Photo Gallery
Login
Powered by Squarespace
Wednesday
Aug262015

Customer Satisfaction with Service

Canadian auto service providers have significant room to improve in maximizing customer experience and meeting car owner service level expectations,according to J.D. Power’s 2015 Canadian Customer Service Index Long-Term (CSI-LT) Study, released today (see press release with full details embedded below).

 

According to the study, which measures the service experience, satisfaction and intended loyalty among owners of 4-12 year old vehicles, only 15% of service occasions in the past year resulted in a perfect 10/10 rating, while two out of three (67%) were rated at 8/10 or below.

 

Other key findings from the study include:

·         Lexus Dealerships rank highest in customer satisfaction, setting the bar for excellence amongst dealerships and aftermarket shops

·         Aftermarket shops top auto dealerships for overall customer satisfaction (749 vs 731 on a scale of 1,000, respectively)

·         Among vehicle owners who ranked their most recent service experience at 10/10, 93% said they “definitely will” return to the service facility for work, compared to 40% of those who ranked their most recent service 8/10

Canadian auto service providers have significant room to improve in maximizing customer experience and meeting car owner service level expectations,according to J.D. Power’s 2015 Canadian Customer Service Index Long-Term (CSI-LT) Study, released today (see press release with full details embedded below).

 

According to the study, which measures the service experience, satisfaction and intended loyalty among owners of 4-12 year old vehicles, only 15% of service occasions in the past year resulted in a perfect 10/10 rating, while two out of three (67%) were rated at 8/10 or below.

 

Other key findings from the study include:

·         Lexus Dealerships rank highest in customer satisfaction, setting the bar for excellence amongst dealerships and aftermarket shops

·         Aftermarket shops top auto dealerships for overall customer satisfaction (749 vs 731 on a scale of 1,000, respectively)

·         Among vehicle owners who ranked their most recent service experience at 10/10, 93% said they “definitely will” return to the service facility for work, compared to 40% of those who ranked their most recent service 8/10

 

J.D. Power Reports:

Delighting Customers Unlocks Significant Revenue Potential for Vehicle Service Providers in Canada

 

Lexus Dealerships Rank Highest in Customer Satisfaction among Owners of 4- to 12-Year-Old Vehicles

 

TORONTO: 26 August 2015 — Delighting customers by providing an outstanding  service experience generates high levels of retention and unlocks significant revenue potential for vehicle service providers in Canada, according to the J.D. Power 2015 Canadian Customer Service Index Long-Term (CSI-LT) StudySM released today.

 

The study, which measures the service experience, satisfaction and intended loyalty among owners of  vehicles that are 4 to 12 years old, analyzes the customer experience from both warranty and non-warranty service occasions. Overall satisfaction is based on the combined index scores of five factors that comprise the overall service experience (in order of importance): service initiation (24 per cent); service quality (23 per cent); service advisor (20 per cent); service facility (17 per cent); and vehicle pick-up (16 per cent). Scores for each factor are reflected in an index based on a 1,000-point scale.

 

Overall customer satisfaction with automotive dealerships is 731, and satisfaction with aftermarket shops is 749.

 

Among vehicle owners who are “delighted” with their most recent service experience (with an overall satisfaction rating of 10 on a 10-point scale), 93 per cent say they “definitely will” return to the service facility for work they are willing to pay for, compared with only 61 per cent among those who rate their last service visit 8. 

 

“This underscores the importance for Canadian vehicle service facilities to focus on providing a consistently outstanding customer experience,” said J.D. Ney, manager of the Canadian automotive practice at J.D. Power. “There is a significant opportunity to improve the service experience, as just 15 per cent of all service occasions in the past 12 months resulted in an overall customer satisfaction rating of 10, compared with 67 per cent of service occasions rated 8 or below, among whom only 40 per cent say they ‘definitely will’ return.”

 

Ney noted that to maximize satisfaction, service facilities should focus on the key performance indicators (KPIs) that generate the most positive impact on the customer experience. The top three performance measures and their impact on satisfaction scores include being completely focused on the customer’s needs (+63 points); providing an appointment on the day desired (+56); and providing helpful advice (+53). These KPIs have long been a focus for Canadian service facilities, as their average completion rate of at least 80 per cent is already very high. However, among the top 10 KPIs measured in the study, there are three performance processes that are completed less than 80 per cent of the time, creating a significant opportunity for service facilities to improve customer satisfaction. These KPIs include having the customer speak to an advisor immediately on arrival (+43 points; 44 per cent completion); keeping customers informed on the status of their vehicle (+36; 75 per cent); and contacting customers after the service occasion (+29; 38 per cent).

 

Nearly half (46 per cent) of owners of older vehicles exclusively selected an aftermarket facility for their service needs in the past year; a further 33 per cent used only an original equipment manufacturer (OEM) dealer facility; and the remaining 21 per cent took their vehicle to both an aftermarket and OEM dealer facility. That remaining 21 per cent of owners represents a key battleground for vehicle service market share and a significant revenue potential for service providers in Canada, On average, owners of older vehicles who visit a service facility at least once—either a dealership or other service facility—make 1.2 visits to a dealer and 1.8 visits to a non-dealer per year. The average amount these customers spend per service visit is $232. At an average of three visits per year, each customer represents nearly $700, making the 21 per cent battleground customers worth more than $1.5 billion in annual potential revenue for service providers.

 

KEY FINDINGS

 

•      Customer satisfaction and the amount spent on a service visit increase when a service advisor properly educates customers on additional work that may be required. In fact, study results show that 46 per cent of owners of 4- to 12-year-old vehicles indicate their service advisor recommended additional work. Of this group, nearly half authorized the work to be completed, spending an average of $527 on the visit, compared with an average of $225 among those who were not advised of additional work.

         Dealers are more likely than aftermarket providers to perform a multi-point inspection on vehicles (77 per cent vs. 70 per cent, respectively) and to have an advantage in knowing a customer’s service history (85 per cent vs. 76 per cent). Performing inspections more frequently and knowing a vehicle’s service history helps service facilities make more informed service recommendations, opening significant potential revenue opportunities.

 

Study Rankings

 

Lexus Dealerships rank highest in satisfying automotive service customers in Canada, with an overall satisfaction score of 809. NAPA AUTOPRO ranks second at 775, and Volkswagen Dealerships rank third at 772.

 

The 2015 Canadian Customer Service Index Long-Term (CSI-LT) Study is based on responses from more than 11,000 owners in Canada whose vehicle is between 4 and 12 years old. The study was fielded in March-April and May-June 2015.

 

Overall Customer Satisfaction Index Scores                             

(Based on a 1,000-point scale)                                           

J.D. Power.com Power Circle RatingsTM For Consumers

Lexus Dealerships          

809       

5

NAPA AUTOPRO            

775       

4

Volkswagen Dealerships

772                       

4

Fountain Tire                                   

760                       

4

Ford Quick Lane                             

757                       

4

Kia Dealerships                               

751                                       

3

Toyota Dealerships                       

744                                       

3

Industry Average       

741                                      

3

Jiffy Lube                                           

739                                       

3

Nissan Dealerships                        

737                                       

3

Ford/Lincoln Dealerships          

736                       

3

Great Canadian Oil Change

733                                       

3

GM Dealerships               

732                                       

3

Midas                                   

732                       

3

Mazda Dealerships                        

731                       

3

Subaru Dealerships

728                                       

3

Mr. Lube                                             

727                                       

3

Honda Dealerships                        

723                                       

3

Acura Dealerships                         

720                                       

3

Mitsubishi Dealerships                

719                                       

3

Chrysler Dealerships    

716                                       

3

BMW Dealerships          

712

2

Costco                                 

711                                       

2

Hyundai Dealerships                    

705                                       

2

Canadian Tire                                  

698                                       

2

Wal-Mart

681

2

*Independent Repair Shop

772

 

Note: Included in the study but not ranked due to small sample size are Active Green & Ross, Audi Dealership, Goodyear Auto Centre, Kal Tire, Meineke Car Care Centre, Mercedes-Benz Dealership, Ok Tire, Speedy, Suzuki Dealership and Volvo Dealership.  

*Independent Repair shop has sufficient sample, but cannot be ranked.                             

 

Power Circle Ratings Legend

5 – Among the best

4 – Better than most

3 – About average

2 – The rest

 

Wednesday
Jul292015

Unleashing Innovation

Excellent Healthcare for Canada...

Nothing to do with cars, but everything to do with all the folks that work in the auto industry in Canada.

Its a must read...

Unleashing Innovation by Strada

 

 

 

Tuesday
Jul282015

Flying

If you are of a certain age you surely remember when getting on a plane to fly "somewhere" was an elegant undertaking. Perhaps you even remember the "insurance kiosks" offering varied insurance plans in case a plane crashed.

At some point the elegance was totally suppressed from flying.

Lets take a look at this...

A few decades ago flying to various places in Canada was still elegant, tame, relaxed compared to today. Especially if your station in life and the company permitted you to fly executive or first class. While most companies had a designated travel agent to provide the tickets.

You could fly across Canada in executive or first class, arrive refreshed and ready to work. Yes...the over head bins were relatively empty.

There was a sense of civility on the planes, while being served reasonable food, drinks, libations.

If it sounds like ancient history it surely is...

At some point our own The Colonel concluded that dealing with airports, and flying was becoming increasingly inconvenient...the time saved is certainly what still motivates folks to fly...as well as the ability to cross wide stretches of water.

Since time is a most precious commodity...flying endures to impose on the folks that fly.

Have you noticed that buying a ticket is similar to a lottery, a guessing game, take a look and see what comes out sort of thing. Airlines have "dynamic pricing" down to an hourly science...never mind day, or month. Obvious that buying way ahead of when you will actually fly is the mantra.

What does it have to do with cars? Not much...but imagine for a moment if vehicles were sold in the same fashion as plane tickets. The service provided by dealers would be the same as airlines.

What do you think?

 

Thursday
Jul022015

F35 Ski Jump Launch

Fascinating way to take off...

 

Monday
Jun152015

Vehicle Service In Canada

Click on imgage to enlargeIf you are in the auto business and ever wondered how many service bays there are across Canada, you could simply wonder out loud and not arrive at an answer.

Well...

"The Automotive Industries Association of Canada (AIA) recently commissioned DesRosiers Automotive Consultants to undertake the first detailed analysis of the number of service bays in Canada.  This groundbreaking study used a variety of proprietary surveys and methodologies to explore the number of commercial bays handling light vehicle repair and maintenance, excluding tire, glass and collision focused shops.  The analysis indicates that the total bay count in Canada in 2014 was 106,913 bays spread across 16,683 locations.  Independent service outlets had the largest location count (11,904) and accounted for approximately fifty percent of the overall number of bays. At a national level, the DAC analysis indicated there were 221 light vehicles on the road in Canada for each service bay with provincial variations being notable as always.Overall, the service bay sector is operating close to capacity handling in excess of 64 million service visits annually."

Lets look at these findings from a service productivity perspective.

  • Lets be optimistic and agree that the average RO (repair order) is 2.5 hours.
  • There are 8 working hours per day for each service bay.
  • Each service bay can accomodate at least 3 vehicles per day (8 divided by 2.5 = 3.2)
  • At 106,913 times 3 = 320,739 vehicles can be serviced in 1 day across Canada
  • 106,913 times 7.5 hours (we agreed on 3 vehicles) = 801,847 hours at $ 100/hour = $80 M of service labor sales per day - we are not counting parts.
  • At 20 working days / month  320,739 x 20 = 6.4 M vehicles per month = 76 M vehicles per year
  • If from above 64 M visits = 1 vehicle per visit
  • The service bays can handle 76 M vehicles, 64 M is 84% of the capacity in number of vehicles and hours.
  • A service bay that runs at 84% capacity is not productive, and does not make good money.
  • From the above the vehicle population in Canada is 23.6 M lets say 24 million and there are enough service bays to service 6.4 M vehicles per month in a 4 month time frame every vehicle in Canada can be serviced.

A service bay in an 8 hour day should generate a 20% premium in productivity, in 8 hours 9.6 hours are sold at 2.5 hours per RO (again being very optimistic at 2.5) that is 4 vehicles per bay per day.

Some folks are not making the money they should or could with their service bays.

 

Friday
May152015

B.B. King

If you are a blues fan today is a little sadder knowing the B.B. King is gone.

 

Thursday
May142015

Too Much Oil, Debt, Cars

If you do your morning news tour, like we do, lately we are always reading a different version of the same thing, over and over.

The price of oil goes in the dumpster for every reason on the planet. In the meantime gas is $1.10 a liter in the GTA, and in case you have not noticed premium has crept up to an additional 22 cents per liter. Lets just say that somebody is making some money retailing oil converted to gasoline at $1.10 a liter.

In Canada we are a nation of borrowers that are headed for a "wall" at some point. We are a consumer economy enabled by a myriad of forces to remain a consumer economy. Its the Canadian consumer that keeps Canada rolling along. Yes...CMS (Citizen Main Street) as we call him.

Auto sales are through the roof, enabled by the same forces upholding the consumer economy...we call it free flowing money. Other folks are always trying to find new meaning in reading the tea leaves.

On a different note

Perhaps you remember the old saying "Sticking your foot in your mouth"...in an age of social media, everybody is on 24/7. This past week we had a politician, and a soccer fan stick both feet and then some in their mouths. The politician went on damage control, and the soccer fan paid the price.

One more thing

The Canadian infatuation with real estate that keeps a ton of businesses going in one fashion or another, in addition to keeping a myriad of pundits going all day long.

From a car business perspective the old saying "What is a car worth?" the answer "The price that the individual who bought it paid for it."

The question

Are we in a new Canadian reality with a bunch of folks attempting to grasp the future through the rear view mirror?

What do you think?

 

 

Wednesday
May062015

Kentucky Derby 2015

You know that we love horsepower...

In case you missed it live, last Saturday's Kentucky Derby, the 3 leading horses were trading sweat up to the finish line.

 

Monday
Apr272015

Royal Victoria Hospital

Nothing do do with cars or the auto business.

This past week end the "Royal Vic" in Montreal closed permanently. The passing of a long established hospital, replaced by a new facility The Glen.

Why are we talking about the Royal Vic this morning?

A few decades ago, 2 members of the Strada Crew were born at the Royal Vic.

The Colonel had a hand and a shoulder fixed at the Royal Vic. The hand was an unfortunate accident, and the shoulder the result of a hockey game.

For generations the hospital was the go to medical facility in Montreal, on the slope of the mountain with iconic architecture. The result of folks residing in the "Golden Mile" wanting their own hospital close the the university back in the days when Montreal was literally the epicenter of Canada.

Although no longer an operating hospital, the various buildings remain a compelling Montreal landmark.

Lets not forget the Mc Gill University student dormitories a little farther up the hill.

 

 

Tuesday
Apr072015

Blitzen Benz

Cool Car...