Digitally engaged customers of auto lenders are more satisfied and loyal than customers using traditional channels, according to the J.D. Power 2023 U.S. Consumer Financing Satisfaction StudySM. Among customers who are digitally engaged, researchers found significantly higher levels of overall satisfaction, higher Net Promotor Scores®, and lower cost to serve.
Compared to brand detractors, auto loan brand advocates are 37% more likely to view statements on the lender’s mobile app, 38% more likely to pay their bills digitally, 59% more likely to receive digital account alerts, and 48% more likely to contact customer service on the company app. Customers who pay bills using the app have an average overall satisfaction score of 876 on a 1,000-point scale, 66 points higher than those who pay by check. The study found that concern over data security is a major barrier to digital adoption.
"In a challenging market, lenders’ focus turns to cost containment and reduction," said Patrick Roosenberg, Senior Director of Automotive Finance Intelligence at J.D. Power. "The key is to transition the traditional customer experience to a digital relationship. Customers who use their lender’s mobile app and website and sign up for alerts to manage their account are significantly more satisfied and have a lower cost to serve. It’s a win-win situation for both lenders and their customers."
Capital One Auto Financing ranked highest in customer satisfaction among mass-market lenders, followed by Ford Credit and NMAC. In the luxury car segment, BMW Financial Services scored highest, followed by Lexus Financial Services, and Chase Automotive Finance.
Read More on Loyalty360:
LendingClub®: Disruption and Innovation Shake Up Banking While Creating a Loyal Member Base
Loyalty Programs in Financial Services: Existing and Emerging Trends
Citizens Financial Banking Experience Survey Reveals Trends in Digital Banking a Sound Investment