OE Dealerships Are Improving Vehicle Service, According to New J.D. Power Study - aftermarketNews
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OE Dealerships Are Improving Vehicle Service, According to New J.D. Power Study

According to a new study released today by J.D. Power and Associates, automotive dealerships are getting a lot better when it comes to repairs and maintenance, an area where OEMs are actively trying to increase market share. Dealerships are doing better at getting the work done right the first time and having the vehicle ready when promised, the J.D. Power and Associates 2006 Service Usage and Retention Study (SURS) finds.

From aftermarketNews.com Staff & Wire Reports

WESTLAKE VILLAGE, CA — According to a new study released today by J.D. Power and Associates, automotive dealerships are getting a lot better when it comes to repairs and maintenance, an area where OEMs are actively trying to increase market share.

Dealerships are doing better at getting the work done right the first time and having the vehicle ready when promised, the J.D. Power and Associates 2006 Service Usage and Retention Study (SURS) finds.

The study, based on responses from nearly 12,000 owners of 2001 and 2002 model-year vehicles, measures customer satisfaction of vehicle owners who visit a dealer service department for maintenance or repair work during the fourth or fifth years of ownership, which typically represents the period after the manufacturer’s vehicle warranty expires. Overall customer satisfaction is based on six factors (in order of importance): service initiation, service advisor, service quality, user-friendly service, service delivery and in-service experience.

The SURS finds that 86 percent of car owners who took their vehicles to the dealership for a repair indicate that the work was done right the first time — up from 72 percent in 2001 — and 87 percent say the dealership had the vehicle ready when promised — up from 82 percent five years ago.

The importance of time to auto service customers is evident in that more than one-half of SURS index scores are driven by time-related attributes, including the time it takes to speak to a service advisor, completing the repair or maintenance right the first time, convenience of service hours of operation and having the vehicle ready when promised. Many dealers have responded to customer demands for convenience and quick service by installing service lanes dedicated to routine maintenance such as oil changes, expanding their service hours and refining their service processes.

The study finds that dealer efforts to address time issues are resulting in higher levels of customer satisfaction. Overall, customer satisfaction with the dealer service experience has increased seven index points from 2005 to 852 index points on a 1,000-point scale. Eighty-nine percent of respondents using a dealership for service reported that they were able to get a service appointment on the day they desired. When they arrived at the dealership, 48 percent of respondents indicate they were greeted immediately by a service advisor, while an additional 38 percent note they had to wait less than five minutes.

Among respondents who had their vehicles repaired at a dealership, 85 percent indicate that the vehicle was fixed the same day they dropped it off. Only 6 percent of customers had to wait three or more days for their vehicle. However, once the work was completed, only 67 percent of respondents indicate that it took five minutes or less to fill out the appropriate paperwork and drive off with their vehicle.

The study found customers who were “delighted” (providing a score of 10 and a 10-point scale) with their service experience indicated that they are two- thirds more likely to return to the dealership for customer-paid work the next time their vehicle needs maintenance or repair service than customers simply “pleased” (8-9 points) with their experience. In addition, “delighted” service customers are nearly 60 percent more likely to purchase or lease the same make of vehicle for their next purchase than those only merely “pleased” with their service experience.

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