Indian Automobile has come across remarkable advancement, since last decade. With the advancement in technology, new features designed in a varied range of Two wheelers to Four Wheeler products. For example, Bluetooth connectivity and mobile charging have become common in every Car model of today. Looking at the current rate of progress; 2030 throws up lightning promises in terms of advanced and prominence. Our analysis suggests that there is an urgent need to upgrade product service and maintenance center to support the expanding change as well as to delight the customers.
Service and maintenance as per product model is a big issue and needs to be solved as its earliest. Customer Satisfaction does not match after sales report, though; companies try their level best to work hard as well as to convince and delight the customers. The strategy which companies work on to satisfy the customers, not only in terms of quality but also cost and time-frame which are actually constraints in analyzing for using various parameters. Analysis can be a source of revenue or non-profit for all service providers when taken into consideration; which results after a sale is never affected, even in market slow down.
How can authorized dealers increase their revenue in spare parts and other services?
Unless and until segments are defined and identified by different constraints, we cannot satisfy our customers.
If we analyze, we find that every customer has different perspective and wants the best as per their needs and requirements. So to get this balance, various combinations and permutation based on quality, technology, features, vehicle type, warranty period, service delivery time as per customer segmentation take place. Warranty period is an important constraint for OEM authorized workshop which can really dominate the market.
Today customers are flexible in opting best maintenance and service center for their vehicles. Due to lack of information related to technician skills amidst their locality or territory. If we study the market, most of the Authorized service center, Multi-brand, and large independent workshops are under performing. Hence, ACG is recommended to increase their profit revenue from 30% to 40%.
Transparency is also one constraint that is an issue in after sales services. Customers are frequently complaining about transparency issue, which needs quick improvement. A claim in promotion notes that this constraint involves some hidden costs or chargeable service which is abruptly not considered by the customers. It has also been found that many offers are not implemented on the operational level like 24*7 of service delivery for breakdown vehicle which can lead to big troubles.
A new advancement in tools like Technician Skill development play the vital role in service quality. Service cost varies with advanced technology in every segment. Life of major aggregate replacement cycle of fast moving parts and service have the longer duration but still service, as well as maintenance cost, has increased due to parts and labor cost. Manpower and another kind of indirect cost have increased which surpasses customer’s budget.
These are the major parameters of customer satisfaction in After sales:
The multi-brand concept is quite successful in Europe and the Middle East. In India, there are some challenges for Multi-brand concept. The multi-brand concept could be successful in India also if following issues can be resolved in a planned manner.
Spare parts one of the important parameter in After sales. In our study, we have considered how the business practice works in different formats.
To learn more about customers' specific desires and requirements, we examined the six segments in terms of the following categories: General preferences regarding cars, two wheeler, Truck, Bus (CV) segment
We have seen that criteria of service package define the type of service package. Once you define the parameter then you can think about commercial and its advantages. The best-fit combination will be the winner.
Multi-segment concept and best implementation ways
Our study carries with data collection methodology of different organized and unorganized segments, Durability and Availability of Spare parts, Mechanical Skills, Work Procedure, Job Card, Work Quality, Time Duration for Repair, Types of available maintenance and contract etc. If these constraints are taken into concern in every service center, customers can be satisfied in every way.
Another finding of why Multi Brand Service center could not make its existence in India, however, the market potential and growth is very attractive for a multi brand?
Carnation was a good initiative in the multi-brand foray, but the lack of spare parts availability and paperwork completion takes time which builds up frustration in customers. As of with the feedback received by most customers, it is believed that Independent workshops are either expensive or less qualitative in servicing after the warranty period and are usually approached by their own experience, recommended by friends or relatives.
Many OEMs are venturing into the Indian market and establishing their service network. But to strengthen independent workshops or roadside garage we need to support newly initiated OEMs for enhanced product support.
Here’s a short case study we have taken to better understand the situation:
My name is S.Vijayakumar and I am working in Automobile company since 19 years. I dreamt of owning a car and my dream touched the sky when I purchased Toyota "Etios- VD model Diesel Car" through M/s. Chaudhari Toyota, Jalgaon. On 24th Nov'2011 around 11:55 am the vehicle was delivered to me and filled with joy as well as achieved my long-term dream. I am proud to say that this model is first registration in Jalgaon district.
I had been traveled to various cities by bus, train or flight for official work, but now, as I owe a dream car, traveling long journeys for both official and personal work. My first long journey was from Pune to Ambur (my home town) through NH4, covered around 1030 km and it took 12 hrs for one way (Max.speed touch up to 165 Km/hr without any hurdle). During that time, I traveled various cities of Tamilnadu with my family which covered almost 4500kms on return to Pune.
My Hobby of driving car has been helped me in covering 120000+kms in the span of 3 years and also as of now there is no major issue found in vehicle performance. On my sister’s wedding, roam around entire Tamilnadu and Bangalore, covered 10000kms without any hurdles in the hot month of April &May’13. Also, my driving skill is enhanced to further traveled from Hosur -Nellore –Kakinada- Vizag- Nellore and return back to Hosur for my official work. The specific note of vehicle performance is ABS, AC, Steering and Suspension given lots of confidence to drive continuously without any tiredness.
As of now my car is giving a robust mileage of 19kms/liter in AC and 20 Km/liter in nonAC.
I use to render my car service regularly in OEM Authorized workshop of Toyota dealers at Pune, Bangalore, Vellore and Tirunelveli as per recommendations of OEM maintenance schedule. During service time, I was not satisfied with dealer's approach for few repeated issues like Door lock, silencer rattling; horn sound gets off occasionally, and price variation of wheel alignment.
Also, there is no dealer network in between Salem – Bangalore- Vellore, every time I have to travel 60-70 Km (one way) for servicing vehicles, which cost around Rs.600(inc. toll tax).OEM Authorized workshop needs to plan for service network on these routes or national highway (like express service bay of 3 to 4 nos)to avoid customer dissatisfaction.
Also Silencer rattling sound and Door lock had been rectified with repeated request and quite an argument with dealers. During this time I am surprised to note that they are asking customers (including me) to leave the vehicles at Workshop for 2 days for warranty complaints if they are unable to solve the complaints on first in first time. During my discussion with the service advisor, they told me that for any warranty request they will be sending all the failure reports to OEM and after receipt of warranty approval only, they will replace the defective parts. This incident took place at one of the authorized service workshop, Bommachandra-Bangalore and Vellore for silencer rattling and door lock problem.
I feel that every time Rs.600 for transportation, just to hand over vehicles at dealer's workshop and also 2 days for warranty replacement on further delay leads to discomfort to me as well as any customers. Can you expect such type of after sales policy from OEM as well as Authorized workshops for implementing policies to trouble customers?
Giving the vehicles for accident repairs (insurance claim) to Authorized workshop at Vellore and they had completed all the said repair jobs and finally they are asked me to pay for washing charges, which is not covered by insurance company. How can they ask money for washing, when they did all the painting and polishing jobs by creating my car in dusty condition?
Even some of the dealers are charging 2 to 3% of service charges if you make payment through Credit or debit card.
I am very much satisfied with vehicle quality, reliability and performance. But the dealer’s customer approach is not up to the mark.
Also extended warranty package (EWP) is missing in Toyota brand where in other competitors are offering the same to promote their brand.
At last, everybody feels that after stepping into OEM Authorized workshop in Indian Market, they are getting services by the way of Quality and Reliability, which results in Premium product in their life. Hope that OEM as well as Authorized workshop can improve and upgrade their skill level towards customer satisfaction to facilitate Customer delight.
Thanks & Regards
To success in after sales and Customer delight, the following key points are majorly contributing,
- Service process
- Technician skill level
- Availability of parts
- Price-Parts & Labour
- Service promotional activities
The above reports are exclusively available with ACG, please feel free to contact, Email: Saurabh.email@example.com