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MERCEDES-BENZ DEALERS RANKED HIGHEST BY 2015 PIED PIPER PSI® --MINI, BMW, LEXUS MOST IMPROVED--
July 2015
MONTEREY, CALIFORNIA – July 6, 2015 – For the seventh consecutive year, Mercedes-Benz dealerships ranked highest in the newly released 2015 Pied Piper Prospect Satisfaction Index® (PSI®) U.S. Auto Industry Benchmarking Study, which measured treatment of car-shoppers who visited 6,370 dealerships throughout the country. Study rankings by brand were determined by the patent-pending Pied Piper PSI process, which ties “mystery shopping” measurement and scoring to industry sales success. Infiniti and Lexus dealerships, the luxury brands from Nissan and Toyota respectively, were ranked second and third.
Brands showing the most improvement year-to-year were Mini, BMW, Lexus, Chrysler, Dodge, Lincoln and Ram. Brands with the greatest declines year-to-year were Volvo, smart, Jaguar and Cadillac. Eight brands have consistently ranked at or above the industry average for each of the past five years: Mercedes-Benz, Infiniti, Lexus, Toyota, BMW, Volkswagen, Honda and Cadillac.
Brand average scores are used for PSI rankings, but individual dealership performance varies within each brand, and the percentage of strong or weak dealerships varies considerably from brand to brand. In addition to an overall score, Pied Piper assigns easy-to-understand letter grades, “A, B, C, D or F” to individual dealership PSI evaluations. Even brands with a low PSI ranking have individual dealerships consistently achieving “A” PSI evaluations, while brands ranked at the top of the industry still have individual dealerships recording “F” evaluations. Using the Tesla and Mercedes-Benz dealer networks as examples, despite a last-place PSI brand average ranking, 15% of the Tesla dealerships achieved “A” PSI evaluations, with a dealership PSI score over 130, while 20% recorded “F” evaluations, with a PSI score below 50. In contrast, for the top-ranked Mercedes-Benz dealer network, 39% of the dealerships achieved an “A” evaluation, while only 4% scored an “F.”
Industry average dealership performance increased from 2014 to 2015, with the industry average PSI score increasing from 100 to 101. Of the 50+ PSI factors that generate a PSI score, the following are examples of new highs and new lows measured this year:
Salesperson behaviors more likely in 2015 than in any previous year:
• Offered a test drive (occurred 94% of the time). Highest scoring brands for category: smart, Chrysler, Honda. Lowest scoring brands for category: Tesla, Land Rover, Mitsubishi
• Provided reasons to buy from this dealership (occurred 51% of the time). Highest scoring brands for category: Lexus, Infiniti, Hyundai. Lowest scoring brands for category: Tesla, Porsche, Volvo
• Suggested sitting down at a desk (occurred 83% of the time). Highest scoring brands for category: Mercedes-Benz, Nissan, Toyota. Lowest scoring brands for category: Tesla, Mitsubishi, Land Rover
Salesperson behaviors less likely in 2015 than in any previous year:
• Asked how vehicle will be used (occurred 72% of the time). Highest scoring brands for category: Ram, smart, Chrysler. Lowest scoring brands for category: Volvo, Mitsubishi, Chevrolet
• Asked why prospect considered brand (occurred 59% of the time). Highest scoring brands for category: Volvo, Hyundai, MINI. Lowest scoring brands for category: Mitsubishi, Ram, Chevrolet
• Offered printed materials for shopper to take with them (occurred 47% of the time). Highest scoring brands for category: Jaguar, Porsche, Land Rover. Lowest scoring brands for category: Tesla, Volvo, smart
“Top performing dealerships define specific sales steps to be followed by their salespeople,” said Fran O'Hagan, President and CEO of Pied Piper Management Company LLC. “Less successful dealerships allow a ‘Wild West' approach where each salesperson decides how to sell.” Pied Piper has found that on average, when auto dealerships are ranked by their PSI score, dealerships in the top quarter sell 16% more vehicles than the dealerships in the bottom quarter.
The 2015 Pied Piper PSI U.S. Auto Industry Study was conducted between July 2014 and June 2015 using 6,370 hired anonymous “mystery shoppers” at dealerships located throughout the U.S. Examples of other recent Pied Piper PSI studies are the 2015 Pied Piper PSI U.S. Motorcycle Industry Benchmarking Study, in which Ducati dealerships were ranked first, and the 2015 Pied Piper PSI Internet Lead Effectiveness™ Benchmarking Study (U.S. Auto Industry), in which Toyota's Lexus dealer network was ranked first. Complete Pied Piper PSI industry study results are provided to vehicle manufacturers and national dealer groups. Manufacturers, national dealer groups and individual dealerships also order PSI evaluations as a tool to improve the sales effectiveness of their dealerships. For more information about the Pied Piper Prospect Satisfaction Index, and the patent-pending PSI process, go to www.piedpiperpsi.com/.
Brands showing the most improvement year-to-year were Mini, BMW, Lexus, Chrysler, Dodge, Lincoln and Ram. Brands with the greatest declines year-to-year were Volvo, smart, Jaguar and Cadillac. Eight brands have consistently ranked at or above the industry average for each of the past five years: Mercedes-Benz, Infiniti, Lexus, Toyota, BMW, Volkswagen, Honda and Cadillac.
Brand average scores are used for PSI rankings, but individual dealership performance varies within each brand, and the percentage of strong or weak dealerships varies considerably from brand to brand. In addition to an overall score, Pied Piper assigns easy-to-understand letter grades, “A, B, C, D or F” to individual dealership PSI evaluations. Even brands with a low PSI ranking have individual dealerships consistently achieving “A” PSI evaluations, while brands ranked at the top of the industry still have individual dealerships recording “F” evaluations. Using the Tesla and Mercedes-Benz dealer networks as examples, despite a last-place PSI brand average ranking, 15% of the Tesla dealerships achieved “A” PSI evaluations, with a dealership PSI score over 130, while 20% recorded “F” evaluations, with a PSI score below 50. In contrast, for the top-ranked Mercedes-Benz dealer network, 39% of the dealerships achieved an “A” evaluation, while only 4% scored an “F.”
Industry average dealership performance increased from 2014 to 2015, with the industry average PSI score increasing from 100 to 101. Of the 50+ PSI factors that generate a PSI score, the following are examples of new highs and new lows measured this year:
Salesperson behaviors more likely in 2015 than in any previous year:
• Offered a test drive (occurred 94% of the time). Highest scoring brands for category: smart, Chrysler, Honda. Lowest scoring brands for category: Tesla, Land Rover, Mitsubishi
• Provided reasons to buy from this dealership (occurred 51% of the time). Highest scoring brands for category: Lexus, Infiniti, Hyundai. Lowest scoring brands for category: Tesla, Porsche, Volvo
• Suggested sitting down at a desk (occurred 83% of the time). Highest scoring brands for category: Mercedes-Benz, Nissan, Toyota. Lowest scoring brands for category: Tesla, Mitsubishi, Land Rover
Salesperson behaviors less likely in 2015 than in any previous year:
• Asked how vehicle will be used (occurred 72% of the time). Highest scoring brands for category: Ram, smart, Chrysler. Lowest scoring brands for category: Volvo, Mitsubishi, Chevrolet
• Asked why prospect considered brand (occurred 59% of the time). Highest scoring brands for category: Volvo, Hyundai, MINI. Lowest scoring brands for category: Mitsubishi, Ram, Chevrolet
• Offered printed materials for shopper to take with them (occurred 47% of the time). Highest scoring brands for category: Jaguar, Porsche, Land Rover. Lowest scoring brands for category: Tesla, Volvo, smart
“Top performing dealerships define specific sales steps to be followed by their salespeople,” said Fran O'Hagan, President and CEO of Pied Piper Management Company LLC. “Less successful dealerships allow a ‘Wild West' approach where each salesperson decides how to sell.” Pied Piper has found that on average, when auto dealerships are ranked by their PSI score, dealerships in the top quarter sell 16% more vehicles than the dealerships in the bottom quarter.
The 2015 Pied Piper PSI U.S. Auto Industry Study was conducted between July 2014 and June 2015 using 6,370 hired anonymous “mystery shoppers” at dealerships located throughout the U.S. Examples of other recent Pied Piper PSI studies are the 2015 Pied Piper PSI U.S. Motorcycle Industry Benchmarking Study, in which Ducati dealerships were ranked first, and the 2015 Pied Piper PSI Internet Lead Effectiveness™ Benchmarking Study (U.S. Auto Industry), in which Toyota's Lexus dealer network was ranked first. Complete Pied Piper PSI industry study results are provided to vehicle manufacturers and national dealer groups. Manufacturers, national dealer groups and individual dealerships also order PSI evaluations as a tool to improve the sales effectiveness of their dealerships. For more information about the Pied Piper Prospect Satisfaction Index, and the patent-pending PSI process, go to www.piedpiperpsi.com/.
