There's good news and bad news for car owners in the latest J.D. Power 2024 U.S. Customer Service Index (CSI) Study. The good news is that customer satisfaction with dealership service departments has improved by five points to 851 (on a 1,000-point scale) compared to 2023.
However, the bad news is that parts and labor shortages continue to plague the industry, leading to longer wait times for service appointments. This is particularly true for owners of electric vehicles (EVs) other than Teslas, who reported the lowest satisfaction levels.
The study also found a lack of trust among non-Tesla BEV owners towards dealerships, with trust scores ranging from a low of 5.62 to 5.74.
Key Findings:
- Wait times for service appointments are on the rise. Mass market vehicle owners now wait an average of 5.2 days, up from 4.8 days in 2023. Premium vehicle owners wait slightly less at 5.4 days.
The convenience of getting a quick appointment is a major factor for many customers, with 35% choosing aftermarket service providers due to immediate availability.- Technology is playing a bigger role in improving the service experience. Customers are four times more likely to prefer receiving service updates via text message than a phone call.
- The cost of servicing a vehicle has also increased significantly. The average bill has risen 30% in the past two years, with premium vehicle owners paying an average of $380 compared to $140 for mass market vehicles.
- Non-Tesla BEV owners reported experiencing recalls more than twice as often as gas-powered vehicle owners, further contributing to their lower satisfaction levels.
Bright Spots:
Despite the challenges, the study also identified some bright spots. Certain brands topped the charts in customer satisfaction for both premium and mass market segments. These include Lexus, Buick, MINI for premium brands, and SUVs/minivans, Porsche, Lexus, and Nissan for mass market brands.
The study also highlights features that dealerships can leverage to improve the customer experience. These include offering valet service, mobile servicing options, and online or smartphone app payment options. Additionally, providing service advisors' photos or videos to support multi-point inspection results can significantly boost customer satisfaction.
Overall, the J.D. Power 2024 CSI Study paints a picture of a car dealership service department landscape in flux. While customer satisfaction has improved, challenges remain, particularly when it comes to wait times and trust for non-Tesla BEV owners.
Dealerships that can adapt to these changing dynamics and leverage technology to improve convenience and transparency will likely be the ones to succeed in the future.
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