Category: Mexico

Customer Service Satisfaction Improves in Mexico But Dealers Missing Opportunity, JD Power Finds

2020-10-28

jillian.breska

While vehicle customer service satisfaction in Mexico improves for a fourth consecutive year, authorized dealerships continue to lose a notable share of the service market to independent service facilities while warranties are still valid, according to the JD Power 2020 Mexico Customer Service Index (CSI) Study,^SM released today.

“New-vehicle sales will decline this year, so it’s critical that dealers take necessary steps to convince owners to return to the dealership for service instead of going to an independent shop,” said Gerardo Gomez, senior director and country manager at JD Power de Mexico. “There’s a significant drop-off within the first three years of ownership, when customers start visiting independent shops more frequently. In the first year alone, 11% of customers are taking their vehicles to independent shops, and it jumps to 20% by the third year. Dealerships that make the necessary changes to increase satisfaction and retention also can see increased revenue.”

The study, now in its sixth year, is a comprehensive analysis of the service experience among owners of 1- to 3-year-old vehicles and evaluates customer satisfaction with their servicing authorized dealer or independent service facility by examining five key measures (in order of importance): service quality (25%); service initiation (24%); service advisor (20%); vehicle pick-up (16%); and service facility (16%). The overall Customer Service Index is calculated on a 1,000-point scale.

Following are some of the key findings of the 2020 study:

• Customers aren’t receiving explanation of charges: Although most customers are receiving an explanation of the work performed on their vehicles, 31% aren’t receiving an explanation of charges for the work. Furthermore, customer satisfaction drops 168 points when paperwork takes longer than 17 minutes to complete and an explanation of the charges isn’t provided. Authorized dealers have a significant opportunity to increase satisfaction by spending some time (nine minutes or less is ideal) explaining to customers the charges for the work performed on their vehicles.
• Greeting from service advisor: Only 39% of customers say they are greeted by a service advisor within two minutes of arrival at the dealership. When service advisors perform this simple task, satisfaction increases 49 points.
• More on service advisors: If the service advisor handles the payment process rather than the cashier, customers perceive the charges to be more fair and accurate, resulting in a satisfaction increase of 19 points. However, service advisors are a bit slower than cashiers, so improving the efficiency of advisors doing paperwork, including payment processing, could contribute to increased satisfaction.
• Older vehicles are missed opportunity: Once a typical vehicle warranty ends after three years, service visits tend to increase—up to 3.5 times a year, on average, for a 10-year-old vehicle. However, 71% of customers with a 10-year-old vehicle will visit an independent service facility instead of an authorized dealership. It should also be noted that, contrary to popular belief, authorized dealerships tend to charge 18% less for repairs than do independent facilities. Correcting this stereotype impression can provide an additional business opportunity.
• Phone calls preferred, but desire for messaging apps increases: While 45% of customers would prefer to schedule their future appointments by phone, dealers should embrace a growing customer preference to schedule future appointments via text message or messaging app—a preference that has increased to 15% in 2020 from 10% in 2019.
   

Highest-Ranking Brands

In the mass market segment, Mazda ranks highest in overall customer satisfaction with a score of 881. Toyota (853) ranks second and Jeep (849) ranks third.

In the luxury segment, MINI ranks highest in overall customer satisfaction with a score of 891. Mercedes-Benz (863) ranks second.

The 2020 Mexico Customer Service Index (CSI) Study is based on the evaluations of 5,961 interviews with new-vehicle owners in Mexico approximately 12 to 36 months after purchase. The study was fielded from April through September 2020.

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, Asia Pacific and Europe.

Media Relations Contact
Fabiana Duran; Mexico City; +52 55 1012 0885; [email protected]
Omar Pellon; Mexico City; +52 55 7940 9174; [email protected]
Geno Effler; U.S.A.; 714-621-6224; [email protected]

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

 

 

Saving Customers Time and Money Can Win Back Business for Dealership Service Centers, JD Power Finds

2020-08-12

jillian.breska

The combination of expiring vehicle warranties and a continual increase in service costs are pushing customers away from dealership service centers and toward non-dealer facilities, according to the JD Power 2020 Mexico Customer Service Index—Long-Term (CSI-LT) Study,^SM released today.

“With new-vehicle sales forecasted to decline for the remainder of the year, dealerships can’t risk losing service customers,” said Gerardo Gomez, senior director and country manager at JD Power de Mexico. “Service opportunities are already minimized, with decreased driving habits and lower demand for vehicle maintenance during this pandemic. Authorized dealerships should focus on developing improved pricing and retention strategies that focus on owners with older vehicles and expired warranties. Such owners offer dealerships a large pool of potential customers that shouldn’t be ignored.”

Because the revenue potential of the vehicle service industry in Mexico is more than $19 billion MXN annually, there is a significant opportunity for both dealers and non-dealers. Once vehicle warranties expire, authorized dealerships are losing business to non-dealers primarily due to pricing. Authorized dealers focus on driving per-visit revenue across fewer service visits while non-dealers generate less revenue per visit but with more visits.

The study finds that, while overall satisfaction among owners of three- to 12-year-old vehicles is 40 points higher (on a 1,000-point scale) at authorized dealerships than at non-dealer facilities, more than half (59%) of such vehicles are serviced at non-dealer facilities.

Following are some key findings of the 2020 study:

• Prioritizing customers’ time: When dropping off a vehicle for service, customers don’t want to waste time waiting to speak with an advisor about their service needs. Satisfaction scores improve 30 points when the wait time is two minutes or less. However, 66% of customers wait more than two minutes before talking to a service advisor at an authorized dealership vs. 46% of those at non-dealer facilities. Satisfaction is 54 points higher among customers who spend 11-20 minutes to complete paperwork, receive an explanation of charges from service advisors and pick up their vehicle than among those customers who complete paperwork but do not receive an explanation of charges or work performed. When customers receive explanations of charges and work performed, they are 13% more likely to return for service.
• Expired warranties translate to lost customers: As new-vehicle warranties, in general, expire after 36 months, dealers often lose customers at that point to non-dealer service facilities, with cost of service cited as the primary reason. Nearly half (43%) of customers with four- to seven-year-old vehicles visit non-dealer facilities purely for cost of service and 77% of customers with vehicles eight to 12 years old do so for the same reason. Dealers can improve perceived value in quality and overall service advisor performance by creating and communicating a competitive price strategy.
• Price is key motivator: Customers who receive vehicle service from non-dealer facilities spend an average of $1,208 MXN less than they would at authorized dealerships. There is a missed opportunity in providing customers at authorized dealerships with high-quality work at fair prices, as this is ultimately what is driving customers to non-dealer facilities.
• Most customers will return for routine maintenance: Not surprisingly, among the 92% of vehicle owners who intend to stick to regimented maintenance for their vehicles, 62% will do so to ensure their warranty remains intact and 56% will do so because they perceive it to be necessary for their vehicle.¹ Conversely, the main reason vehicle owners will avoid returning for routine vehicle maintenance is because it is not a priority in their current financial situation (47%).

Study Rankings

Honda ranks highest in overall satisfaction with a score of 849. Mazda (848) ranks second and BMW (847) ranks third.

The 2020 Mexico Customer Service Index—Long-Term (CSI-LT) Study is based on the evaluations of 2,854 interviews with owners in Mexico of new- and used-vehicles that are approximately 3 to 12 years old.

The study, now in its second year, is a comprehensive analysis of the service experience and evaluates customer satisfaction with their servicing dealer or non-dealer by examining five key measures (in order of importance): service quality (27%); service advisor (22%); service initiation (19%); vehicle pick-up (15%); and service facility (17%). The study was fielded from April through June 2020.

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, Asia Pacific and Europe.

Media Relations Contact
Fabiana Duran; Mexico City; +52 55 1012 0885; [email protected]
Jair Montes de Oca; Mexico City; +52 55 4161 4318; [email protected]
Geno Effler; U.S.A.; 714-621-6224; [email protected]

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

¹JD Power 2020 Mexico Automotive Consumer Confidence (MACC) Study

 

Customer Service Key to Dealership Sales Satisfaction Amidst Declining New-Vehicle Sales in Mexico, JD Power Finds

2019-04-03

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MEXICO CITY: 4 April 2019 — Auto dealership salespeople who effectively explain key vehicle features and remain with the customer throughout the sales process are keys to high customer satisfaction, according to the JD Power 2019 Mexico Sales Satisfaction Index (SSI) Study.^SM With a new-vehicle sales decline of 7.2% from 2018, dealers must focus on areas that drive customer satisfaction and increase service revenue.

“While the new-vehicle market is down slightly from 2018 due to market uncertainty, trade relations with the U.S. and other factors, an opportunity still exists for dealerships that commit to customer satisfaction,” said Gerardo Gomez, Senior Director and Country Manager at JD Power de Mexico. “Many Mexicans have curbed spending due to insecurity about the future. Providing attentive service and knowledgeable product information to customers is crucial to a dealership’s overall success.”

The study, now in its sixth year, is a comprehensive analysis of the new-vehicle purchase and delivery experience. It examines customer satisfaction with the selling dealer across five measures (listed in order of importance): vehicle delivery (26%); working out the deal (24%); salesperson (19%); dealership facility (18%); and test drive (14%). Overall satisfaction is calculated on a 1,000-point scale.

Following are some key findings of the 2019 study:

• Focus on areas of improvement: To increase satisfaction and retention, dealers should spend more time addressing basic processes that happen with less frequency, such as introducing customers to the service department; offering to complete the registration process; and explaining how to operate the audio system. For example, delivering a vehicle with a full tank of fuel only happens 30% of the time. Customer satisfaction scores are 60 points higher for those whose tanks are full vs. those whose tanks weren’t full.
   
• Make the introduction: Among customers who are introduced to someone in the service department during the sales process, 75% indicated they “definitely will” return to the dealer for vehicle maintenance. That figure drops to 63% if the car buyer doesn’t meet a service department staff person.
   
• Brand detractors show significantly lower satisfaction scores: Net Promoter Score®¹, a metric introduced in the 2018 study, measures customer loyalty and predicts business growth. Customers are asked their likelihood to recommend both their vehicle make and model on a 0-10 scale. Based on their responses, customers are grouped into either the detractor (0-6), passive (7-8) or promoter (9-10) group. The percentage of promoters, passives and detractors changes little from 2018, and the vast majority (79%) are promoters of their make and model. However, satisfaction among detractors decreased 42 points for make and 49 points for model vs. 2018.
   
• Poor dealer treatment leads to lower satisfaction: Shoppers who reject a dealer based on product and price are generally more satisfied with their shopping experience than those who bypass a dealership due to treatment from staff. Dealers who are courteous and spend enough time with the customer to explain details of the product will stand to benefit the most in terms of overall sales satisfaction.

Study Rankings

Mercedes-Benz ranks highest among luxury brands, with a score of 898. BMW (881) ranks second and Audi (872) ranks third. The average index score for luxury brands is 878, up 9 points from 2018.

Mazda ranks highest among mass market brands, with a score of 881. Toyota (877) ranks second and Ford (876) ranks third. The average index score for mass market brands is 854, down 2 points from 2018.

The 2019 Mexico Sales Satisfaction Index Study is based on the evaluations of 3,328 new-vehicle owners in Mexico after one to 12 months of ownership. The study was fielded from September2018 through February2019.

For more information about the 2019 Mexico Sales Satisfaction Index (SSI) Study, visit https://mexico.jdpower.com/es/resource/mexico-sales-satisfaction-index-ssi-mx.

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
Silvia Mosqueda; Mexico City; +52 1 55 5368 2177; [email protected]
Omar Pellon; Mexico City; +52 55 4162 2831 / +52 1 55 7940 9174; [email protected]
Geno Effler; U.S.A.; 714-621-6224; [email protected]

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

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¹Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

 

Dealership Service Plays a Key Role in Owners’ Perceived Vehicle Dependability in Mexico

2018-11-09

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MEXICO CITY: 14 Nov. 2018 — Vehicle owners in Mexico rate problems with their vehicles on a severity scale of 1 to 5, with 5 being the most severe. Among eight of the 10 most severe vehicle problems, owners visit a dealership less than 75% of the time to have these issues resolved, according to the JD Power 2018 Mexico Vehicle Dependability Study^SM (VDS). The problems with the highest severity tend to be issues that are dangerous, costly to repair or perceived as vital to the vehicle’s function.

“The models we examine in the Vehicle Dependability Study are covered under warranty, but owners are still hesitant to take their vehicles to a dealership even to fix problems as simple as learning how to operate their Bluetooth system or fix paint imperfections,” said Gerardo Gomez, Senior Director and Country Manager at JD Power de Mexico. “Dealers need to examine why this is and improve their best practices because, in some cases, they may be able to resolve the issue and create a more positive ownership experience for customers. The longer someone drives a vehicle that has an actual or perceived quality issue, the less likely that owner is to purchase that model again.”

The study, now in its fourth year, measures problems experienced during the past 12 months by original owners of vehicles in Mexico after 12-36 months of ownership. The study examines 177 problems 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.

Another metric for dealers to consider is the Net Promoter Score^® (NPS),[1] new to the study, 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 key findings of the 2018 study:

• Luxury and mass market owners agree: In addition to problems experienced, the study also measures owner satisfaction with all aspects of a vehicle using an APEAL (automotive performance, execution and layout) index. Owners’ emotional attachment and level of excitement across attributes are combined into an overall APEAL index score that is measured on a 1,000-point scale, with a higher score indicating higher satisfaction. The highest-performing category in both the luxury and mass market segments is vehicle exterior (919 and 872, respectively), followed by driving dynamics (914 and 885); and visibility and safety (913 and 864). Fueleconomy is lowest for luxury (858) and second-lowest for mass market (832).

• Long-term quality affects NPS: The study finds satisfaction among customers who are promoters of their vehicle model is 216 points higher than among those who are detractors. The NPS is highest for both luxury and mass market vehicle owners who have a problem-free experience in the first three years. For luxury owners, there is a clear distinction between those who experience one or no problems and those with two or more problems: NPS drops 20 points when two or more problems are experienced vs. one problem. For mass market owners, there is a sizable drop once the first problem is encountered (-11 points) and then again when four or more problems are experienced (-14 points).

• Vehicle interior is still problematic: Interior is the category where owners experience the most problems (32.4 PP100). The most common interior problems are materials scuff/soil easily (3.9 PP100), followed by steering wheel—excessively worn/faded (2.8 PP100); shift lever knob—excessively worn/faded (2.1 PP100); and glove box—squeak/rattle/other noise (2.1 PP100).

• Driving experience and engine/transmission problems affect loyalty: The 10 most severe problems in the industry fall under the driving experience and engine/transmission categories. Customers who experience any of the top 10 most severe problems are less likely to repurchase the same make again, with only 47% saying they “definitely will” repurchase, compared with the study average of 62%.

“Half of the most severe problems are in the engine/transmission category, including excessive fuel consumption, engine overheating, abnormal transmission noises, fluid leaks and abnormal engine noises,” Gomez said. “While some problems need to be addressed during vehicle production, dealers should reach out to customers and encourage them to come in for service when needed because some problems are a quick fix and can help create return buyers.”

Study Rankings

MINI ranks highest in vehicle dependability among luxury brands and performs highest overall, with a score of 64 PP100. GMC ranks second with 76 PP100 and Mercedes-Benz ranks third with 84 PP100.

Kia ranks highest among mass market brands, with a score of 108 PP100. Honda ranks second with 125 PP100, followed by Toyota with 131 PP100.

Mercedes-Benz ranks highest in APEAL among luxury brands, with a score of 916. Mazda ranks highest among mass market brands (888).

The 2018 Mexico Vehicle Dependability Study (VDS) is based on the evaluations of 9,215 interviews with owners in Mexico who purchased their vehicle from February 2015 through February 2017. The study was fielded from April through August 2018.

Media Relations Contacts
Brais Alvarez; Mexico City; +52 55 5081 2892 / +52 1 55 7474 4074; [email protected]
Silvia Mosqueda; Mexico City; +52 1 55 5368 2177;  [email protected]
Geno Effler; USA; 714-621-6224; [email protected]

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.

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

 

Respect of Customers’ Time Affects Satisfaction with Dealership Service, JD Power Finds

2018-10-17

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MEXICO CITY: 19 Oct. 2018 — Respect my time. That overarching message comes across often when owners bring their vehicles to be serviced at a dealership, according to the JD Power 2018 Mexico Customer Service Index (CSI) Study.SM When dealers give customers an appointment on a desired day, have vehicles ready when promised and greet customers promptly, satisfaction is generally higher.

An additional metric for dealers to consider is the Net Promoter Score® (NPS)[1]—new to this year’s study—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). The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. For example, the NPS for the mass market segment in this year’s study is 75 (78% promoters minus 3% detractors).

“The Net Promoter Score is higher in Mexico for both luxury and mass market segments than in any other global market,” said Gerardo Gomez, Senior Director and Country Manager at JD Power de Mexico. “Promoters are far more likely to be loyal to a brand. In fact, there’s a strong link between the NPS and the traditional JD Power customer satisfaction score. Overall satisfaction among promoters of their vehicle’s make is 144 points higher than among detractors. Dealers looking to generate return sales and service business need to ensure they’re taking steps to explain the work done and the charges and to fix collision work and maintenance issues right the first time.

“This is especially evident among Boomers,[2] who are more likely to choose a dealer based on experience with the service and sales departments than younger customers because the older generation has had more time to develop a loyal relationship with a dealer over the course of more purchase cycles in their lifetime. Younger customers are less likely to have a dealer to whom they are loyal for service and are far more likely to rely on recommendations from friends and relatives.”

The Mexico CSI Study, now in its fourth year, delivers a comprehensive analysis of the service experience among owners of 1- to 3-year-old vehicles and evaluates customer satisfaction with their servicing dealer by examining five key measures (in order of importance): service quality (25%); service initiation (24%); service advisor (20%); vehicle pick-up (16%); and service facility (16%). Satisfaction is calculated on a 1,000-point scale.

The study finds that 91% of customers were able to get an appointment on their desired day; 87% of customers’ vehicles were ready when promised; 42% spoke with a service advisor within two minutes of arrival; and 47% were informed within 290 minutes or less after dropping their vehicle off that their car was ready for pick-up.

Following are some key findings of the 2018 study:

• Phone calls preferred, but messaging apps on the rise: While more customers in Mexico prefer to communicate via messaging app year over year—increasing to 27% in 2018 from 24% in 2017—only 4% indicate their advisor communicated with them via messaging app, making this an unmet preference for a significant number of customers. Mexico is the only global market in which the preference for phone calls has increased from 2017, but dealers should also begin embracing messaging apps to accommodate the desires of customers.

• Service quality and initiation are largest problems for collision work: Service satisfaction is significantly higher among customers who did not have collision work done compared with customers who did have collision work done. The largest gaps are in the service quality (98 points) and service initiation (91 points) measures. The study finds that collision work is completed right the first time far less often than service work that does not include collision work. Improving fixed-right-first-time percentages for collision work is the most important priority for improving satisfaction with this type of work.

• Competition between dealers and non-dealers increases with vehicle age: Dealers should be aware that it is very important to focus on providing an excellent servicing experience to customers with older vehicles, so they don’t lose visits to non-dealer service providers as vehicles age.

“The average number of service visits per year to a non-dealer more than doubles between 1-year-old and 3-year-old vehicles, from 0.2 visits per year to 0.5 visits per year,” Gomez said. “While nominally a small number, this means dealers capture 91% of service visits for 1-year-old vehicles, but only 81% of service visits for 3-year-old vehicles. Once vehicles come out of warranty, service work becomes more complex, and it’s imperative for customers to trust their dealers about the work to be done—and the associated cost—when they take their car in for service. This can help build a lasting relationship when it comes time for customers to purchase a new vehicle.”

Highest-Ranking Brands

Hyundai ranks highest in overall satisfaction among mass market brands, with a score of 880. Jeep ranks second (851) and Fiat (850) ranks third. Kia and Mazda rank fourth in a tie with a score of 849.

GMC ranks highest among luxury brands for the first time, with a score of 889. Coming on the heels of its top ranking in the JD Power 2018 Mexico Sales Satisfaction Index (SSI) Study.SM Audi ranks second (872) and Mercedes-Benz (856) ranks third.

The 2018 Mexico Customer Service Index Study is based on the evaluations of 6,921 interviews with new-vehicle owners in Mexico approximately 12 to 36 months after purchase. The study was fielded from April through August 2018.

Media Relations Contacts
Brais Alvarez; Mexico City; +52 55 5081 2892 / +52 1 55 7474 4074; [email protected]
Silvia Mosqueda; Mexico City; +52 1 55 5368 2177;  [email protected]
Geno Effler; USA; 714-621-6224; [email protected]

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.

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

 

Problem-Free Ownership Experience Drives Vehicle Brand Loyalty, JD Power Finds

2017-11-21

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MEXICO CITY: 22 Nov. 2017 — A problem-free experience in the first three years of vehicle ownership has a significant effect on intended loyalty to the vehicle brand among owners in both the premium and non-premium categories, according to the JD Power 2017 Mexico Vehicle Dependability Study^SM (VDS).

The study, now in its third year, measures problems experienced during the past 12 months by original owners of vehicles in Mexico after 12-36 months of ownership. The study examines 177 problems 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.

“It’s interesting to see how in-car technology is being embraced and how it affects owners’ impressions of their vehicle,” said Gerardo Gomez, Senior Director and Country Manager at JD Power de México. “For example, problems with Bluetooth pairing and other connectivity issues have increased significantly in Mexico since 2016. They have also been common problems in other markets and have become the number one problem for vehicle owners in Mexico this year. In our internet-connected world, automakers need to ensure this functionality isn’t a headache for drivers on the go.”

Other key findings of the study include:

• Loyalty and advocacy directly related to vehicle dependability: Similar to owner experiences measured in the JD Power 2017 Japan Vehicle Dependability Study,^SM and consistent with the 2016 Mexico Vehicle Dependability Study, intended loyalty among owners in Mexico is very high when no vehicle problems are experienced; in 2017, this includes 80% of premium owners and 70% of non-premium owners. When these owners experience even one problem, loyalty declines by 14 percentage points and 17 percentage points, respectively. This illustrates that providing a problem-free experience is critical for manufacturers to foster loyalty.

• Interior continues to be problematic: The most frequently reported problems for a third consecutive year are in the interior category (+ 0.6 PP100 to 25.9 in 2017), followed by driving experience (+ 2.6 PP100 to 23.8 in 2017) and exterior (+ 0.6 PP100 to 21.8 in 2017) categories.

• Fuel efficiency is increasingly important for vehicle buyers: Owners of premium and non-premium vehicles alike rate their satisfaction with fuel economy as relatively poor. Among reasons for purchasing that are measured in the study, 37% of owners indicate fuel efficiency is important, making this a critical area for automakers to focus improvement.

Study Rankings

Acura ranks highest in vehicle dependability with a score of 59 PP100. GMC ranks second with 62 PP100, followed by BMW with 72 PP100. The overall industry average is 147 PP100, a decline from 137 PP100 in 2016.

The 2017 Mexico Vehicle Dependability Study (VDS) is based on the evaluations of 9,950 interviews with owners in Mexico who purchased their vehicle from March 2014 through June 2016. The study was fielded from March through August 2017.

Media Relations Contacts
Brais Alvarez; Mexico City, Mexico; +52 55 5081 2892 / +52 1 55 7474 4074; [email protected]
Silvia Mosqueda; Mexico City, Mexico; +52 1 55 5368 2177; [email protected]
Geno Effler; USA; 714-621-6224; [email protected]

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.

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

 

Honesty Is Best Policy to Increase Customer Satisfaction and Revenue in Auto Dealer Service Departments

2017-09-26

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MEXICO CITY: 28 Sept. 2017 — Automotive dealership service advisors who recommend more than the original work requested during a service visit—and can honestly justify why the added work is needed—have higher customer satisfaction and their customers are willing to spend more money, according to the JD Power 2017 Mexico Customer Service Index (CSI) Study.^SM

The Mexico CSI Study, now in its third year, delivers a comprehensive analysis of service experiences among owners of 1- to 3-year-old vehicles and evaluates customer satisfaction with their servicing dealer by examining five key measures (in order of importance): service quality (25%); service initiation (24%); service advisor (20%); vehicle pick-up (16%); and service facility (16%). Satisfaction is calculated on a 1,000-point scale.

The study finds that 64% of customers indicate their service advisor recommended services in addition to the original work requested. Overall, 25% of customers indicate their service advisor recommended additional work, and they had the work done. Overall satisfaction among customers who had the additional work done is 59 points higher than among those whose service advisor didn’t suggest more services, with the average spend per visit MX $583 more than among those whose advisor didn’t recommend more work. When the work is suggested but not agreed to, satisfaction is 26 points lower than those who agreed to have the work done.

“Demonstrating knowledge of a vehicle’s prior service history, conducting inspections with the customer once service is completed and offering a detailed explanation of services rendered are ways to show that any additional work recommendations are based on their vehicle’s specific conditions, not just a way to get more money,” said Gerardo Gomez, Senior Director and Country Manager at JD Power de Mexico. “This is the key to building trust with customers so they return and recommend the dealership to others.”

Following are key findings of the study:

• Customers are spending more on vehicle service: There is an 18% increase in customer spending at dealer/non-dealer service facilities compared with 2016. Customers spent an average of MX $4,007 in 2017 vs. MX $3,371 in 2016.

• Ready when promised adds to customer satisfaction: Key Performance Indicators (KPIs) are dealership processes that have the greatest effect on the customer experience and overall CSI scores. Delivering customers’ vehicles when originally promised is the most impactful KPI and can improve satisfaction by 67 points. This KPI is met 85% of the time. However, the KPI with the most room for improvement is greeting the customer within two minutes of arriving at the facility. When it takes more than two minutes, satisfaction declines by 30 points.

• Dealers need to go digital: While only 11% of service customers say dealers currently contact them by text message, email update or a messaging app, 49% indicate they prefer to be contacted using one of these methods for a future visit. More than one-third of customers also indicate that technology is their preferred method for scheduling and confirming service visits. Among those who schedule their appointments via the internet, satisfaction is highest (851) when dealers confirm the appointments online. However, dealers only use this method 21% of the time.

“Today, it’s not uncommon for people to be glued to their computers, smartphones and tablets for a number of reasons, including shopping, getting news updates or communicating with each other,” Gomez said. “Although there are record vehicle sales in 2017, dealers aren’t meeting customers’ expectations when it comes to service. Messaging apps in particular are very popular in Mexico and are also an inexpensive way for dealers to increase satisfaction.”

Highest-Ranked Brands

Fiat ranks highest in overall satisfaction among non-premium brands, with a score of 862. Toyota ranks second with a score of 838, followed by Mitsubishi with a score of 829; Ford with 828; and Honda with 825.

Audi ranks highest among premium brands, with a score of 895. Mercedes-Benz ranks second with a score of 893.

The 2017 Mexico Customer Service Index Study is based on the evaluations of 6,999 interviews with new-vehicle owners in Mexico approximately 12 to 36 months after purchase. The study was fielded from March through August 2017.

Media Relations Contacts
Brais Alvarez; Mexico City, Mexico; +52 55 5081 2892 / +52 1 55 7474 4074; [email protected]
Silvia Mosqueda; Mexico City, Mexico; +52 1 55 5368 2177  [email protected]
Geno Effler; USA; 714-621-6224; [email protected]

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.

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

 

Audi Ranks Highest Among Nameplates in Vehicle Dependability in Mexico;Toyota Receives Four Segment Awards

2016-10-19

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MEXICO CITY: 20 Oct. 2016 — Audi ranks highest in vehicle dependability among all nameplates in Mexico, according to the JD Power 2016 Mexico Vehicle Dependability Study^SM (VDS), released today.

The study measures problems experienced during the past 12 months by original owners of vehicles in Mexico 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.

Audi ranks highest with a score of 34 PP100. BMW ranks second with 35 PP100, followed by Acura with 36 PP100 and Buick and Mercedes-Benz each with 41 PP100. The overall industry average is 137 PP100, an improvement from 164 PP100 in 2015. 

Dependability and reliability are critical in today’s automotive market. For example, among owners who do not experience any problems with their vehicle, 67% say they “definitely will” repurchase the same brand again and 73% say they “definitely will” recommend the brand to family and friends. Among owners who experience just one problem with their vehicle, intended loyalty drops to 59% and intended advocacy drops to 70%. Less than half of owners who experience three or more problems with their vehicle intend to buy the same brand again and less than 61% intend to recommend the brand to others.

“Reliability affects consumer confidence, and has a direct effect on purchase decisions and brand loyalty,” said Gerardo Gomez, director and country manager at JD Power de México. “And all of those have financial ramifications for automakers.”

Eight of the 10 problems owners report as most severe are in the engine/transmission category, led by engine overheating, excessive fuel consumption and excessive oil consumption. Surprisingly, only 59% of owners who experienced an engine overheating problem took their vehicle to the dealership to have the issue serviced. 

“Severe problems have a negative impact on the customer experience, but if they don’t take the vehicle to the dealership, the dealer doesn’t have a chance to fix the problem and perhaps improve the owner’s perceptions of the vehicle’s dependability,” said Gomez. “By reaching out to customers on a regular basis, asking them about their ownership experience and encourage them to bring their car to the service department when they experience a problem, dealers have an opportunity to build customer trust and loyalty.”

Highest-Ranked Models

Toyota has four models (Avanza, Highlander, Hilux and Sienna) that receive segment awards and Audi has two (A1 and A5). Receiving one award each are BMW (X3); Ford (F-Series Light Duty/Super Duty); Honda (Fit); Jeep (Compass); Nissan (March); and Mazda (Mazda6). 

Other key findings of the study include:

• Interior Most Problematic: The most frequently reported problems are in the interior category (25.3 PP100), followed by driving experience (21.2 PP100) and exterior (21.2 PP100).
• Not All Problems Are Equal: Many problems that have a large negative impact on loyalty are not problems many people would consider severe. However, the study finds that owners who report problems such as shift lever excessively worn or faded, speakers broken or writing on controls faded or removed have the lowest intended loyalty. “These problems may seem trivial, but they are in the owner’s mind every time they drive the vehicle,” said Gomez.
• Problems Increase with Age: The number of owner-reported problems increases as vehicles age. Owners of 2015 model-year vehicles report an average of 96 PP100, nearly half the number of 182 PP100 reported by owners of 2013 model-year vehicles.
• Owner Satisfaction Slips: The 2016 Mexico VDS also measures owner satisfaction with their vehicle. Owners are asked to rate various aspects of their vehicle, including its interior, exterior, ACEN, driving dynamics and visibility and safety, which comprise an overall vehicle satisfaction index based on a 1,000-point scale. Overall satisfaction averages 850 in 2016. Owner satisfaction is highest with the exterior (864) and driving dynamics (861) aspects of their vehicle and lowest with ACEN (830) and fuel economy (839).
• Top Two Problems With Vehicle Interior: The most commonly reported problems by owners in Mexico are seat material problems (3.4 PP100), interior materials scuffing or soiling easily (3.3 PP100) and noisy brakes (3.2 PP100). In comparison, the top two problems reported by owners in the United States are Bluetooth pairing/connectivity and built-in voice recognition systems misinterpreting commands.¹  Bluetooth connectivity is the fifth-most frequently reported problem in Mexico (2.9 PP100).

The 2016 Mexico Vehicle Dependability Study (VDS) is based on the evaluations of 9,400 interviews with owners in Mexico who purchased their vehicle from March 2013 through June 2015. The study was fielded from March through July 2016.

See the online press release at http://www.jdpower.com/pr-id/2016187.

Media Relations Contacts

Ilen León Díaz, Gravity3; Mexico City, Mexico; +52 55 71 55 89  93; [email protected]

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

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

1 Source: JD Power 2015 U.S. Vehicle Dependability Study^SM

 

For Dealership Service Satisfaction, Free Wi-Fi and Internet are Critical but Hard-To-Find Amenities

2016-09-22

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MEXICO CITY: 23 Sept. 2016 — Digital amenities, such as Wi-Fi accessibility, computers with internet access and digital tablets/video games, are yet to be commonplace in dealership waiting rooms, even though they are the most frequently used amenities when available and lead to higher satisfaction scores when offered, according to the JD Power 2016 Mexico Customer Service Index (CSI) Study,^SM released today.

The Mexico CSI Study, now in its second year, is a comprehensive analysis of service experiences among owners of 1- to 3-year-old vehicles. The study explores customer satisfaction with their servicing dealer by examining five measures (listed in order of importance): service quality (25%); service initiation (24%); service advisor (20%); vehicle pick-up (16%); and service facility (16%). Satisfaction is calculated on a 1,000-point scale.

The study finds that while only 30% of dealers offer wireless internet access, it’s the second-most frequently used amenity by customers when available, following complimentary snacks and beverages. Overall satisfaction among customers who were offered free Wi-Fi is 70 points higher than among those who were not offered this amenity. While computers with internet access are among the least offered amenities at 17%, overall satisfaction is 77 points higher when they are offered. By contrast, among traditional amenities offered, complimentary snacks and beverages generate only a 45-point increase in satisfaction and newspapers and magazines lift satisfaction by just 34 points.

“We see in other countries where we conduct the CSI Study that the digital amenities offered in Mexico are low in comparison,” said Gerardo Gomez, senior director and country manager at JD Power de México. “Customers often wait at dealerships for long periods while their vehicle is being serviced, which provides dealers a big opportunity to make a positive impression. It’s critical to understand exactly what customers want and expect and to make sure perks like digital amenities are working properly. ”

Highest-Ranked Nameplates

Toyota ranks highest in overall satisfaction among non-premium brands, with a score of 857. Toyota is followed by Nissan (850); Jeep and Mitsubishi in a tie (844); and Honda and Mazda in a tie (843).

Mercedes-Benz ranks highest among premium brands, with a score of 920. Audi ranks second with a score of 908.

Key Study Findings

• Making the pick-up process more efficient is a key area for improvement. As expected, the longer customers have to wait, the lower their level of satisfaction tends to be. The study finds that23% of customers waited more than 20 minutes to pick up their vehicle after service was completed. Overall satisfaction among these customers averages 742, compared with 878 among those who waited 5 or fewer minutes.
• Customers visit non-dealer service facilities more often as their vehicle ages. Dealer service satisfaction and loyalty are highest within the first year of purchasing a vehicle. With each subsequent year of ownership, loyalty and satisfaction decline. While just 13% have been to a non-dealer in the first year of ownership, this rate of dealer defection doubles to 26% in the second year. By the third year of ownership, 33% of owners have been to a non-dealer for service.
  “Auto dealers have enjoyed robust new-vehicle market conditions in Mexico, so they’ve been able to reap the benefits of a steady stream of first- and second-year owners,” said Gomez. “While the sales forecast in Mexico remains strong, dealers must not become complacent. There is a direct link between overall service satisfaction and all measures of intended loyalty and advocacy—both of which will pay off when sales growth eventually slows. Further, dealers have significant profit potential the longer they can retain their customers in service, even beyond the warranty period.”
• Maintenance packages create higher satisfaction. Approximately two-thirds of customers indicate their vehicle included a prepaid or complimentary maintenance package with the purchase. This is more common among customers who own a premium brand vehicle (87%) than among non-premium customers (67%). Customers with complimentary maintenance packages are more satisfied overall, with an average index score of 857, compared with 844 for those with prepaid maintenance packages and 795 without a maintenance package.

The 2016 Mexico Customer Service Index Study is based on the evaluations of more than 5,907 interviews with new-vehicle owners in Mexico approximately 12 to 36 months after purchase. The study was fielded from March through July 2016.

Media Relations Contacts

Ilen León Díaz, Gravity3; Mexico City, Mexico; +52 55 71 55 89  93; [email protected]

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

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

 

Increasing New-Vehicle Sales in Mexico Create Opportunities And Challenges for Automakers and Dealers, JD Power Study Finds

2016-05-05

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MEXICO CITY and DETROIT: 20 May 2016 — New-vehicle retail sales in Mexico continue to grow, creating both opportunities and challenges for auto manufacturers and dealers, according to the JD Power 2016 Mexico Sales Satisfaction Index (SSI) Study,^SM released today.

A combination of factors, including lower unemployment, rising wages and credit availability, are contributing to growing new-vehicle retail sales in Mexico, which increased by 20% to 1.34 million units in 2015 from 2014, and are expected to grow another 18% over the next five years.[1] While the sales boom is helping automakers and dealerships, some are also struggling to fulfill market demand by maintaining an inventory of vehicles and keeping up with the flood of traffic in their showroom.

“Sales in Mexico are increasing and the automakers and dealerships that are best positioned to take advantage of this trend will focus on vehicle inventory and sales training” said Gerardo Gomez, director and country manager at JD Power de México. “As we are learning across the globe, understanding customer needs and creating a pleasing experience for the customer not only helps increase sales, but it also builds loyalty and advocacy for the dealership and the brand.”

Following are some of the study’s key findings:

Overall Satisfaction: Overall sales satisfaction in the luxury segment averages 894 (on a 1,000-point scale) in 2016, while the mass market segment averages 863.

Dealer Inventory Plays a Critical Role: The most common reason owners of both luxury and mass market vehicles say they selected the dealer from which they purchased their new vehicle is because it had the exact vehicle they wanted. Conversely, 26% of owners indicate they rejected a dealer because it didn’t have the exact model they wanted in stock.

Vehicle Design, Reputation and Quality More Important Than Price: The top three main reasons owners say they selected the vehicle they purchased are “attractive design & styling,” “good vehicle quality” and “good reputation/reliability of the brand,” collectively cited by 60% of owners of luxury vehicles and 39% of owners of mass market vehicles. Only 7% of mass market vehicle owners and 1% of luxury vehicle owners cite “low purchase price” as the main reason for their selection.

Test Drive Critical in the Sales Process: Overall sales satisfaction is highest among the 37% of buyers who were offered a test drive but didn’t want or need one (871) and the 52% of owners who took a test drive (866). Satisfaction among the 6% of owners who were not offered a test drive and or the 5% who say a test-drive vehicle was not available drops to 816 and 841, respectively.

Follow-Up after the Sales Yields Higher Satisfaction: Only 75% of owners were contacted by the dealership after they took delivery of their new vehicle to ensure everything was satisfactory. Satisfaction among those who were contacted is 42 points higher than among those who were not contacted.

Cash Is Happiness: Sales satisfaction is highest among the 46% of owners who paid cash for their vehicle (878), while satisfaction is lowest among the 6% of owners who leased their vehicle, (844).  Satisfaction among the 45% of owners who financed their vehicle is 853, while satisfaction among the 3% whose company paid for the vehicle is 848. 

In addition, Gomez noted that with more than half of consumers in Mexico using the Internet during the vehicle shopping experience—51% of owners shopped online in 2016—most have a good indication of which vehicles fit into their budget before they visit a showroom. “That allows them to focus on aspects other than price to help find the vehicle that’s right for them,” said Gomez.

The study, now in its third year, is a comprehensive analysis of the new-vehicle purchase and delivery experience and examines customer satisfaction with the selling dealer across five measures (listed in order of importance): working out the deal (26%); delivery process (21%); salesperson (19%); dealership facility (19%); and test drive (16%). Overall satisfaction is calculated on a 1,000-point scale.

Study Rankings

Mercedes-Benz ranks highest among luxury brands for a second consecutive year, with a score of 914. BMW ranks second (900) and Audi third (896).

Ram ranks highest among mass market brands, with a score of 878. Hyundai and Jeep rank second in a tie at 877.

The 2016 Mexico Sales Satisfaction Index Study is based on the evaluations of 3,382 new-vehicle owners in Mexico after one to seven months of ownership. The study was fielded from January 2016 through March 2016.

See the online press release at http://www.jdpower.com/press-releases/2016-mexico-sales-satisfaction-index-ssi-study

Media Relations Contacts:

Ilen León Díaz, Gravity3; Mexico City, Mexico; +52 55 71 55 89  93; [email protected]

John Tews; Troy, Mich.; 248-680-6218; [email protected]

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