The state of the economy has a direct impact on the money consumers are able to spend maintaining their vehicles. And when they do spend, they are happier with the treatment they receive in the aftermarket, according to a new study released this week by J.D. Power and Associates. The study found that Canadians are spending less on car maintenance and repairs due to the unstable economic environment. The J.D. Power and Associates’ 2011 Canadian Customer Commitment Index study found that the annual average spending declined by $23 on average, which resulted in an overall drop in the annual service market from $9 billion in 2010 to $8.4 billion in 2011.
The annual service market for four-to 12 year-old vehicles has contracted to $8.4 billion in 2011 from $9.0 billion in 2010, largely brought on by decreased average annual service spending. This decrease stems from both a decline in the average amount spent per service visit and the number of service visits, say the study’s authors. Overall, the number of service visits has decreased by 9 per cent (2.9 visits per vehicle in 2011, on average, vs. 3.2 visits per vehicle in 2010). In addition, annual spending across all vehicle ages has declined by an average of $23, with the largest change seen among eight- to 12-year-old vehicles. Average annual expenditures among this vehicle group declines to $736 in 2011 from $821 in 2010.
“Study data suggests owners of older vehicles continue to de-prioritize maintenance and repair spending in the face of uncertain economic conditions,” said Ryan Robinson, director of the Canadian automotive practice at J.D. Power and Associates. “This is creating an increasingly competitive environment for automotive service brands as they fight for share in a contracting market.”
But perhaps more important for dealers, is the study’s findings that consumers are generally happier with the treatment they receive in the automotive aftermarket rather than at dealerships.
The study provides a measure of the service behaviours, satisfaction and loyalty of owners of four- to 12-year-old vehicles.Overall customer satisfaction is determined by examining five key factors of the service experience: process of getting the vehicle in for service; service advisor performance; service facility; quality of work performed; and the process of vehicle return/pick-up.The study examines customer satisfaction with both new-car dealerships and after-market facilities.
NAPA AUTOPRO ranks highest in satisfying automotive service customers in Canada, receiving an overall index score of 875 on a 1,000-point scale.Rounding out the top five ranked brands are Great Canadian Oil Change (864); Pennzoil (845); Goodyear Auto Service Centre (842); and Midas (836).
The study finds that owners of vehicles that are eight to 12 years old are more likely to visit an aftermarket facility for service, rather than a dealership.Owners of eight-to 12 year-old vehicles indicate a number of advantages to visiting an aftermarket facility, rather than a dealership, specifically when examining the most recent service visit:
* Once owners arrived at a dealership, 39 per cent indicate they were attended to immediately. Among customers who visit an aftermarket facility, 58 per cent say they received immediate attention.
* Eighty per cent of owners who visit the dealer say the service advisor put them at ease. This figure is slightly higher among visitors at aftermarket facilities—85 per cent.
* Seventy-three per cent of visitors to aftermarket facilities say the advisor provided helpful advice. Among visitors to dealerships, only 66 per cent say the same.
“The real battleground in the automotive industry lies in gaining share of service revenue,” said Robinson.“Aftermarket facilities seem to be beating dealerships at their own game. Customer retention rates are significantly higher—nine percentage points, on average—among users of aftermarket facilities, compared with those who visited dealerships for their two most recent service visits.Considering all of the vehicles currently on the road, this represents a gap of $700 million that dealers will no doubt strive to retain. Dealerships that provide excellent customer service along with high-quality repair and maintenance work will have an edge.”
The 2011 Canadian Customer Commitment Index Study is based on responses from more than 19,500 owners in Canada whose vehicles are between four and 12 years old. The study was fielded between January and February 2011 and June and July 2011.
Overall Service Experience Satisfaction Index
(Based on a 1,000-point scale)
Power Circle Ratings Legend:
5 – Among the best
4 – Better than most
3 – About average
2 – The rest
J.D. Power.com Power Circle Ratings For Consumers
NAPA AUTOPRO 875 5
Great Canadian Oil Change 864 5
Pennzoil 845 4
Goodyear Auto Service Centre 842 4
Midas 836 4
Subaru Dealerships 832 3
Acura Dealerships 829 3
Mr. Lube 825 3
Industry Average 822 3
Jiffy Lube 821 3
Mercedes-Benz Dealerships 821 3
Hyundai Dealerships 812 3
Toyota/Lexus Dealerships 812 3
Active Green & Ross 811 3
Ford/Lincoln Dealerships 811 3
Fountain Tire 811 3
Ford Fast Lane 808 3
Chrysler/Dodge/Jeep Dealerships 807 3
GM Dealerships 807 3
Kia Dealerships 804 3
Honda Dealerships 803 3
Mazda Dealerships 797 3
Volkswagen/Audi Dealerships 796 2
Nissan/Infiniti Dealerships 794 2
Volvo Dealerships 793 2
Wal-Mart Tire & Lube Express 779 2
Canadian Tire 764 2
BMW Dealerships 762 2
Costco 746 2
(*Independent Garage/Repair Shop 863: Independent Garage/Repair Shop” is a channel as opposed to a branded provider and therefore is not included in the official rankings.)
Included in the study but not ranked due to small sample size are Esso, Firestone Auto Service Centre, Kal Tire, Meineke Car Care Centre, Mitsubishi Dealerships, Mr. Muffler, Ok Tire, Petro-Canada (Certigard), Shell, Speedy and Suzuki Dealerships.
J.D. Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com.
