New-vehicle sales satisfaction in China has improved by 24 points from 2010 to achieve a 12-year high, according to the J.D. Power Asia Pacific 2011 China Sales Satisfaction Index (SSI) Study SM released today. Now in its 12th year, the study measures customer satisfaction with the new-vehicle purchase experience in the China market through examination of seven factors: delivery process; delivery timing; dealer facility; salesperson; paperwork; deal; and sales initiation. The study is based on new-vehicle owner evaluations during the first two to six months of ownership.
Overall satisfaction averages 847 (on a 1,000-point scale) in 2011. Satisfaction has increased in all seven factors from 2010, with the greatest gains occurring in the deal (31 points), delivery timing (29 points) and paperwork (25 points) factors. In addition, non-premium brands, as a whole, have improved by 24 points from 2010, while premium brands have improved by 22 points.
Audi ranks highest in overall sales satisfaction with a score of 887. Rounding out the five highest-ranking brands are Dongfeng Nissan (880); FAW-Volkswagen (869); and Dongfeng Honda and GAC Toyota, in a tie (866 each).
“Automakers throughout the industry have put forth strong efforts to enhance all aspects of the purchase experience, which has driven overall satisfaction to a new high,” said Dr. Mei Songlin, general manager of research services, J.D. Power Asia Pacific, Shanghai. “One of the main changes observed during the past 12 years is that many actions that were once considered by automakers to be extra, value-added services are now implemented across the industry as standard practices.”
For example, greeting customers immediately and answering customer questions at delivery are two standard practices that have a large negative impact on customer satisfaction when not performed. In 2011, industry-wide implementation rates of these two practices averages 96 percent.
According to J.D. Power, these increasingly high benchmarks will make it challenging for automakers operating in the China market to achieve future incremental improvements. Automakers must constantly seek differentiation points and implement new value-added services to keep satisfying and delighting their customers, who are becoming increasingly demanding.
“Automakers would benefit from further investment in several areas, such as communication with customers and improving customer perceptions of service timing, convenience and value for the price paid,” said Jacob George, managing director of J.D. Power Asia Pacific, Shanghai. “Compared with mature markets, such as the United States, automakers and dealerships in China still have a lot of room for improvement in these areas.”
One key area of improvement for automakers and dealerships is offering sufficient fuel at vehicle delivery. The study finds that while more than 95 percent of customers in the United States receive a full tank of gas at vehicle delivery, up to 75 percent of customers in China say they are provided with less than nine liters of gas, or one-fifth of a full tank at delivery.
Achieving high customer satisfaction with the sales process is crucial to driving new-vehicle sales rates, which is becoming particularly important as sales growth in the China market are showing signs of slowing. While sales of passenger vehicles during the first half of 2011 are still quite strong—increasing by 11 percent from the same time frame in 2010—they are considerably lower than the 37 percent growth rate that occurred in 2010, compared with 2009. The market slowdown makes retaining customers especially critical for automakers’ sustained growth.
The 2011 China Sales Satisfaction Index Study is based on responses from 11,496 new-vehicle owners who purchased their vehicle between August 2010 and March 2011. The study includes 57 passenger vehicle brands. The study was fielded from February to May 2011 in 37 major cities in China.
J.D. Power Voice of the Customer syndicated studies evaluate products and services based on consumer feedback on their experiences to help businesses make informed decisions about product and service improvements. The research is conducted in an entirely independent process that is funded by J.D. Power, which is key to the company’s independence and unbiased position. Typically, studies are derived from a random national sample of consumers who use products and services across a number of industries. Study results are based solely on the opinions of consumers. The opinion of J.D. Power is not included in the study results.
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