·JDPower announced 2014 China Automotive Finance Satisfaction
On September 17, JD Power Asia Pacific released the results of the 2014 China Automotive Finance Satisfaction Study (DFS), which showed that dealers' overall satisfaction with auto finance companies was higher than that of banks. This research is JD Power's first industry benchmarking research in the automotive field, and it also marks JD Power's official entry into China's third industry, auto finance. Fish Skinning Machine,Cooling Fishskin Machine,Fish Skinning And Cutting Machine,Fishskin Cooling And Cutting Machine Dalian Iceberg Freeze-dry Technology Co.,Ltd , https://www.freezedrydliceberg.com
At the meeting, JD Power released the China Automotive Finance Satisfaction Study for the first time, and evaluated the dealers' satisfaction with financial services institutions in the areas of retail finance and inventory finance. Among them, retail finance examined three aspects of “application and approval processâ€, “product offering and selection†and “sales relationship maintenanceâ€. Inventory finance examines three aspects of “financing credit lineâ€, “process approval management†and “inventory plan supportâ€.
Mei Songlin, vice president and general manager of JD Power China, expressed great affirmation on the development potential of China's loan purchase of new cars. According to statistics, the loan penetration rate of China's mainstream automobile market has increased from 5% in 2008. By 16% in 2014, the luxury car segment increased from 8% in 2008 to 31% in 2014, compared with the current mature market penetration of 62%.
In Mei Songlin's view, this gap is precisely the potential for the development of China's auto market in the future. "Although the auto market has grown rapidly in the past few years, there is still a lot of room for development. The development of the auto finance market directly promotes Chinese autos. The industry is bigger and stronger. While the market calls for financial services, we also see the importance of service professionalism, service quality and service satisfaction. Higher customer satisfaction will promote higher penetration and better financial products. Word of mouth, thus forming a spiral positive cycle."
For the result of the selection of “automated financial company's overall satisfaction is higher than the bankâ€, Yang Xu, senior manager of automotive finance research in JD Power Asia Pacific, attributed it mainly to two points: First, the auto finance company is on the Internet. The application is more advanced, and auto finance companies often communicate with dealers via email, online communication, and smartphones. Second, in terms of product supply, in addition to the new car inventory, auto finance companies have set up display vehicles at many outlets, and set up exhibitors during the auto show, providing customers with a full range of options.
Yang Xu said: "By studying, we can clearly see that the level of satisfaction of dealer auto finance directly affects car sales and dealer loyalty. This also confirms a basic rule - customer satisfaction is to increase sales And the cornerstone of customer retention."
The following is the results of the 2014 China Automotive Finance Satisfaction Study (DFS):
In the field of retail finance, the satisfaction of auto finance companies is 39 points higher than that of banks (838 points compared with 799 points and a total score of 1,000 points). This gap is mainly reflected in the western region (832 vs. 760 points) and the fourth line. City (849 points vs. 713 points). Banks performed best in the northern region (830 points) and first-tier cities (810 points).
Auto finance companies and banks performed best in the “application and approval process†with 856 points and 806 points respectively; they performed poorly in terms of “providing and selecting productsâ€, with 813 points and 787 points respectively. Comparing the specific performance of the two in key indicators (KPIs), auto finance companies have a higher KPI implementation rate: 45% of auto finance companies meet “when they need advice or seek help, they can contact credit officers every timeâ€. Only 38% of banks meet this target; 66% of auto finance companies can “apply for approval within 2 working daysâ€, and 54% of auto finance companies can “loose within 2 working daysâ€. The ratio of banks for the above two indicators is only 25% and 27% respectively.
In addition, digital communication becomes the preferred method for sales representatives to contact customers. The use of digital communications by auto finance companies is significantly higher than that of banks, especially e-mail – 60% of auto finance companies use e-mail as their primary point of contact, compared to 24% for banks. Among the various contact methods, dealers have the highest satisfaction (859 points) when using a smartphone or instant messaging on a tablet. Followed by online communication (854 points) and e-mail (844 points), the lowest telephone communication score (818 points).
Inventory Finance The dealers are more satisfied with auto finance companies than banks (854 points vs. 831). If you are classified according to regional, city level or international and local brands, auto finance companies and banks have their own performance. In fourth-tier cities, banks outperformed auto finance companies (805 points vs. 789 points); in the southern region, banks and auto finance companies performed equally (808 points versus 812 points); in self-owned brand dealers, for banks and The satisfaction of auto finance companies is similar (817 points vs. 820 points).
In the field of inventory finance, auto finance companies and banks have the worst performance in terms of “financing credit line†(850 points vs. 828 points), but this is also one of the most important aspects of dealers. Dealers generally expect financial services organizations to provide “finance credit lines that fully meet the turnover requirements of new car inventory funds,†but only 29% of financial services organizations can meet this expectation. When the financial services institution “completely met†this expectation, the average satisfaction score was 866 points. If the financial services institution is “not satisfied at allâ€, the average satisfaction score drops to 792 points.
In terms of product diversity, in addition to new car financial services, financial services institutions also provide corresponding inventory financial services for showroom display vehicles, exhibiting vehicles, new online stores and inventory parts. However, auto finance companies offer a higher proportion of these diverse services than banks.
Yang Xu, senior manager of China Automotive Finance Research at JD Power Asia Pacific, said: "In terms of auto finance retail loans, China's current car loan penetration rate, whether new or used, is far from the developed countries, but it also Another point of view shows that we have a lot of room for improvement. In terms of auto finance wholesale loans, both financial companies and banks should make improvements in product offerings to meet the needs of dealers."
The main finding is that China's auto finance penetration has been rising over the past six years. In the luxury car segment, auto finance penetration rose from 8% in 2008 to 31%* in 2014. Based on the continuous growth forecast of China's passenger car sales in the next few years, auto financial services institutions still have great market potential.
Research shows that high auto finance satisfaction can help boost dealer sales (833 points and above in the retail finance sector and 855 points and above in the inventory finance sector). High-satisfaction auto finance institutions, which sell new car sales in dealerships that are higher than medium- and low-satisfaction auto dealers, and sales growth rates are 26% and 20% in retail finance and inventory finance, respectively. %.
There is a close correlation between dealer auto finance satisfaction and loyalty. In the retail finance sector, 84% of dealers using highly-satisfied financial services (833 points and higher) said they would “will definitely†continue to use the financial services in the next 12 months. For dealers with medium satisfaction (799-829 points) or low satisfaction (797 points and lower), their loyalty fell to 69% and 51% respectively.
In terms of retail finance, “operational process training and explanation of loan/amortization business†is the most desirable service for dealers and the most frequently provided service for sales representatives. “Providing effective sales and marketing tools†ranks second in the service that dealers expect. However, the sales representative did not perform well in meeting the expectations of the dealer.
Dealers expect to lend on the day they submit their inventory financing application, but only 23% of financial services institutions meet this expectation. If the loan is made on the day of submitting the inventory financing application, the satisfaction rate is 871 points. If the loan is 1-3 working days after the application for the inventory financing, the satisfaction will drop to 836 points.
The 2014 China Automotive Finance Satisfaction Study (DFS) is based on feedback from 2,145 dealers covering 47 car brands. The data collection of the study was conducted in 73 major cities from January to March 2014.