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Customer Surveys Help Dealers Improve Service - May. 26, 2007
Questions answered honestly, thoughtfully can make car-buying experience better for future shoppers
Thirty years ago, car dealerships had no reliable method of measuring how customers felt about their sales and service experiences.
If customers returned to a dealership to have their car serviced, or to purchase a new car, then it was assumed they were pleased.
This ad-hoc form of measurement was challenged in the early 1980s, when J.D. Power & Associates released its first consumer satisfaction index (CSI) for the retail car industry.
Powers' groundbreaking study had a profound impact on our industry and it revolutionized relationships between customers and dealerships, dealerships and manufacturers and manufacturers and consumers.
The earliest J.D. Power study measured satisfaction among customers who had owned their cars for one year. Consumers rated their vehicles and dealer service during the first year of ownership, and that's how the CSI movement was born.
The survey eventually expanded to include a range of items, including service initiation, in-dealership experience, service delivery, service advisor and user-friendly service.
When the results of the earliest automotive consumer surveys were made public, some dealerships and manufacturers were delighted; others were miffed. It all depended on how their service ranked in comparison to their competitors.
Throughout the 1980s and '90s, customer service surveys became a growing industry. Dozens of companies sprang up, measuring products and services in multiple fields, including the automotive industry.
It's no coincidence that the rise of customer service surveys for our industry grew in tandem with the increased competition that has driven the automotive sector for the past 25 years.
Improved service seemed to lead to greater customer retention and referrals, which helped dealerships grow.
In today's global economy, car dealerships examine all aspects of their operations, with the hope of better understanding their customers, employees and competition.
When you bring your car in for service, you may receive a phone call from the dealership and be asked to answer some routine questions about your experience.
Your input is required when you buy a new car, too. Manufacturers will mail you a questionnaire soliciting your opinion on many aspects of the dealership experience, and about the quality of the vehicle itself.
Dealers and manufacturers use the results of CSIs to make improvements to their dealerships and vehicles. If the CSI results are outstanding, they even use them in their advertising and marketing messages.
CSI results are occasionally used by dealerships to negotiate expansion plans and vehicle allotments with their respective manufacturers.
For instance, a dealer who earns high customer satisfaction ratings may be awarded a more generous delivery quota or manufacturer incentive than a dealership whose ratings are below average.
But the primary use of customer satisfaction surveys is to measure how customers rate their dealership experiences.
The data retrieved from these surveys is carefully analyzed by dealerships and manufacturers, and adjustments are made to improve areas that aren't doing well.
From a customer perspective, it's important to respond to CSI surveys when you receive them. Dealerships value your thoughts and opinions, and they can make constructive changes to their operations, based on your responses.
A few years ago, one of our salespeople sold a new car to a first-time buyer. This customer appeared satisfied with the experience, the selling price, the sales process and the dealership, in general.
However, when this customer received a survey from the manufacturer, asking him to rate his experience, he indicated that he was dissatisfied with the final sale price and with the length of time it took to complete the deal.
As far as the salesperson was concerned, the customer left happy. But the survey told a different story, and it came as a surprise to the rep to learn that his customer held such grievances.
I believed the salesperson served his customer with honesty and integrity. But we were also obligated to address the items in the CSI survey.
I discussed this with our new sales manager and the salesperson. We examined our sales process and recognized an area where we could save customers some time.
We implemented this change and, as far as I know, this issue has not been a problem in subsequent surveys.
The next time you are asked to fill out a survey about a dealership experience, please take the time to answer the questions as honestly and as thoughtfully as you can. Your feedback matters.
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