Today, fixed operations is seen as one area of the dealership that can really boost profits and yet absorption rates continue to fall. A big issue is that once the new vehicle warranty expires, many consumers tend to drift toward aftermarket providers for their servicing needs. Additionally, many owners remain skeptical about dealership service departments. In fact, results from the J.D. Power 2014 Canadian Customer Commitment Index Study (CCI) indicated that 46 per cent of those who owned a vehicle of 4-12 years in age question whether suggested service work by their dealer was really necessary.
J.D. Power’s recent Automotive Analyst Note (August 2014) provided some insight into the CCI findings and how dealerships can learn to overcome skepticism and build trust and retention with their service customers.
The Analyst Note revealed that when dealership service advisors spend time consulting with and educating customers, overall satisfaction increases (J.D. Power noted a boost to 856 from 696 on a 1,000 point scale).
Additional areas where big improvements were noted were in building trust with the customer, establishing clear communication and clarity in explaining the work performed on the vehicle.
Those advisors that were seen as delivering 10 out of 10 in explaining the service process, were found to put their customers’ minds at ease virtually 100 per cent of the time, versus 62 per cent for those advisors who were rated 5 out of 10 or less.
In terms of communication, those advisors that asked customers questions to clarify their service needs, boasted a 96 per cent approval rating in terms of repairs performed correctly. Those that didn’t explain or ask questions saw that rating decline to 83 per cent.
Ensuring customers were well-informed of repairs performed on the vehicle once it was ready for collection, also had a big impact on reducing skepticism. Those that gave the advisor 10 out of 10, said they trust the necessity of service work 43 per cent of the time, compared with 16 per cent of the time for those that rated their advisors at 8 out of 10 or less.
The Analyst Note clearly indicated that the stronger the level of trust between the advisor and service customer, the stronger the rapport and the greater likelihood for repeat business.
To find out more click here to read the report: JD-Power_AutoAnylyst_Aug2014
