Demonstrations are critical in outlining the products’ USPs and ensuring customers get the most from their new tractor
Tractor OEMs and dealers need to find new ways to promote their product. Their offerings should make it easier for farmers to choose the right tractor model based on their specific requirements. One way to take advantage of this value creation opportunity is by offering detailed product demonstrations that comprehensively explain the product features and specifications and educate customers on the correct usage of their tractors for their respective applications. Tractor demonstrations provide dealers with an opportunity to engage with prospective customers at a stage where they are still contemplating their ideal tractor brand and effectively influence their decision by showcasing and leveraging their brand’s unique competitive advantages.J.D. Power’s India Tractor study finds that tractor owners who report receiving a demonstration before choosing their tractor brand register a much higher Product Performance Index score (844) compared to those who did not receive the same (788). Moreover, customers who received a demonstration record a lower incidence of problems (47%) with their tractors, compared to those who did not (52%).Despite the benefits, however,the data shows that the frequency of offering demonstrations has dropped from 72% in 2016 to 61% this year.
Providing a differentiated and tailored customer experience right from the initiation of service
Providing a robust after-sales support is crucial for navigating through this competitive landscape. In order to reap a bountiful harvest for their business, dealers need to go that extra mile to serve customers and assure them of the brand’s continued support. A collaborative approach can offer dealers a strong platform to imbibe confidence and drive change in the sector.To achieve this, they should not only be willing to accommodate repair and servicing schedules as per the customers’ convenience, and onsite where necessary, but should also proactively contact tractor owners to remind them when their service visit is due. In fact, arranging service appointments in advance can help dealers better manage their workload especially during the peak seasons while reducing unnecessary breakdowns via preventive maintenance work.
However, this is not common practice, with only 7% of tractor owners stating that their dealer contacted them to arrange for a routine service appointment, down from 13% last year.Indeed, J.D. Power’s 2017 India Tractor Customer Service Index (CSI) Study notes that if dealers proactively contact the tractor owners to arrange for routine maintenance appointments, they can achieve greater customer satisfaction with after-sales service experience. The CSI score is 804 when the dealer contacts customers to arrange for servicing, which is higher compared to 795 when the customers call the dealer and 777 when the customers directly visit the dealer for their service or repair work.Thus, dealers who do reach out to customers proactively are not only in the minority, but also have a greater chance of delighting their customers.
Making every customer count by adding value at the time of service handover
Success in this hugely challenging sector requires the players to shift their focus from aggressive selling and maximizing short term revenue, to providing farmers with the highest return on their investment. This will eventually help them to establish credibility and scale-up profitably by creating a differentiated position in the customers’ mind space. An example of providing such an elevated service experience that is not only relatively easy to implement but also critical to satisfaction is returning the tractor to customers in a cleaner condition after servicing.Indeed, the 2017 India Tractor Customer Service Index (CSI) Study reveals that when the tractor is returned cleaner after servicing, the CSI score is 100 points higher compared to when it is returned not as clean or about as clean. Customers whose tractor is returned cleaner also display a higher likelihood to revisit and recommend the dealer than their counterparts who are not as happy with the tractor condition after service. Satisfaction with the amount paid for servicing is also higher among the former set of customers compared to the latter.Notwithstanding this uplift in satisfaction, just 35% of tractor owners surveyed in this year’s study state that their tractor was returned to them in a condition that was cleaner than when they took it in for servicing, a decrease of 6% from 2015.
Referrals drive purchase in rural markets, making superior customer experience an urgent imperative
As word-of-mouth still continues to be the predominant source of garnering information in rural communities, a poor customer experience with the product or service can severely tarnish the brand’s reputation and impact its long-term survival. Thus, to stay profitable in a sector that is weaved cohesively by a strong social fabric,its essential to provide reliable products that meet the unique needs of varied farming applications. OEMs and dealers that embrace innovative techniques which engage customers at every stage in the sales process and provide consistent after-sales support to ensure that farm calls are answered promptly can look at deepening their market penetration.With rural India being increasingly shaped by urban sensibilities and customers in the rural hinterlands being progressively exposed to higher quality of products and services across different categories, experiences in one industry are being effectively displaced by experiences in another. Thus, to manage these liquid customer expectations, the tractor industry needs to explore new dimensions of understanding and satisfaction of their target audiences whose experiences are constantly being shaped by their interactions across different sectors.
About J.D. Power
As a global leader in consumer insights, data, analytics, and advisory services, J. D. Power is dedicated to representing the voice of the customer and enabling clients to drive growth, visibility and service offerings. J.D. Power’s benchmarks are considered to be the key performance indicators within several industries, and our data and insights are used by companies worldwide to improve quality, satisfaction, and business performance.
