Time, technology help build trust with Canadian millennials

OTTAWA — With 42% of Canadian millennials feeling helpless when they bring their vehicles in for maintenance, independent service shops have an opportunity to build their trust, according to a report released by the Automotive Industries Association of Canada (AIA Canada).

A majority of millennial vehicle owners surveyed said they believed they would develop trust in a shop that took time to explain maintenance services and help them plan for upcoming services, according to the report, "Understanding Millennials: A Quick Profile of Young Canadian Vehicle Owners 2021-2022."

In 2021, AIA Canada and Quorus Consulting Group conducted a national survey of vehicle owners to understand their behaviors, attitudes and preferences towards maintenance and repair (M&R) in general, choosing a service provider, in-car data, e-tailing and the impact of the COVID-19 pandemic.

The online survey of 2,000 Canadian adults included 647 millennials (age 25-44). Data collection took place June 8-14, 2021.

Only 7% of millennials surveyed said M&R was a low priority versus 4% of all respondents.

More than half of the millennials said they were "very" or "somewhat" knowledgeable about M&R, with 68% of those being men and 40% women.

Yet 42% of millennials, and 32% of all vehicle owners, said they felt helpless when bringing their vehicle into a shop for M&R.

Most respondents take their vehicles to a service shop for some or all their M&R needs, with 24% visiting a car dealership exclusively, 18% going only to an independent shop and the majority visiting both.

There is still stiff competition between independents and car dealerships for consumer's loyalty.

Overall, 34% of millennials thought independent shops outperformed car dealerships; 33% thought car dealerships outperformed independents; and 33% said they both perform the same.

Independent shops have the advantage when it comes to perceptions of value and trust.

About 58% of millennials said they believed independents offer value for the money versus 22% who believe car dealers offer value.

Independents also are considered more trustworthy by 37% of respondents versus 29% who considered car dealerships more trustworthy.

However, car dealerships outperformed independents in other categories.

• 33% said car dealers had a more helpful service adviser versus 28% who thought independents did;
• 30% thought dealers did quality work versus 28% for independents;
• 32% felt dealers provided better customer service versus 25% for independents;
• 43% thought dealers were more proactive in their service notifications versus 21% for independents;
• 52% said dealerships had cleaner shops versus 12% for independents; and
• 38% said technicians at car dealerships are better trained than at independent shops.

When it comes to choosing a new independent shop to take their vehicles to for M&R, respondents listed their top priorities as: price (74%); recommendations/referrals (73%); and proximity to home or work (68%).

The least important factors were: brand name parts (44%); modern waiting room and amenities (38%); and walk-in price or product promotion (20%).

The survey posed four strategies that independents could implement to improve trust and the results were:

• 70% of millennials and 66% of vehicle owners overall would become more trusting if more time was spent explaining the impact of M&R;
• 69% of millennials and 64% of all owners prefer better planning for M&R for the short, medium and long term;
• 69% of millennials and 67% of all owners prefer having the same technician working on their vehicles; and
• 58% of millennials and 51% of all owners would like to receive email videos of inspections and links to websites explaining the scope and importance of M&R.

When it came to helpful methods of service reminders, the responses were: 82% for email; 81% for vehicle dashboard messaging systems; and 80% for the reminder sticker on the windshield.

When it came to less efficient reminders, 62% said a reminder letter was helpful, while around half said a reminder phone call and cards in the mail were helpful.

In a breakdown between the millennials and all owners: 76% versus 63% overall found an mobile phone app helpful in reminding about scheduling maintenance while 75% of millennials versus 67% overall liked a text message reminder.

A majority of respondents said they were satisfied with COVID-19 prevention measures implemented by repair shops during the height of the pandemic.

A majority of millennials would like to see some of those services continue, including:

• online booking (76%);
• vehicle sanitation (72%);
• contactless payment (69%); and
• sanitation stations (67%).