Why meeting expectations of younger customers crucial for car dealerships in India

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Published: October 27, 2018 2:36:16 AM

“India’s population is expected to be among the youngest in the world by 2020,” said Kaustav Roy, Regional Director at JD Power.

car dealerships in India,  JD Power, younger customers,  automotive industrySatisfaction is higher among customers who accept their service advisor’s recommendation for additional service work to be performed than among those who do not accept the recommendations.

Customers who are 30 years and younger expect a higher quality service experience when their vehicle is being serviced, according to the JD Power 2018 India Customer Service Index (Mass Market) study, released this week. “This is significant as the automotive industry in India is continuing to experience an influx of younger customers, with 28% of customers who visit dealerships for service aged 30 years or younger,” the study noted.

It found that younger customers have higher expectations of the service processes executed at the dealerships than more mature customers. The key service process encompasses several aspects, such as the performance of a thorough multipoint inspection around the vehicle; listening back and repeating all customer requests; review and explanation of the work pre- and post-service; and regular vehicle status updates. Satisfaction with the entire service process is lower among these younger customers than among those who are older than 30 years (825 versus 848, respectively, on a 1,000-point scale).

“India’s population is expected to be among the youngest in the world by 2020,” said Kaustav Roy, Regional Director at JD Power. “This shift in demographics will likely further attract more customers in this age group to dealerships, so it is imperative to understand the needs of this set of customers in terms of convenience, speed and transparency. Dealers will then be in a better position to meet the expectations of this demographic by providing a superior service experience and, in turn, enhancing customer loyalty.”

The study found that the propensity to go back or recommend the dealer for post-warranty service is lower among younger customers than among those who are older—45% of younger customers say they “definitely will” recommend their dealer and return for post-warranty service, compared with 55% of older customers who say the same.

Its additional findings include: Digitisation helps drive satisfaction: More than half (58%) of customers say that the service advisor used a tablet during the service initiation process. Satisfaction among these customers is higher than among those who did not experience the same.

Engagement drives revenue: Satisfaction is higher among customers who accept their service advisor’s recommendation for additional service work to be performed than among those who do not accept the recommendations. Customers who accept additional work generate 12% more revenue than those who do not agree to the advisor’s recommendations.

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