Service is Key to Consumer Loyalty, J.D. Power Says

A new study indicates that customer service is the key to customer happiness.

Over 90% of respondents in the J.D. Power 2014 U.S. Consumer Financing Satisfaction Study that categorized themselves as highly satisfied customers indicated that they “definitely will” use their current lender in the future.

More than 50% of customers indicated that they selected their provider based on inputs other than dealer recommendations.

Survey results were released last week.

The study was designed to measure satisfaction among customers who financed or leased their vehicle indirectly through a dealer or directly through an auto finance provider and was based on responses from 20,670 new and used vehicle purchasers or lessees who obtained a vehicle loan or lease.

According to the findings, avoiding common billing and payment errors, such as incorrect payment amounts listed on statements, misapplied payments, or incorrect personal account information, is the most influential key performance indicator impacting satisfaction. Respondents said that the more errors lenders made left customers with the perception that the lender was disorganized, or did not have borrowers’ best interests at the top of their priorities.

However, it is not enough to focus on only one or two areas of the consumer experiences, the study said, and companies should aim to excel throughout the entire life cycle of a loan or lease, according to J.D. Power.

“Satisfying auto financing customers is not contingent on excelling in one area,” said Mike Buckingham, senior  director of the automotive finance practice at J.D. Power, in a company press release. “It’s a continuum across the entire process, with the stage set during the on-boarding process—or the initial discussion with  customers—and continuing through the billing and payment process. The execution of finance process best practices is more important than the innovation of new tools to complete transactions. All lenders use mostly the same technology, but the ones that execute better across all areas are the ones with the most satisfied customers.”

Buckingham also noted that technology now plays a key role in the billing process, with consumers expecting to not only have self-service tools set up automatic payments, but they also want payment confirmation and the ability to check their balance from a smartphone or tablet.

“Lenders need to make it easy for customers to access their account anytime anywhere,” Buckingham said. “That means providing a website and apps that are reliable and that make the most critical elements of the billing process easily identifiable.”

Lincoln Automotive Financial Services ranked highest in the luxury segment for overall consumer financing satisfaction, according to the study, and performed highest in the billing and payment process and website factors. In the mass market segment, Volkswagen Credit ranked highest for consumer satisfaction, and tied with Ford Credit for the top spot in billing and payments, and website, according to the survey results.