).

“The common perception is that the luxury brands are able to deliver a more satisfying customer experience, but the study shows this is not the case,” said Dr. Axel Sprenger, senior director of European automotive operations at JD Power. “Any brand and any dealership can provide a consistently positive customer experience if they make it a priority and have the people and processes in place.  When they do, they likely will see an increase in revenue and will be able to build customer loyalty.”

The 2015 UK CSI Study finds that satisfaction with dealer service leads to customer loyalty and advocacy. Among the 20 percent of customers who are highly satisfied with their dealer service (overall satisfaction scores of 900 and above), 78 percent say they “definitely will” purchase their next vehicle from that dealer and 85 percent “definitely will” recommend the dealer to friends and family. In contrast, among customers less satisfied (scores of 700-899), only 36 percent indicate an intention to purchase their next vehicle from that dealer, and only 42 percent say they “definitely will” recommend the dealer to others.

KEY FINDINGS

• ŸSatisfaction among the 93 percent of customers who are able to get an appointment on the day they desire averages 768, compared with 576 when an appointment is not available on their desired day.
• ŸWhile 25 percent of customers would prefer to schedule a service appointment over the Internet, only 15 percent actually do. The Internet as a method to schedule an appointment is expected to increase with the emergence of mobile apps, which make the process faster and easier.
• ŸThe No. 1 reason for choosing a dealer for service is prior experience with the service department (35%), followed by location (34%) and prior experience with the sales department (32%). Fewer than 3 percent of customers indicate selecting their service facility due to advertising or promotions/coupons.
• ŸThough only 31 percent of dealers recommend additional service work to their customers, when they do, 62 percent of customers have the recommended work done. Satisfaction is substantially higher among the 78 percent of customers who are recommended service and have it done, compared with those who do not have the recommended work done (760 vs. 693, respectively).
• ŸOn average, customers who accept additional work on their vehicle spend £347 on their service visit, compared with £189 among those who do not receive additional work recommendations.  
• ŸAmenities offered at the dealership are key drivers of satisfaction with the service facility, as 24 percent of customers stay at the dealership while service is performed on their vehicle.

 The 2015 UK Customer Service Index Study is based on 9,091 respondents who purchased their new vehicle between April 2012 and March 2014. The study was fielded between March and May 2015.

Media Relations Contacts

Joshua Leigh; Edelman; London; +44 (0)203 047 2259; [email protected]

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

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

About McGraw Hill Financial www.mhfi.com

 

JD Power and AUTO TEST Reports: Reliability, Durability and Safety Drive the Purchase Decision among New-Vehicle Owners in Germany

2014-05-28

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MUNICH: 29 May 2014 — New-vehicle owners in Germany most frequently cite reliability/durability (56%), “the deal” (48%) and safety (46%) as having the most influence on their purchase decision, according to the JD Power 2014 Germany Vehicle Ownership Satisfaction Study^SM (VOSS) released today in association with AUTO TEST.

The 2014 Germany VOSS examines owner satisfaction with 1- to 3-year-old vehicles based on evaluations of four key measures that comprise the overall ownership experience (in order of importance): vehicle appeal (27%), which includes performance, design, comfort and features; ownership costs (25%), which includes fuel consumption, insurance and cost of service/repairs; vehicle quality and reliability (24%); and service satisfaction (23%).

“With nearly 10 million light vehicles sold in Germany during the past three years, the German market remains among the top 10 largest vehicle markets in the world. As a result, it’s vital for automakers to understand the most important factors that are driving vehicle owners’ choice of vehicle,” said Dr. Axel Sprenger, head of European operations for JD Power. “Both manufacturers’ engineering and marketing departments and dealers may want to pay special attention to these Voice of the Customer insights to help shape their vehicle development and promotion messages as well as to improve customer loyalty.”

STUDY RANKINGS

Porsche ranks highest in 2014 with a score of 835 on a 1,000-point scale, performing particularly well in quality and reliability and vehicle appeal. Toyota and Volvo rank second in a tie (818 each), followed by Mercedes-Benz (811).

Among the nine model-level segment awards, Toyota and Volkswagen both receive two awards, while Kia, Mercedes-Benz, Opel, Seat and Volvo each receive one award.

The Toyota Avensis, which ranks highest in the mid-size segment, achieves the highest score among all models in the study, with a score of 848.  

KEY FINDINGS

• The most common reason cited by vehicle owners in Germany for not returning to their selling dealer is that the dealer is not conveniently located—owners purchase their vehicles where they can get the best deal, which is not necessarily the dealership closest to their home.
• The average number of dealership service visits made by vehicle owners decreases slightly to 1.7 per year, while visits to other service facilities increase to .9 per year. Thus, dealers are capturing only 65% of the service visits from these vehicle owners.
• Service satisfaction is below 600 points among vehicle owners who spend an average of 390 euros on dealer service and an additional 202 euros on service at other facilities. Consequently, only 8 percent of these owners say they “definitely will” return for paid service.
• The overall percentage of vehicle owners in Germany who use the Internet to shop for their vehicle has increased to 72 percent in 2014, up from 70 percent in 2013, with the largest year-over-year increase among owners who are 65 years and older (62% vs. 56%, respectively).
• Although the majority (94%) of Internet shoppers in Germany continue to use traditional desktop and laptop computers, the percentage has declined slightly from 2013 (96%), while the percentages of shoppers who use smartphones (25% in 2014 vs. 22% in 2013) and tablet devices (21% in 2014 vs. 14% in 2013) have increased year over year. 
• Nearly half (41%) of 18- to 24-year-old new-vehicle shoppers use their smartphone when shopping for a vehicle via the Internet, compared with only 8 percent of those who are 65 years and older.

 The 2014 Germany Vehicle Ownership Satisfaction Study is based on 18,288 online evaluations by vehicle owners in Germany whose vehicles were originally registered new between January 2011 and December 2012. The survey was fielded in Germany from December 2013 through February 2014.

This annual JD Power study provides consumers with information to help them make purchase decisions about vehicle models sold in Germany, and helps manufacturers understand the factors that drive high levels of satisfaction among their customers. Additional study results are published exclusively in the June issue of AUTO TEST, which will be on sale beginning on May 30, 2014.

Media Relations Contacts

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

Mark Lendrich; JD Power; Munich, Germany Tel: +49 0-89-288 03 66-11; [email protected]

Tobias Franzke; AUTO TEST; Tel: +49 0-9122 63 13 100; [email protected]

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

About McGraw Hill Financial www.mhfi.com 

About AUTO TEST

AUTO TEST is a member of the international AUTO BILD group published by Axel Springer. Since 2003, AUTO TEST has been the leading special interest magazine for readers who are planning to buy a new car. More than 500 cars are tested each year, with more than 1.8 million kilometers driven to provide readers with detailed and objective model reviews to help them choose the best car for their money. Readers can also find tips on cutting running costs, used cars, service, finance and accessories.

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