Luxury vehicle owners in India place a premium on time, so the faster that dealerships service their vehicle, the higher their level of satisfaction, according to the J.D. Power Asia Pacific 2013 India Customer Service Index (CSI) Study released today.
The study, which for the first time measures after-sales experience satisfaction separately in two segments – luxury and mass market. It measures satisfaction among luxury vehicle owners who visit an authorized dealership service center for maintenance or repair work between the first 12 to 24 months of ownership. The study measures overall satisfaction in five factors (listed in order of importance): service quality; vehicle pick-up; service advisor; service facility; and service initiation. Overall customer satisfaction is measured on a 1,000-point scale, with a higher score indicating higher satisfaction.
Overall satisfaction among customers whose vehicles after service are returned within four hours is 907 index points. This is 65 points higher than among those whose vehicle servicing takes more than four hours. “Vehicle service is an essential errand that needs to be completed within the least possible time,” said Mohit Arora, executive director, J.D. Power Asia Pacific. “In the luxury vehicle segment, the pressure for faster service turnaround is higher than in the mass market segment, in which owners are relatively less time-sensitive.”
Additionally, luxury vehicle owners expect their dealerships to be proactive in all forms of communication. Luxury vehicle owners in India expect service advisors to keep them informed throughout the service process, beginning when they arrive at the dealership with an explanation of the work to be performed and an expectation of when it will be finished, to a thorough explanation after the service is completed. These activities are standard expectations among luxury customers which have a significant negative impact when they are not performed.
“Consumers pay a premium for a luxury vehicle, and with that price comes the expectation of a higher level of service from the dealer workshop, “said Arora. “Dealers need to align their service processes with these needs or exceed customer expectations in order to further enhance their brand image.”
Luxury vehicle owners who are highly satisfied with dealer service tend to have higher levels of advocacy and loyalty to the dealership and the brand. Among luxury owners who are “highly satisfied” with their service experience at the dealership (overall service satisfaction scores of 973 and higher), 98 percent say they “definitely would” revisit their service dealer for post-warranty service. In comparison, only 57 percent of “highly dissatisfied” owners (overall service satisfaction scores of 820 and lower) indicate the same. Similarly, 91 percent of “highly satisfied” owners say they “definitely would” purchase their next vehicle from the service dealer, compared with just 37 percent of those who are “highly dissatisfied.”
Overall luxury customer satisfaction with their dealership service experience averages 876 in 2013, 42 points higher than the mass market average of 834.
BMW ranks highest among luxury brands in customer satisfaction with a score of 892. BMW performs particularly well in the service advisor factor.
The 2013 India Customer Service Index Study for the luxury segment is based on evaluations from 238 vehicle owners. The study was fielded from May to August 2013 and includes owners who purchased their vehicle between May 2011 and August 2012.