TVS hits the road for loyalty

The two-wheeler maker has won customer patronage with relentless focus on after-sales service

TVS Motor Company stands third in the 16.5 million unit Indian two-wheeler market - way behind Hero MotoCorp and Honda - but survey after survey suggests the manufacturer is right at the top when it comes to customer satisfaction. For instance, earlier this year, it topped the JD Power 2016 India Two-wheeler Customer Service Index scoring 773 on a 1,000-point scale on overall customer satisfaction, ahead of an industry average of 748.

The launch of a 24/7 roadside assistance (RSA) programme by the company late last month reaffirms its claims of "customer-centricity", while pointing to how auto companies in India are giving more importance to an after-sales segment that has been traditionally dominated by independent garages and workshops.

TVS launched the programme across 70 cities. It plans to extend it to 200 cities this month and roll it out pan-India by March 2017. It is applicable to new and existing TVS scooters and motorcycles under warranty with no additional costs.

J S Srinivasan, vice-president, sales and service, TVS Motor Company, says, "As a company, we constantly strive to meet the evolving needs of the two-wheeler customer with our products and also boost their overall ownership experience. With more than 3,500 dealer touch points, we are confident of extending a 24/7 RSA programme, which will cater to the consumer's immediate requirements and also help them overcome any issue on the road."

Given that competitors such as Honda also have similar roadside assistance plans, how does TVS plan to differentiate itself in after-sales services? Srinivasan says, "Our customer centricity and focus on quality are the underpinning factors for better than industry average performance."

Arun Siddharth, vice-president-marketing (motorcycles), says TVS has launched a number of financial schemes to ensure affordability and sound financing across rural markets for the festive season. "A special 3.99 per cent interest scheme is available for all two-wheelers. A cheque-less EMI scheme is available at the rural dealerships (customers can pay EMIs in cash). Most of our rural retail financing is done through TVS Credit. We are offering special exchange offers to our customers during the festive season and have also intensified our marketing campaigns in select rural dealer outlets," he adds. TVS also launched a smartphone app this February to provide real-time information digitally to vehicle owners so that they don't have to rely on dealers or service centres.

Experts feel with growing competition and more demanding customers today, services need to be given equal importance as the products on offer. Abdul Majeed, partner, PwC India, believes having a roadside assistance programme is a good strategy, even though as a phenomenon it is yet to be a norm for auto makers unlike in developed markets. "The customers are now looking at not just the product but also how the services are rendered. If the service is not good, even if the product may be good people think twice before buying. Eventually, the way you service the customer plays an important role in her buying decision," he says. Customer initiatives including roadside assistance act as a boon, create good reputation for the brand and also give more confidence to customers, he adds.

Original equipment manufacturers (OEMs) are investing more in getting feedback from customers, and many are commissioning studies or also reaching out through dealers "If you sell and then disappear, it harms the customers because they are not getting the right services or genuine parts and OEMs lose out on a huge spare parts business sale. This is where they are realising that it is very important to address the customer and profitability issues, and today you need to build a strong connect with customers after selling your product," Majeed says.

In the absence of a sound after-sales strategy, he reckons companies could be losing seven out of 10 vehicle-owners who may look at repairs options elsewhere after the warranty period is over.

For companies, however, road assistance programmes would be more of a medium-term strategy of ensuring they protect the interest of the customer and do not lose revenue from spare parts as well as prevent spurious spare parts from entering their products, according to Rajeev Singh, partner and head of automotive sector, KPMG India.

While the auto industry heads toward a new direction driven more by technology and electronics, he adds, in the next three to five years a roadside assistance strategy would work fine until technological changes challenge it and competitors catches up. However, the positive for TVS is that it believes the point of sale is only the beginning, and not the end, for its relationship with customers.
OEMs caught in a dilemma: Rajeev Singh

Most OEMs in India are caught in a dilemma. At the high end, companies are clear that they do not want to go into roadside assistance at all, but in the mass market they are facing a challenge.

On the one hand, companies are saying "let me go ahead and support the roadside workshops" so that authorised parts are available, they don't lose on revenues or tarnish the brand image, and are able to extend their reach to customers; on the other, electronic components in vehicles, including two-wheelers, is much higher than before. So, the skill set required to repair such vehicles is completely different from the skill set required to fix traditional vehicles. Typically, one may not be able to repair a car with high electronic content at the roadside; one has to take it to the garage or authorised dealer.

Even two-wheelers are moving in that direction, where electronic content is going up and the skill to repair is becoming more technology-driven.

Rajeev Singh
Partner and head of automotive, KPMG India