In J.D. Power’s Automotive Analyst Note for Canada this month, statistics reveal that having a consistent service process is essential for dealers to achieve high satisfaction scores with their customers.
Based on the analysis, J.D. Power identified five Key Performance Indicators (KPIs) that have the biggest impact on customer satisfaction when it comes to the dealership service experience. These are:
- Advisor put me at ease;
- Vehicle fixed right the first time;
- Advisor was completely focused on my needs;
- Greeted immediately;
- Appointment on day desired.
Based on statistical regression analysis, automotive brands listed in the top satisfaction quartile of the study achieved these KPIs 71 per cent of the time, while those in the fourth quartile achieved them 63 per cent of the time.
Talking with J.D. Ney, supervisor, Canadian automotive practice at J.D. Power, the analysis, which focused on volume automotive brands, clearly shows that dealership service departments are showing a very high percentage rate in terms of repairs done right the first time. “It’s around 90 per cent,” he says. Ney also notes that the biggest areas for improvement on the fixed ops side of a dealer’s business, lie with the service advisors. “In the service department we’ve done a great job in making sure technicians know how to service and repair vehicles but the big opportunities lie with soft skills and training service advisors to work with customers.”
Ney says that at the advisor desk, customers are still coming away with the perception that things haven’t been fixed right the first time (even though in actual fact they may have) and says that focusing on soft skills can help combat the problem.
“Providing helpful advice or completely focusing on the needs customer is where there is significant room for improvement,” says Ney “and one area where training still tends to be lacking.”
Nevertheless, despite indicators that there is still room for improvement, the high percentage of actual repairs “done right” and the frequency of high KPI scores indicate the industry has come a long way in the last two decades.
Ney does however caution that dealers need to be on their toes, especially as the bar in terms of customer expectation continues to rise. “There really isn’t much in quality differentiation when it comes to automotive product today,” he says “but when vehicle quality improves, so does the expectation of the service event. If we have great products, the customer expects a similar level of service at the dealership and when it comes to brand differentiation that is where some of it exists, particularly in the service department.”
Click here to view the report.
