MKL Neni, a Chennai-based academic, is not unhappy with the service his car dealer provides. He acknowledges service has improved vastly compared to a few years ago. What he resents is getting calls from the service advisor and the sales representative even before the vehicle gets home, asking him to rate their service as ‘excellent’.
A customer would probably not rate the service higher than it deserved, but for Mohit Arora, Executive Director, JD Power Asia Pacific, this attempt to sway the customer is a good sign. “I see it as positive that the frontline staff feels the need to provide a good experience.” The research firm recently released the 2014 India Customer Service Index (CSI) Study – Mass Market.
This study measures satisfaction among vehicle owners who visit an authorised dealership service centre for maintenance or repairs in the first two years of owning a vehicle. It measures overall satisfaction in service quality, vehicle pick-up, service advisor, service pick-up and service initiation.
Arora says India has come a long way. The attitude has evolved into one of “how can I bring the service centre home?”, not something we see in other markets, says Arora.
Satisfaction with service overall has improved by 22 points to 856 on a 1,000-point scale over 2013, as it has across each parameter. Waiting time is being whittled down. Seventy-four per cent of customers (70 per cent in 2013) are making appointments rather than dropping in. Seventy-five per cent say their vehicle was taken in for service within 15 minutes of their arrival at the service centre (68 per cent in 2013). Dealers are getting proactive promoting their express maintenance/service options. More customers were offered this option for services such as an oil change in 2014 (27 per cent), than in 2013 (22 per cent). Ninety-fiver per cent said the work was done right the first time (93 per cent in 2013).
For automobile companies, it is important to excel at service for two reasons. It contributes a big chunk of the profits, and importantly, it mitigates the risk associated with cyclical sales that are characteristic of the market. It lessens their dependence on sales.
Demanding consumers The diversity of the Indian market poses a big challenge, says Arora. Customer expectations vary widely across the length and breadth of the country. There are first-time buyers and repeat buyers. The heterogeneous nature of the customer base calls for great effort, says Arora, adding that in India, over 50 per cent of customers are first-time buyers. This compounds the difficulty for companies and dealers as it calls for a lot of education as well. “The Indian customer/market is very demanding. In the US, the average customer pays around $200 for one service but in India, they pay just a fourth of that – and fulfilling those expectations is very challenging,” he adds. Areas in which service standards can improve are reach, convenience, location, quality and cost, according to Arora.
A Tata Motors spokesperson points out that customers benchmark their experience globally as well as with other industries. “A car pick-up-and-drop service or customer lounge with wi-fi connectivity was considered a delight five years ago. Today this is a generic requirement. We have to constantly, therefore, analyse new trends, understand customer needs and plan our service offerings accordingly.” Tata Motors moved up to fourth rank from sixth in this year’s CSI study, with a score of 834 points, behind Maruti Suzuki (890), Honda and Hyundai (863 each).
Mahindra & Mahindra, which came next to Tata Motors, says the extent of human interaction in the auto industry is extensive, unlike in other service industries such as telecom and e-commerce where many processes are automated.
To get things done quicker, a prime customer need, M&M has put in place a dedicated customer care tweet handle, which is also its helpline number. It has also launched a mobile app and even a DIY channel on YouTube with tutorials on tasks like how to clean an AC filter and change a tyre.
The study says that owners who are highly satisfied (scores of 956 or higher) are nearly twice as likely to recommend their service dealer to family and friends. They are also likely to revisit their service dealer for post-warranty service.
Neni, the customer quoted in this piece, says as content as he is, he would not give his service full points, for if he did, it would make them complacent and leave no scope for improvement. Now that’s the hard-to-please, vigilant customer speaking!
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