SGS Global Warranty Dealer Survey FINAL3/media/Global/Documents... · 2015-12-16 · © SGS Group...

SGS GLOBAL WARRANTY SURVEY 2014SURVEY OVERVIEW

2© SGS Group Management SA 2014 – All rights reserved. SGS is a registered trademark of SGS Group Management SA

WHAT DOES SGS DO IN AUTOMOTIVE?

SOURCEWe test materials and parts to OEM and industry standards to facilitate the supply chain

BUILDWe verify that manufacturer vehicle design and quality meets regulations and gains market access

SELLWe audit delivery and aftermarket operations to ensure quality and brand guidelines adherence

POWERWe enhance the design, construction and operation of motor vehicles, testing fuels, lubricants and usability

SAFEGUARDOur vehicle testing centresworldwide verify safety and minimiseenvironmental impact

AMAZEAnnette loves the feeling of going for a drive in her new car

DRIVING PERFORMANCE AND SAFETY WORLDWIDE


FIRST INDEPENDENT

GLOBAL WARRANTY SURVEY

20 TO 30 DEALERSper brand and market

COVERING: USA, China, Germany, UK, France, Italy, Brazil and Argentina

TOTAL: 26 BRANDSand

3,240 DEALERSglobally

DURING:Q1 and Q2 of 2014

21 QUESTIONS CATI TELEPHONE INTERVIEWSwith randomly selected dealers


WHY A GLOBAL WARRANTY SURVEY?

WARRANTIES ARE OF GROWING IMPORTANCEto OEM aftersales business

TREND TO KEEP CUSTOMERS LOYALwith warranty and extended service programme

LACK OF FOCUS TO THE EXECUTIONvs. surveys which focus on single warranty elements (i.e. customer satisfaction, dealer payment terms)

KNOWING HOW PROCESSES WORK IN THE FIELD is important for warranty managers

NO COMPLETELY INDEPENDENT GLOBAL COMPETITIVE SURVEY AVAILABLEuntil now – from SGS

DATA MUST BE ACTIONABLEvs. traditional surveys which provide non-actionable data


GLOBAL BRAND GROUPING FOR PUBLICATION


EXECUTIVE SUMMARY

1. Asian and Premium OEMs provide easiest-to-work-with

warranty operations

2. Clear winning brand overall (best in two regions)

3. Clear bottom group of OEMs across all countries

4. 7 of 10 dealers satisfied with ease of business, warranty

labour rate and parts

5. Dealers in China and UK most satisfied

6. Dealers in Italy and Germany least satisfied


EXECUTIVE SUMMARY (CONT)

7. Dealers very satisfied with the field force teams

throughout all countries and brands

8. Premium provides best goodwill/policy support

(this remains an area of attention for FR/IT dealers)

9. 80% of dealer satisfied with the warranty IT system

10.Warranty audits widespread (except in the US)


HOW THE DATA IS ANALYSED

SGS GLOBAL WARRANTY SURVEY 2014RESULTS OVERVIEW


WARRANTY ADMINISTRATION EASIEST FOR

DEALERS OF MEDIUM ASIAN AND PREMIUM

BRAND GROUPS

HOW DO YOU RATE WARRANTY PROCESSING WITH YOUR OEM?

GLOBAL INDUSTRY AVERAGE: 68.3%

ALMOST 75% OF MEDIUM ASIAN DEALERS FIND WARRANTY PROCESSING EASY

MORE THAN 11% OF US AND EU DEALERS FIND WARRANTY PROCESSING COMPLICATED

SAMPLE SIZE FOR GROUPS: 250 TO 560 DEALERS


HOW DO YOU RATE WARRANTY ADMINISTRATION?

SAMPLE SIZE FOR MOST BRANDS:190 DEALERS

GAP BETWEEN EASIEST AND MOST COMPLICATED BRAND: 25%

LOWEST RANKED BRAND PERFORMS WORST IN BRAZIL, EUROPE AND THE US

ONE BRAND EXCELS: BEST RATINGS OVERALL AND BEST RESULTS IN BRAZIL AND EUROPE

ONE BRAND EXCELS –

ONE GROUP OF BRANDS UNDERPERFORMS


HOW HAS WARRANTY ADMINISTRATION DEVELOPED OVER THE PAST 5 YEARS?

BRAND WITH BEST OVERALL RATING IS ALSO DEEMED MOST IMPROVED

BRAND GROUP RATED BY DEALERS MOST IMPROVED OVER THE PAST FIVE YEARS:LARGE ASIAN

DEALERS INDICATE MOST BRANDS HAVE

IMPROVED OVER THE LAST FIVE YEARS


CHINA AND UK DEALERS: MOST POSITIVE


SATISIFIED DEALERS: SIGNIFICANT VARIATION BETWEEN COUNTRIES

DEALERS IN GERMANY AND ITALY MOST UNSATISFIED WITH WARRANTY PROCESSING

OVERALL SATISFACTION GAP BETWEEN COUNTRIES: >40%


PREMIUM OEMs STRUGGLE IN THEIR

KEY MARKETS (CHINA, US)


ALMOST NO PREMIUM DEALERS IN ITALY RATE COMPLICATED

PREMIUM OEMs: CHINA AND US DEALERS FIND WARRANTY PROCESSINGMOST COMPLICATED

NOTE: CHART INDICATES RESULTS FOR PREMIUM ONLY


FR/IT OEMs UNDERPERFOMING FOR

DEALERS IN GERMANY AND ARGENTINA


DEALERS IN ARGENTINA: HIGHEST COMPLICATED RATING >20% AND LOWEST EASY 42%

LOW RATINGS BY GERMAN DEALERS OF FRENCH AND ITALIAN BRANDS

NOTE: CHART INDICATES RESULTS FOR FR/IT BRAND GROUP ONLY


DEALERS IN CHINA VERY SATISFIED WITH

WARRANTY AUDITS

HOW SATISFIED ARE YOU WITH THE WARRANTY AUDIT?

SIGNIFICANT GAP BETWEEN THE HIGHEST AND LOWEST SATISFACTION RATING: 40%


94% OF DEALERS IN CHINA CONFIRM AUDITS TAKE PLACE – BUT UP TO 100% FOR 8 BRANDS

ONLY 45% OF US DEALERS CONFIRM KNOWLEDGE OF WARRANTY AUDITS


PREMIUM OEMs PERFORMING WELL –

FR/IT STILL WITH WORK TO DO

HOW DO YOU RATE THE ACTUAL LEVEL OF GOODWILL POLICY THAT IS GIVEN BY YOUR MAIN BRAND?

SIMILAR SATISFACTION RATINGS WITHIN THE BRAND GROUPS

PREMIUM OEMs: MOST ADVANCED GOODWILL POLICIES

POLICY AND GOODWILL LEVEL GLOBALINDUSTRY AVERAGE: 75.3%

ADMIN AND HANDLING GLOBALINDUSTRY AVERAGE: 71.2%


DEALERS SATISFIED IN CHINA AND THE US;

BUT RATE GERMANY AND ITALY POORLY


COUNTRIES WITH LONG WARRANTIES SCORE HIGHEST FOR SATISFACTION

IN THE NUMBER ONE GOODWILL COUNTRY, GERMANY, OEMs HAVE THE MOST DISSATISFIED DEALERS

CHINA OEMs: DEALERS MORE SATISFIED WITH THE LEVEL OF GOODWILL THAN THE ADMIN


PREMIUM OEMs RATE LOWEST FOR

DISSATISFACTION WITH POLICY LEVELS


VERY LOW DEALER DISSATISFACTION WITH PREMIUM BRANDS

PREMIUM OEMs: HIGH PERFORMING BRANDS OVERALL

FRENCH AND ITALIAN BRANDS RATE IN THE BOTTOM FOR SATISFACTION


MEDIUM ASIAN DEALERS MOST SATISFIED

WITH EXTENDED WARRANTY COVERAGE

HOW DO YOU RATE THE COVERAGE OF THE EXTENDED WARRANTY OF YOUR OEM?

FEW NUMBERS OF UNSATISFIED DEALERS FOR COVERAGE OF EXTENDED WARRANTIES

MEDIUM ASIAN BRANDS OUTPERFORM PREMIUM ON SATISFACTION RATINGS

EXTENDED WARRANTY COVERAGE GLOBAL INDUSTRY AVERAGE: 77.8%

EXTENDED WARRANTY HANDLING GLOBAL INDUSTRY AVERAGE: 72.4%


70% OF DEALERS WORLDWIDE ARE HAPPY

WITH THE P/H WARRANTY LABOUR RATE

HOW SATISFIED ARE YOU WITH THE WARRANTY LABOUR RATE PER HOUR?

SIMILAR RESULTS FOR BRAND GROUPS AS WITH OTHER QUESTIONS IN THE SURVEY

BETWEEN 4% AND 11% OF DEALERS UNSATISFIED WITH PER HOUR WARRANTY LABOUR RATE

OVERALL GAP BETWEEN BEST AND LOWEST PERFORMING BRAND: 24%



LARGE SATISFACTION GAP BETWEEN COUNTRIES

HOW SATISFIED ARE YOU WITH THE WARRANTY LABOUR RATE PER HOUR?

UK DEALERS:MOST SATISFIED OVERALL

GAP MOST TO LEAST SATISFIED COUNTRY: ALMOST 30%

VERY SIMILAR INDUSTRY AVERAGE FOR PARTS REIMBURSEMENT: 1% HIGHER


HIGHEST AND LOWEST CORRELATIONS

BETWEEN QUESTIONS

POLICY HANDLING AND IT IMPORTANT FOR OVERALL EASE OF BUSINESS

LOW CORRELATION FOR FIELD FORCE AS VERY POSITIVE OVERALL

CORRELATION ANALYSIS (r²)


COMPARISON OF SURVEY ANSWERS

BY EMPLOYEE GROUP

DEALER PRINCIPALS FAR FROM INDUSTRY AVERAGE: WARRANTY PROCESSING NEGATIVE 16.1%

DEALER PRINCIPALS FURTHER BELOW: POLICY NEGATIVE 22.8%

GERMANY DEALER PRINCIPALSWITH WORST DEVIATION SCORES: NEGATIVE 33.7%

DEALER PRINCIPALS:UK POSITIVE RESULTS IN THE US ALMOST 20% BELOW AVERAGE

EMPLOYEE GROUP ANSWERS


DEALERS WITH LOW SALES FURTHEST FROM INDUSTRY AVERAGE: UP TO 10%

DEALERS WITH HIGH SALES RATE ABOVE THE INDUSTRY AVERAGE ON EASE OF DOING BUSINESS

SURVEY ANSWERS BY DEALER SIZE: SALES


BY DEALER SIZE: SALES


DEALERS WITH LARGE SERVICE OPERATIONS TEND TO BE MOST NEGATIVE ON EASE OF BUSINESS

MIXED PICTURE ACROSS ALL DEALER SIZES

SURVEY ANSWERS BY DEALER SIZE: JOBCARDS PER ANNUM


BY DEALER SIZE: SERVICE


CONCLUSIONS

ANY CUSTOMER VISIT IS AN OPPORTUNITY TO INCREASE BRAND LOYALTY

BRANDS WITH HANDLING OF GOODWILL OR WARRANTY CONTRACTS ISSUES ARE TAKING A RISK

OEMs CAN VIEW THEIR COMPETITIVE POSITIONING AND ACT ACCORDINGLY

CLEAR AREA OF ATTENTION DEFINABLE BY BRAND AND BRAND GROUP

AFTERSALES PROCESS REQUIRES PERMANENT OPTIMISATION

COMPETITIVE OEMs NEED TO ANALYSE WHAT PROCESSES NEED TO BE IMPROVED


WHERE TO ACT: GLOBAL VIEW OF

COMPETITIVE WEAKNESSES

� Premium OEMs:

� US and China for overall ease of business

� Italy and France for goodwill policy

� Brazil for parts and labour

� French/Italian OEMs:

� France, Germany, Brazil and Argentina for overall ease

of business

� Parts and labour in Brazil, Argentina, Germany, Italy

� Goodwill in Germany

� Extended warranties in Argentina


WHERE TO ACT: GLOBAL VIEW OF

COMPETITIVE WEAKNESSES (CONT)

� German /US OEMs:,

� Italy, Germany, Brazil and Argentina for overall ease of

business

� Goodwill in Italy and Germany

� Extended warranties in Brazil

� Labour and parts in Germany

� Asian OEMs:

� China, Brazil and Germany for overall ease of business

� Labour and parts in Italy, Germany and Brazil (especially

Large Asian)

� Goodwill in Germany


COUNTRY SURVEYS AND SGS CONTACTS

LOCAL SURVEY PRICE WITH ALL BRAND DETAILS FOR ONE COUNTRY/CLUSTER: CHF 10,000

GLOBAL WARRANTY SURVEY SYNOPSIS WHITEPAPER AVAILABLE END OF SEPTEMBER

CONTACT:[email protected]:[email protected]

GLOBAL SURVEY WITH ALL BRAND DETAILS:CHF 30,000

COUNTRY/CLUSTER: ARGENTINA BRAZIL CHINA EU-(DE/FR/IT/UK) US

FIVE INDIVIDUAL COUNTRY/CLUSTER SURVEYS AVAILABLE

SGS GLOBAL WARRANTY SURVEY 2014SURVEY DETAILS


SIZE OF DEALERS RESPONDING

DEALER SIZES WERE WELL SPREAD BASED ON BOTH NEW VEHICLE SALES AND JOB CARDS


SURVEY RESPONDENTS

THE MAJORITY OF THE RESPONDENTS WERE WARRANTY ADMINISTRATORS


STRUCTURE OF THE SURVEY AND

DISTRIBUTION OF BRANDS ACROSS COUNTRIES

COUNTRY GERMANY UK ITALY FRANCE USA CHINA BRAZIL ARGENTINA GLOBAL SAMPLE

Brands Audi Audi Audi Audi Audi Audi Audi Audi 190

BMW BMW BMW BMW BMW BMW BMW BMW 190

Citroen Citroen Citroen Citroen Citroen Citroen Citroen 160

Fiat Fiat Fiat Fiat Chrysler Fiat Fiat 160

Ford Ford Ford Ford Ford Ford Ford Ford 190

Hyundai Hyundai Hyundai Hyundai Hyundai Hyundai Hyundai Hyundai 190

Kia Kia Kia Kia Kia Kia Kia Kia 190

Mazda Mazda Mazda Mazda Mazda Mazda 150

Mercedes Benz Mercedes Benz Mercedes Benz Mercedes Benz Mercedes Benz Mercedes Benz Mercedes Benz Mercedes Benz 190

Nissan Nissan Nissan Nissan Nissan Nissan Nissan Nissan 190

Opel Vauxhall Opel Opel

GM (Chevrolet,

Buick, Cadillac,

GMC) Buick/Chevrolet Chevrolet Chevrolet 190

Peugeot Peugeot Peugeot Peugeot Peugeot Peugeot Peugeot 160

Renault Renault Renault Renault Renault Renault Renault 160

Skoda Skoda Skoda Skoda Skoda 120

Toyota Toyota Toyota Toyota Toyota Toyota Toyota Toyota 190

Volvo Volvo Volvo Volvo Volvo 120

VW VW VW VW VW VW VW 160

Shanghai VW 30

FAW VW 30

Honda Honda Honda Honda 100

Mitsubishi 30

Subaru 30

Chery 30

Great Wall 30

Changan 30

BYD 30

TOTAL NUMBER OF BRANDS 17 17 17 17 16 21 15 15

NUMBER OF DEALERS

PER BRAND 30 20 20 20 30 30 20 20

TOTAL INTERVIEWS 510 340 340 340 480 630 300 300 3240


SURVEY QUESTIONS (1 OF 3)

2) When you think about warranty and administration,

how would you rate warranty processing with your OEM?

3) How has it developed over the past 5 years?

4/5) How satisfied are you with the field force?

6/7) How satisfied are you with the warranty hotline?

8/9) How satisfied are you with the warranty audits?

10) How happy are you with the warranty system (IT)

of your OEM?

11) How do you rate the administration of your OEMs

goodwill policy?

12) How do you rate the actual policy level of goodwill that

is granted, for your OEM?



13) How do you rate the handling of the extended warranty

products of your OEM?

14) How satisfied are you with the actual coverage of the extended

warranty products your OEM offers?

15) How satisfied are you with the warranty labour rate per hour?

16) How satisfied are you with the reimbursement for parts/

handling charge?

17) What works very well with your OEM in warranty?

18) What does not work well with your OEM?

19) What should your OEM change to make warranty easier

for you?



20) Do you think that the warranty processes and systems of

your OEM overall support customer loyalty in service and

new vehicle sales?

21) Do you think that a warranty program (extension, service

contracts) creates competitive advantage for you as a dealer?

22) What is the size of your dealership, by new vehicle sales p.a.?

23) What is the size of your dealership, by service job cards p.a.?

24) What is your position in the dealership?


HOW THE DATA IS ANALYSED

TO CONTINUALLY ENHANCE CUSTOMER EXPERIENCE EMAIL: [email protected]

WWW.SGS.COM

SGS Global Warranty Dealer Survey FINAL3/media/Global/Documents... · 2015-12-16 · © SGS Group...

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Transcript of SGS Global Warranty Dealer Survey FINAL3/media/Global/Documents... · 2015-12-16 · © SGS Group...