Latest recall will help to build long-term trust in the Automotive sector

27th Jul 2015

Jo Causon, CEO of the Institute of Customer Service quote:

“Trust is one of the most important elements of success for any organisation and today’s recall will help to improve the reputation of the automotive sector in the long-term. This is one of the best performing industries in the UK for customer satisfaction; by communicating quickly, openly and honestly Automotive organisations are more likely to gain consumer trust”“It is vital to do this because over the past 12 months the automotive sector has experienced a sharp decrease in satisfaction. This fall should act as a warning to focus even more on looking after customers. Our research shows that customer satisfaction is closely related measures of trust and loyalty and organisations with higher levels of customer satisfaction also receive on average higher levels of intent to remain a customer, repurchase and recommend.”

With a score of 78.6, the Automotive sector has maintained its position as the fourth highest performing sector in the UK Customer Satisfaction Index (UKCSI) despite its score falling by 1.1 points between July 2014 and January 2015, above the average decline of 0.3 points across all sectors.In line with all but two of the 13 sectors surveyed by the Institute of Customer Service, the independent professional body for customer service, customer satisfaction has continued to drop in the automotive sector, reaching its lowest point since 2010.Skoda topped the sector list with a score of 82.9, followed by BMW/Mini (81.4), Audi (81.1) and Hyundai (80.8). Four organisations scored below the all-sector average of 76.0 with only one organisation improving its score by more than one point since January 2014.The percentage of problems experienced by automotive customers, although still lower than the UKCSI average of 13.4%, has risen sharply over the past year from 5.7% in January 2014 to 9.4% in January 2015.

More than a third of customers cited quality of goods and services as the nature of the problem while 29.5% cited staff competence and 21.7% mentioned staff attitude.Simultaneously, it appears that the automotive industry is not dealing with these reported problems sufficiently. Forty-nine percent of customers actually felt the need to escalate their complaint having registered it, making it clear that the increasing number of complaints needs to be matched by a greater focus on customer service.

Causon adds:

“The automotive sector is facing two challenges. The percentage of problems are increasing while a higher than average number of customers go on to report the problem. It is important to use the information supplied in this feedback to improve customer service delivery and ensure that not only the product is performing as expected but employees have the right skills to deliver excellent service.”“In this period of economic recovery it is tempting for organisations to focus on short term objectives. That being said a concerted effort must be made to deliver improving levels of service to provide clear differentiation in a very competitive sector. Leaders of automotive organisations must hold on to this initiative, maintain focus and champion customer service, which will in turn, help to ensure the UK remains a leader in the delivery of excellent customer service.”


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About The Institute of Customer Service

The Institute of Customer Service is the professional body for customer service delivering tangible benefit to organisations and individuals so that our customers can improve their customers' experience and their own business performance. The Institute is a membership body with a community of over 400 organisational members - from the private, public and third sectors - and over 5,000 individual memberships.

For more information about the Institute of Customer Service go to www.instituteofcustomerservice.com

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