Vehicle Service Programs Emerge As Key Driver of Satisfaction and Retention
15 July 1999
J.D. Power and Associates Reports: Outstanding Vehicle Service Programs Emerge As Key Driver of Customer Satisfaction and Retention
Lexus Remains on Top in Customer Satisfaction with Dealer Service
AGOURA HILLS, Calif., July 14 -- Dramatic improvements in
vehicle quality over the past ten years have pushed vehicle service into the
spotlight as a critical means of differentiation in the automotive industry,
according to the J.D. Power and Associates 1999 Customer Service Index
(CSI2)(SM) study released today. Simple practices, such as returning a clean
vehicle or returning the vehicle when promised, can make the difference
between a satisfied and a dissatisfied vehicle owner, regardless of whether
the vehicle is brought into the dealership for routine maintenance or for
major repairs.
"While some people may be forgiving when something goes wrong with their
vehicle, they may be less forgiving when such problems are handled poorly at
the dealership," said Joe Ivers, senior director of customer satisfaction
research at J.D. Power and Associates. "The CSI2 study shows that vehicles
produced by the industry's best manufacturers not only have fewer problems but
these manufacturers also have processes in place at the retail level to
resolve problems effectively and recover threatened customer relationships,
while at the same time providing excellent routine maintenance."
According to the study, some of the greatest automotive success stories of
the 1990s have been based largely on the customer service experience. Lexus
and Saturn have become customer service benchmarks throughout the decade and
have shaken up the automotive industry by offering automotive service programs
that effectively address customer expectations.
Lexus dominates the customer service index in 1999 with a ranking of
815 out of a possible 1,000 and receives the distinction of "Number One in
Customer Satisfaction with Dealer Service." In addition to producing vehicles
that require fewer repairs, Lexus surprises and delights their service
customers in more ways than other luxury makes.
"Lexus dealers seem to do virtually everything well in the area of
service," Ivers said. "They especially stand out in service delivery -- the
way the vehicle is returned to the customer. Lexus customers indicate they
almost always have their vehicle returned cleaner than when it was dropped
off, and it is almost always available when promised. These somewhat simple
practices are extremely important to many customers, especially when major
repairs are not an issue."
Cadillac also performs well in the 1999 CSI2 study and follows Lexus with
an index of 778 out of 1,000. Cadillac does well with both maintenance and
repair customers, illustrating that Cadillac has few customers with vehicles
that require repairs and many customers who are willing to go to Cadillac
dealerships for routine maintenance, even without a free maintenance program.
Non-luxury makes also score high in service satisfaction. Saturn ranks
seventh and is the highest non-luxury make in the ranking. Like Lexus,
Saturn's customers are satisfied with most aspects of the service experience,
especially delivery of the vehicle after the service is performed. Honda,
also scores well. Although ranking 13th overall, Honda ranks nearest to
Saturn among non-luxury makes.
The CSI2 study is an enhancement of the firm's original Customer
Satisfaction Index (CSI) study, which began in 1981. CSI2 focuses on service
experiences during the first three years of vehicle ownership, which
represents most normal warranty periods. The updated study reflects
significant changes in customer expectations that have been developing since
CSI's last major redesign in 1986. CSI2, based on responses from more than
51,000 vehicle owners, will continue to be an annual study that provides
benchmarking of dealer service satisfaction across the U.S. automotive
industry. The study is independently funded by J.D. Power and Associates.
Headquartered in Agoura Hills, Calif., J.D. Power and Associates is a
global marketing information services firm operating in key business sectors
including market research, forecasting and customer satisfaction. The firm's
quality and satisfaction measurements are based on actual customer responses
from more than one million consumers annually. J.D. Power and Associates can
be accessed through the World Wide Web at http://www.jdpower.com. Media e-mail
contact: john.pepitone@jdpower.com. This press release is provided for
editorial use only.
No advertising or other promotional use can be made of the information in
this release or J.D. Power and Associates survey results without the express
prior written consent of J.D. Power and Associates.
J.D. Power and Associates
1999 Customer Service Index(SM)
(Scale: 0-1000)
Lexus 815
Cadillac 778
BMW 775
Volvo 774
Infiniti 771
Jaguar 771
Saturn 762
Audi 760
Mercedes-Benz 751
Land Rover 742
Acura 739
Lincoln 738
Honda 730
Buick 727
Saab 721
Mercury 719
Oldsmobile 715
Porsche 698
GMC 689
Pontiac 688
Industry Average 683
Finishing below industry average, in alphabetical order are: Chevrolet,
Chrysler, Dodge, Eagle, Ford, Hyundai, Isuzu, Jeep, Kia, Mazda, Mitsubishi,
Nissan, Plymouth, Subaru, Suzuki, Toyota and Volkswagen.
Source: J.D. Power and Associates 1999 Customer Service Index(SM)
Charts and graphs extracted from this press release must be accompanied by
a statement identifying J.D. Power and Associates as the publisher, and the
J.D. Power and Associates 1999 Customer Service Index(SM) as the source. No
advertising or other promotional use can be made of the information in this
release or J.D. Power and Associates survey results without the express prior
written consent of J.D. Power and Associates.