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BMW Ranks Highest in After-Sales Service among Luxury Brands

SINGAPORE: 14 October 2014 —Satisfaction with after-sales service quality among luxury vehicle owners improves, particularly with the amount of time it takes to service vehicles and the cleanliness of vehicles post-service, according to the J.D. Power Asia Pacific 2014 Taiwan Customer Service Index (CSI) StudySM luxury segment, released today.

For the first time, the study measures after-sales satisfaction separately in two vehicle segments: luxury and mass market. Customer satisfaction with dealer service is measured across five factors (listed in order of importance): service quality; service initiation; vehicle pick-up; service advisor; and service facility. CSI performance is reflected in an index score based on a 1,000-point scale, in which a higher overall CSI score indicates higher satisfaction. Overall customer satisfaction in the luxury segment averages 903 in 2014. Study findings for the mass market segment were announced in late September.

Luxury vehicle owners expect service to be completed within two hours of arriving at the dealership. When service time exceeds two hours, satisfaction falls to 878 from 911. Luxury vehicle manufacturers have improved their performance from 2013, with 13 percentage points more customers indicating that their vehicle was returned to them post-service within two hours.

Additionally, luxury vehicle owners expect their vehicle to be returned to them cleaner than when they brought it in for service. Satisfaction among customers who indicate their vehicle was cleaner post-service is 907, compared with 884 among those who indicate their vehicle was not cleaner. Overall, the luxury segment performs well, with 83 percent of customers saying their vehicle was cleaner post-service, compared with 74 percent in 2013.

“Turnaround time and cleanliness of vehicles post-service are among the two most important indicators of after-sales service quality,” said Kaustav Roy, director at J.D. Power Asia Pacific. “Customers, especially in the luxury segment, are sensitive to both. Dealers that are able to align their processes more closely with those customer expectations are likely to improve customer satisfaction and satisfaction scores.”

2014 Taiwan CSI Luxury Brand Rankings

BMW ranks highest in the luxury segment with a score of 911. BMW performs well in the service initiation, service advisor, service facility and service quality factors. Mercedes-Benz ranks second (909).

KEY FINDINGS LUXURY SEGMENT

  • Achieving high satisfaction is critical for customer loyalty and advocacy. Among vehicle owners who are highly satisfied with dealer service (overall satisfaction scores of 957 or higher), 70 percent say they “definitely would” recommend their service dealer to a friend or relative. In contrast, only 32 percent of less satisfied owners (scores of 860 or lower) say the same.
  • The percentage of customers who schedule service by appointment has increased to 89 percent, a 9 percentage point increase from 2013.
  • Satisfaction drops by 20 points to 899 when customers wait two or more days for an appointment, compared with 919 when they wait no more than one day. In 2014, 83 percent of customers wait for at least two days for an appointment.
  • Three-fourths (75%) of customers stay at the dealership during the entire service visit, up 6 percentage points from 2013.
  • Providing comfortable facilities and amenities at the service center while customers wait for their vehicle helps improve satisfaction. The basic amenities/ facilities customers expect are a refreshment counter, reading materials, TV, Internet access, sufficient seating space and an air-conditioned waiting lounge.
  • The optimum time for a follow-up post-service contact to luxury vehicle owners is three days, generating a satisfaction score of 908, which is 13 points higher than when the contact occurs after three days. In the luxury segment, 80 percent of customers are contacted within three days.

About the Study

The 2014 Taiwan Customer Service Index Study is based on responses from 680 vehicle owners in the luxury segment who received delivery of their new vehicle between March 2012 and June 2013 and took their vehicle for service to an authorized dealer or service center between September 2013 and June 2014. The study was fielded from March through June 2014.

Media Relations Contacts

Xingti Liu; J.D. Power Asia Pacific; Singapore; Phone 65-6733 8980; xingti.liu@jdpower.com.sg

John Tews; J.D. Power; Troy, Michigan, USA; 001-248-680-6218; john.tews@jdpa.com

About J.D. Power Asia Pacific

J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at japan.jdpower.com.

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Media Contacts:

John Tews

Troy, Michigan

(248) 680-6218

media.relations@jdpa.com