Customer Age Greatly Impacts Service Dealer Selection; Customer Satisfaction Hits Record High, J.D. Power Finds

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Mercedes-Benz and Toyota Achieve Highest Satisfaction Levels in Customer Satisfaction

SÃO PAULO: 26 July 2018 — The age of customers has a direct impact on service dealer selection, according to the J.D. Power 2018 Brazil Customer Service Index (CSI) Study.SM The study shows that 51% of customers from Gen Z (born 1995-2004) select a dealership based on recommendations from a friend or relative, compared with 10% of Boomer customers (born 1946-1964). Additionally, overall satisfaction (810 on a 1,000-point scale) is higher than it has been in four years (2015-2018) and is 19 points higher than 2017.

"This year's study presents interesting aspects about how the industry will need to adapt to the expectations and preferences of new generations. Older generations put more weight on prior customer service experience in regard to their overall satisfaction, as compared to younger generations,” said Fabio Braga, Director of Operations at J.D. Power do Brasil. “We also found that service advisors are a key component of customer satisfaction. The presence of these professionals during the payment stage can make a major difference, since they make the process more agile and dynamic, resulting in increased satisfaction.”

The 2018 CSI Study now includes mass market and luxury segments. Overall satisfaction with vehicle service is higher for luxury brands (834 on a 1,000-point scale) than for mass market brands (810).

Following are key finding of the 2018 study:

  • Direct payment to the service advisor has benefits: During the vehicle pick-up process, satisfaction is higher among customers whose payment was handled directly by the service advisor (792) than by a cashier (785). Further, 35% of customers prefer their service advisor to handle payment.
  • Take the time to give customers an explanation of services and charges: Customers appreciate being informed of work done and charges, this increasing overall satisfaction. For customers who remained at the service center for 11-15 minutes to pick up their cars and did not get an explanation of services or charges, however, overall satisfaction decreased by 143 points as compared to those who stayed the same amount of time but received explanations.
  • Luxury brands service facilities give more attention during vehicle pick-up process: Nearly three-fourths (73%) of luxury brand customers received their car cleaner on delivery than it was when it was brought in, compared with 55% of mass market brand customers, thus receiving satisfaction scores of 862 and 842 respectively. The study also shows that the vehicle settings of 82% of luxury brand customers were the same on delivery as they were when the car was brought in—such as configuration of the audio system, position of the steering wheel and mirrors, and seat height—compared with 74% of mass market brand vehicles.    

Study Rankings

Toyota ranks highest in overall customer service satisfaction in the mass market segment, with a score of 841 points. Honda ranks second (836), followed by Hyundai-CAOA (829).

In the luxury segment, Mercedes-Benz ranks highest (849), followed by Audi (844) and BMW (828).

The Brazil Customer Service Index (CSI) Study, now in its fourth year, performs an analysis of customer satisfaction with their vehicle service experience at dealerships through examining five measures (listed in order of importance): service initiation (25%); service quality (23%); service advisor (19%); service facility (18%) and vehicle pick-up (15%). Satisfaction is calculated on a 1,000-point scale.

The 2018 Brazil Customer Service Index (CSI) Study is based on the evaluations of 4,887 new-vehicle owners whose vehicles were originally registered new between between February 2015 and February 2017. The study was fielded from February through May 2018.

J.D. Power is a global leader in consumer insights, consulting services, data and analyses. This expertise enables J.D. Power to help its clients boost customer satisfaction, grow and become more profitable. Founded in 1968, J.D. Power is headquartered in Costa Mesa, California, and has offices serving North/South America, Asia-Pacific and Europe. J.D. Power is a company from the XIO Group portfolio, a global alternative investments and private equity firm, headquartered in London, and led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

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2018 Brazil Customer Service Index (CSI) Study
2018 Brazil Customer Service Index (CSI) Study
2018 Brazil Customer Service Index (CSI) Study

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