J.D. Power and Associates Reports: Lincoln Continues to Break Records for Customer Satisfaction With Dealer Service

Creating Strong Relationships With Customers Helps Reduce Post-Warranty Defection to Independent Service Providers

WESTLAKE VILLAGE, Calif., July 20 -- With a CSI score of 915 (on a 1,000-point scale), Lincoln ranks highest in customer satisfaction with dealer service, receiving a record-setting high CSI score for the second consecutive year, according to the J.D. Power and Associates 2005 Customer Service Index (CSI) Study(SM) released today.

The study, now in its 25th year, measures customer satisfaction of vehicle owners who visited the dealer service department for maintenance or repair work during the first three years of ownership, which typically represents the majority of the vehicle warranty period. Overall customer satisfaction is based on six measures: service initiation, service advisor, in-dealership experience, service delivery, service quality and user-friendly service.

Lincoln outperforms other brands in the areas of service initiation and user-friendly service. Lincoln customers are particularly pleased with the dealership's ability to get them in for an appointment within a reasonable amount of time and the fairness of charges. Lincoln is the first domestic make to rank highest in CSI for two consecutive years.

Lincoln is followed in the rankings by Cadillac, Saturn and Lexus, respectively.

The study finds that 51 percent of repair work involved a recall -- up from 39 percent in 2004 -- reflecting, in part, a change in government regulations on mandatory reporting of vehicle safety defects. CSI scores are, on average, considerably higher for repairs that involve recalls, particularly in the area of service quality. Recall work often tends to garner higher satisfaction than typical repairs because dealers plan for and communicate the work to customers better. As recall repairs become routine, technicians become more efficient and consistent in fixing the problem.

"As negative as recalls are for manufacturers, they provide dealerships with opportunities to excel in service and make a positive impact on their customers," said Steve Witten, executive director of automotive retail research at J.D. Power and Associates. "When a vehicle is fixed quickly and correctly in one visit, customers tend to walk away with higher satisfaction. This typically occurs with recall work since the dealers are prepared to work on the specific problem. Manufacturers may consider applying lessons learned from recall campaigns to regular repair service."

The study also finds that brands receiving high ratings from customers for service satisfaction benefit as well in terms of loyalty, both in the likelihood of customers returning to the dealer for in-warranty and post- warranty work and in intentions to repurchase from the servicing dealer. This is particularly important when the warranty period ends. Creating strong relationships with customers during the first few years of ownership significantly influences customer retention during the post-warranty period, according to the J.D. Power and Associates 2005 Service Usage and Retention Study(SM) (SURS), which measures the same elements as CSI but at four to five years of ownership, when most warranties have expired.

"After one year of ownership, nearly one-third of customers turn to non- dealer facilities to service their vehicle," said Witten. "This percentage increases to more than one-half by the time the vehicle is five years old. What we find in SURS is that many independent service providers maintain a competitive advantage over dealers primarily through the strong relationship and trust they have developed with their customers. While most independents have the advantage of being small operations that offer more personal service, manufacturers and dealers can develop programs that foster personal relationships between service advisors and customers."

According to SURS, independent service providers typically outperform dealers in the key drivers of service satisfaction, including getting customers their appointment on the desired day; waiting on customers immediately; telling customers when their vehicle will be ready and consistently delivering on that promise; fixing the vehicle right the first time; and explaining the work performed and associated charges.

Brands that perform particularly well in service satisfaction among owners of four- to five-year-old vehicles include luxury brands Acura, Cadillac, Infiniti and Lexus.

The 2005 CSI Study is based on responses from 99,550 owners and lessees of 2002 to 2004 model-year vehicles. The 2005 SURS is based on responses from 11,016 owners of 2000 to 2001 model-year vehicles.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, BusinessWeek and McGraw-Hill Education. The Corporation has more than 280 offices in 37 countries. Sales in 2004 were $5.3 billion. Additional information is available at http://www.mcgraw-hill.com/.