As car owners drive less, dealer service steps up
As many vehicle owners drove fewer miles last year because of COVID-19 and stay-at-home orders, overall customer satisfaction with auto dealer service departments still increased for a sixth consecutive year.
That is according to the J.D. Power 2021 Customer Service Index Study, which showed dealer service visits declining only by 6% from the previous year. Overall satisfaction increased to 847 (on a 1,000-point scale) from 837 a year ago.
The study also measured customer satisfaction with dealer service among mass market and premium vehicle brands. Among mass market brands, ranking highest in satisfaction with dealer service was MINI with a score of 864. Buick ranked second, followed by Mitsubishi, GMC and Kia.
Among premium brands, Porsche ranks highest in satisfaction with dealer service, with a score of 899. Lexus ranks second, followed by Infiniti, Cadillac and Lincoln.
J.D. Power vice president of automotive retail Chris Sutton said completing work right the first time and focusing on customers’ needs play an important role in satisfaction.
“And dealers are nailing these key performance indicators nearly 100% of the time,” Sutton said in a news release.
Sutton also said, “By continuing to provide an exceptional service experience, dealers have an opportunity to seize an even greater share of the market. It’s notable, too, that while service was less frequent in 2020, customers responded very well to convenience services such as vehicle pick-up and drop-off at their home.”
J.D. Power said one key finding of the study is how remote or online payment options boost satisfaction. Only 6% of premium owners and 1% of mass market owners used those methods. But pick-up satisfaction is highest among those who used these options.
Among premium customers who pay remotely or online compared with handling payment via a cashier, satisfaction scores improve 44 points. Satisfaction improves 69 points among mass market customers.
“This is an example of a process some dealers may have put into place as a safety measure during the pandemic, but which they may want to keep in place, as customers find they like it more,” Sutton said.
Another top finding is that using express service increases satisfaction. Satisfaction among customers who did not use express service for maintenance is flat compared with a year ago. But among those who used express service, satisfaction increased 10 points during the pandemic.
An additional finding of the study is that battery-electric vehicle owners are less satisfied with service.
The J.D. Power 2021 Electric Vehicle Experience Ownership Study showed that only 54% of battery electric vehicle owners had taken their vehicle in for service in the past year.
When they do visit a dealer for service, however, their overall service satisfaction is 69 points lower than the average customer and 76 points lower for service quality, according to the 2021 Customer Service Index Study.
Sutton said that for dealers, battery-electric vehicle owners present a unique challenge.
“Not only are their vehicles more difficult to service than traditional internal combustion engine vehicles, but also the lower frequency of visits means dealers have fewer chances to make a positive impression on these customers,” Sutton said.
The 2021 Customer Service Index Study also shows that battery-electric vehicle owners are less satisfied with maintenance than repairs. During dealer service visits, nearly twice as much maintenance work takes place on average than repair work.
The maintenance-to-repair ratio for BEV owners is nearly an even split, however.
More complex service repair work usually results in lower customer satisfaction than maintenance work. But the opposite is true for battery-electric vehicle owners.
J.D. Power said a main reason for that is that battery-electric vehicle owners are 2.5 times more likely to not experience their service completed right the first time.
“BEVs are in their early stages and dealers seem to be experiencing growing pains with servicing these vehicles,” Sutton said. “Automakers may want to invest in more dealer service training. Otherwise, they run the risk of losing return customers.”