BMW ranks highest in customer satisfaction with the vehicle sales process, according to the J.D. Power Asia Pacific 2006 Japan Sales Satisfaction Index (SSI) StudySM released today.
The study, now in its fifth year, identifies four factors contributing to customer satisfaction with the sales process at automotive dealerships. They are (in order of importance): salesperson; facility and staff demeanor; finance and insurance process; and delivery.
At 103 points in 2006, the overall industry SSI remains unchanged from the 2005 study. BMW ranks highest with an overall SSI score of 110 points, performing particularly well in both the salesperson and facility and staff demeanor factors. The number of test drives conducted at BMW dealerships—which are a critical part of the vehicle selection process—is up from the 2005 study. Additionally, the length of time given for test drives has increased, and evaluation scores given by customers for the test drive have improved from 2005.
Volkswagen follows BMW in the rankings with an SSI score of 107 points, and Honda ranks third overall with 105 points.
The study finds that among customers who indicate they “definitely would” purchase their next vehicle from the same make, 75 percent actually do so. Previous SSI results have shown that improvements in customer satisfaction can lead to a higher repurchase intention among customers. The 2006 study also finds that higher satisfaction produces higher repurchase rates for vehicle makes and dealerships.
“Higher levels of satisfaction provide various benefits, including the possible purchase of new replacement vehicles from the same dealer, the increased likelihood that customers will recommend their dealer through word of mouth advertising, and a potential boost in revenues,” said Hiroaki Endo, manager at J.D. Power Asia Pacific. “Manufacturers, importers and dealers will tentatively face stagnant sales of new vehicles and even tougher business conditions moving forward, primarily due to a shrinking Japanese population, owners keeping their vehicles longer and changing values toward vehicle purchases. Consequently, it becomes critical for manufacturers, importers and dealers to understand that higher rates of satisfaction generally lead to loyal customers—which can also have a positive impact on the return on investment.
The study also finds that customers are increasingly using the Internet to obtain information when purchasing a new vehicle. The percentage of customers who use the Internet is up from 35 percent in 2003 to 43 percent in 2006.
“Customers who use the Internet to shop for their vehicle will carefully gather information about the vehicle model they are considering prior to shopping,” said Endo. “In order to improve the overall satisfaction of these shoppers, salespeople need to do more than just provide basic product explanations. By offering specific information that is tailored to customer needs, and explaining and promoting the after-care service process, the salesperson will have a better chance of improving the satisfaction of Internet shoppers.”
The 2006 Japan Sales Satisfaction Index (SSI) Study includes responses from 5,996 vehicle owners covering 16 makes. The fieldwork for the study was conducted in July and August of 2006.
More photos in our auto show photo galleries...
Auto Show photo galleries!!!! Click here
Read Article