Seven out of Ten Highly-Satisfied Customers Repurchase The Same Make
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As per JD Power research, we have seen one company (Maruti Suzuki India) topping after-sales customer service satisfaction among mass market brands for 16 years in a row. How is that possible?
J.D. Power syndicated studies are not funded by the companies that are measured. The studies are funded and owned by J.D. Power. After the company’s study results are published, manufacturers, retailers, suppliers and other industry participants can choose whether or not to subscribe to the research. The rankings are entirely a reflection of the customer’s feedback.
Maruti Suzuki has ranked highest in the CSI study in the mass market for 16 years in a row and the study findings that even at that high score of 906 which is 40 index points higher than the industry average, Maruti Suzuki still exhibits operational improvement within themselves. In all the 5 factors examined in the CSI study, Maruti Suzuki reports double digit improvement on all five factors with Service Initiation being the most improved factor.
At what rate are vehicle manufacturers in India bettering after-sales service?
In the past 5 years, CSI scores have improved from 812 in 2010 to 866 in 2015. That’s an improvement of CSI scores by 54 index points. The improvement rates amongst makes vary but at an industry level, the after-sales satisfaction levels have gone up.
- · 85 percent of customers receive their vehicles back on the same day of service, up from 70 percent in 2014. Same-day delivery has a significant impact on satisfaction. Satisfaction among customers who receive their vehicle on the same day of service is 873, compared with 822 among those whose vehicle is not delivered on the same day.
- · Notifying customers for routine maintenance has improved, as 86 percent of customers indicate they were reminded about vehicle servicing via phone, letter or SMS/ text in 2015, up from 79 percent in 2014.
- · Delivering a clean vehicle post service—an important driver of satisfaction—has improved by 5 percentage points from 2014. Satisfaction among customers who receive their car back cleaner than when they brought it in for service averages 879, which is 44 points higher than among those whose car is about as clean as when they brought it in for servicing.
- · More than half (51%) of customers indicate they finished the paperwork and picked up the vehicle within 10 minutes after servicing, which improves overall satisfaction by 22 points.
In the Indian market, what is the correlation between after-sales services and sales?
Good aftersales experience keeps the customers engaged with the brand and creates a positive perception of both the automakers and the dealerships. Further, customers who are highly delighted with their customer service experience exhibit a much higher advocacy and loyalty intentions. In the 2015 India CSI study, more than seven out of ten Highly Satisfied customers, would definitely repurchase same make. This drops to only 37% among Highly Dissatisfied Customers.
Clearly automakers and dealerships can benefit from word-of-mouth and loyalty intentions if a highly satisfying aftersales experience is provided to their customers.
How do you ensure transparency in your awards?
It is important to note that our quality and customer satisfaction studies are based on generally accepted international research methods and are focused on consumer evaluations collected from verified owners/users.
Significant effort and resources are deployed to ensure that we collect accurate, actionable and unbiased feedback from verified car owners in any market that we operate. We have an elaborate system of checks and balances over and above the data quality protocols of our channel partners. Further, the data is also scrutinized by third-party independent auditors and across global offices of J.D. Power. It is only when we have confidence in the data that we publish the rankings and results publicly.
What is your sample size? In how many cities do you cover? How much time do you take to carry out your studies?
The prospectus attached shares the details of the sample sizes as well as city coverage. For a four-wheeler study, we interview more than 8000 respondents and for a two-wheeler study, we interview more than 10,000 respondents. We cover 30 cities all over India for Four-wheeler and 45 cities for Two-wheelers. Each study takes about 3 months to complete.
How do you study tractors?
For the 2016 India Tractor CSI and Product Performance Studies we have collected responses from over 3,800 tractor owners across 14 states in India. We employ robust and stringent data collection methodologies to interview farmers deep into rural India. The study covers all major tractor brands in India in the 15-75 HP segments. This study is by far, the most extensive and detailed tractor ownership satisfaction study in the market.