Service Satisfaction Key to Increasing Brand Advocacy, J.D. Power Finds

Service quality affects whether a customer will recommend using a dealer for service or sales, as well as their loyalty intentions toward a particular brand or model. Scores in the service quality measure improve 39 points to 821 (on a 1,000-point scale) since the study was redesigned in 2015. Other measures in the study showing year-over-year improvement include service advisor (+12 points); service facility (+11); service initiation (+10); and vehicle pick-up (+10).

A new metric, Net Promoter Score^® (NPS)¹, which measures customer loyalty and predicts business growth, is included in the 2018 study to further show service satisfaction's role in whether a customer will recommend a brand or tell others to avoid it.

"There's a strong link between a brand's CSI score and its Net Promoter Score," said Chris Sutton, Vice President, U.S. Automotive Retail Practice at J.D. Power. "When a customer is happy with the service a dealer provides them, they're more likely to tell their friends and family members about it. This experience creates promoters for the vehicle brand who are more likely to return to a dealer for repairs and common services like oil changes and replacement of batteries, brakes and tires. Increasing the number of brand advocates is the pathway to growth for dealers looking to generate repeat business and bring in new business based on positive word of mouth.

"It's also good news for manufacturers because satisfied customers tend to stay with a brand and bring others with them," Sutton added. "Anything less opens the door for customers to shop elsewhere."

Following are some of the study's key findings:

• Customers prefer online service scheduling capability: Using the internet to schedule service has increased among all generations, but Gen Y² customers have adopted internet scheduling at a much faster rate than older customers. Nearly one-fourth (24%) of Gen Y customers schedule their service via the internet, compared with 10% of Pre-Boomers. As Gen Y customers contribute to a larger portion of the vehicle-buying marketplace, it is imperative for dealers to offer effective online scheduling tools to serve this group and let them know these tools are available.
• White glove valet service improves loyalty among premium brand customers: Catering to luxury customers with home or office vehicle pick-up and delivery services has a notable effect on intended loyalty to return for future services, with 68% of these customers saying they "definitely will" return to their dealership. Overall scores among those who have their vehicle picked up is 27 points higher than among those who drop their vehicle off at the dealership (889 vs. 862, respectively).
• Promotions, coupons and word of mouth attract young customers: The most common reasons customers choose their dealer for service include prior experience and convenience of location, but younger customers are more likely to rely on recommendations from friends or relatives (9% of Gen Y select a dealer based on recommendations, compared with 5% of Boomers). That is why the Net Promoter Score measurement has gained interest.

Highest-Ranked Brands

Infiniti ranks highest in satisfaction with dealer service among luxury brands for the first time since 2003, with a score of 876. Ranking second in the luxury segment is Porsche (874). Audi, Cadillac and Lexus rank third in a tie (871).

Buick ranks highest in satisfaction for dealer service among mass market brands for a second consecutive year, with a score of 850. Chevrolet and MINI rank second in a tie (849), followed by GMC (843) and Volkswagen (828).

The 2018 U.S. CSI Study is based on responses from 74,021 owners and lessees of 2015 to 2017 model-year vehicles. The study was fielded in October-December 2017.

For more information about the 2018 U.S. Customer Service Index Study, visit http://www.jdpower.com/resource/us-customer-service-index-study.

See the online press release at http://www.jdpower.com/pr-id/2018031.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected] 
Shane Smith; East Coast; 424-903-3665; [email protected]

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

¹ Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

² J.D. Power defines the generations as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); and Gen Y (1977-1994).

SOURCE J.D. Power

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