Certigard Ranks Highest in Customer Satisfaction among Automotive
Service Providers in Canada
TORONTO, Aug. 23 /CNW/ - Consumer-reported average annual expenditures
on vehicle maintenance and repair services have decreased to $9.8
billion in 2010 from $11.2 billion in 2009, largely due to a significant
decline in routine maintenance spending among owners of four- to
seven-year-old vehicles, according to the J.D. Power and Associates 2010
Canadian Customer Commitment Index StudySM released today.
The study finds that the decrease stems from two main issues: a decline
in the average amount spent per service visit and a decrease in the
overall number of service visits, particularly for vehicles between four
and seven model years old. Per service visit, spending averages $287 in
2010, compared with $352 in 2009—a decline of $65. While revenue from
repair work has remained stable from 2009, revenue from routine
maintenance has declined considerably in 2010.
"Stagnant economic conditions may be one reason owners might postpone
expenditures, including routine vehicle maintenance," said Ryan
Robinson, director of the Canadian automotive practice at J.D. Power and
Associates. "There are also other factors contributing to this decline,
including longer manufacturer-recommended service intervals, improved
vehicle reliability and a slight decline in the average age of the three
to 12-year-old vehicle fleet, due to strong new-vehicle sales during the
2006 and 2007 calendar years. It seems Canadian vehicle owners are
becoming comfortable with the notion that they don't need to do as much
to maintain their vehicles as they once did."
The study provides a measure of the service behaviours, satisfaction and
loyalty of owners of 3- to 12-year-old vehicles. Overall customer
satisfaction is determined by examining five key factors of the service
experience: process of getting the vehicle in for service; service
advisor performance; service facility; quality of work performed; and
the process of vehicle return/pick-up. The study examines customer
satisfaction with both new-car dealerships and after-market facilities.
Certigard (Petro-Canada) ranks highest in satisfying automotive service
customers in Canada, receiving an overall index score of 869 on a
1,000-point scale. Rounding out the top five ranked brands are Goodyear
Auto Centers (838); Jiffy Lube (835); OK Tire (832); and NAPA AUTOPRO
The study finds that fostering high levels of customer satisfaction with
maintenance and repair service has a strong positive effect on loyalty
intent. Among customers of brands with the highest levels of overall
satisfaction, nearly 80 percent indicate they "definitely will" return
to the service facility for work they will pay for (outside the scope of
their vehicle warranty). In contrast, among customers of less-satisfying
brands, only 45 percent say the same.
Furthermore, among customers who rate their overall service experience
as "outstanding" (providing a rating of 10 on a 10-point scale) a vast
majority—approximately nine in 10—indicate they will return to the same
facility for their next service visit. Loyalty rates decline notably as
satisfaction decreases—for example, approximately one-half of customers
who provide ratings of 8 on a 10-point scale say that they will return
to the facility.
"High-performing brands enjoy nearly twice the rate of customer
retention than the industry average," said Robinson. "Given the degree
of hyper-competition for vehicle maintenance and repair business in
Canada—with more than 40 branded networks competing, in addition to
thousands of independent providers—the business case for an individual
service facility to improve the customer experience is compelling.
Considering that service expenditures average $287 per visit, the
revenue and profit enhancement from increased retention is significant,"
The study also finds that educating service customers about future
vehicle maintenance and repair needs positively impacts both loyalty
intent and the amount customers spend per visit. Among vehicle owners
who indicate that their service advisor discussed other service work
their vehicle may require in the future, 65 percent say they "definitely
will" return to that facility for their next service visit. However,
among customers whose service advisors did not mention future service
needs, only 47 percent indicated they "definitely will" return.
The 2010 Canadian Customer Commitment Index Study is based on responses
from more than 14,500 owners in Canada whose vehicles are between three
and 12 years old. The study was fielded between January and February
2010 and June and July 2010.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is
a global marketing information services company operating in key
business sectors including market research, forecasting, performance
improvement, Web intelligence and customer satisfaction. The company's
quality and satisfaction measurements are based on responses from
millions of consumers annually. For more information on car reviews and
ratings, car insurance, health insurance, cell phone ratings, and more,
please visit JDPower.com. J.D. Power and Associates is a business unit
of The McGraw-Hill Companies.
About The McGraw-Hill Companies:
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global
information and education company providing knowledge, insights and
analysis in the financial, education and business information sectors
through leading brands including Standard & Poor's, McGraw-Hill
Education, Platts, and J.D. Power and Associates. The Corporation has
more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion.
Additional information is available at http://www.mcgraw-hill.com/.
No advertising or other promotional use can be made of the information
in this release without the express prior written consent of J.D. Power
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SOURCE J.D. Power and Associates
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