According to the J.D. Power 2015 Canadian Customer Service Index Long-Term (CSI-LT) Study released today, providing an outstanding service experience generates high levels of retention and unlocks significant revenue potential for vehicle service providers in Canada. While this isn’t exactly news, to us, what’s interesting is the numbers reported in the study.
The study measures the service experience, satisfaction and intended loyalty among 11,000 owners of vehicles that are 4 to 12 years old. They looked at the customer experience from both the warranty and non-warranty service occasions. Overall satisfaction is based on the combined index scores of five factors that comprise the overall service experience.
In order of importance: service initiation (24%); service quality (23%); service advisor (20%); service facility (17%); and vehicle pick-up (16%). Scores for each factor are reflected in an index based on a 1,000-point scale.
The study found that overall customer satisfaction with automotive dealerships is 731, and satisfaction with aftermarket shops is 749. This puts the aftermarket shops in the lead over dealership service satisfaction.
The study found that owners with an overall satisfaction rating of 10 on a 10-point scale are “delighted” with their most recent service experience and 93% say they “definitely will” return to the service facility for work they are willing to pay for. This really isn’t a surprise. If I received 10/10 service somewhere, of course I’m going to return there.
61% of the customers who rated their experience at 8/10 would return to the shop. 8/10 is pretty good for a shop in my eyes…
Key findings of the study are:
– Customer satisfaction and the amount spent on a service visit increase when a service advisor properly educates customers on additional work that may be required. In fact, study results show that 46 per cent of owners of 4- to 12-year-old vehicles indicate their service advisor recommended additional work. Of this group, nearly half authorized the work to be completed, spending an average of $527 on the visit, compared with an average of $225 among those who were not advised of additional work.
– Dealers are more likely than aftermarket providers to perform a multi-point inspection on vehicles (77 per cent vs. 70 per cent, respectively) and to have an advantage in knowing a customer’s service history (85 per cent vs. 76 per cent). Performing inspections more frequently and knowing a vehicle’s service history helps service facilities make more informed service recommendations, opening significant potential revenue opportunities.
As far as shop rankings go, Lexus Dealerships rank highest in satisfying automotive service customers in Canada, with an overall satisfaction score of 809. NAPA AUTOPRO ranks second at 775, and Volkswagen Dealerships rank third at 772.
Note: Included in the study but not ranked due to small sample size are Active Green & Ross, Audi Dealership, Goodyear Auto Centre, Kal Tire, Meineke Car Care Centre, Mercedes-Benz Dealership, Ok Tire, Speedy, Suzuki Dealership and Volvo Dealership.
Power Circle Ratings Legend
5 – Among the best
4 – Better than most
3 – About average
2 – The rest