Maritz Research:High Customer Satisfaction Helps Dealers Keep Doors Open

Auto Dealers` Survival Depends on Satisfied Customers
ST. LOUIS--(Business Wire)--
Domestic auto dealers with lower customer satisfaction went out of business
three times as much as dealers with high customer satisfaction ratings,
according to analysis by Maritz Research`s Automotive Research Group. The group,
which conducts customer satisfaction research for nearly three out of every four
vehicles sold in the United States, recently analyzed its domestic dealership
customer satisfaction data from the past three years.

The findings were striking. While dealerships at all levels went out of business
in 2008 - close to 1000 dealers according to the National Automobile Dealers
Association - the dealers that scored in the bottom 10 percent for customer
satisfaction went out of business at a rate almost three times that of
dealerships that scored in the top 10 percent. Also, going-out-of-business rates
grew rapidly for those dealers receiving mid to low customer satisfaction
scores.

"The industry has long known that satisfying customers is related to loyalty and
repeat purchase at the individual customer level. Take care of customers at the
time of sale and they are more likely to come back for service and for the next
vehicle," said David Ensing, strategic consulting director for the Maritz
Automotive Research Group. "With even more dealerships closing this year, the
industry is under unprecedented pressure to satisfy customers and keep business
alive."

By combining data across domestic manufacturers` programs, Maritz Research was
able to identify virtually every dealership that went out of business (970
dealers) during 2008 and then compare those dealers to the majority that did not
close. Maritz Research examined 2006 and 2007 customer satisfaction statistics
for each domestic manufacturer`s dealerships. The company then compared customer
satisfaction among dealerships that went out of business to those who remained
in business in 2008. Researchers looked at both 2006 and 2007 data to be sure
the effects weren`t caused by cutbacks in the final months leading up to a
dealership`s demise. While there were some differences between the two years,
the overall effects were quite similar.

According to Ensing, many people assume that sales volume determines a
dealership`s likelihood to survive difficult economic times. According to this
analysis, however, while retail sales volume is related to dealerships going out
of business, customer satisfaction has an additional impact - especially for
mid- and lower-volume dealers.

"To our knowledge, Maritz Research`s analysis is the first time anyone has shown
the importance of customer satisfaction to a dealership`s ability to survive an
economic downturn," said Ensing. "While media reports have alluded to this
correlation between poor customer service and dealer closings, our analysis
proved it," he added. "As more dealership closings loom on the horizon, dealers
that focus on high-quality customer service will have a better chance of
survival in this economy than those who focus solely on sales volume."

About Maritz Research

Maritz` Automotive Research Group (ARG) is one of the world`s leading providers
of automotive consumer research and has measured customer satisfaction at the
automobile dealership level for over 30 years, currently covering nearly three
out of every four automobiles sold in the United States. In support of these
programs, Maritz conducts more than 30 million interviews each year via the
Internet, telephone, and mail. More than 17,000 North American and European
automotive dealers have access to their customer satisfaction analysis and other
research results on Web sites created and managed by Maritz. Based in Toledo,
Ohio, ARG also has offices in Detroit, Los Angeles, Toronto, Hamburg, and
London.

About ARG`s Customer Satisfaction Analysis

Each manufacturer currently conducts its own unique program using its own unique
scale so it is not possible to directly compare scores from one manufacturer`s
dealerships to those of a different manufacturer. Maritz Research focused on
dealerships` relative rankings within each domestic manufacturer. Thus, two
dealers who fell at the 25th percentile within their respective manufacturers`
dealerships were considered equivalent even though their scores were slightly
different. Maritz Research then split dealers into 10 equal groups according to
their customer satisfaction rankings (i.e., top 10 percent, next 10 percent,
etc.) and examined the rates at which dealerships went out of business across
each decile.

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Maritz Research
Jennifer Larsen, 636-827-1523
jennifer.larsen@maritz.com

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