Luxgen Ranks Highest among Mass Market Brands; Lexus Ranks Highest among Luxury Brands
SINGAPORE: 25 Sept. 2018 — Despite only 31% of mass market vehicle owners scheduling their service appointments on a digital platform (manufacturer’s website or app), those vehicle owners are more satisfied than those who call the dealer directly (818 vs. 791, respectively, on a 1,000-point scale), according to the J.D. Power 2018 Taiwan Customer Satisfaction Index (CSI) Study,SM released today.
The study also finds that the three most cited reasons why customers do not schedule their service through digital platforms are that they would prefer to speak with someone directly (31%), they are not aware that the dealership offered online scheduling (29%), and that they required immediate service for their vehicle (26%). With nearly half of customers (44%) saying they would like to use digital platforms to make future appointments, it is important that dealers focus on enhancing their digital capabilities and create a superior service experience for their customers.
“In response to an increasingly digitized landscape, manufacturers should continue to modernize their service platforms to enhance the overall customer experience,” said Kaustav Roy, Regional Director at J.D. Power. “Additionally, dealers need to continue to maintain a strong personal connection with their customers while they help to transition them to newer and nimbler digital platforms.”
The following are additional key findings of the study:
- Quick service improves satisfaction: The study finds that 55% of customers were offered quick service. Of these, 75% used the quick service option during their recent visit to the dealer. Customer satisfaction for those who used the quick service was higher than those who did not (820 vs. 755, respectively).
- Periodic maintenance makes up the majority of service work: The study finds that the majority of customers (87%) have periodic maintenance work carried out on their vehicle while 11% of customers visit the service center for maintenance and/or repair work. The average service cost for periodic maintenance is not very different from the cost of maintenance and/or repair — 5,234NTD vs 6,072NTD.
- Length of ownership affects advocacy and loyalty: Of customers who have owned their vehicle for 12-24 months, 41% say they definitely will recommend their dealer/service centre to a friend or relative, as compared to 36% among customers who have owned their vehicle for 25-36 months. Similarly, the former group of customers are also more likely to return to the dealer/service centre during the post-warranty period than the latter group of customers (39% vs. 33%, respectively).
Luxgen ranks highest among the mass market brands, with an overall score of 814. Nissan ranks second with a score of 811 and Mazda ranks third with a score of 803.
Lexus ranks highest among the luxury market brands, with an overall score of 826 while Mercedes-Benz (795) ranks second and BMW (790) ranks third.
The 2018 Taiwan Customer Satisfaction Index (CSI) Study is a comprehensive analysis of the new-vehicle service experience. The study is based on responses from 3,198 mass market new-vehicle owners and 1,002 luxury who received delivery of their new vehicle between February 2015 and July 2017 and took their vehicle for service to an authorized dealer or service center between February 2017 and July 2018. The study was fielded from March- August 2018.
Now in its 21st year, the study was redesigned in 2018 to cover owners who bought their vehicle in the past 12–36 months and serviced it at least once in the past 12 months at an authorized OEM service center. The study measures overall service satisfaction among owners who took their vehicle to an authorized service center by examining dealership performance in five factors. In order of importance, they are service quality (30%); vehicle pick-up (19%); service initiation (18%); service advisor (17%); and service facility (15%).
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About J.D. Power in the Asia Pacific Region
J.D. Power has offices in Singapore, Bangkok, Beijing, Shanghai and Tokyo 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, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, Taiwan, Thailand, the U.A.E. and Vietnam. 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. Information regarding J.D. Power and its products can be accessed through the internet at asean-oceania.jdpower.com.
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