Two-wheelers: What dealers must do to retain customers

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Published: July 27, 2019 1:50:33 AM

Quick and efficient service plays a crucial part in dealer profitability

Two wheelers, JD Power 2019 India, Honda, Yamaha, India Two Wheeler Customer ServiceThe study finds that 12% of owners who went to an authorised service workshop did so for a specific repair, compared with 91% who required a routine service only.

Although manufacturers place a strong emphasis on their service networks to follow processes and communication standards, the experience falls short for two-wheeler owners who visit authorised service outlets for specific repairs, according to the JD Power 2019 India Two-Wheeler Customer Service Index study, released this week.

The study finds that 12% of owners who went to an authorised service workshop did so for a specific repair, compared with 91% who required a routine service only. Among the owners who pinpoint a specific problem for repair, satisfaction with the service experience was lower by 32 index points compared to customers who visit for routine service only (725 versus 757, respectively, on a 1,000-point scale). Chief contributors to the drop in satisfaction include gaps with problem diagnosis; inadequate communication; actual repairs not meeting expectations; and time management concerns.

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“Service revenue plays a crucial part in dealer profitability, and customers requiring specific repairs generate 37% more revenue than those visiting for routine service,” said Rajat Agarwal, two-wheeler industry expert at JD Power. “Hence, it is essential that workshops make all efforts to position themselves as the preferred choice regardless of the type of service undertaken. As vehicle ownership increases, the proportion requiring repairs will further grow. Dealers who improve their process discipline and customer communication will benefit in terms of increased loyalty and recommendations.”

The key findings of the study are:

*Execution issues with scheduling service: Satisfaction is higher among customers who schedule an appointment compared with those who drop by. However, a scheduled appointment does not necessarily translate into faster vehicle handover time.

*More customers wait at dealerships: The percentage of customers who wait at the dealership during the service experience has grown to 35% in 2019, up from 18% in 2016. This is largely because of faster turnaround times.

*Convenience and time-saving: Satisfaction is higher among customers who are offered pickup and drop-off service than among those who are not. Satisfaction is also high among customers who are offered express service.

Rankings

TVS ranked the highest in customer satisfaction for the fourth consecutive year. Honda and Yamaha ranked second in tie. The study is based on evaluations from 6,153 two-wheeler owners in 45 cities across India, who purchased a new two-wheeler between November 2016 and March 2018 and had a service experience within three months of evaluation.

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