Honda and Toyota Rank Highest in a Tie in After-Sales Service among Mass Market Brands in Vietnam
SINGAPORE: 30 Sept. 2016 — Steady growth of new-vehicle sales in Vietnam is increasing the volume of service traffic at dealerships; thus, customers who schedule their regular maintenance service visit at their authorized service center are more satisfied than those who do not, according to the J.D. Power 2016 Vietnam Customer Service Index (CSI) StudySM mass market segment, released today.
The 2016 study finds that 31% of vehicle owners make an appointment, a 5 percentage point increase from 2015. Overall satisfaction is higher among customers who have an appointment than among those who simply drop in at the service center (851 vs. 841, respectively, on a 1,000-point scale). Among customers who do not make an appointment, 64% drop in for service before 10 a.m. Additionally, 74% of customers with a scheduled appointment arrive at the dealership before 10 a.m., which creates a challenge for service dealers to cope with the volume of customers during the morning hours.
“The Vietnam auto market is on an upward trajectory, and it is imperative that dealers further refine their processes in order to manage the increasing volume of service business,” said Loïc Péan, senior manager at J.D. Power. “When dealers can incentivize customers to make service appointments, both parties benefit: customers tend to have their vehicle serviced faster and dealers benefit from greater loyalty that comes with satisfied customers.”
A key area on which dealers need to focus is service initiation. Surprisingly, 30% of customers with an appointment had to wait, compared with only 17% of those who dropped by. Moreover, customers with an appointment had an average wait time of 11 minutes before they met with their service advisor, longer than the 9 minutes drop-in customers had to wait.
“Service advisors should not keep customers waiting, especially when they schedule their visit,” said Péan. “This indicates the need to improve the management of the appointment process.”
Péan also noted that the vehicle hand-over process after service is completed should take less than 20 minutes. When the hand-over process takes less than 20 minutes, overall satisfaction is 850. Overall satisfaction among the 50% of customers who say the process took 20 minutes or more is 838.
Now in its eighth year, the study measures new-vehicle owner satisfaction with the after-sales service experience by examining dealership performance in five factors (in order of importance): service quality (33%); service initiation (31%); vehicle pick-up (14%); service facility (12%); and service advisor (10%).
Following are additional key findings of the study:
- Satisfaction Is Improving: Overall customer satisfaction with the after-sales service experience improves by 7 points to 844 in 2016. Satisfaction improves year over year in each factor, with the largest increases in service facility (+15 points) and service advisor (+13).
- Listening to the Advisor’s Advice: The proportion of customers who had all of their service advisor’s recommended work performed increases to 86% in 2016, up from 79% in 2015.
- More Customers Leave the Service Facility during Service: A growing proportion of customers who drop off their vehicle for service (20%) leave the service center and return later to pick it updouble the proportion from 2015. However, satisfaction is higher among customers who stay at the service facility than among those who do not (848 vs. 829, respectively), in part because the level of comfort at dealerships has improved.
- Vehicles Returned Clean: There is a dramatic improvement in the proportion of customers who indicate that their vehicle was returned cleaner after service in 2016, compared with last year (87% vs. 56%, respectively).
- Satisfied Customers Are More Loyal and Provide More Recommendations: Among highly satisfied customers (overall satisfaction scores of 886 and higher), 66% say they “definitely would” revisit their service dealer for post-warranty service and 57% say they “definitely would” recommend it to a friend/ relative. In contrast, among customers who are highly dissatisfied (scores of 802 and lower), only 33% say they “definitely would” revisit the service center after the warranty period and only 40% say they “definitely would” recommend it to others.
Among the eight brands ranked in the study, Honda and Toyota rank highest in a tie, each with a score of 857. This is the second consecutive year Honda has ranked highest. Honda performs particularly well in the service initiation and vehicle pick-up factors. Toyota performs particularly well in the service advisor, service facility and service quality factors.
The 2016 Vietnam Customer Service Index (CSI) Study measures overall satisfaction among vehicle owners who visited an authorized dealer/ service center for maintenance or repair work during the first 12 to 24 months of ownership. This study is based on responses from 1,609 new-vehicle owners who purchased their vehicle between April 2014 and July 2015 and took their vehicle for service to an authorized dealer or service center between October 2015 and July 2016. The study was fielded between April and July 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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