J.D. Power: U.S. customer satisfaction up 10 points in 2020

Dealership visits in 2020 in the United States were down only 6% from 2019 despite stay-at-home orders, reduced driving, and an extended interval between service visits — and yet overall satisfaction increased to 847 (on a 1,000-point scale) from 837 a year ago, according to J.D. Power.

The data is based on the J.D. Power 2021 Customer Service Index (CSI) Study, which was released on March 11 and found that overall satisfaction also increases for the sixth year in a row.

“When one- to three-year-old vehicles required service in 2020, dealers captured an even greater share of service visits, which is the highest level in at least five years,” said Chris Sutton, Vice President of Automotive Retail at J.D. Power. “Dealerships made the most out of a disruptively bad situation.”

Sutton also noted that completing the work correctly the first time and focusing on customers’ needs plays a significant role in satisfaction. He said dealers are “nailing these key performance indicators nearly 100% of the time,” and that continuing to provide an exceptional service experience creates an opportunity for them to seize an even greater share of the market.

“It’s notable, too, that while service was less frequent in 2020, customers responded very well to convenience services such as vehicle pick-up and drop-off at their home,” said Sutton.

J.D. Power’s study measures satisfaction with service at franchised dealerships and independent service facilities, for maintenance or repair work among owners and lessees of one- to three-year-old vehicles. The company also said it provides a numerical index ranking of the highest-performing OEM brands sold in the U.S., based on the combined scores of five different measures: service quality (29%), service facility (19%), service initiation (18%), service advisor (18%), and vehicle pick-up (16%).

Porsche ranks highest in satisfaction with dealer service among premium brands; it scored 899 out of 1,000 points. Lexus followed with a score of 895, Infiniti with 887, Cadillac with 883, and Lincoln with a score of 872.

MINI ranks highest in satisfaction with dealer service among mass market brands; it scored 864 out of 1,000 points. This was followed by Buick (859), second, Mitsubishi (857), GMC (856), and Kia (855).

Some key findings in the study include data showing that remote or online payment options help increase customer satisfaction. The satisfaction score improved 44 points among premium customers who pay remotely or online, when compared with handling the payment through a cashier. Among mass market customers, satisfaction improved 69 points.

“This is an example of a process some dealers may have put into place as a safety measure during the pandemic, but which they may want to keep in place, as customers find they like it more,” said Sutton.

The study also found that using express service increases satisfaction. Specifically, satisfaction among consumers using express service for maintenance increased 10 points during the pandemic.

Also of note is that battery-electric vehicle (BEV) owners were less satisfied with service. The J.D. Power 2021 Electric Vehicle Experience (EVX) Ownership Study found that only 54% of BEV owners took their vehicle in for service in the past 12 months — but that when they did visit a dealer for service, their overall service satisfaction was 69 points lower than the average customer. And it was 76 points lower for service quality.

“BEV owners present a unique challenge for dealers,” said Sutton. “Not only are their vehicles more difficult to service than traditional internal combustion engine vehicles, but also the lower frequency of visits means dealers have fewer chances to make a positive impression on these customers.”

BEV owners are also less satisfied with dealership maintenance than repairs.

The 2021 U.S. Customer Service Index Study took place from July through December 2020, and included responses from 62,519 verified registered owners and lessees of 2018 to 2020 model-year vehicles.

About Todd Phillips

Todd Phillips is the editorial director of Universus Media Group Inc. and the editor of Canadian auto dealer magazine. Todd can be reached at tphillips@universusmedia.com.

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