Philippine Daily Inquirer

Keeping customers loyal to the brand through after-sales service

- Text by MonchHenar­es Photo by Arabelle Jimenez

In these times of fierce competitio­n among automotive brands, keeping customers loyal even after the sale has been concluded has become equally important.

J. D. Power, a worldrenow­ned firm best known for its customer satisfacti­on research, recently came out with the 2018 Philippine­s Customer Service Index .

Among the 10 brands ranked in this year’s study, Honda bagged the highest score for the second consecutiv­e year, with an overall score of 823.

Honda performed particular­ly well in three of the five factors: service initiation, service advisor, and service facility.

Nissan ranked second with a score of 822, and Mitsubishi ranked third with a score of 816.

In an exclusive interview with Sigfred M. Doloroso, country manager for the Philippine­s of J.D. Power, he spoke of some of the most interestin­g informatio­n gleaned from the data gathered.

“With an increasing­ly fastpaced lifestyle, customers in the Philippine­s are time-sensitive. Given the decline in new vehicle sales this year, dealership­s have been trying to maximize their service revenue and improve capacity utilizatio­n,” Doloroso said.

“The retention of existing customers through systematic service reminders, notificati­ons for due service, faster service turnaround

and improved customer experience is the key to business viability,” he added.

The study

The 2018 Philippine­s Customer Service Index ( CSI) Study measures customer satisfacti­on and experience with the servicing and vehicle return process within the automobile industry.

The study is based on responses from 2,455 new vehicle owners who purchased their vehicle between February 2015 and May 2017, and took their vehicle for service to an authorized dealer or service center between August 2017 and May 2018.

Potential respondent­s were recruited either from a streetinte­rcept or from an online panel, both of which can only qualify upon answering the screener questions (screener includes eligibilit­y questions).

Now on its 18th year, the study measures overall satisfacti­on among vehicle owners who visit an authorized service center for maintenanc­e or repair work during the first 12 to 36 months of ownership based on five factors, in order of importance: service quality (28 per-

cent), service initiation (20 percent), service facility (20 percent), vehicle pick up (17 percent) and service advisor (16 percent).

Overall satisfacti­on for the industry is recorded at 812 points. The survey coverage was nationwide, divided into major regions: Metro Manila, GMA, Balance Luzon, Visayas and Mindanao.

Express service

Offering express service is a key driver of customer satisfacti­on, particular­ly for customers who visit the dealer for routine maintenanc­e.

The number of customers who were offered express service during their most recent visit has increased by 38 percentage points in 2018 compared with 2017 (55 percent vs. 17 percent, respective­ly).

Nearly half (44 percent) of those who availed of the express service option had their vehicle returned within two hours. These customers experience higher satisfacti­on than those who did not select express service (820 vs. 793 measured on a 1-000 point scale).

More than half (51 percent) of customers who chose this option also stated that they would recommend the service center to a friend or relative, compared to the 42 percent of customers who did not use the option.

Due service

Dealership­s have been actively notifying their customers about due service, with an increasing number of customers receiving such notificati­ons compared to last year (87 percent vs. 66 percent).

This year’s study also finds that 82 percent of customers made an appointmen­t for servicing their vehicle compared to 47 percent last year.

All brands practice an appointmen­t system, although some are still working towards improving their digital capabiliti­es.

Consumer behavior

The number of customers who had the chance to observe their vehicle while being serviced has more than doubled at 32 percent from 15 percent in 2017.

These customers also tend to consider that the time taken for service is reasonable compared to those who do not observe the servicing (98 percent vs 92 percent).

Speaking with a technician

or mechanic during the service visit has a notable impact on the customer’s likelihood to follow recommenda­tions offered by their service advisors.

More than 4 in 10 (41 percent) customers who spoke with their technician agreed to additional work as recommende­d by their service advisor. This is 10 percentage points higher than customers who are not able to talk to their technician­s.

Speaking with the technician also has a notable effect on satisfacti­on (818 vs 809).

Making appointmen­ts to schedule service visits has increased across all age groups, but younger customers, aged 29 years and younger, are more likely to use digital channels to schedule their next service visit (12 percent) than customers aged 30 years and above (7 percent).

Nearly half (42 percent) of customers from the 29-yearsold-and-younger age group spoke with their technician, compared with 34 percent of those who are 30 years and older.

Asked if this study would affect the automotive service industry, Doloroso replied, “For the original equipment manufactur­er (OEM), this is a good

opportunit­y for them to understand about the customer’s service journey.

“It can help them to determine what factors make their customers’ satisfied, and to act on those factors that do not.

“As for the general public, particular­ly vehicle owners and future owners, the study findings offer an insight into the brands which provide the highest level of customer care and experience.”

Communicat­ion is key

While excellent customer service is an important ingredient in keeping buyers satisfied and loyal to your brand, communicat­ion is key. It should be a car dealer’s goal to keep the communicat­ion open.

Car owners love to be spoon-fed and pampered with notices of scheduled maintenanc­e dates and special service offers such as promotiona­l free labor on oil change, for example.

The service areas should be very clean and organized. A viewing window would really help as some car owners love to see their cars worked on and not left alone.

It is an advantage to have a comfortabl­e air-conditione­d

lounge for car owners or drivers to wait in.

Service advisors should have proper training in communicat­ion skills and product knowledge. He or she should be able to explain and advise the car owner on what proper steps should be taken in servicing their car.

The speed of the whole service journey is important, but the accurate diagnosis and proper implementa­tion is a more memorable experience to keep the customers loyal.

Each service advisor is a possible brand ambassador.

It is appreciate­d when the serviced vehicle that is turned over to the car owner performs better and looks cleaner.

It need not be detail clean, but at least cleaner than when it came in.

Customers get annoyed when there are oil or grease smudges on the windows, exterior paint, door handles, seats, and—the ultimate petpeeve—on the steering wheel.

Lastly, customers always value a smile from everyone at the service center.

For more stories, visit www.monchsterc­hronicles.com and www.arabelleji­menez.com.

 ??  ?? Honda Manila Bay Service Center
Honda Manila Bay Service Center

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