Based on the findings from J.D. Power & Associates’ 2013 Canadian Customer Commitment Index Study, both franchised dealers and aftermarket shops are expanding the range of products and services they offer to attract and keep customers who own vehicles between four and 12 years old.
Dealers are adding features such as express service, including quick lube oil change facilities, while aftermarket shops are adding oil changes to traditional services such as brake and exhaust service/replacement. According to J.D. Ney, supervisor of the Canadian automotive practice at J.D. Power & Associates, “service providers don’t want to give customers any reason to go anywhere else, so they’re offering a full or wider spectrum of products and services to attract them and keep them coming back.”
Although the survey revealed that overall, customers are more satisfied with aftermarket shops than dealership service departments (aftermarket shops scored 842 out of 1,000 points, versus 817 for dealerships), satisfaction among consumers who take their vehicles to dealers is improving.
The 2013 survey revealed that the highest level of satisfaction for individual service brands was tied between NAPA AUTOPRO centres and Lexus dealerships, both of which tied at 863 out of 1,000 points. Volkswagen dealerships also finished in the top five, with an overall score of 840. In terms of overall satisfaction, dealer service departments ranked at 830 points this year, a three point increase over 2012.
Nevertheless, aftermarket shops are still ranked ahead of dealerships in terms of service, once a vehicle’s warranty expires.
“Part of the reason for that is owners have a perception that aftermarket shops provide significantly cheaper service,” says J.D. Ney. “However, while most owners find the cost isn’t appreciably different, their satisfaction remains high. This would indicate the aftermarket is providing high-quality service first and foremost as well as doing a good job in terms of highlighting and selling the value of their work. ”
However, when it comes to customer satisfaction, dealers arguably have more at stake. Customers satisfied with their service experience are significantly more likely to buy the same brand the next time they purchase a new vehicle, something the aftermarket doesn’t have to consider. For example, among customers who were highly satisfied (average overall customer satisfaction of 900 or greater) with their dealer service experience, 79 per cent indicated that they were “likely” to purchase the same brand of vehicle next time, while 46 per cent of customers who were highly unsatisfied (average overall customer satisfaction of 500 or less) with their dealer service experience indicated the same.
“The service dealerships provide in the back of their store affects the sales in the front of their store,” says Ney. “The service department is their most recent experience with the dealership, and that’s what’s top of mind when the customer is in the market for a new vehicle. A good service experience will help keep them loyal, but a bad service experience will send them shopping elsewhere.”
