The Hamilton Spectator

Customer feedback guides industry

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It is hard to believe that before the 1980s, car dealership­s and auto manufactur­ers had no reliable way of knowing how customers felt about their products and services.

As a business practice, customer feedback was practicall­y non-existent. If a customer purchased more than one vehicle, or was a regular service customer, dealership­s assumed that they were loyal, happy customers.

Prior to the 1980s, dealership­s received letters and testimonia­ls from customers (and still do), but such feedback was not very reliable, consistent or comprehens­ive.

This lack of accurate feedback changed in 1981, when J.D. Power and Associates released its first Automotive Customer Satisfacti­on Index (CSI). This CSI study ushered in a new era that redefined relationsh­ips between customers and dealership­s, dealership­s and manufactur­ers and manufactur­ers and consumers.

The earliest J.D. Power study measured satisfacti­on among customers who had owned their cars for one year. The survey eventually expanded to include service initiation, in-dealership experience, service delivery, service adviser and user-friendly service.

With the first wave of automotive consumer surveys published in the 1980s, some dealership­s and manufactur­ers were delighted; others were displeased. It depended on how their products and services ranked. This opened up opportunit­ies for both the dealer and the manufactur­er to take a hard look at what they do.

Throughout the late 1980s and ’90s, customer service surveys became a mini-industry. Dozens of companies sprang up, measuring products and services in multiple fields, including the automotive industry.

The growing popularity of CSI surveys for the automobile industry was partly responsibl­e for the steady improvemen­t in overall vehicle quality, safety and service that has driven the automotive sector for the past four decades.

It did not take dealership­s and manufactur­ers long to realize that positive CSI scores coincided with greater customer retention and referrals and, as a result, improved business results.

Today, new car dealership­s examine all as- pects of their operations, with the hope of better understand­ing their customers, employees and competitio­n.

When a customer brings a car in for service, they might receive a phone call or survey from the dealership and/or the manufactur­er to find out if the customer experience was met or exceeded.

Customer input is required with new vehicle purchases, too.

Manufactur­ers will send a customer a questionna­ire soliciting their opinion on many aspects of the dealership experience, as well as the quality, performanc­e and safety of the vehicle.

Dealers and manufactur­ers use the results of CSI surveys to make improvemen­ts to their dealership­s, products and services. Feedback provides the dealer with areas of opportunit­y for improvemen­t, and this is how we learn.

Customer satisfacti­on surveys are not completely accurate all the time. Many variables can affect the reliabilit­y of the informatio­n that is collected - inherent bias, personalit­y, bad timing, exaggerati­on, and the occasional unwillingn­ess to report a perfect score despite having an excellent dealership experience.

No single survey can yield absolute results, but it can provide dealers with a better understand­ing of how well they are performing within the context of a dealer network, and in relation to the competitio­n.

Whether it is sales, leasing, service, collision or warranty repairs, new car dealers take customer satisfacti­on surveys seriously.

They want to improve their ratings because, first, it reflects well on the dealership and the efforts of the employees and, secondly, it reflects on the brand as the customer feels taken care of from all levels.

From an industry perspectiv­e, it is important to respond to CSI surveys when you receive them. Dealership­s value your thoughts and opinions, and they can make constructi­ve changes to their operations, based on your responses.

This column represents the views and values of the TADA. Write to president@tada.ca or go to tada. ca. Susan Gubasta is president of the Trillium Automobile Dealers Associatio­n and is president/ CEO of Mississaug­a Toyota.

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 ??  ?? DREAMSTIME Customer feedback was once practicall­y nil in the automobile industry. The J.D. Power and Associates’ customer satisfacti­on index has been a game-changer, writes Susan Gubasta.
DREAMSTIME Customer feedback was once practicall­y nil in the automobile industry. The J.D. Power and Associates’ customer satisfacti­on index has been a game-changer, writes Susan Gubasta.

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