TVS Motor tops first JD Power two-wheeler aftersales study

If the findings of JD Power’s inaugural two-wheeler customer service study are anything to go by, then Chennai-based manufacturer TVS Motor Co tops customer satisfaction in terms of aftersales service in India.

With evaluations from 7,270 two-wheeler owners in 45 cities across India, the study measured overall satisfaction based on five factors (listed in order of importance): vehicle pick-up (22%); service advisor (21%); service quality (20%); service facility (19%); and service initiation (18%). Overall customer satisfaction is measured on a 1,000-point scale, with a higher score indicating higher satisfaction.

With a score of 773 and performing particularly well in all five factors, TVS tops this list followed by Suzuki Motorcycle India (764) and Royal Enfield (758).

The participating owners purchased a new two-wheeler between November 2013 and March 2015 and had a service experience within three months of evaluation. The study includes a total of 10 two-wheeler makers with over 75 two-wheeler models and was fielded from November 2015 to March 2016.

One in five owners prefers servicing from independent workshops

Even as authorised two-wheeler service centres are improving in terms of aftersales support, the findings of the 2016 study indicate that two-wheeler dealers in India face significant competitive pressure from independent workshops, which are providing similar service work as the original equipment (OE) authorised network.

According to the study, more than one in five (22%) two-wheeler customers indicate visiting an independent workshop during the warranty period.

The inaugural study measured customer satisfaction with the aftersales service experience at original equipment (OE) authorised service centres during the first 12-24 months of ownership. The study focuses on what matters most to customers when they take their two-wheeler in for service and also analyses the processes that define the service experience.

Satisfaction with the service experience at an authorised network is driven by three aftersales service- related activities, including the charges incurred, quality of work done and on-time delivery after service.

According to the study, 25% of customers are dissatisfied with these activities, creating the need to improve on these services since there is significant correlation between customers visiting an independent workshop and the quality of experience at the authorised network.

“Given the high propensity of customers visiting independent workshops, it is critical for manufacturers and their authorised network to develop a differentiated service experience, thus providing a compelling reason for customers to revisit,” said Mohit Arora, executive director at JD Power. “Significant opportunities for improvement exist related to key customer expectations of quality, cost and time. Dealerships that are able to address these efficiently and engage customers are likely to benefit from increased service business.”

Key Findings

Overall and segment satisfaction: Overall customer satisfaction with two-wheeler after-sales service is 748. In the two-wheeler segments, the CSI score averages 755 for scooters and 745 for motorcycles.

-  Factors most influencing customer satisfaction: Among the five study factors, satisfaction is highest in service facility (758) and lowest in vehicle pick-up (738).

-  Location of service facility impacts satisfaction: Proximity of the service centre impacts satisfaction. Among the 65% of owners who travel 5 or fewer kilometres to reach the service centre, satisfaction is 12 points higher than among the 19% of owners who travel 10 or more kilometres (751 vs. 739, respectively).

-  Scheduling of service improves satisfaction: Satisfaction is higher among customers who schedule their service than among those who drop by the service dealer without an appointment (773 vs 742, respectively).

-  Highly satisfied customers more likely to be loyal and advocates: Highly satisfied customers tend to have higher levels of advocacy and loyalty to the service dealer. Among highly satisfied customers (overall satisfaction scores of 857 or higher), 67% say they “definitely would” recommend their service dealer to family and friends, while only 22% of highly dissatisfied customers (scores of 667 or lower) say the same. Additionally, 58% of highly satisfied customers say they “definitely would” revisit their service dealer for post-warranty service, compared with only 21% of highly dissatisfied customers.

“Understanding after-sales service expectations and concerns can help service dealers build a more engaging relationship with customers,” said Kaustav Roy, director at JD Power. “Doing so is not only prudent for improved customer satisfaction it can also create loyalty for the brand and lead to increased revenue streams for the dealer.”

Also read:

- Feature quality increasingly important for two-wheeler buyers

- Quality of Made-In-India two-wheelers improves sharply