Tesla’s Unique Service Model Challenges and Surprises
Customers of Electric Vehicles Post More One-Star Reviews Than Those of Conventional Cars, Per the 2023 Widewail Voice of the Customer Report.
One-star reviews were left by 25% of consumers who purchased EV vehicles directly from manufacturers like Tesla and Rivian; this is much higher than the 7% benchmark set by the automotive industry.
One-star reviews account for 14% of traditional dealer-sold EV reviews, which is twice as many as one-star reviews for the traditional car-buying experience.
According to the customer review and reputation management solution’s 2023 Widewail Voice of the Customer Report, 14% of customers who bought an EV from a traditional car dealership and 25% of customers who left a one-star review after buying an EV from direct-to-consumer EV companies like Tesla or Rivian did so.
Because dealerships typically have 7% of their reviews that are one-star, the large number of negative reviews raises questions about the experience of purchasing and owning an electric vehicle.
Following a thorough examination of 8,009 Google reviews of 204 Tesla showrooms and service centers, several important elements surfaced that have a substantial influence on the customer experience within the ecosystem of the electric vehicle manufacturer.
When compared to conventional automotive practices, the analysis shows that Tesla’s digital-first service experience has a significant impact on customer feedback. Positive interactions with employees, the primary predictor of favorable reviews in the automotive industry, isn’t present in Tesla’s situation. Eighty percent of reviews that specifically address staff-related topics show this.
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Tesla’s business model primarily utilizes digital interfaces, unlike the industry standard of pleasant dealership interactions. The analysis reveals that Tesla‘s service scheduling app system significantly impacts customer interactions, reducing the human element and optimizing the scheduling process, resulting in a more positive dealership experience.
A specific dealership team member is mentioned in 57% of the positive reviews, according to the report, demonstrating the influence of one-on-one interactions on customer satisfaction. But, Tesla’s digital-first strategy, which prioritizes digital communication over in-person interactions, changes the nature of customer interactions and the elements that contribute to favorable reviews.
According to the research, Tesla’s distinctive service approach might unintentionally eliminate a critical component that has traditionally been the main source of favorable reviews in the automotive sector, even though it is effective in terms of digital accessibility and streamlined procedures.
The research offers significant perspectives on how customer expectations and satisfaction are changing in the context of Tesla’s unique digital-first service experience, particularly as the automotive industry develops.
Moments of positive ownership occur in other contexts. The 184 Tesla service locations continue to face significant, costly, and time-consuming problems despite the enthusiasm for new Teslas being shared on social media and the low-cost maintenance issues being resolved by mobile service teams.
Google user reviews of in-person experiences are almost 3.5 times more negative than those of traditional dealerships with one star.
Price. The cost of an in-person appointment can be high, as the average cost of replacing an EV battery pack is reportedly more than $5,000. One of the main causes of an unpleasant experience is sticker shock.
Low volume of reviews. The average number of reviews received by Tesla locations is just 2.6 per month, which is 14 times less than the leading 20% of dealers’ average of 28 reviews per month and less than half the industry benchmark of 9.6. Low volume lowers ratings because, in the case of a business without a review-generating strategy, dissatisfied customers are more likely to be represented.
Furthermore, the familiar customer experience is altered by the direct-to-consumer dealer model, which lowers satisfaction.
Matt Murray, CEO of Widewail, said, “It was surprising to see that their Google reviews revealed such a high percentage of dissatisfied customers, given Tesla’s strong brand, high virality, and top marks from trusted consumer media.” Even EV purchasers from conventional dealerships left noticeably more unfavorable reviews, which surprised us.
Our Voice of the Customer Report aims to illuminate what car buyers say about their experiences and assist dealers and customers in identifying potential pain points in the purchase and ownership process.
Positive interactions with employees are the most reliable indicator of favorable reviews, according to the 2023 Widewail Voice of the Customer Report. Clients value professional, courteous, and helpful staff; staff is mentioned in almost 80% of reviews.
The most frequently mentioned category in Google reviews is the customer’s interaction with a particular dealership employee, and it also has the biggest impact on positive reviews.
The majority of favorable evaluations of the service department highlight a satisfactory interaction with a particular employee, a successful auto repair, and an instance where wait times were within expectations. Compared with other dealership topics like inventory, loaner cars, or valet, staff experience is 12 times more predictive of a favorable outcome.
Negative reviews are mostly caused by poor communication, with the service department, costly or inadequate repairs, lengthy wait times, and price shocks being the most frequent problems. Unhappy customers are almost five times more likely than happy customers to express concerns about price, most likely due to unpredictable service department costs.
Positive reviews average 33 words, compared to 100 words for negative reviews. Negative reviews tend to contain more topic-specific mentions, which provide a more thorough explanation of the issues that were encountered.
Other important conclusions are that deals don’t make or break the customer experience and that interest rate hikes in the second quarter had no discernible effect on consumer sentiment. In 2023, pricing for cars meets customer expectations despite rising costs; the average cost of a new car is high at $48,451, up 61% from 2012.