After-Sales Satisfaction Affects Brand Loyalty in UAE, J.D. Power Finds
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GMC Ranks Highest among Mass Market Brands; Cadillac Ranks Highest among Luxury Brands
SINGAPORE: 25 June 2019 — Vehicle owners who are satisfied with their after-sales experience are more than twice as likely to purchase a new vehicle from the dealership that serviced their vehicle, according to the J.D. Power 2019 UAE Customer Service Index (CSI) Study,SM released today.
The study finds that 67% of mass market customers who are satisfied (scoring 878 or above on a 1,000-point scale) indicate that they “definitely will” buy a new vehicle in the future from the dealership that serviced their vehicle. In contrast, only 23% of mass market customers who are disappointed (699 or below) with the service they received, would repurchase at the same dealership.
“With low overall sentiments continuing in the market, it is important for brands to appreciate their existing customers’ business,” said Shantanu Majumdar, Regional Director of the Automotive Practice at J.D. Power. “After-sales customers who are less satisfied with their service experience are extremely likely to consider other brands when they are in the market again for a new vehicle.”
The study also shows that first impressions are important, as an engaging and meaningful interaction with a service advisor notably affects the customer experience. Moreover, owners who had a delightful experience say they were greeted immediately by a service advisor 87% of the time; that the service advisor was completely focused on his/her needs 97% of the time; and that they received helpful advice 94% of the time. Overall, more than half (51%) of vehicle owners said they “definitely will” recommend the dealership.
“In the UAE, word-of-mouth plays an important role in influencing purchase decisions,” said Brian Walters, Managing Director, Skelmore Automotive Consulting, Dubai. “Dealerships that can manage their service reputation and equip their service advisors with appropriate skills and technology, stand a better chance of retaining their existing customers.”
Following are additional key findings of the 2019 study:
- Overall service experience exceeds expectations: One-third of all owners say their overall service experience was better than expected. Satisfaction among these owners—across both mass market and luxury segments—is 58 points higher than the average of 793.
- Service advisors are key: Service advisors play a key role in influencing the after-sales experience. Among the 88% of owners who said their service advisors reviewed the work done on their vehicle with them, satisfaction is 61 points higher than those who did not have a similar experience.
- Clean my car, please: More than three-fourths (79%) of owners say they received their vehicles washed and vacuumed. Satisfaction among these customers is 60 points higher than those whose vehicle was neither washed nor vacuumed.
- Use of technology enhances service experience: Satisfaction is 21 points higher for owners who mentioned that their service advisor used a tablet during their service visit when interacting with them than those who did not have a similar experience.
GMC ranks highest in satisfaction with dealer service among mass market brands, with a score of 809. Nissan ranks second with a score of 804, while Mazda ranks third with a score of 799.
Cadillac ranks highest in satisfaction with dealer service among luxury brands, with a score of 853. Porsche ranks second with a score of 848, while Land Rover ranks third with a score of 841.
The J.D. Power 2019 UAE Customer Service Index (CSI) Study is based on responses from 3,877 owners who purchased their new vehicle between December 2013 and May 2019 and took their vehicle to an authorised dealership service centre between December 2017 and May 2019. The study was fielded from December 2018 through May 2019 in all Emirates across the UAE.
The study measures customer satisfaction with service at an authorised service centre for maintenance or repair work amongst owners of 0- to 60-month-old vehicles who visited the service centre in the past 12 months. The study measures overall satisfaction by examining five factors (listed in order of importance): service quality (32%); service facility (20%); vehicle pick-up (18%); service initiation (16%); and service advisor (15%).
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.
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Skelmore Consulting Group, founded in 1996, is a dynamic and innovative company providing leading business and management consulting services to the broader Middle East and emerging markets. Since its inception, Skelmore has established a successful record in providing and implementing turnaround strategies and introducing and building profitable brands in the fields of automotive, transport, hospitality, travel and tourism, healthcare, trading and retail, IT, and banking and finance. www.skelmore.com