Category: Germany|United States

Service Advisors, Amenities Prove Critical in Driving Customer Satisfaction, JD Power Finds

2017-06-27

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MUNICH: 28 June 2017 — Dealers who communicate with customers before, during and after vehicle servicing are more likely to generate repeat business, according to the JD Power 2017 Germany Customer Service Index (CSI) Study,^SM released today.

“Vehicles are an expensive investment, so consumers want to be sure they can trust the person who is servicing their vehicle,” said Dr. Axel Sprenger, managing director of JD Power Europe. “Service advisors who communicate with the customer about the work being done—and follow up after the visit to make sure the work was completed satisfactorily—are building a trusting relationship. If the customer has a positive experience, they’ll recommend the facility to family and friends.”

Among highly satisfied customers (overall satisfaction scores of 900 or higher on a 1,000-point scale), 79% say they “definitely will” recommend the service facility to family, friends and co-workers, and 72% say they “definitely will” purchase or lease a vehicle from the dealership that recently serviced their vehicle. When satisfaction declines (700-899), intended loyalty slips to 43% for recommendations and 38% for purchase loyalty.

Following are some of the study’s key findings:

• Traditional amenities help drive satisfaction: Offering complimentary snacks and beverages significantly increases service facility satisfaction (+83 points), as does providing access to a coffee shop (+67 points) and providing a television (+53 points).
• Digital service and infrastructure can generate higher CSI: Younger customers are more likely to prefer to communicate with their service advisor via text message or messaging apps and also are more likely to want to schedule their service visit via these media. Additionally, premium brand service facilities are more likely than volume brand service facilities to offer wireless internet (30% vs. 16%, respectively), but only half of all service customers say it is “very easy” to connect to their dealer’s network. Those who say it is “very easy” to connect to Wi-Fi express much higher satisfaction with their service facility (833) compared with those who say it is “very/somewhat difficult” (697). To maximize the Wi-Fi offering, dealers need to make it easy to use by providing very clear instructions on how to connect to the network, and test to ensure that the signal is strong and stable in all areas where customers might use the service. Ease of use, speed and stability of the digital amenities are crucial for customer satisfaction.

Satisfaction and Brand Rankings

Overall customer satisfaction with dealer service, which is based solely on the first three years of vehicle ownership, averages 772 in the premium brand segment in 2017, up from 747 in 2016, and 750 in the volume brand segment, up from 732.

Volvo ranks highest among premium brands, with a score of 790, a 23-point improvement from 2016 when it also ranked highest. Volvo is followed by Mercedes-Benz (779) and Audi (765).

Mitsubishi ranks highest among volume brands, with a score of 799, followed by Toyota (792) and Nissan (765).

The Germany Customer Service Index (CSI) Study, now in its third year, explores customer satisfaction with their servicing 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 responses of 8,329 respondents who registered their new vehicle between February 2014 and April 2016. The study was fielded from February through April 2017.

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 firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

See the online press release at http://www.jdpower.com/pr-id/2017087.

Media Relations Contact
Dr. Thomas Grethlein; Agentur Freundeskreis; Nuremberg, Germany; +49-911-8946-7777; [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/about-us/press-release-info

 

Vehicle Design Issues and Defects Affect Customer Loyalty, JD Power Finds

2017-07-17

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MUNICH: 18 July 2017 — A problem-free experience in the first three years of vehicle ownership has a significant effect on an owner’s intention to purchase the same brand, according to the JD Power 2017 Germany Vehicle Dependability Study^SM (VDS), released today.

The study, now in its third year, 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: 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.

Design problems generally refer to components or features that may be functioning properly but are still perceived as problems by owners because they are difficult to understand or use. Examples include controls that are overly complicated or features that are difficult to operate due to poor location. Defects or malfunction problems generally refer to a complete breakdown or malfunction of any component, feature or item. Examples include components that stop functioning and trim pieces that break or come loose.

Both defect and design problems have a strong negative effect on owner loyalty. In fact, the gap between owners who experience at least one design problem and those who do not is slightly wider than between those who experience at least one defect problem and those who do not, among both premium and volume owners. Owners not only perceive both categories as important, but they also are actually less likely to be loyal when experiencing design problems than when they experience defect problems.

“Minor issues like road noise, excessive fuel consumption and worn or faded materials are difficult to fix at a service appointment and, if the owner has to live with these design problems, they’re less likely to purchase the same brand in the future,” said Mark Lendrich, head of research at JD Power Europe. “Even a lightbulb that fails repeatedly can cause frustration. Automakers need to be aware of how these things can affect brand loyalty.”

Fuel efficiency is one of the most important reasons owners purchase their vehicle. Owners who report experiencing an excessive fuel consumption problem (industry average 1.1 PP100) are among the least satisfied owners in the study. This is particularly troublesome for volume brand owners: fuel efficiency is the second-most cited reason (48%) volume-brand owners purchased their vehicle, trailing only purchase price (51%).

The industry average for vehicle dependability is 151 PP100, up from 127 PP100 in 2016. The increase is due in part to a 4.5 PP100 increase in the engine and transmission category. Premium brands rank worse than the industry average.

“Premium brands have more technology, come fully equipped and owners drive more kilometers a year, so there are more things that can go wrong or be perceived as a problem,” Lendrich said. “It’s not necessarily an issue of quality, but as automakers continue to add features to a premium vehicle, they should note the common issues that current owners cite.”

Study Rankings

Kia ranks highest in vehicle dependability among all brands, with a score of 99 PP100. Hyundai ranks second with 105 PP100, followed by Toyota with 109 PP100, Mitsubishi with 113 PP100 and Škoda with 114 PP100.

Opel has two models (Adam and Insignia) that receive segment awards. Hyundai i30, Kia Sportage, Mercedes-Benz E-Class and Toyota Yaris also receive a segment award.

The 2017 Germany Vehicle Dependability Study is based on responses from nearly 14,000 owners of 2014-2016 model-year vehicles. The study was fielded from February through April 2017.

See the online press release at http://www.jdpower.com/pr-id/2017105.

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 19, and in the 5/17 issue of AUTO TEST – Der Kaufberater, on newsstands on July 26.

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/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.