Keeping customers loyal to the brand through after-sales service
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.