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Power Study Shows Satisfaction Up with Auto Dealers Despite Parts and Staffing Problems

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Despite having to wait longer to get their vehicles serviced, vehicle owners were more satisfied with their dealership departments. The improvement comes as service departments face issues with parts and employees shortages.

Lexus supplanted Porsche in the premium brand category in J.D. Power’s 2022 U.S. Customer Service Index. Photo Credit: Lexus of Kendall (Florida)

The overall customer service satisfaction score for J.D. Power 2022 U.S. Customer Service Index came in at 848 points — out of 1,000 possible — which was one point higher than last year’s result. The improvement came as U.S. traffic levels returned to pre-pandemic levels, meaning more vehicles needed more service, Power officials noted.

The average wait time for 1- to 3-year-old vehicles increased by nearly a full day in both categories of the study: premium brands and mass market brands. Premium dealers needed 4.5 days while mass market ones were slightly faster, needing 4.3 days on average for a repair.

“Dealer service departments are in a pivotal position to improve customer satisfaction and provide greater customer convenience, even though many challenges — including the parts supply chain disruption and the availability of new-vehicle loaners ­— are out of their control,” said Chris Sutton, vice president of automotive retail at J.D. Power. 

Best dealers for service

There were some changes in this year’s top rankings in the two categories, which a new leader — Lexus — topping the premium group. Lexus ranked highest in satisfaction with dealer service among premium brands with a score of 897. 

Cadillac (880) ranked second, followed by Porsche (879), Acura (871) and BMW (866). Porsche was tops in 2021, but its number fell by 20 percent. Acura and BMW made the top five, pushing out Infiniti and Lincoln.

2022 Power Customer Service Index mass market graphic

Mini took the top spot for dealer service among mass market brands for a second consecutive year, with a score of 873. Buick (872) came second just like last year but closed the gap on Mini. They were followed by Mazda (856), Mitsubishi (854) and GMC (853). Mazda was the only new entry in the top five this year, with Kia falling from fifth down to 16th position.

Overcoming challenges

Parts shortages and delays, incomplete staffing and more miles seems like a nightmare scenario for dealers; however, they’ve managed to keep customers as happy as last year. It was the seventh consecutive year the overall satisfaction score went up.

“Proactive communication with customers is one solution for dealerships to mitigate a disruptively tough situation,” Sutton noted. 

“Simply implementing text or email alerts can greatly improve customer satisfaction. Additionally, letting customers know what is happening at each step along the way, including why it is taking longer to book an appointment or providing any updates in parts delays, can help improve satisfaction.”   

That communication doesn’t need to be complicated. In fact, the study showed a simple text will do for things like upcoming appointment reminders or status updates for vehicles already at the dealer: 42% preferred this.

Additionally, owners want dealers to use technology to allow them to communicate with the service department, including making appointments online (27%) and via mobile app (7%), and paying online (17%).

It’s a matter of trust

2022 Power Customer Service Index premium graphic

This year’s study examined how much trust customers had in their dealer’s service department. Using a 7-point scale, study participants ranking “I trust the dealership to perform complex repairs on my vehicle,” with an average rating of 6.16. 

However, the second-most important attribute, “Takes responsibility when a mistake is made and resolves it effectively,” has the lowest average rating (5.91).   

Power also found that providing a photo or video of the work being done or part needing replacement before the customer approves the process strengthened the faith and trust in dealer, and owners were three times more likely to approve the repair.

New to the study in 2022 is a measurement of satisfaction among customers who select to have their vehicle serviced either by valet (when a dealership picks up the vehicle) or mobile (when the dealership sends a technician to the customer’s location). Overall customer satisfaction among owners using valet or mobile service is 866 compared to 847 among those who had an in-person dealership visit, Power noted.

Electric vehicles remain a struggle

Overall service satisfaction among BEV owners (784) is 68 points lower than among owners of gas- or diesel-powered vehicles (852). Additionally, the average number of service visits a BEV owner makes in a year is 1.9 compared with 2.4 among owners of gas- and diesel-powered vehicles. 

With the battery-electric Taycan being Porsche’s best-selling car right now, getting the EV serviced could have been part of the reason for the German automaker’s fall from first to third in the premium ranking.

“BEV service is the next frontier for dealerships,” Sutton said. “The automotive industry has to get ready now and get the service experience right with BEV owners or they risk losing them to aftermarket service providers. This includes fully understanding BEV customer pain points like range anxiety, unique maintenance requirements and support for related services such as availability of charging stations.”

However, a recent study by research firm We Predict shows that EV costs are higher than those of gas- or diesel-powered vehicles, although primarily in the first year. However, the out-of-pocket costs for vehicle owners is lower than ICE vehicles because most of the issues are covered by warranties.

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