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Lexus Ranks Highest among Luxury Brands in After-Sales Satisfaction

SINGAPORE: 16 Oct. 2017 — The increase in service volume during the morning rush is eroding customer satisfaction and creating challenges for luxury service centres in Taiwan, according to the J.D. Power 2017 Taiwan Customer Service Index (Luxury) Study,SM released today. 

Satisfaction is substantially lower among customers who send their vehicle in for service during morning peak hours (before 10:00 a.m.) than among those who send their vehicle in after peak hours (809 vs. 845, respectively, on a 1,000-point scale). With increased sales in recent years and an increased proportion of customers sending in their vehicles during peak hours (28% in 2017 vs. 18% in 2013), service capacity during this period is overloaded, resulting in inconsistent service. For example, 28% of customers who visited a service centre during these peak hours were afforded less than five minutes to discuss their needs with a service advisor, compared with 13% of customers who went after peak hours. Moreover, 38% of peak-hour customers waited four hours or more for their vehicle to be serviced—21 percentage points higher than those customers who sent their vehicle for service after peak hours (17%). 

“With an increase in service volume and the new labour law having been implemented at the end of last year, dealerships are struggling to increase manpower at their service centres,” said Kaustav Roy, Director at J.D. Power. “This creates challenges to handle the service load, especially during morning peak hours. Customers visiting during peak hours may not only have to wait longer, but also receive less attention from service advisors in terms of cost and work explanations. It is important for dealerships to ensure that alternatives are available, such as express services, in order to better manage the load.” 

The study finds that overall satisfaction increases to 872 from 825 when service advisors offer quick/ express service to customers. Only 15% of customers who sent their vehicle to the centre during peak hours were offered quick/ express service, compared with 22% of those who sent their vehicle in after peak hours. 

Following are key findings of the study: 

  • When the service is completed within two hours, overall satisfaction averages 866, which falls to 802 when the waiting time is three or more hours. Nearly half (45%) of customers waited three or more hours in 2017, up from 40% in 2016.
  • The average service cost this year stands at $NT 8081, an 8-percentage-point increase from 2016 when it was $NT 7477. More than half (56%) of luxury customers paid more than $NT 7000 for their last service, an increase of 13 percentage points from the 43% in 2016.
  • The majority (97%) of luxury customers schedule their service by appointment. This year, 7% of those customers did not secure an appointment on their desired day, a 5-percentage-point increase from 2016. Satisfaction among these customers averages 741, compared with 842 among those who did secure an appointment on their desired day.

Study Rankings

Overall service satisfaction in the luxury segment averages 835 points in 2017. Among the five brands ranked in the segment, Lexus ranks highest in satisfaction with a score of 862. Lexus performs particularly well across all factors. Mercedes-Benz ranks second with a score of 848 and BMW ranks third with a score of 813. 

About the Study

The 2017 Taiwan Customer Service Index (CSI) Study is based on responses from 898 vehicle owners in the luxury segment who received delivery of their new vehicle between March 2015 and June 2016 and took their vehicle for service to an authorized dealer or service centre between September 2016 and June 2017. The study was fielded from March through June 2017. 

The study, now in its 20th year, measures new-vehicle owner satisfaction with the after-sales service process by examining dealership performance in five factors (listed in order of importance): service quality; service initiation; vehicle pick-up; service advisor; and service facility. The study examines service satisfaction in the luxury segment. 

Media Relations Contacts

Aisling Carty; J.D. Power; Singapore; 65-6733 8980; aisling.carty@jdpower.com.sg

Geno Effler; J.D. Power; Costa Mesa, Calif., USA; 001‐714-621-6224; media.relations@jdpa.com

About J.D. Power in the Asia Pacific Region

J.D. Power has offices in Singapore, Bangkok, Kuala Lumpur, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the six offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding J.D. Power and its products can be accessed through the internet at asean-oceania.jdpower.com

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Media Contacts:

Aisling Carty

Singapore

65-3165-0119

aisling.carty@jdpower.com.sg