J.D. Power study shows aftermarket service providers continue to gain ground on franchised dealerships
While the service departments at franchised dealership appear to still be more trustworthy, the J.D. Power 2024 U.S. Aftermarket Service Index (ASI) Study showed how the competition for business is getting even more intense.
J.D. Power pointed out that customers are finding it easier to do business with aftermarket service providers due to no-appointment drive-in service or a small number of days wait for an appointment.
Another research endeavor — the J.D. Power 2024 U.S. Customer Service Index (CSI) Study — showed that appointment wait times at franchised dealerships are at a record-high.
After experiencing year-over-year slumps last year, overall satisfaction rebounded across the three segments examined in the J.D. Power 2024 U.S. Aftermarket Service Index (ASI) Study.
Researchers said full-service maintenance and repair facilities posted the greatest improvement (rising 12 points on a 1,000-point scale), followed by tire replacement (up 5 points) and quick oil change (up 4 points).
J.D. Power indicated boosts in all three segments are largely driven by improved service advisor performance and courtesy, along with enhancements in service facilities and time to complete service.
“This is a key opportunity for aftermarket providers to not only compete with franchised dealers on price, but also to add customer value with a quicker and easier service experience,” said Leonard Martin, director of automotive retail at J.D. Power.
“Aftermarket service providers should continue to focus on service advisor performance, courtesy and creating a welcoming environment for customers who wait at the facility. In addition, technology utilization can inspire transparency, trust and strong advocacy for the service provider,” Martin continued in a news release.
The study, now in its fifth year, measured customer satisfaction with aftermarket service facilities, providing a numerical index ranking of the highest-performing facilities in the U.S. aftermarket.
Performance in three segments — full-service maintenance and repair, quick oil change and tire replacement — is based on the combined scores for seven factors that comprise the vehicle owner service experience. These factors are:
—Ease of scheduling/getting vehicle in for service
—Fairness of charges
—Service advisor courtesy
—Service advisor performance
—Service facility
—Time to complete service
—Quality of work
J.D. Power highlighted three key findings of the 2024 study:
Younger customers are harder to please
J.D. Power said Gen Z customers have lower satisfaction than do Gen Y customers with tire replacement (down 15 points) and full-service maintenance and repair providers (down 6 points). Service advisors are the key to turning this around.
“Younger customers are less likely to have a service provider with whom they are familiar, and they may need more guidance from advisors in order to build a trusting relationship,” Martin said. “This is an opportunity for aftermarket providers to create new long-time loyal customers when they have been provided with satisfying experiences.”
Photo/video documentation for recommended repairs
J.D. Power noted multi-point inspections (MPI) are routine, but fewer than one-fourth (23%) of customers receive any kind of accompanying photo or video documentation.
While doing so is more time-consuming for service staff, researchers found that providing photo/video evidence of recommended repairs has a significant payoff, especially for tire replacement providers.
Of the customers who receive an MPI with photo/video, 51% have the recommended work done. Without photo/video, only 24% of customers who receive an MPI have the work done.
Franchised dealerships more trustworthy in some areas
J.D. Power pointed out dealerships have a higher level of customer trust than do aftermarket service facilities.
For example, ratings by dealership customers for the use of technology to make service more efficient average 6.09 (on a 7-point scale), compared with ratings by tire replacement customers, which average 5.90.
Ratings by dealership customers for the ability to perform complex repairs on the vehicle average 6.12, while the average by customers of full-service maintenance and repair providers is 5.83.
Across each segment in the study, aftermarket service customers continue to find their provider easier to do business with (average of 6.26), while franchise dealer customers rate their service provider an average of 6.09.