Lexus Ranks Highest in Customer Satisfaction With Dealer Service : J.D.Power
07-20-06, 11:26 AM
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Lexus Ranks Highest in Customer Satisfaction With Dealer Service : J.D.Power
J.D. Power and Associates Reports: Customer Satisfaction With the Overall Experience at the Auto Dealership Greatly Impacts Revenue
WESTLAKE VILLAGE, CA USA 05/27/2005
Lexus Ranks Highest in Customer Satisfaction With Dealer Service
WESTLAKE VILLAGE, Calif., July 20 /PRNewswire/ -- Customer satisfaction
with the overall experience within the dealership can considerably impact a
dealer's revenue gain per customer, according to the J.D. Power and
Associates 2006 Customer Service Index (CSI) Study(SM) released today.
The study, now in its 26th year, measures the customer satisfaction of
vehicle owners who visit the dealer service department for maintenance or
repair work during the first three years of ownership, which typically
represents the majority of the vehicle warranty period. Overall customer
satisfaction with dealer service is based on six measures: service
initiation, service advisor, in-dealership experience, service delivery,
service quality and user-friendly service.
Lexus ranks highest with an overall CSI score of 912 points on a
1,000-point scale, achieving particularly high ratings from repair
customers in the areas of service initiation and service quality. Following
Lexus in the rankings are Buick (911) and Cadillac (909).
The study finds that customers who are satisfied with the service
advisor and the in-dealership experience are more likely to return for
service and more likely to repurchase the same make. They are also more
likely to recommend the make, which leads to new vehicle sales. A gain in
CSI score of just 10 points for satisfaction with the service advisor or
in-dealership experience is estimated to add anywhere from $40 to more than
$300 per customer annually, averaged over a one-to three-year customer
base.
"Generally, in-dealership improvements have been centered in the sales
department," said Jane Crane, director of automotive retail research at
J.D. Power and Associates. "However, customers return to the service
department more often than to the sales department. The percentage of gross
profit for service is substantially higher than for sales, and the
influence on future vehicle sales is considerable. Investment in better
upkeep, more comfortable seating, improved lighting, Internet connectivity,
and the offer of free refreshments would easily pay for itself in
additional service revenue."
The service advisor is responsible for providing a cost estimate to the
customer before work commences and to advise when the vehicle will be
ready. Failure to communicate these two fundamental elements drops overall
CSI ratings by anywhere from 70 to 160 points, yet according to customers,
about 15 percent of service advisors do not deliver on these important
areas.
The study finds that the most effective service advisors function as a
point person, navigating the dealership's processes to make things happen
to meet customer needs. They listen intently when the customer speaks,
which communicates respect more than superficial courtesies. They are
knowledgeable and thorough in telling the customer what needs to be done,
but don't come across as trying to sell unnecessary service. Often, they
will find alternative solutions that will save their customers time and
money.
"When hiring service advisors, customer treatment skills may be more
important than technical skills," said Crane. "Certainly, when good service
advisors are hired, every effort should be made to retain them. Most
importantly, however, service advisors are often the victims of poor
service department processes and procedures. A poorly managed or
non-existent appointment system, or a system that does not dispatch repair
work to the proper technician with appropriate skill level, is a conflict
waiting to happen. Conversely, service advisors who are backed up by
well-managed service operations are poised to please."
The 2006 CSI Study is based on responses from 79,580 owners and lessees
of 2003 to 2005 model-year vehicles.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is
an ISO 9001-registered global marketing information services firm operating
in key business sectors including market research, forecasting, consulting,
training and customer satisfaction. The firm's quality and satisfaction
measurements are based on responses from millions of consumers annually.
J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
No advertising or other promotional use can be made of the information
in this release without the express prior written consent of J.D. Power and
Associates. http://www.jdpower.com/corporate
SOURCE J.D. Power and Associates
WESTLAKE VILLAGE, CA USA 05/27/2005
Lexus Ranks Highest in Customer Satisfaction With Dealer Service
WESTLAKE VILLAGE, Calif., July 20 /PRNewswire/ -- Customer satisfaction
with the overall experience within the dealership can considerably impact a
dealer's revenue gain per customer, according to the J.D. Power and
Associates 2006 Customer Service Index (CSI) Study(SM) released today.
The study, now in its 26th year, measures the customer satisfaction of
vehicle owners who visit the dealer service department for maintenance or
repair work during the first three years of ownership, which typically
represents the majority of the vehicle warranty period. Overall customer
satisfaction with dealer service is based on six measures: service
initiation, service advisor, in-dealership experience, service delivery,
service quality and user-friendly service.
Lexus ranks highest with an overall CSI score of 912 points on a
1,000-point scale, achieving particularly high ratings from repair
customers in the areas of service initiation and service quality. Following
Lexus in the rankings are Buick (911) and Cadillac (909).
The study finds that customers who are satisfied with the service
advisor and the in-dealership experience are more likely to return for
service and more likely to repurchase the same make. They are also more
likely to recommend the make, which leads to new vehicle sales. A gain in
CSI score of just 10 points for satisfaction with the service advisor or
in-dealership experience is estimated to add anywhere from $40 to more than
$300 per customer annually, averaged over a one-to three-year customer
base.
"Generally, in-dealership improvements have been centered in the sales
department," said Jane Crane, director of automotive retail research at
J.D. Power and Associates. "However, customers return to the service
department more often than to the sales department. The percentage of gross
profit for service is substantially higher than for sales, and the
influence on future vehicle sales is considerable. Investment in better
upkeep, more comfortable seating, improved lighting, Internet connectivity,
and the offer of free refreshments would easily pay for itself in
additional service revenue."
The service advisor is responsible for providing a cost estimate to the
customer before work commences and to advise when the vehicle will be
ready. Failure to communicate these two fundamental elements drops overall
CSI ratings by anywhere from 70 to 160 points, yet according to customers,
about 15 percent of service advisors do not deliver on these important
areas.
The study finds that the most effective service advisors function as a
point person, navigating the dealership's processes to make things happen
to meet customer needs. They listen intently when the customer speaks,
which communicates respect more than superficial courtesies. They are
knowledgeable and thorough in telling the customer what needs to be done,
but don't come across as trying to sell unnecessary service. Often, they
will find alternative solutions that will save their customers time and
money.
"When hiring service advisors, customer treatment skills may be more
important than technical skills," said Crane. "Certainly, when good service
advisors are hired, every effort should be made to retain them. Most
importantly, however, service advisors are often the victims of poor
service department processes and procedures. A poorly managed or
non-existent appointment system, or a system that does not dispatch repair
work to the proper technician with appropriate skill level, is a conflict
waiting to happen. Conversely, service advisors who are backed up by
well-managed service operations are poised to please."
The 2006 CSI Study is based on responses from 79,580 owners and lessees
of 2003 to 2005 model-year vehicles.
Code:
Customer Service Index Ranking (Based on a 1,000-point scale)
Lexus 912
Buick 911
Cadillac 909
Jaguar 908
Lincoln 906
Mercury 905
Saturn 904
Pontiac 903
Audi 890
MINI 890
Volvo 890
Acura 889
Chevrolet 887
Infiniti 887
Porsche 887
BMW 884
Honda 883
HUMMER 882
Saab 880
GMC 879
Industry Average 873
Mercedes-Benz 872
Hyundai 869
Chrysler 867
Ford 866
Dodge 862
Toyota 861
Subaru 858
Jeep 851
Nissan 849
Mitsubishi 848
Kia 843
Mazda 843
Land Rover 840
Suzuki 823
Volkswagen 810
Isuzu 781
Headquartered in Westlake Village, Calif., J.D. Power and Associates is
an ISO 9001-registered global marketing information services firm operating
in key business sectors including market research, forecasting, consulting,
training and customer satisfaction. The firm's quality and satisfaction
measurements are based on responses from millions of consumers annually.
J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
No advertising or other promotional use can be made of the information
in this release without the express prior written consent of J.D. Power and
Associates. http://www.jdpower.com/corporate
SOURCE J.D. Power and Associates
07-21-06, 12:09 PM
#3
Lexus Fanatic
I'm surprised at how well the American nameplates do, getting all of the #2 to #8 positions, with the #8 still scoring above 900 points and only 9 points within Lexus's score. 
In contrast, Audi, being #9, is a huge 13 points behind the #8.
Also funny how the MINI customers are treated better than the BMW's. Aren't they managed by the same dealerships anyway?
In contrast, Audi, being #9, is a huge 13 points behind the #8.Also funny how the MINI customers are treated better than the BMW's. Aren't they managed by the same dealerships anyway?
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