J.D. Power Reports UK: Volvo Ranks Highest in Customer Satisfaction Among Premium Brands

J.D. Power Reports: Volvo Ranks Highest in Customer Satisfaction Among Premium Brands, Honda Ranks Highest Among Volume Brands in Inaugural UK Study

Highly Satisfied Service Experience Drives Customers Back to the Dealer for Service and Sales

MUNICH -- August 2015: Volvo ranks highest among premium brands and Honda ranks highest among volume brands in UK customer satisfaction with vehicle service, according to the J.D. Power 2015 UK Customer Service Index (CSI) Study^SM released today.

The inaugural study measures UK customer satisfaction with their service experience at a franchised dealer facility for maintenance and repair work. The study explores customer satisfaction with their service dealer by examining five measures (listed in order of importance): service quality (26%); service initiation (23%); service advisor (19%); vehicle pick-up (17%); and service facility (16%). Satisfaction is calculated on a 1,000-point scale.

The CSI Study is a comprehensive analysis of the vehicle service experience and is conducted by J.D. Power in 16 countries worldwide, providing detailed after-sales solutions for automakers and dealerships. 

Volvo ranks highest among premium brands in satisfaction with a score of 779. Volvo is followed by Land Rover (767) and Audi (762). Honda ranks highest among volume brands in satisfaction with a score of 768.  Suzuki and Toyota rank second in a tie (759 each), and Kia and Skoda rank fourth in a tie (758 each).

“The common perception is that the luxury brands are able to deliver a more satisfying customer experience, but the study shows this is not the case,” said Dr. Axel Sprenger, senior director of European automotive operations at J.D. Power. “Any brand and any dealership can provide a consistently positive customer experience if they make it a priority and have the people and processes in place.  When they do, they likely will see an increase in revenue and will be able to build customer loyalty.”

The 2015 UK CSI Study finds that satisfaction with dealer service leads to customer loyalty and advocacy. Among the 20 percent of customers who are highly satisfied with their dealer service (overall satisfaction scores of 900 and above), 78 percent say they “definitely will” purchase their next vehicle from that dealer and 85 percent “definitely will” recommend the dealer to friends and family. In contrast, among customers less satisfied (scores of 700-899), only 36 percent indicate an intention to purchase their next vehicle from that dealer, and only 42 percent say they “definitely will” recommend the dealer to others.

KEY FINDINGS

Satisfaction among the 93 percent of customers who are able to get an appointment on the day they desire averages 768, compared with 576 when an appointment is not available on their desired day.
While 25 percent of customers would prefer to schedule a service appointment over the Internet, only 15 percent actually do. The Internet as a method to schedule an appointment is expected to increase with the emergence of mobile apps, which make the process faster and easier.
The No. 1 reason for choosing a dealer for service is prior experience with the service department (35%), followed by location (34%) and prior experience with the sales department (32%). Fewer than 3 percent of customers indicate selecting their service facility due to advertising or promotions/coupons.
Though only 31 percent of dealers recommend additional service work to their customers, when they do, 62 percent of customers have the recommended work done. Satisfaction is substantially higher among the 78 percent of customers who are recommended service and have it done, compared with those who do not have the recommended work done (760 vs. 693, respectively).
On average, customers who accept additional work on their vehicle spend £347 on their service visit, compared with £189 among those who do not receive additional work recommendations. 
Amenities offered at the dealership are key drivers of satisfaction with the service facility, as 24 percent of customers stay at the dealership while service is performed on their vehicle.

The 2015 UK Customer Service Index Study is based on 9,091 respondents who purchased their new vehicle between April 2012 and March 2014. The study was fielded between March and May 2015.