Look, engage, drive

For ten years in a row Lexus has come top in JD Power’s study of customer satisfaction in the automotive industry. Its founding promise is to “treat each customer as we would a guest in our home” and the brand wants to live up to it.

When Lexus briefed Grass Roots it was competing with the heritage offered by other top-end brands such as Jaguar. Lexus needed to communicate its core value – the highest levels of customer satisfaction – to set the brand apart.

To help maintain its levels of service Lexus wanted to understand and measure its customers’ experiences in a fast and accurate way following any interaction with the brand. The company’s aim is to hear the true voice of the customer and to respond accordingly. So, instead of prioritising scores, the programme needed to highlight issues so they could be resolved immediately. The programme was required to deliver at all levels, enhancing the relationship of local Lexus Centres with their customers, while giving Lexus valuable insight into satisfaction levels.

The brief
We were to establish a comprehensive programme to monitor and maintain high levels of customer service and measure the customer experience delivered by all Lexus Centres in the UK.

The programme had to reflect the priorities of customers and allow them to feed back promptly after each event. Customers were to be given a choice of ways to respond. Surveys were not to be lengthy or intrusive, and were to be flexible enough to capture everything the customer might wish to share. The programme had to engage dealers and allow them to respond quickly.

The approach
Lexus uses the phone as the preferred initial method of contact (as indicated by the initial customer research). Postal surveys have also been used traditionally and an online solution will soon be deployed.

Grass Roots’ contact centre agents aim to make contact with all Lexus’ new retail car buyers as well as a sample of LexusCare service customers and buyers of approved second-hand vehicles. Agents go through Lexus’ brand immersion training.

Around 2,000 Lexus surveys are carried out per month depending on sales volumes, with peak times in March and September coinciding with new registration plate releases.

Using simple phone interview techniques, each survey is limited to just three questions:

1. Are you completely satisfied with the service you have received?
2. Would you re-use the centre?
3. Would you recommend the centre?

Interviews are structured but allow customers to dictate the flow of conversation. Using this method provides Lexus with an insight into the experiences of its customers and lets them know that their views are being listened to. The customer comes first, not the survey. There is an option for callbacks and other methods of survey available if required.

Any response below ‘completely satisfied’ is automatically red-flagged for follow-up. When a red flag is raised the call is immediately referred to the appropriate Lexus Centre or to the customer relations department (according to the preference of the caller). Lexus then contacts the customer. Grass Roots conducts a further sample of calls to customers who have been through this process to ensure that Lexus’ standards are met.

Recent focus groups showed customers were satisfied with the survey methodology and the duration and format of the questionnaire.

Calls are recorded, enabling results to be reviewed over the internet in conjunction with the corresponding report.

All questionnaires include the three questions from the phone survey and allow the customer to nominate a member of staff who gave exceptional service. The results are fed back to Lexus Centre managers so that they can reward team members.

In the process of conducting the telephone interviews the team also cleanses and matches the Lexus customer data files received directly from individual Lexus Centres. Weekly call and results statistics are also available to head office in addition to the daily feedback.

Alison Bater, the account manager at Grass Roots who oversees the measurement programme, says call centre agents have developed a real understanding of Lexus’ customer base, allowing them to deliver “more meaningful qualitative information”. Lexus also lends cars to allow staff to get to know product features and better understand the customer’s viewpoint.

Every quarter the ten worst-performing Lexus Centres are noted and followed up by both Lexus and Alison Bater to ensure all comments have been taken into consideration and any outstanding issues have been resolved. Customers who have made any negative comments may even receive a call from the senior Lexus management team to ensure they are happy.

The findings
The results show high levels of customer satisfaction, with monthly complete customer satisfaction scores of around 97%. Timely, actionable data is provided to Lexus Centres, flagging any customer issues that need to be addressed quickly. The data can also be tracked over time and combined with other information to produce a composite score.

“Customers were required to pay extra for car mats when they bought their vehicle – rather surprising, as the car specification included pretty much everything else. As a direct result of customer feedback the specification was changed”

The next challenge to arise is how to improve these standards, which is where the qualitative element of the programme comes in. Even if they have said they are ‘completely satisfied’, customers will often leave additional comments that can help the centre improve. Customer comments have been of great value in helping Lexus improve its proposition. In the early days of the programme, for instance, customers were required to pay extra for car mats when they bought their vehicle – rather surprising, as the car specification included pretty much everything else one could imagine. As a direct result of customer feedback the specification was changed.

On the other hand, positive feedback following good experiences plays an invaluable part in motivating the team to continue performing well.
Other comments range from requests for new products and services to advice on how to improve specific models. Whether comments are positive or negative, the granular level at which results are reported allows Lexus to provide the personal attention that customers seek. It is well known that most consumers do not believe that their feedback is acted upon – the Lexus programme aims to fly in the face of that perception.

The outcome
Lexus has seen tangible improvements in its satisfaction ratings and, with it having won the JD Power study ten years running, its customers clearly appreciate the fact that their opinions are listened to and acted upon. The programme has enhanced the relationship with the customer, driving loyalty and advocacy rates across the customer base.

The programme has been in operation for seven years and the ongoing measurement process ensures that Lexus maintains high levels of customer service. Richard Horner, national manager of LexusCare, said: “We have always been wary of measuring customer satisfaction; league tables and percentages don’t tell you about the feelings of the customer. We have a system with Grass Roots that not only measures customer perception but allows us to improve the customer experience.”

Lexus does not take its position for granted and continues to push for complete customer satisfaction, working closely with Grass Roots on new and innovative ways to lead the automotive pack. As the programme continues, new content, methods and technology will allow Lexus to maximise the impact and usability of this powerful research and performance improvement programme.