Service Advisors Fail to Convince Customers of Service Needs, J.D. Power Study Finds
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Nissan Ranks Highest in Customer Satisfaction with Vehicle Service Among Mass Market Brands in Taiwan for Third Consecutive Year
SINGAPORE: 30 Sept. 2016 — Vehicle owners rejecting their service advisor’s recommendations for work that needs to be done on their cars has doubled to 34% in 2016 from 17% in 2014, according to the J.D. Power 2016 Taiwan Customer Service Index (CSI) StudySM mass market segment, released today.
Among owners who reject the recommendations, 77% say they are not convinced by their service advisor that the work is necessary. This presents a double setback for authorized dealers, as these customers spend NT$700 less per service visit and they have lower overall satisfaction than those who have their advisor’s recommended work performed (813 vs. 829, respectively, on a 1,000-point scale).
Dealers are also at greater risk of losing future business from customers who do not accept their service advisor’s recommendations. Among these customers, only 23% say they “definitely would” return to their service dealer for post-warranty service, compared with 36% of those who accept their advisor’s recommendations who say the same.
Customers who accept their service advisor’s recommendations have a higher level of engagement with their advisor, particularly in the following areas: paid attention to details (99%); performed an inspection of vehicle (97%); and provided helpful advice (96%).
“In a mature market like Taiwan, where customers are savvier and more likely to refer to multiple sources on the web for information, they tend to form their own opinions on the work that is necessary,” said Kaustav Roy, director at J.D. Power. “However, it is clear that those who accepted their service advisor’s recommendations are more satisfied, indicating that dealers need to proactively ensure their advisors are providing the right explanations and recommending the right value-added services based on the genuine needs of the customer.”
Additionally, the study finds that there is an upward trend of customers scheduling an appointment for their service, increasing to 88% in 2016 from 61% in 2012. Overall satisfaction is higher among customers who scheduled their service than among those who dropped in without an appointment (826 vs. 807, respectively).
“Customers expect a high-quality service experience, not just when they are physically at the dealerships, as their expectations are shaped even before they enter the dealership,” said Aaron Lee, country manager at J.D. Power. “This underscores the importance of having a robust and hassle-free scheduling service system, whether by phone or the internet, to ensure that the customer is delighted at every interaction.”
Following are additional key findings of the study:
- Two Hours Is Maximum Service Time: Customers expect their vehicle to be serviced within two hours. When service is completed within two hours, overall satisfaction averages 830, and falls to 805 when the wait is three or more hours. More than one-fourth (27%) of customers indicate waiting three or more hours for completing the service to their vehicle in 2016, up from 21% in 2015.
- Fewer Vehicles Returned Clean: Fewer customers indicate that their vehicle was cleaner after service in 2016, compared with last year (64% vs. 73%, respectively). When the vehicle is returned cleaner after service than when it arrived, overall satisfaction increases to 841, compared with 792 when it’s not returned cleaner.
- Service Standards Implementation by Dealers: The study identifies 22 service standards that enhance the overall after-sales service experience. Customers expect a minimum of 21 of those 22 standards to be met in order to have a positive service experience. When 20 or fewer sales standards are met, satisfaction drops to 797, compared with 856 when all 22 sales standards are met.
Overall customer service satisfaction in the mass market segment averages 823. Nissan ranks highest in satisfaction among the 10 brands ranked in the segment, with a score of 862. Nissan performs particularly well across all five factors. Luxgen and Mitsubishi rank second (in a tie) with a score of 831.
About the Study
Now in its 19th year, 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. The study examines service satisfaction in the mass market segment.
The 2016 Taiwan Customer Service Index Study is based on responses from 2,863 vehicle owners in the mass market segment who received delivery of their new vehicle between March 2014 and June 2015 and took their vehicle for service to an authorized dealer or service centre between September 2015 and June 2016. The study was fielded from March through June 2016.
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About J.D. Power in the Asia Pacific Region
J.D. Power has offices in Tokyo, Singapore, Beijing, Shanghai, Malaysia 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 six 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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