The American Consumer Satisfaction Index published insightful data regarding American’s opinions of their ownership experience during these extraordinary times of a global pandemic. The results of the survey span a wide cross-section of consumers who have purchased or leased a new vehicle between 6 months and 3 years prior to taking the survey. The data takes a deep look at these consumers’ overall opinion of many different aspects of the vehicle ownership experience. Broadly, the news does not paint a pretty picture for the entire automotive industry. Consumer satisfaction is at a 5-year low and it has been a steady decline throughout those 5 years. Overall, it appears that the entire automotive industry is disappointing their buyers. Although it is easy to get gloomy about 2020 and wallow in the dismal reports that abound, there are plenty of meaningful insights that can help us all craft a strategy for continual improvement and ultimate success.
What Is In The Data
Before we get to those all-important strategies for success, first we must look at the weaknesses and strengths (as sparse as they may be) in the data. [Source] The pandemic has created a broad and deep decline in new car sales across both luxury and mass-market segments. Much of this is related to supply issues created by the closure of production facilities globally. Incongruently, demand for vehicle ownership has increased significantly during the decline in supply. Naturally, consumers are expressing a desire to own their vehicle for safety and cleanliness as a response to the pandemic. A mismatch between supply and demand does not foretell a bad consumer experience, however. The data shows that some manufacturers are performing better than others in meaningful ways. In 2019, Fiat Chrysler was the biggest loser in consumer satisfaction, however, during 2020 Fiat Chrysler has turned around the tides and is actually performing significantly better than American rivals Ford and GM. Excluding the luxury market, the Ram and Toyota Brands are the top performers of the mass market segment. While Ram is the strongest, Fiat Chrysler also managed to record an upswing in consumer satisfaction with the Dodge and Chrysler nameplates as well.
Pre-sale experience
While both luxury and mass-market vehicles are experiencing a global decline in satisfaction, it appears that luxury is suffering greater declines than the mass-market segment. A key factor is the consumer’s interaction with the shopping portals prior to making the purchase of a vehicle. Digital customer interfaces worsened for the luxury segment this year. Websites are less satisfying (-2% to 82) and mobile apps have deteriorated in terms of both quality (-2% to 82) and reliability (-2% to 81). In contrast, mass-market providers have managed to maintain a flat website rating of 81, mobile apps at 80 and reliability at 80. This indicates that mass-market brands are catching up to the offerings that used to be reserved for luxury brands in the consumer shopping and consumer interactivity areas. Fiat Chrysler specifically has embarked on strong campaigns to engage their buyers early in their purchasing lifecycle. This strategy is paying dividends for the Fiat Chrysler nameplates.
Driving Impressions
Another important factor driving total consumer satisfaction lower is a decline in the reliability ratings of vehicles. Luxury vehicles have reported a decline in both Reliability (from 84 in 2019 to 82 in 2020) and in safety features (from 85 in 2019 to 83 in 2020). Likewise, the mass-market segment is reporting declines as well. Mass-market data shows reliability sliding from 84 down to 82 and safety features sliding from 83 previously to 82 in 2020. Overall, it seems that consumers are equally dissatisfied with the safety features and the overall dependability of vehicles across the board. However, once again diving into the nameplate details reveals that there are winners and losers within each section. A focus on product quality by the OEM is an opportunity to improve consumer satisfaction, however, as important as the initial quality, is the response and engagement a consumer feels when they do experience a reliability issue. Consumers want to have confidence in their warranty and the service experience they receive from their dealership.
Recall and Service Experience
Finally, one of the largest drivers of change in satisfaction is tied to the consumer experience related to manufacturer recalls. Luxury has declined from a rating of 81 in 2019 to 80 in 2020. Mass-market has declined from a rating of 78 in 2019 to 76 in 2020. Across the board, consumers are finding it harder to get their vehicle repaired in the face of a pandemic. While this seems obvious, it fails to draw out the clarification that certain nameplates including Toyota and Subaru have achieved a result that indicates no negative affect on overall consumer satisfaction related to vehicle recalls. These brands have solved a part of the puzzle when it comes to consumer satisfaction and ultimately brand loyalty.
LESSONS
The lessons from this data are abundant, but the key features that warrant further reflection from the dealership perspective are the following:
Consumers care about and remember their shopping experience long after their shopping transaction is complete. What is your dealership doing to create an engaging, deep, and meaningful presentation of the vehicles you are selling?
People want to feel safe in their newly purchased vehicle. This spans both actual vehicle reliability and feeling secure that the service experience will be smooth, fair, and virus safe.
Finally, when something major causes a vehicle recall, consumers desire an engaged and seamless handling of the repairs with their local dealership. What are you doing to actively engage consumers with recall information beyond allowing the OEM to canvas owners with impersonal and legal paperwork?
Bottom line? The auto industry (overall rating at 78) could drop a lot further before they become as hated as the local cable provider (overall rating of 64) but they also have a significant amount of room to improve until they are as beloved as the local brewery (overall rating at 84). Let’s make a pact to invest in the improvements that will help the entire industry move up in 2021!