J.D. Power Canada reports that non-dealership repair shops account for the majority of service occasions for four- to 12-year-old vehicles in Canada at 53.5 percent compared to 46.5 percent for dealerships. However, according to the company’s 2018 Canada Customer Service Index Long-Term Study, dealership service facilities have the greater share of overall service spend, capturing 53 percent of the total dollars spent on vehicle service over the past 12 months.
Interestingly, spending at Canadian aftermarket shops has grown from an average of CDN$204 per visit in 2017 to CDN$223 in 2018, while spending at dealerships has declined from CDN$303, on average, in 2017 to CDN$291 per visit in 2018.
J.D. Power’s research also found that younger vehicle owners are more likely to service their vehicles at non-dealership facilities, compared with Boomers and Pre-Boomers.
According to the study, prior experience plays a key role in customer retention and is cited by half of vehicle owners as one of the leading reasons for choosing a service facility (at 52 percent for those who chose a dealership and 50 percent for those who chose an aftermarket shop). The reason is more prominent among Boomers and Pre-Boomers (60 percent and 74 percent, respectively), while Gen Z and Gen Y owners tend to choose service facilities based on a recommendation provided by a friend or relative (36 percent and 26 percent, respectively).
Lexus dealerships ranked highest in overall customer service satisfaction for a fourth consecutive year, with an overall customer satisfaction index ranking of 826 on a 1,000-point scale. NAPA AUTOPRO came in second at 799, while Great Canadian Oil Change was third at 798.
Click here for more information on the study, including the full customer satisfaction index rankings. The study is based on responses from 10,681 vehicle owners. It was fielded between March and June.