(June 12, 2012) Chris Sutton, senior director, U.S. Automotive Division at J.D. Power and Associates tells us in his latest blog that the J.D. Power and Associates 2012 Customer Service Index (CSI) Study finds that dealership service advisors are not providing basic service processes to younger customers as frequently as they are to older, more established customers.

While younger customers may have a tendency to “rate lower,” customer feedback suggests that younger customers have solid reasons for these lower customer satisfaction ratings.

When working with Gen Y customers (age 35 and younger), notes Sutton, service advisors are less likely to perform a walk-around; review a technician-performed inspection; or to review the work done on the vehicle. In addition, service advisors are less likely to notify Gen Y customers when their vehicle will be ready or to keep them informed of the status of their vehicle service.

Our assumption, says Sutton, is that advisors are skipping process steps because they presume that younger customers will be unwilling or unable to pay for additional recommended services. By pre-qualifying the younger customer, dealerships may be sacrificing incremental service revenue today.

Gen Y customers will then “punish” the dealership by being less likely to return for future service. Only 48% of Gen Y customers say they “definitely will” return to the dealer for paid service, while 65% of customers, who are age 36 and older, indicate that they “definitely will” return to the dealer for paid service.

While process execution is certainly not the only reason for intended loyalty (demographic characteristics may play a role), these service process and interaction elements are within the control of dealership personnel.