Excellent,
“As a consequence of these capacity issues, more pressure is placed upon dealer facilities and staff,” Sigfred Doloroso, country manager at J. D. Power, said. “This translates into a decrease of certain quality standards, which has a noticeable effect on customer satisfaction, such as providing accurate service cost and time estimates or the cleanliness of the vehicle on return. It is crucial that service advisors take more time to communicate with and offer advice and explanations on vehicle maintenance to each customer.”
Among the 11 mass market brands included in the J.D. Power 2017 Philippines Customer Service Index Study, Honda got the highest points when it comes to providing after- sales service satisfaction to its customers. It scored 803 after performing well in four of the five factors: service quality; vehicle pickup; service facility and service advisor. Five other car brands that scored above the industry average are Hyundai (798), Mitsubishi (797), Mazda (795) and Toyota (795). They were followed by Isuzu (793), Kia (788), Chevrolet (786), Ford (785), Suzuki (777) and Nissan (772).
The automotive after- sales business has contributed significantly to the financial strength of the car manufacturers and dealers. As discussed in Automotive Insights by an international management consulting firm, Arthur D. Little, in order for original equipment manufacturers (OEMs) to protect and develop their after- sales services, they need to become proactive business innovators. This could be done by adopting new business models, unlocking value in their value chain, maximizing efficiency, supporting their brand and enhancing the customer experience.
“OEMs’ af ter- sales business is coming under increasing pressure due to growing competition, legislative changes, a shift in focus towards emerging markets and the growing differentiation in customer requirements. All these represent a major risk for OE parts and services — one of the most profitable sources of today’s automotive business,” the firm said. “However, OEMs can transform this risk into an opportunity for growth by developing a robust after- sales strategy.”
OEMs could begin the process by examining the disruptive after- sales business models which have the capacity to change the industry in the following years. “These new business models may become a threat to the traditional aftersales strategies, but can also be a valuable growth generator for those OEMs who are able to make them part of their active strategies.”
Just like in other industries, technological trends cause transformational pressure in automotive sales and aftersales services. There are now plenty of ways to offer customers with tailored services before, during and after their purchasing decision. Digitization opens up an entirely new dimension for car manufacturers and dealers to interact with their customers.
According to global information and communications technology services company, T-Systems, more than 80% of customers use social and digital media and Web to search for vehicles and other related stuff. Car dealers have to adapt to these communication channels to make the information available to the customers.
“Information and offers in real time with no delay are crucial to the sales and after-sales service. However, mobile solutions not only play a part in the process of purchasing automobiles — industry also benefits from this trend and is able to build on it,” T-Systems said on its Web site.
T- Systems also said that information technology must not be seen as a cost factor but as a tool to boost revenue growth because if correctly networked, it can provide customers with new digital ways of easier and convenient interaction starting from purchasing the car up to availing after- sales services. —