customer satisfaction in a changing automotive … 2015 customer satisfaction in a changing...
TRANSCRIPT
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
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
Customer Satisfaction in a Changing Automotive Industry
3 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
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
Customer Satisfaction in a Changing Automotive Industry
4 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
Who will get this share?
Customer Satisfaction in a Changing Automotive Industry
5 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
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%
Customer Satisfaction in a Changing Automotive Industry
6 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
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
Customer Satisfaction in a Changing Automotive Industry
7 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
46% looking for the brand experience
Source: 2014 Mexico SSI
8%
92%
Visited other dealers
Yes
No
11%
89%
Shopped for other brands
Yes
No
Customer Satisfaction in a Changing Automotive Industry
8 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
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
Source: 2014 Mexico SSI
51%
Customer Satisfaction in a Changing Automotive Industry
9 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
Point in the process before leaving
Source: 2014 Mexico SSI
Greeting
Vehicle Presentation
Demonstration/Test Drive
Deal Negotiation
Contract
Deal Close
21%
34%
21%
16%
3%
5%
Customer Satisfaction in a Changing Automotive Industry
10 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
Retention or conquest?
Source: 2014 Mexico VOSS
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
Customer Satisfaction in a Changing Automotive Industry
11 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
What do my customers expect?
Satisfaction Expectations Performance
Customer Satisfaction in a Changing Automotive Industry
12 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
How are expectations built?
4%
72%
24%
Experience compared to expectations
Worse than expected
About the same as expected
Better than expected
Source: 2014 Mexico SSI
Customer Satisfaction in a Changing Automotive Industry
13 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
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
Source: 2014 Mexico VOSS
Customer Satisfaction in a Changing Automotive Industry
14 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
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
Source: 2014 Mexico VOSS
Customer Satisfaction in a Changing Automotive Industry
15 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
Satisfaction drops 123 points if client is not informed of status
Source: 2014 Mexico VOSS
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
Customer Satisfaction in a Changing Automotive Industry
16 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
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
Source: 2014 Mexico VOSS
Customer Satisfaction in a Changing Automotive Industry
17 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
Satisfaction drops 185 points if vehicle not ready
Source: 2014 Mexico VOSS
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
Customer Satisfaction in a Changing Automotive Industry
18 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
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
Customer Satisfaction in a Changing Automotive Industry
19 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
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.
Customer Satisfaction in a Changing Automotive Industry
20 J.D. Power | © 2015 J.D. Power, McGraw Hill Financial. All Rights Reserved. CONFIDENTIAL AND PROPRIETARY—For Internal Use.
Thanks!