Lexus Ranks Highest in Customer Satisfaction with Dealer Service
WESTLAKE VILLAGE, Calif.: 25 February 2009 —
In today’s tough automotive market, providing consumers with superior
service experiences translates into increased profitability for dealers
and automakers, with the highest-performing brands retaining more than
80 percent of their customer maintenance and repair dollars within
their dealer network, compared with retention rates of less than 60
percent for lower-performing brands, according to the J.D. Power and
Associates 2009 Customer Service Index (CSI) StudySM released today.
The study, now in its 29th year, examines
satisfaction among vehicle owners who visit a service department for
maintenance or repair work. The CSI rankings are based on dealer
performance during the first three years of ownership, which typically
represent the majority of the vehicle warranty period. Five measures
are examined to determine overall customer satisfaction with dealer
service (listed in order of importance): service quality; service
initiation; service advisor; service facility; and vehicle pickup.
The study finds that although satisfaction with dealer service
tends to decline as vehicles age–particularly during the fourth and
fifth years of ownership–those automakers whose dealers provide the
highest levels of satisfaction during the warranty period retain a
greater share of future service visits at the dealership, even after
the warranty period expires. Brands with dealers that achieve
particularly high CSI scores (800 or higher) during the first three
years of vehicle ownership retained 79 percent of dollars spent on
maintenance and repairs during the first five years of ownership. In
contrast, brands that attained CSI scores below 800 retained only 69
percent of customer maintenance and repair dollars.
The
study also finds that consumers report spending an average of $310
annually on oil changes, routine maintenance and repairs during the
first five years of vehicle ownership. Higher satisfaction with dealers
leads to a dramatically lower likelihood to spend this money on visits
to non-dealer service facilities. For example, customers who say the
dealer service they received was “unacceptable” report spending eight
times as much at non-dealer service facilities, compared with customers
who report receiving “truly exceptional” service from their dealer.
“Since
dealer service is the last touch point in the vehicle ownership cycle
that auto manufacturers have with customers, providing superior levels
of service can leave owners with a lasting favorable impression of the
brand,” said Jon Osborn, research director at J.D. Power and
Associates. “Providing excellent service is not only good for
customers, but it also benefits dealers and automakers in terms of
income from future service visits and sales. The significant decline in
new-vehicle sales means that dealers are relying even more heavily on
the service-operations side of their business for much-needed revenue.
In many cases, this income is keeping the dealerships open. With the
stakes so high, it is imperative for dealers to focus heavily on
maximizing satisfaction levels.”
Lexus ranks highest in customer
satisfaction with dealer service in 2009–improving from fourth rank
position in 2008. Lexus achieves an overall CSI score of 835 on a
1,000-point scale and performs particularly well in four of the five
measures: service quality; service initiation; service advisor and
service facility. Rounding out the top five nameplates are Jaguar
(810), BMW (808), Cadillac (806) and Acura (805).
“The
highest-performing brands differentiate themselves particularly in the
service quality and service facility measures,” said Osborn. “There are
several practices that the highest-ranked brands consistently perform
that help elevate customer service satisfaction levels, including
providing prompt service appointments; greeting the customer
immediately on arrival; knowing the vehicle’s service history;
returning vehicles to customers in a clean condition; and offering
alternative transportation to customers leaving their cars for service.
These courtesies may seem intuitive, but many dealers do not provide
them consistently. We find that they are very effective in raising
customer satisfaction, provided that the service work performed on the
vehicle is also satisfactory.”
The 2009 CSI Study is based on
responses from 106,059 owners and lessees of 2004 to 2008 model-year
vehicles. The study was fielded between October and December 2008. J.D.
Power and Associates measures dealer service in various countries
around the world, including Australia, Canada, China, France, Germany,
India, Indonesia, Japan, Malaysia, Mexico, New Zealand, the
Philippines, South Africa, Taiwan, Thailand and the UK.
About J.D. Power and Associates
Headquartered
in Westlake Village, Calif., J.D. Power and Associates is a global
marketing information services firm operating in key business sectors
including market research, forecasting, performance improvement,
training and customer satisfaction. The firm’s quality and satisfaction
measurements are based on responses from millions of consumers
annually. For more information on boat ratings, 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.
About The McGraw-Hill Companies
Founded
in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global
information services provider meeting worldwide needs in the financial
services, education and business information markets through leading
brands such as Standard & Poor’s, McGraw-Hill Education,
BusinessWeek and J.D. Power and Associates. The Corporation has more
than 280 offices in 40 countries. Sales in 2007 were $6.8 billion.
Additional information is available at http://www.mcgraw-hill.com/.
Source: J.D. Power & Associates
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