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Satisfying Customers Who Require Specific Repairs Crucial to Dealer Profitability, J.D. Power Finds

Updated: July 25, 2019, 03:28 PM IST

Although manufacturers place a strong emphasis on their service networks to follow processes and communication standards, the experience falls short for two-wheeler owners who visit authorised service outlets for specific repairs, according to the J.D. Power 2019 India Two-Wheeler Customer Service Index (2WCSI) Study,SM released today.

The study finds that 12% of owners who went to an authorised service workshop did so for a specific repair, compared with 91% who required a routine service only. Among the owners who pinpoint a specific problem for repair, satisfaction with the service experience was lower by 32 index points compared to customers who visit for routine service only (725 vs. 757, respectively, on a 1,000-point scale). Chief contributors to the drop-in satisfaction include: gaps with the problem diagnosis; inadequate communication; actual repairs not meeting expectations; and time management concerns.

"Service revenue plays a crucial part in dealer profitability and customers requiring specific repairs generate 37% more revenue than those visiting for routine service," said Rajat Agarwal, Two-Wheeler Industry Expert at J.D. Power. "Hence, it is essential that workshops make all efforts to position themselves as the preferred choice regardless of the type of service undertaken. As vehicle ownership increases, the proportion requiring repairs will further grow. Dealers who improve their process discipline and customer communication will benefit in terms of increased loyalty and recommendations."

Following are some key findings of the 2019 study:

Execution issues with scheduling service: Satisfaction is higher among customers who schedule an appointment compared with those who drop by (790 vs. 735, respectively). However, a scheduled appointment does not necessarily translate into faster vehicle handover time, as 30% of appointment customers indicate taking 10 minutes or less while 37% of customers who drop by say the same.

More customers wait at dealership during service: The percentage of customers who wait at the dealership during the service experience has grown to 35% in 2019, up from 18% in 2016. This is largely because of faster turnaround times, with 64% of customers who waited at the dealership receiving their vehicle within three hours.

Customers prefer options that provide convenience and time-saving: Satisfaction is higher among customers who are offered pickup and drop-off service than among those who were not (779 vs. 742, respectively). At the same time, satisfaction is higher among customers who were offered express service than among those were not (777 vs. 742, respectively).

Study Rankings

TVS ranks highest in customer satisfaction for the fourth consecutive year, with a score of 803, performing particularly well in all five factors. Honda and Yamaha rank second in tie with a score of 751.

The J.D. Power 2019 India 2WCSI Study is based on evaluations from 6,153 two-wheeler owners in 45 cities across India. These owners purchased a new two-wheeler between November 2016 and March 2018 and had a service experience within three months of evaluation. The study was fielded from November 2018 to March 2019.

The study, now in its fourth year, measures customer satisfaction with the after-sales service experience at OEM-authorized service centers during the first 12-24 months of ownership. The study examines overall satisfaction in five factors (listed in order of importance): service quality (22%); vehicle delivery (21%); service facility (20%); service advisor (20%); and service initiation (18%).

The study also includes the Net Promoter Score® (NPS),[1] which measures new vehicle owners' likelihood to recommend their vehicle brand on a 0-10 point-scale.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.


DISCLAIMER: This information is published as per the press release sent to us. It has not been verified or ratified by OVERDRIVE.

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