Category: Uncategorized

Sales Satisfaction Rises but Problems with Delivery Times and Paperwork Persist, JD Power Finds

1970-01-01

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SINGAPORE: 25 Sept. 2019 — Overall sales satisfaction improves this year among new vehicle buyers but more than one-third are waiting longer than expected for delivery compared with 2018 as some cite paperwork problems, according to the JD Power 2019 Indonesia Sales Satisfaction Index (Mass Market) Study^SM, released today.

Satisfaction this year is driven by improvements across the sales process, notably contributed by sales consultant satisfaction. Fewer incidences of pressured sales (6% in 2019 vs. 9% in 2018), more customers reporting dealer staff completely understanding their needs (84% vs. 72%) and use of digital tools like dealers’ smartphones or tablets (66%) lifted the overall index score by 21 points (on a 1,000-point scale) to 830 points this year.

“Sales consultants are working hard this year to listen to buyers’ needs and guide them to the right vehicles,” says Srabani Bandyopadhyay, Country Manager for Indonesia, at JD Power. “However, buyers are still facing issues such as paperwork problems and delays in new vehicle deliveries. These matters frustrate buyers and should be addressed before commitments to customers are made.”

The study finds 38% of buyers received their new vehicle later than promised, compared with 28% in 2018; average delivery time is two days longer in 2019 vs. 2018; and 22% of customers return to the dealership to fix paperwork problems.

Following are additional key findings of the 2019 study:

• Fuel efficiency, styling and resale value are main purchase reasons: The top reasons that influence purchase include good fuel efficiency (20%); exterior styling (11%); interior style and comfort (10%) and high resale value (9%).

• More shoppers reject test drives: Surprisingly, there is an increase in shoppers who don’t want or need a test drive (35% vs. 24%). This is a worrying trend as repeat buyers generally indicate higher sales satisfaction when taking a test drive (851) compared with those not wanting or needing to test drive a new car (827). Additionally, the test drive offers sales consultants the opportunity to highlight not only the main performance attributes of the vehicle but also promote new features such as infotainment, safety or appealing interiors.
   
• Further explanations needed after purchase: More than half of customers (57%) want additional explanations about key vehicle features, highlighting a need for dealers to provide more specific and tailored explanations upon vehicle delivery. Common explanations requested across the six features listed include vehicle safety features (40% of new buyers); audio system (36%); vehicle communications system (36%) and Bluetooth connectivity (34%).

Study Rankings

Mitsubishi ranks highest in overall sales satisfaction with a score of 835. Toyota (834) ranks second, while Honda (828) and Suzuki (828) rank third in a tie.

The JD Power 2019 Indonesia Sales Satisfaction Index (SSI) Study^SM is a comprehensive analysis of the new vehicle purchase and delivery experience. The study is based on responses from 2,304 new-vehicle owners who purchased their vehicle between July 2018 and June 2019. The study was fielded from January through August 2019.

Now in its 19th year, the study examines five factors that contribute to overall customer satisfaction with the new vehicle purchase experience. They are (in order of importance): sales consultant (23%); dealer facility (23%); delivery process (19%); working out the deal (19%) and paperwork completion (16%).

The study also includes the Net Promoter Score® (NPS)^[1], which measures new vehicle owners’ likelihood to recommend their vehicle brand on a 0-10 point-scale.

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

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

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

 

Sales Satisfaction Rises but Problems with Delivery Times and Paperwork Persist, JD Power Finds

1970-01-01

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SINGAPORE: 25 Sept. 2019 — Overall sales satisfaction improves this year among new vehicle buyers but more than one-third are waiting longer than expected for delivery compared with 2018 as some cite paperwork problems, according to the JD Power 2019 Indonesia Sales Satisfaction Index (Mass Market) Study^SM, released today.

Satisfaction this year is driven by improvements across the sales process, notably contributed by sales consultant satisfaction. Fewer incidences of pressured sales (6% in 2019 vs. 9% in 2018), more customers reporting dealer staff completely understanding their needs (84% vs. 72%) and use of digital tools like dealers’ smartphones or tablets (66%) lifted the overall index score by 21 points (on a 1,000-point scale) to 830 points this year.

“Sales consultants are working hard this year to listen to buyers’ needs and guide them to the right vehicles,” says Srabani Bandyopadhyay, Country Manager for Indonesia, at JD Power. “However, buyers are still facing issues such as paperwork problems and delays in new vehicle deliveries. These matters frustrate buyers and should be addressed before commitments to customers are made.”

The study finds 38% of buyers received their new vehicle later than promised, compared with 28% in 2018; average delivery time is two days longer in 2019 vs. 2018; and 22% of customers return to the dealership to fix paperwork problems.

Following are additional key findings of the 2019 study:

• Fuel efficiency, styling and resale value are main purchase reasons: The top reasons that influence purchase include good fuel efficiency (20%); exterior styling (11%); interior style and comfort (10%) and high resale value (9%).

• More shoppers reject test drives: Surprisingly, there is an increase in shoppers who don’t want or need a test drive (35% vs. 24%). This is a worrying trend as repeat buyers generally indicate higher sales satisfaction when taking a test drive (851) compared with those not wanting or needing to test drive a new car (827). Additionally, the test drive offers sales consultants the opportunity to highlight not only the main performance attributes of the vehicle but also promote new features such as infotainment, safety or appealing interiors.
   
• Further explanations needed after purchase: More than half of customers (57%) want additional explanations about key vehicle features, highlighting a need for dealers to provide more specific and tailored explanations upon vehicle delivery. Common explanations requested across the six features listed include vehicle safety features (40% of new buyers); audio system (36%); vehicle communications system (36%) and Bluetooth connectivity (34%).

Study Rankings

Mitsubishi ranks highest in overall sales satisfaction with a score of 835. Toyota (834) ranks second, while Honda (828) and Suzuki (828) rank third in a tie.

The JD Power 2019 Indonesia Sales Satisfaction Index (SSI) Study^SM is a comprehensive analysis of the new vehicle purchase and delivery experience. The study is based on responses from 2,304 new-vehicle owners who purchased their vehicle between July 2018 and June 2019. The study was fielded from January through August 2019.

Now in its 19th year, the study examines five factors that contribute to overall customer satisfaction with the new vehicle purchase experience. They are (in order of importance): sales consultant (23%); dealer facility (23%); delivery process (19%); working out the deal (19%) and paperwork completion (16%).

The study also includes the Net Promoter Score® (NPS)^[1], which measures new vehicle owners’ likelihood to recommend their vehicle brand on a 0-10 point-scale.

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

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

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

 

Sales Satisfaction Rises but Problems with Delivery Times and Paperwork Persist, JD Power Finds

2019-09-25

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SINGAPORE: 25 Sept. 2019 — Overall sales satisfaction improves this year among new vehicle buyers but more than one-third are waiting longer than expected for delivery compared with 2018 as some cite paperwork problems, according to the JD Power 2019 Indonesia Sales Satisfaction Index (Mass Market) Study^SM, released today.

Satisfaction this year is driven by improvements across the sales process, notably contributed by sales consultant satisfaction. Fewer incidences of pressured sales (6% in 2019 vs. 9% in 2018), more customers reporting dealer staff completely understanding their needs (84% vs. 72%) and use of digital tools like dealers’ smartphones or tablets (66%) lifted the overall index score by 21 points (on a 1,000-point scale) to 830 points this year.

“Sales consultants are working hard this year to listen to buyers’ needs and guide them to the right vehicles,” says Srabani Bandyopadhyay, Country Manager for Indonesia, at JD Power. “However, buyers are still facing issues such as paperwork problems and delays in new vehicle deliveries. These matters frustrate buyers and should be addressed before commitments to customers are made.”

The study finds 38% of buyers received their new vehicle later than promised, compared with 28% in 2018; average delivery time is two days longer in 2019 vs. 2018; and 22% of customers return to the dealership to fix paperwork problems.

Following are additional key findings of the 2019 study:

• Fuel efficiency, styling and resale value are main purchase reasons: The top reasons that influence purchase include good fuel efficiency (20%); exterior styling (11%); interior style and comfort (10%) and high resale value (9%).

• More shoppers reject test drives: Surprisingly, there is an increase in shoppers who don’t want or need a test drive (35% vs. 24%). This is a worrying trend as repeat buyers generally indicate higher sales satisfaction when taking a test drive (851) compared with those not wanting or needing to test drive a new car (827). Additionally, the test drive offers sales consultants the opportunity to highlight not only the main performance attributes of the vehicle but also promote new features such as infotainment, safety or appealing interiors.
   
• Further explanations needed after purchase: More than half of customers (57%) want additional explanations about key vehicle features, highlighting a need for dealers to provide more specific and tailored explanations upon vehicle delivery. Common explanations requested across the six features listed include vehicle safety features (40% of new buyers); audio system (36%); vehicle communications system (36%) and Bluetooth connectivity (34%).

Study Rankings

Mitsubishi ranks highest in overall sales satisfaction with a score of 835. Toyota (834) ranks second, while Honda (828) and Suzuki (828) rank third in a tie.

The JD Power 2019 Indonesia Sales Satisfaction Index (SSI) Study^SM is a comprehensive analysis of the new vehicle purchase and delivery experience. The study is based on responses from 2,304 new-vehicle owners who purchased their vehicle between July 2018 and June 2019. The study was fielded from January through August 2019.

Now in its 19th year, the study examines five factors that contribute to overall customer satisfaction with the new vehicle purchase experience. They are (in order of importance): sales consultant (23%); dealer facility (23%); delivery process (19%); working out the deal (19%) and paperwork completion (16%).

The study also includes the Net Promoter Score® (NPS)^[1], which measures new vehicle owners’ likelihood to recommend their vehicle brand on a 0-10 point-scale.

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

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

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

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^[1] Net 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.

 

Proactive Communication with Residential Wireline Customers Drives Satisfaction, JD Power Finds

2019-09-25

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COSTA MESA, Calif.: 26 Sept. 2019 — When disruptions in service or high bill problems occur without proactive communication, service satisfaction declines among residential wireline customers, according to the JD Power 2019 U.S. Residential Television Service Provider Satisfaction Study^SM and JD Power 2019 U.S. Residential Internet Service Provider Satisfaction Study.^SM

Television and internet subscribers who contacted customer service to complain about a high bill are significantly less satisfied compared with those who contacted the provider for another reason such as a service outage. Nearly 40% of television and internet customers who had a high bill complaint said they didn’t achieve a resolution. Additionally, 52% of internet subscribers who had a high bill complaint said they would switch carriers.

“Customers rely on their wireline provider to supply reliable service at a reasonable price,” said Ian Greenblatt, Managing Director & Practice Leader, Technology, Media and Telecom Intelligence at JD Power. “Service providers have an opportunity to maintain brand loyalty and satisfaction by sending subscribers proactive notices about scheduled or known outages, and statement adjustments. Taking every opportunity to demonstrate transparency is a customer-focused outlook that improves the overall customer experience.”

Study Rankings

Residential Internet Service Provider Satisfaction Study
Verizon ranks highest in the East region (754). Comcast (XFINITY) ranks highest in the North Central region (720), earning its first award. AT&T/DIRECTV ranks highest in the South (749) and West (713) regions.

Residential Television Service Provider Satisfaction Study 
DISH Network ranks highest in overall satisfaction nationally with a score of 762, and across all four regions; East (763), North Central (759), South (762) and West (763).

The 2019 U.S. wireline studies are based on responses from 22,891 customers in the Internet Service Provider Study and 20,204 customers in the Television Service Provider Study who evaluated their cable/satellite TV and high-speed internet service providers. The studies were fielded in four waves: November 2018; January-February 2019; April-May 2019; and July 2019.

For more information about the U.S. Residential Wireline studies, visit
https://www.jdpower.com/business/resource/us-residential-television-customer-satisfaction-study.

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
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected] 

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

 

Dealers Fail to Meet Customers’ Expectations of Service Times and Costs, JD Power Finds

2019-09-26

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SINGAPORE: 26 Sept. 2019 — An increasing percentage of customers are not having their needs met by dealerships that are failing to meet the promised service time and expected service fees, according to the JD Power 2019 Vietnam Customer Service Index (CSI) Study,^SM released today.

The study finds that 9% of customers, up from 6% in 2018, indicate their total service time was more than what was initially promised. Customer satisfaction for such customers is 719 (on a 1,000-point scale), a decline of 9 points from 2018. Furthermore, the average service time increased to three hours from nearly 2.5 hours in 2018. Customer satisfaction for those whose service time is one hour or less is 41 points higher than those whose service took more than one hour.

“In order to provide a more accurate service time to the customer, a coordinated effort is required from each player,” said Siros Satrabhaya, Regional Director for Thailand and Vietnam at JD Power. “It is important for service advisors to have visibility of the workshop schedule in advance while workshop controllers, technicians and washing staff need to ensure their jobs are completed within the allocated time. As car wash and vacuum services become mandatory, this needs to be factored into the service time estimation given by the service advisor to deliver a positive customer experience.”

A higher percentage of customers (15% in 2019 vs. 10% in 2018) indicate that service fees are much higher than expected. Customer satisfaction for those whose service fees are much higher than expected is 799, which is 21 points below the overall average satisfaction score.

Following are additional key findings of the 2019 study:

• Shorter paperwork time preferred: Satisfaction is 23 points higher than the average among customers whose paperwork process finished within five minutes. Paperwork process during vehicle pickup takes 18 minutes on average.
   
• Variety of payment methods: Only 27% of all transactions are made via non-cash methods such as credit cards or mobile wallets. However, an increasing percentage of customers are showing a preference for these methods. Those who prefer to pay with a credit card is 51%, up from 42% in 2018; those who prefer a mobile application is 19%, up from 11% in 2018; and those who use membership points is 16%, up from 10% in 2018.
   
• Text updates help drive satisfaction: For the 21% of customers who receive service status updates through text message/ manufacturer’s app, satisfaction is 29 points higher than the average. Similarly, for the 22% of customers who receive updates through email, satisfaction is 15 points higher than the average

Study Rankings

Ford ranks highest with a score of 832, performing well in two of the five factors: service initiation and vehicle pick-up. Mazda (824) ranks second and performs particularly well in service quality. Mitsubishi and Toyota (823 each) rank third in a tie.

The JD Power 2019 Vietnam Customer Service Index (CSI) Study measures overall satisfaction among vehicle owners who visited an authorized dealer/ service centre for maintenance or repair work during the first 12 to 60 months of ownership. This study is based on responses from 1,513 new-vehicle owners who took their vehicle for service to an authorized dealer or service centre between March 2018 and July 2019. The study was fielded online between March and July 2019.

Now in its 11th year, the study measures new-vehicle owner satisfaction with the after-sales service experience by examining dealership performance in five factors (in order of importance): service quality (24%); service initiation (21%); vehicle pick-up (20%); service advisor (18%); and service facility (17%).

The study also includes the Net Promoter Score® (NPS)^[1], which measures customers’ likelihood to recommend their vehicle brand on a 0-10 scale.

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

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

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

 

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^[1] Net 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. 

 

Satisfying Vehicle Service Experiences Crucial to Customer Retention, JD Power Finds

2019-09-26

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MEXICO CITY: 27 Sept. 2019 — New-vehicle owners are more satisfied with the service they receive from dealerships compared with when they visit both dealer and non-dealer service facilities, according to the JD Power 2019 Mexico Customer Service Index (CSI) Study.^SM 

Customers who take their vehicle exclusively to dealership facilities seek services such as lube, oil and filter changes and other routine maintenance at higher percentages than do switchers—those customers who visit both types of facilities. However, non-dealer facilities have the upper hand for minor jobs such as tire alignment, replacement and repair.

The study, now in its fifth 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.

“Providing an outstanding service experience during the first three years of vehicle ownership is critical for dealers to maintain customer loyalty,” said Gerardo Gomez, Senior Director and Country Manager at JD Power de Mexico. “As we saw with the 2019 Mexico Customer Service Index Long-Term Study, customers begin migrating to third-party service facilities in greater numbers after the third year of ownership. Once customers become switchers, it’s difficult for dealers to recover this business. Switchers have a more critical eye and become more skeptical, so dealers should focus on improving satisfaction through service quality and service initiation—the areas of highest importance for vehicle owners—to retain business once the manufacturer warranty expires.” 

The study finds that one in six new-vehicle owner customers (18%) are switchers. However, satisfaction among these customers is 16 points lower than among customers who visit dealerships only, and their satisfaction declines 21 points by the third year of ownership. Dealer-only service customers have higher satisfaction across all categories analyzed in the study: service quality (+18 points); vehicle pick-up (+17); service initiation (+17); service advisor (+14); and service facility (+12). 

Following are some key findings of the 2019 study:

• Vehicle maintenance packages benefit repurchase intent: While nearly two-thirds (62%) of luxury owners received a complimentary maintenance package when they purchased their vehicle, the likelihood of repurchasing or leasing a vehicle from that dealer is nearly 92% for complimentary packages and 93% for paid-for packages. 
• Satisfaction gap remains on service update methods: A phone call remains the most preferred communication method to provide service updates in many markets in which JD Power conducts a CSI Study. In Mexico and Brazil, 36% of customers prefer a phone call, followed by the UK (35%). The United States trails with 27%. In Mexico, updates by messaging app (31%) and text message (11%) are the second- and third most-preferred methods. However, these channels are used just 5% of the time, indicating that customers’ needs aren’t being met. Dealers who text or use messaging apps should capitalize on this service opportunity, as customer satisfaction is 41 points higher when customers are notified via text message or messaging app vs. a phone call. 
• Keep fixing it right the first time…or else: While dealers in the UK, Brazil, Germany and United States complete service work right the first time 93% or more of the time, according to JD Power CSI studies conducted in those countries, dealers in Mexico rank highest at 97%. It’s important for dealers in Mexico to note, however, that satisfaction drops 207 points when this metric isn’t met. 
• Keys to generating more revenue: When customers perceive that the service advisor is providing them with valuable information about their service work, as well as keeping them informed with status updates, they’re more likely to spend more than originally planned, at least 13%.

“There are many areas where dealerships have demonstrated they provide a service advantage, but pricing remains a top customer consideration,” Gomez said. “Dealers and manufacturers have been able to contain service costs—which have remained relatively stable during the past five years—by implementing processes to make service operations more efficient. By continuing to keep costs competitive and continuing to improve the overall service experience, dealers may be able to increase service retention and brand loyalty. This can keep customers coming back for years to come.”

Highest-Ranking Brands

Toyota ranks highest in overall satisfaction among mass market brands, with a score of 854. Mazda (853) ranks second and Hyundai (851) ranks third. 

GMC ranks highest among luxury brands for a second consecutive year, with a score of 892. Buick ranks second (871), followed by BMW (870) and MINI (869).

The 2019 Mexico Customer Service Index (CSI) Study is based on the evaluations of 6,094 interviews with new-vehicle owners in Mexico approximately 12 to 36 months after purchase. The study was fielded from March through August 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
Diana Muñoz; Mexico City; +52 1 55 7474 4075; [email protected]
Silvia Mosqueda; Mexico City; +52 1 55 1900 9989; [email protected]
Fabiana Duran; Mexico City; +52 1 55 1012 0885; [email protected]
Geno Effler; USA; 714-621-6224; [email protected]

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

 

Record Q3 Spending Accelerates Auto Sales After Slow Start To The Year

2019-09-26

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The Retail Sales Forecast

New-vehicle retail sales in September are expected to fall from a year ago, according to a forecast developed jointly by JD Power and LMC Automotive. Retail sales are projected to reach 1,007,000 units, a 15.2% decrease compared with September 2018. Controlling for the number of selling days, this translates to a decline of 7.8% from last year on two fewer selling days. (Note: This year excludes the Labor Day holiday and has one fewer weekend than September 2018.)

New-vehicle retail sales in Q3 are projected to reach 3,622,500, flat compared to Q3 2018. In contrast, new-vehicle retail sales in the first half of the year were down 2.9%.

The Total Sales Forecast

Total sales in September are projected to reach 1,244,000 units, a 13.3% decrease compared with September 2018. Adjusting the results for two fewer selling days results in a decline of 5.8%. The seasonally adjusted annualized rate (SAAR) for total sales, which normalizes sales for the exclusion of the Labor Day holiday and one fewer weekend this year, is expected to be 16.8 million units. This is down 500,000 units from a year ago.

New vehicle total sales in Q3 are projected to reach 4,280,000 units, flat compared with Q3 2018.  In contrast, new-vehicle total sales in the first half of the year were down 1.5%.

The Takeaway

Thomas King, Senior Vice President of the Data and Analytics Division at JD Power:
“After delivering record sales results in August, when retail sales rose 6.2% on a selling-day adjusted basis, the decline in September sales was expected and reflects a quirk in how the industry reports sales. The large decline in sales this month is driven primarily by the timing of the Labor Day holiday. Unlike most years, sales from the Labor Day holiday weekend were included in August sales reporting instead of September. With close to 250,000 new vehicles sold during the holiday weekend, the exclusion from September reporting is significant.”

King noted that noise in the monthly results mean it makes sense to evaluate performance over the entire quarter. Retail sales in Q3 are expected to be flat compared with the same time period last year. This is a remarkable improvement from the first half of the year and the first quarter in nearly two years without a year-over-year sales decline. The improvement however has been accompanied by record levels of spending. Incentive spending is projected to reach $4,159 (up 6% or $246), the highest level ever for the third quarter and just $28 short of the all-time quarter high set in Q4 2017. The increase is being driven by the ongoing sell-down of old model-year vehicles which account for more than 90% of sales in the quarter and represents the slowest sell-down on record.

—–

Transaction prices are expected to set another record for the quarter, with the average new-vehicle sales price projected to reach $33,321, up 4% (+$1,229) from last year. The average price for cars is up 4% to $26,736 and trucks/SUVs are up 3% to $35,725.

Continued growth in prices combined with flat retail sales, means that consumers are expected to spend a record $120.7 billion on new vehicles in Q3. This represents the highest level for any quarter, edging out the previous high set in Q4 2018 by more than $500 million. 

—–

Looking ahead to the final quarter of the year, overall consumer affordability will continue to be aided by recent rate reductions. The average interest rate on a finance deal has fallen to 5.5% in Q3, more than 60 basis points lower than the first quarter this year. For a $30,000 vehicle with a 60-month loan, this equates to reduction in payment of nearly $10. “The big questions for the industry are how quickly manufacturers can transition to the new model year and will we see a return to the incentive discipline observed in Q1 and Q2. As manufacturers clear their inventories of heavily discounted 2019 model year vehicles, lower discounts on new 2020 model year vehicles could result in a slower sales pace than we saw this quarter,” King said.

Sales & SAAR Comparison

JD Power and LMC Automotive U.S. Sales and SAAR Comparisons

	September 20191	August 2019	September 2018
New-Vehicle Retail Sales	1,007,000 units (-7.8% lower than Sept. 2018)2	1,411,247 units	1,186,985 units
Total Vehicle Sales	1,244,00 units (-5.8% lower than Sept. 2018)2	1,642,485 units	1,434,916 units
Retail SAAR	13.9 million units	13.7 million units	15.5 million units
Total SAAR	16.8 million units	17.0 million units	17.3 million units

¹Figures cited for September 2019 are forecasted based on the first 16 selling days of the month.
²September 2019 has 23 selling days, two days fewer than September 2018.

The Details

• The average new-vehicle retail transaction price in September is expected to reach $33,709. The previous high for the month of September, $32,359, was set in 2018.
• Average incentive spending per unit in September is expected to reach $4,208, up from $4,014 last year.
• Consumers are on pace to spend $33.9 billion on new vehicles in September, down $4.5 billion from last year’s level.
• Truck/SUVs account for 72.3% of new-vehicle retail sales through Sept. 22, the highest level ever for the month of September.
• Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 75 days through Sept. 22. This is up 7 days from a year ago.
• Fleet sales are expected to total 236,900 units, up 4% from September 2018. Fleet volume is expected to account for 19% of total light-vehicle sales, up from 17% last year.

Outlook for the Year

Jeff Schuster, President, Americas Operations and Global Vehicle Forecasts, LMC Automotive:
“As the global sales outlook continues to weaken, light vehicle demand in the U.S. remains robust. This is despite the headwinds and uncertainty caused by rising tensions with Iran, the UAW strike at GM and ongoing trade concerns. The selling rate for the second half of 2019 is expected to average 17.0 million units, up slightly from 16.9 million units in the first half but behind the 17.2 million-unit pace set in the second half of 2018.”

LMC’s forecast for 2019 total light-vehicle remains just above the 17.0 million-unit level, with a slight improvement that now translates to a decline of 1.3% from 2018. The outlook for retail is holding at 13.6 million units, a decline of 2.0% from 2018.

Media Relations Contacts
Geno Effler; JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
Emmie Littlejohn; LMC Automotive; Troy, Mich.; 248-817-2100; [email protected]

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

 

Automotive Dealers Face Headwinds as Service Spend Declines, JD Power Finds

2019-09-30

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SINGAPORE: 30 Sept. 2019 — With India experiencing a decline in sales volume and a drop in average after-sales spend, automotive dealers are feeling the effects of a difficult year, according to the JD Power 2019 India Customer Service Index (Mass Market) Study^SM, released today.

The study finds a 10% drop in the average amount spent per service visit compared with 2018. On average, customers spend ₹5,000 per service visit, compared with ₹5,600 in 2018. The decline is greatest among after-sales customers who are 39 years or older, whose spend declined 17% year over year. The decline in service revenue is significant for dealers as 31% of their profits are generated from after-sales vs. 25% from sales.^[1]

“Typically, dealers rely on service work to keep their businesses profitable especially during a downturn in new-vehicle sales,” said Kaustav Roy, Director and Country Head for India, JD Power. “A drop in average service spend bodes negatively for overall dealer profitability. More than ever, dealers need to focus on delivering an excellent service experience to retain customers and encourage loyalty and advocacy.”

For the customers who rate their experience in the top quartile of satisfaction (929 points and above on a 1,000-point scale), 89% are more likely to return for post-warranty service work. Similarly, 90% of customers in the top quartile will recommend the service centre to a friend or relative.

Following are additional key findings of the 2019 study:

• Reluctance to go digital: After-sales customers rarely use digital channels to set appointments despite indicating higher satisfaction when used. Satisfaction is 875 among the 1% of customers who use a manufacturers’ app and 868 for the 2% who use a dealers’ website. For the majority (81%) who still prefer to call a dealer, satisfaction is 831. Customers who walk in without an appointment (14%) are the least satisfied (786) across all appointment types.
   
• Fewer customers stay at the dealership: More than one-fifth (21%) of customers stay at the service centre during their visit, a decline of 10 percentage points from 2018. However, satisfaction is typically higher among customers who wait for their vehicle service to be completed (837) vs. those who opt to leave and then return (821).

Study Rankings

Hyundai ranks highest in overall service satisfaction with a score of 903. Tata (870) ranks second and Mahindra (863) ranks third.

The JD Power 2019 India Customer Service Index (Mass Market) Study^SM is based on responses from 7,177 new-vehicle owners who purchased their vehicle between March 2016 and August 2018. The study was fielded from March through August 2019.

Now in its 23rd year, the study measures new-vehicle owner satisfaction with the after-sales service process by examining dealership performance in five factors (listed in order of importance): service quality (30%); service initiation (18%); service facility (18%); service advisor (17%); and vehicle pick-up (17%). This study examines service satisfaction in the mass market segment.

The study also includes the Net Promoter Score® (NPS)^[2] which measures new vehicle owners’ likelihood to recommend their vehicle brand on a 0-10 point-scale.

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

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

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

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^[1] JD Power-FADA 2019 India Dealer Satisfaction with Passenger Vehicle Manufacturers Index (DSWAMI) Study^SM

^[2] Net 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.

 

Wireless Carriers Reach Record High Satisfaction with Large Enterprise Customers but Miss the Mark with Very Small Business Customers, JD Power Finds

2019-10-09

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COSTA MESA, Calif.: 10 Oct. 2019 — Telecom companies continue to have a difficult time getting the very small business customer service satisfaction formula right, even as they drive significant improvement among large business customers. It’s a trend that JD Power first noted in its 2019 U.S. Business Wireline Study, released this past July, and it continues in the JD Power 2019 U.S. Business Wireless Satisfaction Study.^SM

“The growing gap in customer service satisfaction between large enterprise customers and very small business customers is a missed opportunity for wireless carriers,” said Ian Greenblatt, Technology, Media & Telecom Practice Lead at JD Power. “The small business customer segment presents unique challenges because these companies are more reliant on their wireless carriers to solve tech issues and are disproportionally affected when problems arise. In fact, negative customer service contacts take a far greater toll on the satisfaction of very small business customers than on large enterprise customers. Carriers that get the small business formula right will see significant improvements in retention and advocacy.”

Following are some key findings of the 2019 study:

• Satisfaction gap between large and small business customer satisfaction: The overall customer satisfaction score for large enterprise wireless customers is 842 (on a 1,000-point scale), an increase of 29 points from 2017. Meanwhile, the overall satisfaction score for small/medium businesses is 817, down 14 points from 2018, and the score for very small businesses is 788, up 13 points from a year ago. 
   
• Customer service is problem area for very small businesses: Satisfaction with the wireless carrier customer service function has increased 47 points during the past three years among enterprise customers, reaching a high of 868 in this year’s study. During that same period, very small business satisfaction with customer service is up just 9 points to 770, representing a gap of 98 points.
   
• Analyzing very small business customer experience: Very small businesses are far less likely to receive dedicated customer service from their carrier and, as a result, they experience significantly higher rates of transfers (51% vs. 33% for large enterprise customers); higher rates of difficulty understanding customer service representatives (21% vs. 11% for large enterprise customers); and wait on hold for customer service an average of 1.86 minutes longer than large enterprise customers.

Study Rankings

Large Enterprise
T-Mobile (868) ranks highest in the large enterprise segment for a third consecutive year. AT&T (849) ranks second and Verizon Wireless (836) ranks third.

Small/Medium Business
T-Mobile (844) ranks highest in the small/medium business segment for a third consecutive year. Sprint (830) ranks second and Verizon Wireless (819) ranks third.

Very Small Business
T-Mobile (843) ranks highest in the very small business segment for the third consecutive year. Verizon Wireless (807) ranks second and AT&T (762) ranks third.

The 2019 U.S. Business Wireless Satisfaction Study measures satisfaction across six factors: performance and reliability; customer service; sales representatives and account executive; billing; cost of service; and offerings and promotions. Overall satisfaction is measured among three key segments: large enterprise (500 or more employees); small/midsize (20-499 employees); very small business (1-19 employees).

The study is based on responses from 2,797 business decision-makers for wireless services in the United States and includes evaluations of their wireless carriers. The study was fielded in July-August 2019.

For more information about the U.S. Business Wireless Satisfaction Study visit
https://www.jdpower.com/business/resource/us-business-wireless-customer-satisfaction-study.

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
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Increasing Competition Drives Rental Car Companies to Achieve Record High Satisfaction, JD Power Finds

2019-10-14

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COSTA MESA, Calif.: 16 Oct. 2019 — Facing increased competition from all angles, airport-based rental car companies have doubled-down on innovation, offering more vehicle choice, personalized service and streamlined pick-up and return processes that are resonating with customers. According to the JD Power 2019 North America Rental Car Satisfaction Study,^SM customer satisfaction with airport-based rental car companies has climbed to a record high of 843 (on a 1,000-point scale), with just 31 points separating the top- and bottom-ranked rental car companies.

“Across all of our travel-related studies, rental cars have become the most satisfying part of the overall traveler experience,” said Michael Taylor, Travel Intelligence Lead at JD Power. “This is due largely to companies’ continued innovation to tweak their pick-up and return processes and deliver stand-out customer experiences. Many customers can walk the lot and pick a specific car, and the pick-up process can be completed in 15 minutes or less. Adding personalization through apps and alerts to mobile devices is a big plus, too.”

Following are some of the key findings of the 2019 study:

• Record-high rental car customer satisfaction amid tight competition: Overall rental car satisfaction is at its highest level ever, reaching 843 in 2019. Moreover, the gap in performance between the top- and bottom-ranked performers has narrowed to just 31 points (down from 51 points in 2018), with just one point separating the top two companies in the study.
   
• Smooth pick-up process is a key differentiator: Though competition is tight between rental car companies, one area showing significant variation in customer experience is the vehicle pick-up process. While overall satisfaction scores are 33 points higher when customers get their vehicle in 15 minutes or less, that happens just 64% of the time.
   
• Technology-laden vehicles present a double-edged sword: Rental car satisfaction scores are highest (902) when vehicles have 21 or more features, such as cruise control, GPS, USB ports and premium sound systems, but those scores plummet 140 points when renters indicate that vehicle features are difficult to use.
   
• Mobile app users more satisfied with rental experience: Overall satisfaction among customers who use a rental car brand’s mobile app is 50 points higher than among those who do not. Currently, just 40% of customers say they have a rental car mobile app downloaded on their smartphone. Rental car apps are used most frequently for making reservations (52%); getting shuttle information (40%); getting general information (39%); check-in (39%); and selecting the rental car (39%).

Study Ranking

Hertz ranks highest in overall customer satisfaction, with a score of 856. Enterprise (855) ranks second and Alamo (848) ranks third.

The 2019 North America Rental Car Satisfaction Study is based on responses gathered from September 2018 through August 2019, from 9,382 business and leisure travelers who rented a vehicle at an airport location from August 2018 through August 2019.

For more information about the North America Rental Car Satisfaction Study, visit
https://www.jdpower.com/resource/north-america-rental-car-satisfaction-study.

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
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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