Synovate Quality Awards reveal consistent improvement in the automotive industry

JOHANNESBURG – Synovate has announced the 2008 Synovate Quality Awards for Sales and Service Satisfaction in the Automotive industry. These awards recognise service excellence and are acknowledged as the highest accolade for customer service in the South African motor industry.

Richard Rice, Client Services Director at Synovate, comments on the industry trends in satisfaction saying that "it is truly impressive that the industry has again managed to improve the customer experience. In both the Passenger Car and Light Commercial Vehicle segments, the industry scores for Sales and Service satisfaction have increased. The improvements are even more remarkable, given that they have been achieved in the context of a rapidly growing market and changing customer profiles and needs."

The 2008 Synovate Quality Awards are based on interviews with customers who purchased or serviced a vehicle between January and December of 2007 as part of the largest survey of South African vehicle owners. Recognition is given to the outstanding achievers in the following four categories:

The category of Customer Satisfaction when purchasing a Passenger Vehicle boasts 8 Gold Award winners this year. Nissan tops the ranking with a score of 93.9%, compared to last year’s highest score of 93.5%. Other Gold achievers include Chevrolet, BMW, Toyota, MINI, Audi, Volkswagen and Volvo.

Looking back to 2000, the average score for this category was only 86.9%. This rose to 90.3% in 2003 and has now reached an all time high of 91.7%. "Scores are getting closer and the competition for top spot is intensifying. As scores get higher, it becomes more difficult to improve but the manufacturers and their dealer networks continue to strive for, and reach, the highest levels." says Rice. "Such achievements can only be realised through constant focus on enhancing the customer experience and the consistent delivery of this experience across the dealer network."

Gold awards for Customer Satisfaction when purchasing a Light Commercial Vehicle go to Nissan, Toyota and Isuzu. The industry average has also increased to a firm 90.7% and has broken through the 90% mark for the first time. Rice commented on these improvements, saying that "It is great to see that LCV owners are receiving service of the same high standard as PC owners. Dealers are demonstrating a consistent effort in both categories – great news for the industry as a whole".

Satisfaction scores with the service process are generally lower, primarily due to the fact that the service process is relatively complex and the service itself is a 'grudge purchase'. Nevertheless, the industry average for servicing is increasing every year. This year, the industry score for servicing passenger vehicles has broken through the 80% barrier for the first time since 2003.

The highest achiever in the Passenger Car segment is Mitsubishi with a score of 85.6%. Hot on its heels is Toyota, scoring 85.1% and then Jaguar with 84.6%. All three of these brands received a Synovate Gold award.

Interestingly, the average satisfaction score for servicing a light commercial vehicle is higher than for passenger cars and stands at 81.9%. "There are a variety of reasons for the LCV score being higher than the PC score," says Rice, "and these relate primarily to the fact that light commercial vehicles typically have fewer electrically operated items making them somewhat easier to service. Further, many customers in this market use their vehicles as workhorses and are more tolerant of the 'cosmetic' issues such as noise levels. They are more concerned with vehicle reliability and their expectations of a service reflect this. However, these differences relate to the vehicle, and it cannot be assumed that bakkie owners expect different levels of service in the personal interaction with the dealership."

Top performer in this category is Toyota with a score of 84.9%. Says Rice "this is a great achievement for a brand that has such a large dealer network where consistently high levels are required on an ongoing basis to achieve a top ranking." Gold awards also went to Nissan and Mitsubishi.

"In summary, the industry performance is outstanding" states Rice. "One must remember that with new entrants into the market, it is harder to maintain a high industry standard. New entrants often start out on a lower level when it comes to satisfying their customers. However the industry average continues to improve despite this challenge."

"It is also gratifying to see that the top rankings in the passenger car segments are not the exclusive domain of luxury vehicle brands. There is a healthy mix of nameplates on the podium and this is good news for potential buyers of motor vehicles – you can expect and receive top service levels no matter what kind of money you are spending," comments Rice.

"Going forward into 2008, we can expect scores to increase, primarily due to the drop in vehicle sales that manufacturers are currently experiencing. During times of lower demand, customer satisfaction generally improves as competition for customers intensifies and dealers up their game to maintain their revenues" concludes Rice.

More about the survey

These rankings are based on Synovate’s Competitive Customer Satisfaction Index (CCSI) which has been conducted in South Africa for the past 17 years. The survey was conducted over a 12 month period between January and December 2007 and is part of a study that measures the perceptions of more than 55 000 passenger and light commercial vehicles.

The questionnaire covers all elements of both the sales and service process, from the appearance and staff at the dealership itself to the financing or pricing aspects of the sale or service and then to the post-sale or post-service follow up. Complaint resolution is also a key part of the questionnaire for customers who do report problems. Not all aspects of the sales or service process are as important as the next and Synovate weights the results based on importance to the consumer. This allows manufacturers and dealers to identify exactly which aspects to concentrate their efforts on.

The results are endorsed by the Department of Trade and Industry (the dti) and reflect their intention to encourage competitive performance in the automotive industry. The endorsement also demonstrates the dti’s confidence in the research methodology and the reliability and validity of the results.

Not all the brands are included in the survey for various reasons. This could be because the manufacturer chooses not to participate or because the sample that has been achieved is too small. Another reason some manufacturers do not get published is due to the length of participation in the study – a full year of participation is required before a brand can be included in the rankings.

The study covers approximately 90% of passenger car and light commercial vehicles in the South African automotive market making it the industry benchmark.

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About Synovate

Synovate, the market research arm of Aegis Group plc, generates consumer insights that drive competitive marketing solutions. The network provides clients with cohesive global support and a comprehensive suite of research solutions. Synovate employs over 5 700 staff members in 118 cities in 57 countries.

 

About Aegis Group plc

Aegis Group plc is one of the world's fastest growing marketing communications groups. It operates in media communications with Aegis Media, which includes Carat, Vizeum, Posterscope and Isobar, and market research with Synovate. Listed on the London Stock Exchange, Aegis is capitalised at £1.5 billion. More information on Aegis Group plc can be found at www.aegisplc.com.