In Indonesia, Strong Growth in Service Volumes Results in Stress on Dealership Networks
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Mitsubishi Ranks Highest in After-Sales Service Satisfaction for a Second Consecutive Year
SINGAPORE: 31 August 2012 — Strong growth in the number of customers visiting dealership service centers has strained resources and infrastructure for dealership service providers, according to the J.D. Power Asia Pacific 2012 Indonesia Customer Service Index (CSI) StudySM released today.
The study measures new-vehicle owner satisfaction with the after-sales service process by examining dealership performance in five factors: service initiation; service advisor; service facility; vehicle pick-up; and service quality. Dealership service performance is reported as an index score based on a 1,000-point scale.
Overall customer satisfaction with the authorized dealer service experience averages 740 points in 2012, a 12-point decline from 2011. Satisfaction is lower across all five factors, with the largest declines in service initiation (-20 points) and service advisor (-14 points).
"Indonesia has been experiencing strong growth in new-vehicle sales since 2009, resulting in an increasing number of service customers," said Rajeev Nair, director at J.D. Power Asia Pacific. "While a strong increase in customer traffic at dealerships affects all aspects of service center operations, the impact is particularly evident in key customer interaction areas, such as service initiation when the customer brings the vehicle in for service, and service advisor."
According to the 2012 study, 37 percent of service customers indicate being notified in advance by their dealership that service was due, a decline of 14 percentage points from 2011. The proportion of customers who schedule a service appointment in advance has also declined year over year, to 22 percent in 2012 from a high of 27 percent in 2011.
"Increasingly, customers need to book a service appointment well in advance of their desired date and time," said Nair. "In many cases, customers who are either not willing to wait or need to have their vehicle serviced urgently come directly to the dealership without a prior service appointment. One way we're seeing the impact this shift is having on customer satisfaction is the fact that the service initiation process now has a larger impact on overall satisfaction with the service experience."
Among the 12 vehicle brands ranked in the study, Mitsubishi ranks highest for a second consecutive year, achieving a score of 750 points. Mitsubishi performs particularly well in four of the five factors: service initiation, service advisor, vehicle pick-up and service quality. Honda ranks second with a score of 748 points and performs particularly well in service facility.
The study finds a close correlation between customer satisfaction with their authorized dealer service center experience and their future loyalty and advocacy intentions toward the dealer and vehicle brand. Slightly more than one-third (35%) of highly delighted customers (satisfaction scores above 783) say they "definitely would" recommend their service dealer to friends and relatives. This proportion declines to only 22 percent among highly disappointed customers (satisfaction scores below 711). Similarly, 40 percent of highly delighted customers also say they "definitely would" recommend their vehicle brand to their friends and relatives. In contrast, only 23 percent of highly dissatisfied customers say the same.
"While there are challenges in coping with the increased service volume, it also offers dealerships the opportunity to further strengthen their service business," said Nair. "Dealerships and brands that are able to capitalize on this opportunity through better capacity planning and utilization, understanding changing customer profiles and expectations, and delivering a delightful service experience to their customers may benefit from increased customer loyalty and advocacy."
The 2012 Indonesia Customer Service Index (CSI) Study, now in its 12th year, measures the overall satisfaction of owners who visit an authorized dealer/service center for maintenance or repair work during the first 12 to 24 months of vehicle ownership. This study is based on responses from 3,179 owners who received delivery of their new vehicle between February 2010 and May 2011 and took their vehicle for service to an authorized dealer or service center between August 2011 and May 2012. The study was fielded between February and May 2012.
The CSI Study is one of three consumer-based benchmark studies that J.D. Power Asia Pacific conducts in Indonesia. The 2012 Indonesia Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales and delivery process, will be released in September. The 2012 Indonesia Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners, will be released in November.
About J.D. Power Asia Pacific
J.D. Power Asia Pacific 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. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: firstname.lastname@example.org
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. 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. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
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