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Carmakers, dealers engrossed by the other CSI - September 05, 2009
Customer Satisfaction Index used to monitor, improve all aspects of the buying experience
Whenever you buy or lease a new vehicle, the manufacturer wants to know about your experience.
Carmakers will contact customers, either by email, regular mail or phone, to solicit feedback on a wide range of issues.
They'll ask about the professionalism of your salesperson, whether you were completely satisfied with your buying experience, whether you'd recommend the dealership to others, the cleanliness of the facilities, and so forth.
The manufacturer will tally the feedback and provide the dealership with a total score each month. In the retail car industry, this scoring system is referred to as the Customer Satisfaction Index (CSI), and dealerships pay close attention to it.
Manufacturers compare CSI scores with other dealerships.
CSI scores are based on a percentage system. Scores below 93 per cent are generally regarded as poor, and dealerships that consistently rank below 93 per cent are encouraged by the manufacturer to improve their scores.
If a dealership fails to improve its CSI, it could hurt its relationship with the manufacturer.
Manufacturers will also connect dealership rebates and bonuses (for sales managers and salespeople) to high CSI scores.
So there's a strong incentive for dealerships to perform to a high standard.
Besides their desire to constantly improve the car-buying experience, manufacturers and dealerships have other reasons for soliciting customer feedback: public perception and customer retention.
In the late 1980s, automakers recognized a strong correlation between consumer preferences (and retention rates) for specific vehicles that ranked high in consumer reports and independent customer satisfaction studies.
Since then, virtually all new-car manufacturers have made it a priority for dealerships to improve their CSI scores.
A dealership with a high score will obviously fare better than one that consistently ranks lower.
Several automotive and consumer websites include detailed dealership CSI scores for the benefit of car buyers.
When you receive a CSI questionnaire, take a few minutes to answer the questions as honestly as you can.
Manufacturers and dealers rely on customer feedback to monitor and improve all aspects of the dealership experience, from sales and service to parts and collision repairs.
Over the years, I've had customers admit that they can't be bothered answering the questions and mailing back the survey.
Some customers feel that their single complaint will get lost in the fray and won't make a difference.
Others feel reluctant to provide any negative feedback, fearing that it might get somebody at the dealership in trouble (or fired).
All feedback – good or bad – is essential for manufacturers and dealers.
If the manufacturer doesn't know that a problem exists, how will that problem ever get fixed?
And customer feedback isn't reserved only for new-car buyers.
Manufacturers and service departments will often contact customers to gauge their feedback on repairs or maintenance work.
This type of contact can involve a formal questionnaire or a quick phone call from the dealership. Were the repairs performed to your satisfaction? Was the work performed on time?
Again, dealerships rely on feedback to monitor their performance, and they need to know when customers are unhappy.
If you have a problem with your car-buying experience, or with the servicing of your vehicle, then I'd strongly recommend contacting the manager of that department directly.
Don't let a problem go unreported, and then vote with your feet by taking your business elsewhere.
I've encountered many situations where a customer complaint was brought to a manager's attention. The problem was resolved quickly, and the customer appreciated how we handled the dispute.
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