With macroeconomic conditions continuing to make it difficult for auto lenders to maintain or increase profitability, all eyes have “turned to digital channels as the most cost-effective and efficient means to do so.”
According to the J.D. Power 2023 U.S. Consumer Financing Satisfaction Study, released today, customers who are digitally engaged “have significantly higher levels of overall satisfaction, greater Net Promoter Scores®1 and have a lower cost to serve than customers using traditional channels to manage their accounts.”
Patrick Roosenberg, senior director of automotive finance intelligence at J.D. Power, said:
“In a challenging market, lenders’ focus turns to cost containment and reduction. The key is to transition the traditional customer experience to a digital relationship.”
Following are key findings of the 2023 study:
- Digital engagement is key to customer advocacy: Auto loan brand advocates, or promoters, are 37% more likely to view billing statements via their lender’s app; 38% more likely to pay their bill digitally; 59% more likely to receive digital account alerts; and 48% more likely to contact customer care via the lender’s app than brand detractors.
- Data security among top concerns for digital customers: Ensuring that personal information is protected is paramount for lenders looking to build digital engagement. One of the major barriers to digital adoption among auto loan customers is that their personal data is secure.
BMW Financial Services ranks “highest in customer satisfaction among luxury brands, with a score of 876. Lexus Financial Services (875) ranks second and Chase Automotive Finance (870) ranks third.”
Capital One Auto Finance ranks highest “among mass market, with a score of 877. Ford Credit (867) ranks second and NMAC (865) ranks third.”
The U.S. Consumer Financing Satisfaction Study “measures overall auto financing customer satisfaction in five factors (listed alphabetically): account management and communication; application/approval process; billing and payment process; customer orientation process; and customer service experience.”
The study was fielded “in July-August 2023 and is based on responses from 11,012 customers who financed a new or used vehicle through a loan or lease within the past three years.”
As covered, J.D. Power claims it is “a global leader in consumer insights, advisory services and data and analytics.”
A key player focused on the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power claims it “has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years.”
J.D. Power notes that it “has offices in North America, Europe and Asia Pacific.”