The Meaning of CSI

CSI is seen as both a blessing and a curse in the automotive industry.  It is a way for both automakers and autodealers to identify areas where their performance may be lacking; it also means that the manufacturer or dealer must accept responsibility for any problem areas.  With the global automotive market growing increasingly competitive, the balance of power has shifted in favor of the customer.  The slightest edge can mean the difference between market dominance and financial disaster.  Manufacturers and dealers must respond to the demands of their customers, not just market conditions – hence, CSI’s prevalence as a diagnostic tool for dealership and manufacturer operations.

CSI surveys are widely used as market predictors to establish the trends of the consumer on the local, regional, and national levels.  This allows the manufacturer’s research and development to tailor its products to the specifically to the demands of its customers.  Many companies consider CSI to be an asset of the organization, to be managed just as any other valuable asset.

CSI’S  EFFECT ON THE DEALERSHIP

CSI is a dealership’s report card from the customer.  It measures the dealership’s effectiveness by asking the customer to rate every aspect of his experience, including everything from sales to service.  Employee competence, product satisfaction, and general treatment received by the customers are some of the most commonly rated areas. 

Follow-up surveys are the most common instrument used to determine CSI.  These surveys are sent either directly by the manufacturer, or through outside companies contracted by the manufacturer, such as J.D. Power.

Dealerships also use other forms of customer feedback – including their own surveys, letters, phone calls, faxes and e-mails – to evaluate their CSI.  The data gathered from these diagnostics is then used to train or discipline staff members with poor ratings, while rewarding those with outstanding reports.

Typically, the dealership’s CSI research is conducted shortly after the sale and prior to the customer receiving the manufacturer’s survey.  This enables the dealership to resolve any issues before the customer responds to the manufacturer’s CSI survey.  

CSI makes it very apparent, very quickly, how the dealership is responding to the needs and wants of their customers.  It is important to know where the organization needs improvement, but it is equally important to know what the dealership is doing right.  Using the CSI survey as a predictor model, you can develop components for future plans which will ensure that customer expectations are exceeded.  This will result in greater repeat and referral business.

Just as the dealership uses CSI surveys to address poor performance and reward high scorers, manufacturers use their own CSI surveys to determine which dealerships are successful and which need improvement.  This influences a dealership’s rank when it comes to receiving the most sought-after inventory, as well as the number of vehicles sent to the dealer.  A dealership with consistently high CSI scores will receive the most desirable inventory, which will, in turn, give them a more competitive edge.  Conversely, the manufacturer will be reluctant to commit resources to a chronically underperforming dealership.   If the issues leading to the consistently low CSI scores remain uncorrected, such a dealership will face the threat of having a consistently lower caliber of inventory to attract new customers, compounded by the loss of repeat/ referral business due to the inefficient practices that caused the low CSI scores.

Should the CSI survey reveal faulty performance and a subsequent failure to achieve the standards set forth by the manufacturer, the dealership may face punitive measures.  These can range in impact from failure to receive preferred inventory allocations to financial penalties.

The bottom line is that putting the customer first improves CSI figures, promotes repeat and referral business, and contributes substantially to the dealership’s overall profitability.