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Lincoln Enjoys High Marks In Consumer Satisfaction

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On: Wed, Aug 29, 2012 at 10:38AM | By: Chris Weiss


Lincoln Enjoys High Marks In Consumer Satisfaction

Staring into the awkward split-mustache grille of the current generation Lincoln family, it's hard to believe that anyone could be completely satisfied with their Lincoln. After all, Lincoln is really a "me too" luxury brand that isn't all that serious about high-end luxury. But, according to a new survey, Lincoln's customers are more satisfied than any other auto brand's.

The American Customer Satisfaction Index finds that satisfaction among automobile and light vehicle consumers is up by 1.2 percent, tying 2009 for an all-time high average of 84.

"The difference between the industry’s high marks for customer satisfaction in 2012 versus 2009 is that customers are responding to better quality rather than price promotions," says ACSI founder Claes Fornell. "Overall industry sales are up compared to a year ago despite higher prices. An ongoing commitment to quality seems like a workable formula for sustaining both customer satisfaction and sales growth."

Both foreign and domestic brands score strong numbers, with more than 60 percent of brands enjoying increases when compared to 2011. Lincoln leads the pack with an index of 90. Other luxury/semi-luxury brands, including Lexus (89), Buick (87), Cadillac (86) and BMW (86) follow closely behind. Subaru is the lone non-luxury brand to appear in the top 3, tying Buick with an 87 index.

As if to ensure Lincoln doesn't get too cocky, ACSI mentions that its popularity may be the function of a loyal, but dwindling, customer base. In other words, it's easy to be popular when you're socializing in a small group of lifelong friends.

Thanks in part to the strong performance of Lincoln, the greater Ford group enjoys high marks, leading the three domestic brands with an 86 score (the Ford brand ducks just below the industry average with an 83). Chrysler brands score among the lowest in the survey but show strong gains from a year ago. Chrysler's overall index of 81 represents a 4 percent increase from 2011, and the 83 of the Jeep brand is a 5 percent increase and all-time high.

For more details on the numbers and how they compare, take a look at the full press release below.

PRESS RELEASE

Quality Improvement Boosts Customer Satisfaction for Automakers

Luxury Brands Head Industry List; Chrysler Gains but Still Plays Catch Up

ANN ARBOR, Mich. (August 21, 2012)—Customer satisfaction at the national level is exactly where it stood at the start of 2012, and as far back as two years ago, according to a report released today by the American Customer Satisfaction Index (ACSI). In the second quarter of 2012, aggregate customer satisfaction stays flat at 75.9 on a 0 to 100 scale, which won’t help revive consumer spending or the sluggish economy at large.

“The good news is that customer satisfaction is not contracting and that it remains at a generally high level,” says Claes Fornell, ACSI founder and author of The Satisfied Customer: Winners and Losers in the Battle for Buyer Preference. “While the U.S. economy is less likely to slip back into recession, its recovery will not speed up much either. If anxiety about the economy abated and overall customer satisfaction improved, this would lead to more demand, more household spending, and a quicker recovery.”

Better Quality Improves Outlook for Domestic & Foreign Nameplates

Customer satisfaction with the automobile and light vehicle industry improves for a second straight year, up 1.2% over last year to reach 84. The current score matches the industry’s all-time high from 2009 when aggressive dealer incentives, combined with the government’s “Cash for Clunkers” program, helped revive the recession-strapped auto industry.

The customer satisfaction gain spans both domestic and foreign nameplates, with about 60% of the brands showing upticks in their ACSI scores compared with 2011. Specifically, four of seven Asian nameplates, two of three European carmakers, and six of nine American brands all earn higher ACSI scores.

“The difference between the industry’s high marks for customer satisfaction in 2012 versus 2009 is that customers are responding to better quality rather than price promotions,” says Fornell. “Overall industry sales are up compared to a year ago despite higher prices. An ongoing commitment to quality seems like a workable formula for sustaining both customer satisfaction and sales growth.”

While domestic nameplates show the greatest improvement overall, they continue to trail both European and Asian cars. Among the U.S. automakers, Ford continues to hold the lead at 86 (+1%), followed by an unchanged General Motors at 84. Chrysler stays in last place overall, but makes the most progress in customer satisfaction with a 4% surge to 81.

Luxury Plates Set the Pace

As in previous years, luxury brands have the upper hand when it comes to pleasing customers. Lincoln recaptures the industry lead with a 5% gain to 90. The downside for Lincoln is that high satisfaction may reflect a loyal, but dwindling, customer base.

Toyota’s Lexus follows closely in second place at 89, up 2% from its industry-leading score last year. Likewise, GM’s Buick nameplate gains 2% to 87, while Cadillac dips 1% to 86. Germany’s BMW rebounds from a sharp decline a year ago by jumping 4% to tie Cadillac at 86. BMW regains its customer satisfaction prowess at the same time as the company achieves its second-best-ever operating profit.

Subaru’s score of 87 is the lone exception to luxury-plate dominance this year. The Japanese automaker rejoins the ACSI in 2012 after increasing its market share and beats its historic measures by 4 points or more.

Several automakers cluster at—or within 1 point of—the industry average of 84. The above-average group at 85 includes Hyundai (+2), Mercedes-Benz (-1%), Toyota (-2%), and Volkswagen (+1%). Those just below average at 83 are Ford (-1%), Honda (-2%), Jeep (+5%), and Nissan (-1%). GM’s Chevrolet rises 2% to match the average at 84. The ACSI loss for Toyota’s namesake brand is enough to strip away its number-one title from 2011, while Honda’s downturn places it below average for the first time in ACSI history.

“While Japan’s production is back on track after last year’s earthquake and tsunami, both Toyota and Honda have had quality issues as they race to recapture market share,” says Fornell. “These two automakers, once known for setting the bar for quality, have issued a large number of recalls over the past year. ACSI data show that recalls for quality defects have a negative impact on customer satisfaction for automobile manufacturers.”

Across-the-Board ACSI Gains for Still-Lagging Chrysler

While Ford and GM show a mixture of gains and declines across their nameplates, all three Chrysler brands move forward in 2012. The company’s Dodge and Chrysler nameplates improve 3% to 81 and 78, respectively, while Jeep accelerates 5% to 83—an all-time high. This rise in customer satisfaction marks a strong resurgence for Chrysler, which also is reflected in consumer demand. Chrysler’s year-to-date sales are up 28%, outpacing Ford and GM’s growth of 5% and 3%, respectively.

Nevertheless, Chrysler continues to play catch up in the overall ACSI rankings for the industry. Among its three brands, none meets or exceeds the industry average for customer satisfaction. Additionally, both Dodge and Chrysler continue to hug the bottom of the industry, posting the third-worst and worst scores this year. Sandwiched between the two, GM’s GMC product line tumbles 4% to 80.

Two Asian carmakers are nestled among the Chrysler brands at the low end of the industry list: Mazda and Kia at 82. While Mazda zooms up 4% this year to match its all-time ACSI high, the company continues to be a below-average performer compared with other brands.

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