IPSOS QUALITY AWARDS PURCHASING AND SERVICING JUNE 2015
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TABLE OF CONTENTS 2 01 Background 02 About the Research 03
Automotive Market Overview 04 Headline Results 05 Demographic
Comparisons 06 About the Awards 07 Ipsos Quality Awards 2015 (CCE
Purchasing and Servicing)
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01 BACKGROUND
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WHO IS IPSOS 4 South Africa Sudan Ethiopia Somalia Namibia
Botswana Zimbabwe Zambia Mozambique Tanzania Kenya Democratic
Republic of the Congo Uganda Angola Congo Gabon Cameroon Nigeria
Chad Niger Algeria Egypt Libya Mali Mauritiania Morocco Cote d
Ivoire Ghana Burkina Faso Sierra Leone Senegal Ipsos Offices Ipsos
Research Partners Largest research company in Africa 3 rd largest
globally
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IPSOS AND THE AUTOMOTIVE INDUSTRY 5 Centre for Proactive
Marketing Proactive Insight Synovate 1991 2001 2004 2012 Ipsos has
been commissioned to conduct market research on behalf of the South
African Automotive industry since 1991 The research follows a
syndicated format with various Original Equipment Manufacturers
contributing ideas and funding. Any OEM can participate if they:
Supply customer names for interviewing Agree to the rules of
syndication Participate in meetings / decisions regarding syndicate
business in a transparent and open manner
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The Competitive Customer Experience (CCE) component of the
research focuses on the customer experience when making a new
purchase or servicing a vehicle at a franchised dealership 6 02
ABOUT THE RESEARCH
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7 CCE REPRESENTATION 25 000 interviews
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FAQS 8 Who do we speak to? Where do we get the names from How
do we interview them What Quality assurance is there? New vehicle
owners and owners who have just had their vehicle serviced within
35 days Supplied by OEMs, quality checked and submitted to CATI
team Telephonically using CATI Four quality gates are in place ISO
20252 and ISO 9001 : 2000 compliant
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QUALITY GATES 9 Gate 1: Format Electronic data source (Warranty
System, OEM Sales database) Gate 2: Pre-Quantity Volume of records
received, compared to NAAMSA reported dealer sales May not vary by
more than 10% Gate 3: Pre-Quality Record must contain each of the
following: Individuals surname A valid contact number (mobile or
landline) A valid OEM model description Gate 4: Post Quality The
following outcomes of contact attempts are deemed to be errors in
data: No such person Do not own vehicle Wrong number Sampling frame
(customer names) managed via Quality Gates
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RESPONDENT SELECTION 10 Random selection of respondents via an
automated algorithm built into the CATI system All interviews are
recorded Interviews only completed if the following is confirmed at
the start of the interview: Customer identity Transaction date
Dealership name Personal involvement in the entire Purchasing /
Servicing process Not employed by a motor manufacturer or any of
their dealers
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ANALYSIS OVERVIEW 11 BEHAVIOURAL EMOTIONAL RELATIONSHIP
COMPLIANCE Customers are asked to rate a series of attributes using
either a 10-point or 2-point scale An Index Score is derived as an
average of all attribute ratings* Brands are grouped into tiers
based on statistically significant differences in scores** Quality
Awards are only presented to brands within the top three tiers:
Gold Silver Bronze *Each rating has an associated score from 0% -
100% in equal increments according to the rating. **Using
confidence intervals calculated on a 95% confidence level. Results
are weighted based on market share
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Improvement strategies identified & implemented METHODOLOGY
12 Customer gives feedback about experience Dealership captures
customer details on system Customer purchases / services vehicle at
Dealership Manufacturer submits customer data to Ipsos Ipsos
call-centre agent contacts customer Customer feedback extracted,
processed and analysed Reporting is generated and issued to
manufacturers CCE
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03 AUTOMOTIVE MARKET OVERVIEW 13
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NAAMSA DEALER SALES 14 Current PC Sales ~ 2007 Current LCV
Sales ~ 2008
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VOLUMES VS. INTEREST RATE: PASSENGER CARS 15
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VOLUMES VS. INTEREST RATE: LCV 16
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MARKET SHARE PER BRAND 17
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MARKET EVOLUTION 18 Maintaining and growing market share
continues to become more challenging for South African Automobile
Manufacturers in an increasingly unforgiving environment
Year-on-year new vehicle sales declined in 2014, following four
years of post- recession growth. Current Dealer Sales are more or
less on par with 2007 / 2008. Sales volumes are likely to remain
under pressure in 2015 due to: New car price inflation Increasing
overall living costs Yet consumers continue to be presented with
more choices than ever before as the number of available Brands
grows: Passenger Car Brands increased from 17 in 1994 to 45 in 2014
Light Commercial Vehicle Brands increased from 9 in 1994 to 26 in
2014
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RESPONDING TO CHANGES IN THE MARKET 19
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LISTENING TO THE MARKET: SERVICE EXCELLENCE Service Excellence
can be decisive in differentiating Brands from the competition But
what does Service Excellence mean when purchasing or servicing a
vehicle? What motivates customers to buy and service the vehicles
that they do? What are the customer expectations of the process? 20
Ipsos has undertaken a robust and exhaustive Qualitative
investigation to uncover and unpack the deep-seated needs and
motivations of South African automotive customers Censydiam
techniques were used to analyse customer feedback obtained through:
Focus groups In-Depth-Interviews Ethnographies
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INTRODUCING THE CENSYDIAM MODEL 21 A vehicle offers me mobility
and independence To suit my available budget To take care of, and
look after my family To proclaim my success for social recognition
To enjoy and explore my freedom The vertical dimension refers to
the way in which the individual interprets and handles the meaning
of vehicles for her / himself The horizontal dimension refers to
the way in which the individual translates the basic meaning of
vehicles within the social surrounding
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CUSTOMER MOTIVATIONS 22 To proclaim my success for social
recognition To suit my available budget To take care of and look
after my family To enjoy and explore my freedom The Energisers - My
vehicle expresses my passion for life and gives me vitality The
A-Listers - My vehicle is a way to confirm social status and
financial superiority The Protectors - My vehicle protects me and
my family and gives me peace of mind The Unifiers - My vehicle is a
way to make me feel accepted by my family and friends The Badgers -
My vehicle enables me to indulge in my interest and stand out from
the crowd The Free-fallers - My vehicle is a way to demonstrate my
independence and a source of pure pleasure The Penny- Pinchers -
The cost of my vehicle assures me that I will maintain my
independence Fun-Lovers - My vehicle offers social liberation A
vehicle offers me mobility and independence
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DOMINANT POSITIONING OF VEHICLE SEGMENTS 23 The Energisers
Passionate Action The A-Listers Fashionable Power The Protectors
Reliable Protection The Unifiers Caring Provider The Badgers
Unconventional Distinction The Free-fallers Enjoyable Pleasure The
Penny- Pinchers Measured Certainty Fun-Lovers Social Liberation A
vehicle offers me mobility and independence SUV offer exclusive
comfort & superior safety LCV is an adventurous workhorse LUX
suggests stylish exclusivity Volume solely about accommodating
freedom of movement
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KEY PURCHASING EXPECTATIONS 24 The Energisers Passionate Action
The A-Listers Fashionable Power The Protectors Reliable Protection
The Unifiers Caring Provider The Badgers Unconventional Distinction
The Free-fallers Enjoyable Pleasure Fun-Lovers Social Liberation
Test-drives important to experience vehicles performance (and
limits) Salesperson to be knowledgeable about performance outputs
& limitations Quite often impulse purchase (emotionally driven)
Sales process should be fun, easy and fast Test-drives important to
experience pleasure of driving the vehicle Not detailed-oriented
& not dealership loyal Strongly influenced by word-of- mouth
Salesperson to understand need for social connection & how
vehicle features play into this need Personalised contact with
salesperson & Motor Clubs appeal Strongly influenced by
word-of-mouth Friendliness & helpfulness of salesperson appeals
Communication & follow-up is key Wants to feel part of the
dealership family (after-sales relationship important) Expects
exceptional & exclusive treatment Be treated as a high valued
customer (flattery appeals) Expect salesperson to make the sale
happen; wants hands-off process (only need to sign) Overt fanfare
connote acknowledgement of status Superior after-sales service is
expected Purchases are planned & controlled Primary source is
internet (salespeople are regarded with suspicion) Expect
transparency of costs & detailed quotations Expects exceptional
& exclusive treatment Salesperson to be very knowledgeable,
professional and to-the point (no flattery or grovelling) No need
to accompany delivery with overt fanfare (but appreciate customised
gifts) Superior after-sales service is expected Word-of-mouth is
trusted Expect salesperson to be honest/transparent Detailed
explanations & quotations appeal (no hidden agendas) The Penny-
Pinchers Measured Certainty
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KEY SERVICING EXPECTATIONS 25 The Energisers Passionate Action
The A-Listers Fashionable Power The Protectors Reliable Protection
The Unifiers Caring Provider The Badgers Unconventional Distinction
The Free-fallers Enjoyable Pleasure Fun-Lovers Social Liberation
Basic expectations reliable, speedy & convenient Proactive
reminders appreciated (due to busy lifestyle might forget)
Easygoing as long as what needs to be done is done and
communication channels remain open Friendliness & helpfulness
connote a trusted service Tend to be dealership loyal (sense of
belongingness) and expect loyalty in return (loyalty programme
appeals) Main expectation to run smoothly & according to plan
Courtesy calls show appreciation for support Expects exceptional
& exclusive service Proactive reminders, no queuing, individual
drop-off service/courtesy vehicle & vehicle to be exceptionally
clean on collection Prefer a hands-off process (everything to be
done on their behalf, from booking in to collection) Tend to be
difficult customers, want to feel in control Expect perfection to
get moneys worth Detail is valued ito feedback, final inspection
& invoice Might consider non-accredited dealerships (more
affordable) Expects exceptional & exclusive service
perfectionism, professionalism, respect, & personalised
Proactive reminders, no queuing, individual drop-off
service/courtesy vehicle & vehicle to be exceptionally clean on
collection Values control expect detailed feedback & technical
expertise) Main expectation is a reliable & trusted service
Accredited dealerships offer peace-of- mind Punctuality and
attention to detail is valued Guarantee safety of vehicle (detailed
inspection & no unauthorised usage The Penny- Pinchers Measured
Certainty
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IMPORTANT VEHICLE FEATURES 26 The Energisers Passionate Action
The A-Listers Fashionable Power The Protectors Reliable Protection
The Unifiers Caring Provider The Badgers Unconventional Distinction
The Free-fallers Enjoyable Pleasure Fun-Lovers Social Liberation
Power (engine size, torque) Speed Sporty/dynamic/outdoorsy/rugg ed
design Off-road capabilities (e.g., 4X4, ground clearance, etc.)
Vehicle segment dependent Creature comforts that enhance
pleasurable driving Socially recognisable / acknowledged brands (by
peers) Family comfort (sufficient boot- & leg-space & 4
doors) Premium brands that enjoy mainstream popularity as status
symbols Looks (design, colour, visible features) are important
Extensive creature comforts Superior speed & performance
Affordability & value for money, i.e.: Purchasing price, best
interest rates, inclusive extras, maintenance & service plans,
insurance costs, resale value & reliability of brands Unique
features appeal (e.g. original design, distinctive gadgets, or
superior functionality) Colour, speed, fuel-economy & price not
main determinants in choice Preference to brands admired by those
in the know Preference to familiar, trusted brands associated with
safety & reliability Safety features (airbags, ABS brakes,
etc.) Security features (e.g., tracker, locking system) The Penny-
Pinchers Measured Certainty
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04 HEADLINE RESULTS 27
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PURCHASING EXPERIENCE OVER TIME 28 94.6% 92.6%
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PURCHASING EXPERIENCE: BIGGEST IMPROVEMENTS 29
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SERVICING EXPERIENCE OVER TIME 30 88.6% 88.2%
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SERVICING EXPERIENCE: BIGGEST IMPROVEMENTS 31
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KEY ATTRIBUTES: PC SALES 32 n=7878 Top 5 attributes Bottom 5
attributes
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KEY ATTRIBUTES: PC SERVICE 33 n=10297 Top 5 attributes Bottom 5
attributes
KEY ATTRIBUTES: LCV SERVICE 35 n=4177 Top 5 attributes Bottom 5
attributes
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05 DEMOGRAPHIC COMPARISONS
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PASSENGER VEHICLES: BY GENDER 37
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PASSENGER VEHICLES: BY AGE GROUP 38
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PASSENGER VEHICLES: BY POPULATION GROUP 39
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PASSENGER VEHICLES: BY PROVINCE 40
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LIGHT COMMERCIAL VEHICLES: BY GENDER 41
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LIGHT COMMERCIAL VEHICLES: BY AGE GROUP 42
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LIGHT COMMERCIAL VEHICLES: BY POPULATION GROUP 43 *Small base
size. Please exercise extreme caution when interpreting
results
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LIGHT COMMERCIAL VEHICLES: BY PROVINCE 44
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06 ABOUT THE AWARDS
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IPSOS QUALITY AWARDS 46 The most prestigious awards for
exceptional Customer Sales & Service Experience that meets or
exceeds Global Standards Ipsos Platinum; Ipsos Gold; Ipsos Silver;
Ipsos Bronze
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47 SURVEY COVERAGE Brands included*: Audi BMW Chevrolet Citron
Ford Isuzu Honda Kia Lexus Mazda Mercedes-Benz MINI Nissan Opel
Peugeot Renault Toyota Volkswagen Volvo Brands excluded: Chery
Chrysler Daihatsu Dodge Fiat GWM Hyundai Jaguar Jeep JMC Land Rover
Mahindra Mitsubishi Porsche Subaru Suzuki Tata CCE results are
based on more than 25 000 interviews. * Some segments may exclude
certain brands due to n