Betting on Brazil Auto Industry Recovery, Brands Focus on Improving Sales Process, J.D. Power Reports
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Hyundai CAOA Ranks Highest Followed by Toyota and Ford in New-Vehicle Sales Satisfaction Index
SÃO PAULO: 31 May 2017 — The challenging condition of Brazil’s new-vehicle market is driving manufacturers and dealers to improve sales satisfaction, especially because of its effect on additional revenue streams, and to meet expectations of customers who have become more demanding, according to the J.D. Power 2017 Brazil Sales Satisfaction Index Study,SM released today.
Despite this challenging scenario, overall sales satisfaction this year is relatively unchanged, dropping by just 2 points to 791 from 793 (on a 1,000-point scale) in 2016, while new passenger vehicle sales declined to 1.98 million units in 2016, a 20% decrease from 2015.1 Amid these challenging economic conditions, buyers are most likely to indicate that the primary reason for choosing their dealer is that the dealer offers them the best price (29%). However, overall sales satisfaction for customers who choose a dealer primarily for this reason is relatively low (777).
“Difficult market conditions are motivating dealers to focus their efforts on aftersales services, as well as ensuring a better customer experience when selling new vehicles—which will help support the aftersales business,” said Fabio Braga, director of operations, J.D. Power do Brazil. “A key area for dealerships to pay special attention is the new-vehicle delivery process. Even though this follows completion of the sale, it is a primary driver of customer satisfaction among new owners, and can greatly increase loyalty to the dealer.”
Following are some of the study’s key findings
- Why customers visit a dealership: While customers acknowledge that advertising is a reason why they initially visit a dealership, it isn’t the leading reason for turning those visits into sales. Among customers who purchase a vehicle, trust in a dealership based on the dealer reputation (44%) and recommendation from a friend or family member (40%) are the two leading reasons for visiting a dealership.
- Turning shoppers into buyers: Nearly half (48%) of customers visit at least two dealerships, and the way they’re treated is a major reason for buying a vehicle from a particular dealership. The two most frequently cited reasons for purchase relate to treatment by the dealer and availability of the exact vehicle desired (16% each), which result in the highest satisfaction scores (813 and 814, respectively). Braga notes that having an outstanding customer experience—outside of price—will lead to more referrals and visits by a customer’s friends and family members.
- Delivery process can improve customer satisfaction: Brands looking to improve their sales satisfaction index score can achieve an immediate positive effect (as much as +219 points in satisfaction) by focusing on the vehicle delivery process, which represents seven of the top 10 most influential processes identified in this year’s study as driving high customer satisfaction. Among these leading practices, dealership personnel offering to schedule the new owner’s first vehicle service visit during the vehicle delivery process notably increases satisfaction.
Hyundai-CAOA ranks highest among mass market brands in new-vehicle sales satisfaction, with a score of 819. Toyota ranks second (814), followed by Ford (810), which has jumped from eighth rank position in 2016 to rank third this year.
The Brazil Sales Satisfaction Index Study, now in its fifth year, is a comprehensive analysis of the new-vehicle purchase and delivery experience, and examines customer satisfaction with the selling dealer across five measures (listed in order of importance): vehicle delivery (24%); working out the deal (21%); test drive (21%); facility (18%); and salesperson (17%).
The study is based on the evaluations of 3,700 new-vehicle owners in Brazil in the first 12 months of ownership. The study was fielded from February to April 2017.
See the online press release at http://www.jdpower.com/pr-id/2017056.
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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe.
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1 Source: Fenabrave