It would seem that Kia dealers have some work to do for the sake of the customers. A recent J.D. Power study shows that customers haven't been enjoying the Kia dealer experience, which is kind of essential to selling cars. Those interactions and impressions have landed the Korean automaker dead last in customer satisfaction across all mass-market brands.
Around 37,000 dealer customers received the annual survey, where they were asked to judge their experience at the respective dealer from the time they walked onto the lot — through getting the keys and driving into the sunset. Out of 16 mass-market brands, Kia came in dead last scoring 754 on a 1,000-point scale. J.D. Power says the industry average is 782.
What's interesting when you take into account the fact that Kia reps at both the corporate and the dealer level can't seem to agree on what's behind this low rating. Kia's chief operating officer for the U.S., Steve Center, spoke to Wards Auto at the LA Auto Show, "That is absolutely the most unacceptable business outcome. We don't want to be Sears," he said. While he didn't provide an exact layout on what dealers should do to improve he did say they don't have a choice but to improve. "They have to find a way to meet customer expectations."
But there is still a disconnect between dealers and corporate. While an executive can say that dealers must improve their customer service, there's not much they can do to make them improve because of dealer franchise laws. The dealers want to be left alone even though there's clear evidence they dont have the customer's interest in mind when they step foot in a dealership. From markups that could help to neuter some of its hottest products, to outright fraud from dealer employees. Kia customers may be satisfied with their vehicles. But that satisfaction can't come until people feel comfortable enough to even talk to you about their interest in your vehicles.
Customers Are Really Not Impressed With Kia Dealers
The latest J.D. Power Customer Satisfaction survey placed the Korean brand dead last.
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Another key study finding is that electric vehicle (EV) buyers continue to have less satisfying sales experiences than do buyers of traditional gas-powered vehicles in both the premium and mass market segments. For example, satisfaction among owners of mass market battery electric vehicles (BEVs) is 56 points lower than among owners of gas-powered vehicles (791 vs. 847, respectively) and satisfaction among owners of premium BEVs is 33 points lower than among owners of gas-powered vehicles (831 vs. 864, respectively).
"If EVs are going to be the wave of the future, rapid improvements need to be made to close the gaps in factors such as product knowledge and vehicle delivery," Sutton said. "There is no doubt that the products are coming, but from a customer purchase experience standpoint, the dealerships are just not there yet."
Following are key findings of the 2022 study:
- Sticker price a demarcation point for new-vehicle buyers: Although inventory shortages have prompted many dealers to charge more than the suggested price for new vehicles, the practice has had a negative effect on overall satisfaction. Satisfaction among buyers who paid more than sticker price is 757, while satisfaction among those who paid sticker price is 850. Among buyers of mass market vehicles, 25% paid more than MSRP compared with just 19% among buyers of premium vehicles.
- Special orders may be special solution to sales satisfaction: Satisfaction is higher among buyers who special ordered a vehicle for later delivery (854) than among those who bought a vehicle from the dealer's lot (841). Additionally, dealer communication of vehicle status during the ordering and build process helps drive real differentiation in customer experience.
- EV buyers could use some show and tell: More than one-third (38%) of EV buyers failed to get instruction on EV charging before they left the dealership, which notably affects satisfaction. Satisfaction is 872 among buyers of premium EVs who received a demonstration but drops to 709 when there wasn't a demonstration. Among buyers of mass market EVs, satisfaction is 835, and declines to 717 when there wasn't a demonstration. "Explaining how to charge the vehicle should be a mandatory part of every EV delivery," Sutton said. "Salespeople don't need to show gas-powered vehicle buyers how to fill their tank, but they do need to show EV buyers how to charge their vehicle."
- Dealership visits decrease as buyers become more satisfied with digital retailing: The lack of inventory has made it less important to visit dealerships as buyers seem to be getting ever more comfortable with online shopping and purchasing activities. This year, 85% of buyers say they visited a dealership during the purchase process, down from 88% in 2021. At the same time, many online activities have increased. For instance, 18% of buyers who visited the website of their selling brand or dealer say they completed the purchase paperwork online, up from 13% a year ago. Also notable is that 18% of buyers say they agreed to a final purchase price online, up from 15% in 2021.
Study Rankings
Alfa Romeo ranks highest in sales satisfaction among premium brands with a score of 833. Porsche (831) ranks second and Lexus (819) ranks third.
Buick ranks highest in sales satisfaction among mass market brands, with a score of 825. Dodge (816) ranks second and Subaru (804) ranks third.
Now in its 37th year, the U.S. Sales Satisfaction Index (SSI) Study measures satisfaction with the sales experience among new-vehicle buyers and rejecters (those who shop a dealership and purchase elsewhere). Buyer satisfaction is based on six factors (in order of importance): delivery process (26%); dealer personnel (24%); working out the deal (19%); paperwork completion (18%); dealership facility (10%); and dealership website (4%). Rejecter satisfaction is based on five factors: salesperson (40%); price (23%); facility (14%); variety of inventory (11%); and negotiation (11%).
The 2022 U.S. Sales Satisfaction Index (SSI) Study is based on responses from 36,879 buyers who purchased or leased their new vehicle from March through May 2022. The study is a comprehensive analysis of the new-vehicle purchase experience and measures customer satisfaction with the selling dealer (satisfaction among buyers). The study also measures satisfaction with brands and dealerships that were shopped but ultimately rejected in favor of the selling dealership (satisfaction among rejecters). The study was fielded from July through September 2022.
2022 U.S. Sales Satisfaction Index (SSI) Study
Although the pandemic may be over, vehicle buyers are still suffering from its effect on new-vehicle production. With new-vehicle inventory remaining very low, transaction prices have significantly increased—and consumers are not happy about it. Customer satisfaction with the vehicle purchase...
