Auto repair chains grab share from dealers
Peter Haefele simply pays attention to customers at his NAPA Autopro repair garage in Scarborough.
And it works. His shop and the Autopro service chain have raced past their rivals to provide the best customer satisfaction among repair centres in Canada, according to a comprehensive industry study.
J.D. Power and Associates, a leading market research firm, said yesterday NAPA Autopro posted the top scores in its annual study of service satisfaction at 35 repair chains and dealerships plus hundreds of independent neighbourhood shops.
Autopro, which finished third in J.D. Power’s annual customer satisfaction index in 2008, jumped ahead of OK Tire, the previous leader, and PetroCan’s Certigard, another high-scoring chain of repair shops.
"We really try to do a good job for the customer," said Haefele, who has owned his Autopro shop near Ellesmere Rd. and Warden Ave. for 15 years. "It keeps them happy – and coming back."
Haefele, who operates eight service bays at his shop, added that Autopro’s continuing training and prompt responses to complaints also help.
"We make sure they get properly resolved," he said.
The J.D. Power study followed responses from 14,388 vehicle owners to a series of questions about their experiences between April and June in a market that generates more than $11 billion annually in Canada.
Owners of 3- to 12-year-old vehicles were asked about how their disabled auto got to the shop and were questioned about the facility, service adviser performance, work quality and the return of the vehicle.
J.D. Power’s study concluded Autopro, which operates 600 parts and repair stores in Canada, including more than two dozen in the GTA, performed well in all categories. Pennzoil and Jiffy Lube also finished near the top of the J.D. Power index, along with Autopro, OK Tire and Certigard.
As a group, independent repair shops achieved average scores near those of the industry leaders.
The chains that posted the poorest satisfaction scores included Costco, Wal-Mart, Ford Fast Lane, Canadian Tire, and Volvo and Mazda dealers affordable car insurance.
Officials for Canadian Tire and Wal-Mart could not be reached for comment.
In the past, Canadian Tire has said the company conducts a huge volume of repairs, which makes it difficult to maintain proper service levels. But the retailer said it was investing more in training and development to improve services.
Among new dealerships, only Acura and Hyundai posted satisfaction scores above industry average.
The study showed dealerships continue to lose business to repair chains and independent shops, which increased market share by 2 per cent to 59 per cent.
"While a two-percentage-point shift may not seem substantial, this equates to more than $220 million in lost revenue annually for dealers," said Darren Slind, who leads J.D. Power’s auto practice in Canada. "Given declining new-vehicle sales, which are down more than 16 per cent in Canada so far this year, dealers must rely more than ever on their service and parts operations."
J.D. Power said the results revealed that dealers performed well in the quality, convenience, comfort and cleanliness categories, but customers placed a higher priority on people, processes and service.
The study indicated more than half of vehicle owners left during the repair so they didn’t experience in-store advantages, Slind noted.
J.D. Power said the study also revealed that average spending on auto repairs will slide by about 7 per cent from $920 in 2008 to $856 this year because of the recession.
The research firm said the proportion of customers who acknowleged going to the cheapest outlet had grown from 17 to 23 per cent.
"In a difficult economy, vehicle owners seem to be delaying what they perceive to be non-essential maintenance or seeking out the lowest cost option," Slind said.