WESTLAKE VILLAGE, Calif. (March 18, 2013) — Auto makers and car dealerships have been investing in improvements to their auto service operations and it seems to be paying off in terms of more highly satisfied and loyal service customers.
That's the results of the J.D. Power and Associates 2013 U.S. Customer Service Index (CSI) Study, which found that overall customer satisfaction with service at a dealer facility increased to 797 (on a 1,000-point scale), an improvement from 787 in 2012 and up by 29 points since 2011. Additionally, overall satisfaction with dealer service facilities averaged 44 index points higher than satisfaction with independent service facilities, a gap that has expanded by six points from 2012, according to J.D. Power.
"Manufacturers have made large investments in their retail programs and dealers have made significant investments in key customer touch-points—people, improved processes and customer waiting areas—which are having a profoundly positive impact on their customers," said Chris Sutton, senior director at J.D. Power. "Dealerships are placing more emphasis on the service advisor's role, which is essential to effectively handling service customers. Having a skilled, trained advisor is vital for a positive customer experience."
The study examined satisfaction among vehicle owners who visited a service department for maintenance or repair work. The CSI rankings are based on dealer service performance during the first three years of new-vehicle ownership, which typically represents the majority of the vehicle warranty period.
Five measures were examined to determine overall satisfaction with dealer service:
• Service quality;
• Service initiation;
• Service advisor;
• Service facility; and
• Vehicle pick-up.
The study determined that vehicle owners visited a car dealership service department an average of 2.6 times per year, most frequently for vehicle maintenance. About 77 percent of vehicle owners surveyed indicated their most recent dealer service visit was for maintenance, such as an oil change or tire rotation—an increase from 72 percent in 2012 and 63 percent in 2011.
Overall satisfaction among owners who took their vehicle to a dealership for maintenance work averaged 806, compared with 768 among those who took their vehicle in for repair work. Among owners who visited an independent service station, overall satisfaction averaged 754 for maintenance work and 750 for repairs.
"The service mix continues to shift to maintenance and away from repairs, which is a testament to the improvement in vehicle quality and dependability," Mr. Sutton said. "Owner satisfaction is generally higher for maintenance than for repairs for several reasons, primarily because maintenance tends to be less expensive and time-consuming and can be scheduled and completed at the owner's convenience."
When excluding complimentary service, service customers spend less out-of-pocket per visit at their auto dealership, compared with 2012 ($118 vs. $125, respectively); however, this amount still remains higher than the average spent per visit at an independent service facility ($44), according to the study.
Owners of premium vehicles spend an average of $198 per dealer visit, compared with $31 when they visit an independent service station, while owners of non-premium vehicles spend an average of $108 per dealer visit and $45 per visit to an independent service station.
The study identified a direct correlation between service satisfaction and loyalty. Overall, 79 percent of vehicle owners surveyed indicated they "definitely will" return to their car dealership for maintenance and repairs covered under their vehicle's warranty, and 64 percent indicated they "definitely will" return to the dealership for service work after their vehicle's warranty expires.
"The service experience has a profound impact on vehicle owners, not just where they take their vehicle the next time they need maintenance or repairs, but also on their next vehicle purchase. Dealers know this and most are taking the appropriate steps to ensure their customers have the best experience possible on both the sales and service sides of the store," Mr. Sutton said.
"While there are a lot of things dealers can't control, such as the product and the incentive levels on the sales side, one thing they can control is the service they provide," he said. "When new-vehicle sales dropped in 2008, dealers increased their focus on service, and that attention on the service customer continues today."