Customer Satisfaction in a Changing Automotive … 2015 Customer Satisfaction in a Changing Automotive Industry Customer Satisfaction in a Changing Automotive Industry 2 J.D. Power

J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.

May 2015

Customer Satisfaction in a Changing Automotive Industry


2 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.

Expected Sales in Mexico

0

200

400

600

800

1,000

1,200

1,400

1,600

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Source: LMC Automotive Note: Numbers in thousands



1st Quarter Growth Rate

280,215

263,957

195,484

188,994

210,881

200,574

247,229

251,124

306,157

2007

2008

2009

2010

2011

2012

2013

2014

2015 21.9%

1.6%

5.8%

10.8%

11.6%

-3.3%

-25.9%

-5.8%

-0.7%

Source: AMDA



Who will get this share?

http://www.google.com.mx/imgres?imgurl=http://upload.wikimedia.org/wikipedia/nah/c/c2/Mercedes-Benz_logo.gif&imgrefurl=http://nah.wikipedia.org/wiki/%C4%AAxiptli:Mercedes-Benz_logo.gif&usg=__phWPU_XYUSwdMAp3QnyOgb0avgM=&h=400&w=400&sz=18&hl=es&start=1&zoom=1&tbnid=2mDyLEc9yYyn_M:&tbnh=124&tbnw=124&ei=SOtsT8KJFeTgiAK36cyWBQ&prev=/search?q%3Dmercedes%2Blogo%26hl%3Des%26gbv%3D2%26tbm%3Disch&itbs=1

http://www.google.com.mx/imgres?imgurl=http://upload.wikimedia.org/wikipedia/nah/6/64/Peugeot_logo.png&imgrefurl=http://nah.wikipedia.org/wiki/%C4%AAxiptli:Peugeot_logo.png&usg=__Nfgw54z1QzgyohsI99K_YTyDetQ=&h=599&w=625&sz=37&hl=es&start=1&zoom=1&tbnid=H2CluMtpKE9Y_M:&tbnh=130&tbnw=136&ei=IelsT7bjNIXiiAKZ-t2cBQ&prev=/search?q%3Dpeugeot%2Blogo%26hl%3Des%26gbv%3D2%26tbm%3Disch&itbs=1

http://www.google.com.mx/imgres?imgurl=http://car-logos.50webs.com/logo/subaru/subaru1.jpg&imgrefurl=http://car-logos.50webs.com/subaru-car-logo.html&usg=___PP10NhBY3nTs8qUO8mBlKkzfq0=&h=427&w=640&sz=23&hl=es&start=1&zoom=1&tbnid=B6SNYJdGNyAroM:&tbnh=91&tbnw=137&ei=rulsT_GnLK_ciQKLv6D4BA&prev=/search?q%3Dsubaru%2Blogo%26hl%3Des%26gbv%3D2%26tbm%3Disch&itbs=1



3%

3%

3%

4%

5%

7%

7%

14%

15%

19%

20%

Vehicle safety

Vehicle performance

Low purchase price

Good vehicle quality

Fuel efficiency

Attractive design & styling

Recommended by friends/relatives

Roominess/Interior space/Comfort

Vehicle body-type I wanted

Good reputation/ reliability of the brand

Previous experience with the brand

Vehicle Purchase Drivers

Is low price what current consumers are looking for?

Source: 2014 Mexico SSI

Brand experience

46%



2%

2%

2%

3%

3%

3%

3%

6%

8%

9%

9%

18%

23%

Recommended by friends/relatives

Safety

Low interest rate financing

Equipment

Performance

Comfort

Previous experience with the brand

Cost to run and maintain

Good reputation/reliability of the brand

Fuel efficiency

Roominess

Low purchase price

Attractive design & styling

Vehicle Purchase Drivers

10 years ago…

Source: 2004 Mexico VOSS



46% looking for the brand experience


8%

92%

Visited other dealers

Yes

No

11%

89%

Shopped for other brands

Yes

No



1%

1%

2%

2%

2%

3%

4%

8%

11%

15%

17%

34%

Dealer was not completely honest with me

Dealer staff didn't seem knowledgeable

Dealer staff applied too much sales pressure

Dealer didn't offer enough for my trade-in

Dealer wouldn't give a straight answer about price

Dealer was too did not focus enough attention on me

Dealer was unable to provide adequate financing

Dealer's price was too high

Decided this make/model was too expensive

I just wasn't ready to buy when I was at this dealer

Dealer didn't have the exact vehicle I wanted in stock

Decided this make/model wasn't right for my needs

Reasons why vehicle not purchased from some dealer


51%



Point in the process before leaving


Greeting

Vehicle Presentation

Demonstration/Test Drive

Deal Negotiation

Contract

Deal Close

21%

34%

21%

16%

3%

5%



Retention or conquest?


67% 59%

32%

24%

16%

0%

20%

40%

60%

10 9 8 7 1-6

Pe

rcen

t D

efi

nit

ely

Will

Re

turn

fo

r C

ust

om

er-

Pai

d S

ervi

ce

Service Satisfaction Rating (1-10 scale)

2.1x



What do my customers expect?

Satisfaction Expectations Performance



How are expectations built?

4%

72%

24%

Experience compared to expectations

Worse than expected

About the same as expected

Better than expected




900

876

891

875 875 874 869

878 876 868

800

850

900

Performed All Appointment onthe day desired

Immediatelyspoke with

service advisor

Knew yourvehicle's service

history

Explained workthat needed tobe completed

Asked questionsto clarify yourservice needs

Performed awalk-

around/multi-point inspectionof your vehicle

Advised you ofother service

needs for yourvehicle

Kept youinformed of thestatus of your

vehicle

Estimation ofcharges provided

before workperformed

Serv

ice

Ind

ex S

core

Key diagnostics to dealer service satisfaction Pre-service diagnostics




0% 0% 0% 0% 37% 16% 26% 21%

893

875 870

777

400

600

800

1000

0%

20%

40%

Immediately 1-2 mins 3-5 mins More than 5 mins

Serv

ice

Init

iati

on

Ind

ex S

core

Per

cen

t o

f C

ust

om

ers

Time Waited to Speak to Service Advisor

Mass market average Service Initiation Index Score

Satisfaction drops 116 points if client waits more than 5 minutes




Satisfaction drops 123 points if client is not informed of status


0% 0% 91% 8%

876

753

600

700

800

900

1000

0%

20%

40%

60%

80%

100%

Yes No

Serv

ice

Init

iati

on

Ind

ex S

core

Per

cen

t o

f C

ust

om

ers

Kept informed of status

Mass market average Service Advisor Score



895

872

882 875 875

880 883

800

850

900

Performed All Service facility notifiedvehicle was ready

Vehicle ready whenpromised

Explanation of actualwork performed after

service completed

Was all the workcompleted right the

first time

Vehicle cleaner thanwhen brought in

Contacted afterservice to see if the

work was performedto your satisfaction

Serv

ice

Ind

ex S

core

Key diagnostics to dealer service satisfaction Post-service diagnostics




Satisfaction drops 185 points if vehicle not ready


0% 0% 89% 9% 2%

884

699

898

400

600

800

1000

0%

20%

40%

60%

80%

100%

Yes No Dealership did not promise

Veh

icle

Pic

k-U

p In

dex

Sco

re

Per

cen

t o

f C

ust

om

ers

Vehicle Ready when Promised

Mass market average Vehicle Pick-Up Index Score



When consumers have a positive experience with brands…

27% join a loyalty

program

79% tell family

and friends

30% write online

reviews

15% write email

praising the brand

80% make additional

purchases

32% subscribe to

email updates

12% give a shout out

on social media

14% follow brand

on social media



Takeaways

• In today’s changing world, one may decide to be the industry that leads customer satisfaction and sets the example - or the one that leaves customers wanting

• New generations expect quick response, they have all the information they need in the palm of their hand - if they don’t get what they expect, they just leave

• The good news is that you can ask your customers what they expect from your brand

Strive always to build a homelike environment at work.



Thanks!

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Documents

Customer Satisfaction in a Changing Automotive … 2015 Customer Satisfaction in a Changing Automotive Industry Customer Satisfaction in a Changing Automotive Industry 2 J.D. Power