September 5, 2024, Hyderabad/New Delhi, INDIA: The Federation of Automobile Dealers Associations (FADA), the apex body championing the interests of India’s Automobile Retail Sector, in collaboration with Frost & Sullivan, the Growth Pipeline Company, announces the results of the 2024 Customer Experience Index (CEI), an annual study.
Study Background:
The primary objective of this comprehensive study was to assess and quantify customer experience across sales, after-sales service and product quality in the passenger vehicle category. The study highlights the key drivers of experience, providing valuable insights for the automotive industry.
The respondents were carefully selected to represent a broad demographic of vehicle owners. The profile includes males and females aged 18 years and above, all of whom are primary users and primary or occasional drivers of personally owned vehicles. Importantly, the primary vehicle in question must be ‘new’ at the time of acquisition and the respondents must have been involved in the decision-making process for its purchase.
The study further categorized respondents into two distinct groups:
- vehicle bought from an authorized dealer within last 12 months (May’23 to May’24) for the “Sales & Product Quality” and
- those who purchased their vehicle between 2021 and 2023, having availed after-sales services within the last six months, for the “After-Sales Service” category.
CEI was conducted with a substantial sample size of 8,685 respondents. The sample was divided into two primary categories:
- 3,683 respondents provided insights into their experiences related to “Sales & Product Quality,”
- 5,002 respondents contributed to the “After-Sales Service” category.
To further refine the analysis, the sample was stratified by market tier, with:
- 3,951 respondents from Tier 1 cities,
- 3,925 from Tier 2 cities, and
- 809 from Tier 3 cities.
Key Highlights:
- Overall Customer Experience Index (CEI) considers 97 attributes across Sales, Product and After-sales experiences,
- each having a weightage of 25%, 25% and 50%, respectively.
- Mass Market Brands: Kia leads the mass market segment with a score of 45.84
- Luxury Brands: Audi tops the luxury segment with a score of 48.93
Sales Experience Index (SEI)
- Mass Market Brands: Kia ranks highest in sales experience with a score of 52.52 scoring most in test drive experience, responsiveness of sales team, customer relationship management, to name a few.
- Luxury Brands: BMW leads with a score of 52.52, ranking highest in availability of roadside assistance, online advertisements, amongst others.
Product Experience Index (PEI)
- Mass Market Brands: Toyota scores highest in product experience with 45.40. Good resale value, gearshift quality, quality of lights, contributed the most to its ranking.
- Luxury Brands: Audi leads with a score of 46.35, ranking highest in vehicle suspension quality, engine power, amongst others.
After-Sales Experience Index (ASEI)
- Mass Market Brands: Kia ranks highest in after-sales experience with a score of 44.15. It ranked highest in condition of the car delivered, technical knowledge of the after-sales team, responsiveness of the after-sales team, amongst others.
- Luxury Brands: Audi leads with a score of 50.51, ranking highest in ease of accessing the team, technical knowledge of the after-sales team, amongst others.
Mr. Vinkesh Gulati, Chairman – FADA Academy & Research commented, “The findings from the Customer Experience Index (CEI) study provides a clear picture of what customers prioritize and value most in their automotive journey. It’s evident that aspects like service, comfort and reliability are at the forefront of customers’ minds. These are the core areas where automotive brands are succeeding in meeting customer expectations.
Customers are particularly pleased with the responsiveness and knowledge of sales teams, the performance and reliability of their vehicles and the quality of after-sales workmanship. However, while these areas are currently excelling, they also set a high standard that must be maintained and continuously improved. Notably, customers are increasingly expecting greater reach and accessibility from automotive brands, rather than investing in large infrastructure setups. As we move forward, it is crucial for the industry to not only uphold these strengths but also address the underlying areas of improvement to ensure a consistently exceptional customer experience.”
Mr. Shylesh Narayanan, Country Head, Frost & Sullivan India, added, “The Customer Experience Index (CEI), developed in collaboration with FADA, is unique due to its unbiased random sampling which reflects customer perspectives. This data-driven analysis highlights critical areas for OEMs and dealers to refine their strategies and adapt to evolving customer expectations. This index will also help guide the industry towards a future where brands are distinguished by their feature-rich offerings, exceptional service, and reliability, ultimately fostering superior customer experiences and therefore, loyalty.”
The voice of the customer highlighted the key factors that resonate most with vehicle owners:
“Service” stands out as a dominant priority, indicating that customers place a high value on the quality and reliability of service experiences.
Other important aspects include “Comfortable,” “Mileage,” and “Features,” emphasizing that customers seek vehicles that are not only efficient but also provide a comfortable and well-equipped driving experience.
Words like “Innovative,” “Technology,” and “Reliable” suggest that customers appreciate cutting-edge advancements and dependability in their vehicles.
The focus on “Brand” and “Premium” highlights the importance of brand reputation and perceived value, while “Affordable” and “Popular” indicate that customers are also mindful of cost and market trends.
Overall, the voice of the customer calls for a balanced blend of performance, innovation and service excellence in the automotive sector.
The study also identified key factors or delighters, within each category that significantly enhance customer satisfaction:
Sales Delighters: Among the top delighters in the sales category are the test-drive experience, which allows customers to evaluate the vehicle’s fit and performance firsthand and the responsiveness and knowledge of the sales team, which fosters trust and confidence throughout the purchasing process. Additionally, the ease of transaction and payment processes contributes to a seamless and stress-free buying experience.
Product Delighters: In terms of product attributes, performance and reliability stand out as top priorities, ensuring the vehicle meets expectations in terms of power and dependability. Seat comfort and legroom are also critical, providing a comfortable and enjoyable driving experience. Furthermore, fuel efficiency and good resale value are essential considerations, offering both financial benefits and long-term satisfaction.
After-Sales Delighters: The after-sales experience is enhanced by high workmanship quality, ensuring service and repairs are completed to the highest standards. The ease of appointment scheduling and effective post-service follow-up further improve customer satisfaction by providing convenience and reassurance. Additionally, fair pricing and a straightforward complaint registration process contribute to a transparent and supportive after-sales environment.
The collaboration between FADA and Frost & Sullivan underscores a shared commitment to advancing the Indian Passenger Vehicle industry, ensuring it remains competitive and aligned with global best practices.