Service Initiation Delays for Luxury Car Owners in Taiwan Cause Drop in Service Satisfaction
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Lexus Ranks Highest in After-Sales Service among Luxury Brands in Taiwan
SINGAPORE: 20 October 2015 — Service volume for luxury automotive brands has increased in Taiwan, causing more owners to have to wait to have to get a service appointment, according to the J.D. Power 2015 Taiwan Customer Service Index (CSI) StudySM luxury segment, released today.
The study measures new-vehicle owner satisfaction with the after-sales service process by examining dealership performance in five factors (listed in order of importance): service quality; service initiation; vehicle pick-up; service advisor; and service facility. Dealership service performance is based on a 1,000-point scale. The study examines service satisfaction in the luxury segment.
Service volume for luxury market brands in Taiwan has increased 12 percent in 2015 compared with 2014, creating challenges for dealerships to maintain their service standard processes. As a result of the increased volume,59 percent of customers in 2015 said they had to wait for 3 days or more for a service appointment, an 8 percent increase from 2014. Overall satisfaction among customers who wait for 3 days or more is 885, compared with 898 for customers who wait 2 days or less for an appointment.
“Vehicle service is viewed by customers as a chore that needs to be done,” said Kaustav Roy, director, J.D. Power. “Customers, especially luxury brand owners, prefer not to wait to initiate their vehicle service. Automakers with dealerships that are able to manage a seamless flow for vehicle service are likely to help enhance satisfaction.”
The overall satisfaction with the service process for luxury segment in Taiwan in 2015 stands at 889 index points, down by 14 points over 2014.
2015 Taiwan CSI Luxury Brand Rankings
Lexus ranks highest in overall customer service satisfaction among luxury brands, with a score of 905. Lexus performs particularly well in all five factors.
KEY FINDINGS LUXURY SEGMENT
- There is a strong correlation between service satisfaction and customer advocacy intentions toward their dealer and brand. Among highly satisfied customers (CSI scores of 948 or higher), 68 percent say they “definitely would” recommend their service dealer to friends and relatives. Among dissatisfied customers (CSI scores of 846 or lower), only 25 percent say they “definitely would” recommend.
- The study identifies 22 service standards that enhance the overall customer service experience. One-fifth of customers received 20 or fewer service standard in 2015, a 6 percent increase from 2014. Satisfaction drops by 31 points when 20 or fewer service standards are implemented in 2015, compared with a 26-point decline in 2014.
- Service advisors are expected to spend sufficient time with customers while taking their vehicle in for service. In the 2015 study, 37 percent of customers indicate their service advisor spent less than five minutes with them, a 7 percent increase from 2014. Overall satisfaction declines by 9 points when advisors spend less than five minutes with customers.
- Delivering a clean vehicle after service enhances customer satisfaction. The study finds that 79 percent of customers in 2015 say the dealership returned their vehicle cleaner than when they took it in for service, a 5 percent decline from 2014. Satisfaction of customers who receive a cleaner vehicle is 897, compared with 858 for those whose vehicle was not cleaned.
- Luxury car owners who are provided alternative transportation while their vehicle is being serviced have an overall satisfaction of 894, compared with 873 among owners who are not provided this service.
About the Study
The 2015 Taiwan Customer Service Index Study is based on responses from 757 vehicle owners in the luxury segment who received delivery of their new vehicle from March 2013 through June 2014 and took their vehicle for service to an authorized dealer or service center from September 2014 through June 2015. The study was fielded from March through June 2015.
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About J.D. Power in the Asia Pacific Region
J.D. Power has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the five offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power and its products can be accessed through the Internet at asean-oceania.jdpower.com.
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