Service Center Impact on Sales & Reputation

Improved sales numbers are usually aided by a good reputation. And that reputation, according to a recent release from J.D. Power and DealerRater, starts in your service department.

The March 2015 PowerRater Consumer Pulse, a monthly analysis of — as the title suggests — consumer opinions, is developed jointly by J.D. Power and DealerRater, each of which lend their specific angles on the automotive industry to create a picture of how customers feel about their dealer experiences.

According to the report, “a dealer’s ability to satisfy its service customers boosts its reputation for good service, which may ultimately lead to increased vehicle sales.”

Other key findings, according to the report, are as follows:

• Highly satisfied service customers (overall satisfaction scores of 901-1,000 on a 1,000-point scale) are more likely to write a review about their experience, compared with those who are merely satisfied or indifferent (scores of 750-900), according to J.D. Power. Among the 37 percent of highly satisfied customers, 4.3 percent indicate that they posted an online review of their experience. In contrast, less than 3 percent of service customers who are either merely satisfied or indifferent posted an online review.
   
• Among highly satisfied customers who posted an online review of their last service experience, 91 percent of the reviews were positive; among merely satisfied or indifferent customers who posted a review, only 71 percent of the comments were positive.
   
• According to data collected by DealerRater, 40 percent of car buyers indicate that the service department’s reputation was significantly important in choosing the dealer they purchased from.

Chris Sutton, the vice president of U.S. automotive retail practice at J.D. Power, reflected on the findings.

“Clearly, there is a strong incentive for dealers to maximize customer satisfaction as it leads to a greater likelihood that customers will post a positive review, helping to support the reputation of the dealer’s service department,” Sutton said.

Furthermore, J.D. Power recommends five critical areas to focus on that have the “highest potential impact on customer satisfaction” in the service department.

1. A service advisor who focuses on customer needs.
2. Providing helpful advice to customers.
3. Fixing a vehicle correctly the first time.
4. Quick access (within 2 minutes) to a service adviser.
5. Having the vehicle ready when you said it would be ready.