TORONTO–(BUSINESS WIRE)–Sept. 8, 2022–
As vehicle owners in Canada transition to a post-pandemic world and gradually return to their pre-pandemic driving habits, the automotive service industry is poised to see a strong rebound among used vehicles from 4 12 years, according to the JD Power 2022 Canada Customer Service Index—Long-Term (CSI-LT) Study, SM released today. Based on the study’s findings, the industry’s market value is expected to reach $10.9 billion, up from $6.6 billion in 2021 and $10 billion in 2019.
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JD Power 2022 Canada Customer Service Index — Long Term Study (CSI-LT) (Graphic: Business Wire)
This boom in the Canadian automotive service and repair sector is mainly attributable to the increase in the average cost per visit to the automotive workshop. Aftermarket dealerships and service providers saw better revenue this year as spend per visit to dealerships increased from $332 to $394 in 2021 and spend per visit to aftermarket stores increased to $247 versus $226 a year ago. But while both segments managed to increase spend per service, dealerships also saw an increase in average annual visits (1.5 in 2022 vs. 1.1 in 2021), accounting for 47% of all customer visits. service and capturing the largest share—58% of industry revenue, reversing market share gains in aftermarket stores in 2021. Additionally, the aftermarket segment continues its downward trend that began in 2019 with a decrease in annual visits, which fell from 1.3 in 2021 to 1.2 this year.
“There are a few factors contributing to the massive resurgence in volume and value of activity in the vehicle service industry,” said JD Ney, Head of Automotive Practice at JD Power Canada. “In addition to driving more, some owners are catching up on repairs put on hold due to the pandemic and others are hanging on to their vehicles longer due to stock-outs and the high price of used cars. Although auto service shops are doing well, they are not immune to other pandemic-related effects, such as a tight labor market and difficulties in attracting and retaining technicians. While this did not affect overall satisfaction in the short term, we do see some leading indicators in this year’s study, such as a decline in first appointment and appointment on the desired day diagnostic metrics . Clearly, the auto service industry is not immune to these larger macro forces. »
According to the study, the percentage of aftermarket customers who said all maintenance work was done right the first time increased from 97% in 2019 to 95%. the first visit, similar to the pre-pandemic level of 2019.
Here are some key findings from the 2022 study:
- Customer experience and convenience build loyalty: Whether customers choose to go to a dealership or an aftermarket service provider, the top three reasons for their decision are the same: a previous positive experience with aftermarket service; convenience of location; and word of mouth from family or friends.
- Customer confidence starts with a great first impression: The installation of the auto service provider plays a key role in creating a good first impression. A customer’s trust in their auto service provider tends to increase in correlation with satisfaction with the service facility. The confidence level of customers who were not satisfied with the service installation (3.06 on a 7-point scale) was significantly lower than those who were very satisfied with the installation (6.82).
Ranking of studies
In the dealer services segment, Lexus Dealerships ranks first for customer service satisfaction with a score of 829. Mercedes-Benz dealerships (824) ranks second and GM Dealers (818) ranks third.
In the after-sales service segment, NAPA-AUTOPRO ranks first for customer service satisfaction with a score of 868. Great Canadian Oil Change (826) ranks second and Midas (813) ranks third.
The Canada Customer Service Index—Long-Term (CSI-LT) study measures service usage and satisfaction of vehicle owners ages 4-12 and analyzes customer experience during in-warranty and out-of-warranty service visits. guarantee. Overall satisfaction is based on five factors (in order of importance): quality of service (32%); vehicle pick-up (20%); service establishment (17%); commissioning (16%); and Service Advisor (15%). The study is based on responses from 8,605 owners and was conducted from April to June 2022.
For more information on the Canada Customer Service Index Long-Term (CSI-LT) study, visit https://canada.jdpower.com/automotive/canada-customer-service-index- long-term-study.
See the press release online at http://www.jdpower.com/pr-id/2022116.
About JD Power
J.D. Power is a global leader in consumer insights, advisory services, data and analytics. A pioneer in using big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been providing incisive industry insights into customer interactions with brands and brands for more than 50 years. products. The world’s leading companies in key industries trust JD Power to guide their customer-facing strategies.
JD Power has offices in North America, Europe and Asia-Pacific. To learn more about the company’s business offerings, visit https://canada.jdpower.com/.
About JD Power and Advertising/Promotional Rules:www.jdpower.com/business/about-us/press-release-info
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220908005055/en/
MEDIA CONTACT: Gal Wilder, NATIONAL public relations, Toronto; 647-259-3261, [email protected]
Geno Effler, JD Power; Western coast; 714-621-6224;media.re[email protected]
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: AUTOMOTIVE AFTERMARKET
SOURCE: JD Power
Copyright BusinessWire 2022.
PUBLISHED: 08/09/2022 07:00/DISC: 08/09/2022 07:02
Copyright BusinessWire 2022.