Troy van der Westhuyzen, Managing Director at MVIA Insure

With over 74% of South African consumers considering switching vehicle brands due to factors like high servicing costs, attractive incentives from new brands, and poor customer experiences, the real challenge for automotive brands isn't just winning the sale - it’s keeping customers loyal long after they drive off the lot. How can brands rise above the competition and build lasting relationships with their customers?  

Spoiled for choice, consumers are more empowered than ever, making aftersales services a critical component in securing customer loyalty. As new brands enter the market offering competitive pricing and compelling incentives, established players must ensure their service experience solidifies customer loyalty beyond the initial sale.

Aftersales Services Drive Customer Retention

Aftersales services, including maintenance, repairs, warranties, and roadside assistance, are much more than operational necessities – they are key differentiators in the automotive sector. Findings from Deloitte’s 2024 Global Automotive Consumer Study for South Africa, indicate that the top additional services consumers plan to purchase with their next vehicle include:

• Service plans (59%)

• Roadside assistance (46%)

• Credit protection (36%)

This suggests that customer satisfaction is largely driven by aftersales interactions.

However, with 11% of consumers switching brands due to high servicing costs, addressing this pain point through cost-effective service plans is essential. Furthermore, 78% of consumers are more likely to make repeat purchases from businesses that personalise their offerings, highlighting the need for service plans tailored to individual driving habits.  

Additionally, providing value-added services such as maintenance plans, brake and wiper cover, and roadside assistance can counteract the attractive incentives offered by new brands.

Customer-centricity: The competitive edge

A customer-centric aftersales services model ensures that customers feel valued throughout their relationship with a brand, not just at the point of purchase. For automotive brands to succeed in a cutthroat market, aftersales services must be designed with the customer’s needs and convenience in mind, especially since 88% of customers state a positive service experience would make them more inclined to buy again. This includes faster turnaround times for claims processing, along with accessible and friendly customer support.  

That said, many automotive companies, particularly those focused on core manufacturing and sales operations, may struggle to provide the high-quality aftersales support their customers expect. Managing these services in-house diverts attention and resources from critical functions. Here, outsourcing client services can play a pivotal role in streamlining operations. By delegating aftersales responsibilities to specialised service providers, dealerships and manufacturers can improve efficiency and response times, allowing them to concentrate on their primary business objectives.

Even though only 3% of consumers cite poor customer experiences as their reason for ditching their current brand, the long-term impact on customer loyalty and revenue can be substantial. Outsourcing provides brands with an opportunity to meet customer expectations consistently. With dedicated teams managing aftersales enquiries and support, customers benefit from timely resolutions and specialised expertise, fostering trust and satisfaction. Every touchpoint – from scheduling a service appointment to interacting with customer service representatives – should reflect the brand’s commitment to excellence.  

As the automotive landscape continues to evolve, brands must adapt by focusing on more than just the sale. Customer-centric aftersales services are the key to not only keeping customers satisfied but turning them into lifelong advocates. By prioritising customer support, personalising value-added offerings, and outsourcing where needed, automotive brands can build stronger relationships and drive future success. The time to invest in these strategies is now – because in today’s market, loyalty isn’t just earned, it’s cultivated.

With over 74% of South African consumers considering switching vehicle brands due to factors like high servicing costs, attractive incentives from new brands, and poor customer experiences, the real challenge for automotive brands isn't just winning the sale - it’s keeping customers loyal long after they drive off the lot. How can brands rise above the competition and build lasting relationships with their customers?  

Spoiled for choice, consumers are more empowered than ever, making aftersales services a critical component in securing customer loyalty. As new brands enter the market offering competitive pricing and compelling incentives, established players must ensure their service experience solidifies customer loyalty beyond the initial sale.

Aftersales Services Drive Customer Retention

Aftersales services, including maintenance, repairs, warranties, and roadside assistance, are much more than operational necessities – they are key differentiators in the automotive sector. Findings from Deloitte’s 2024 Global Automotive Consumer Study for South Africa, indicate that the top additional services consumers plan to purchase with their next vehicle include:

• Service plans (59%)

• Roadside assistance (46%)

• Credit protection (36%)

This suggests that customer satisfaction is largely driven by aftersales interactions.

However, with 11% of consumers switching brands due to high servicing costs, addressing this pain point through cost-effective service plans is essential. Furthermore, 78% of consumers are more likely to make repeat purchases from businesses that personalise their offerings, highlighting the need for service plans tailored to individual driving habits.  

Additionally, providing value-added services such as maintenance plans, brake and wiper cover, and roadside assistance can counteract the attractive incentives offered by new brands.

Customer-centricity: The competitive edge

A customer-centric aftersales services model ensures that customers feel valued throughout their relationship with a brand, not just at the point of purchase. For automotive brands to succeed in a cutthroat market, aftersales services must be designed with the customer’s needs and convenience in mind, especially since 88% of customers state a positive service experience would make them more inclined to buy again. This includes faster turnaround times for claims processing, along with accessible and friendly customer support.  

That said, many automotive companies, particularly those focused on core manufacturing and sales operations, may struggle to provide the high-quality aftersales support their customers expect. Managing these services in-house diverts attention and resources from critical functions. Here, outsourcing client services can play a pivotal role in streamlining operations. By delegating aftersales responsibilities to specialised service providers, dealerships and manufacturers can improve efficiency and response times, allowing them to concentrate on their primary business objectives.

Even though only 3% of consumers cite poor customer experiences as their reason for ditching their current brand, the long-term impact on customer loyalty and revenue can be substantial. Outsourcing provides brands with an opportunity to meet customer expectations consistently. With dedicated teams managing aftersales enquiries and support, customers benefit from timely resolutions and specialised expertise, fostering trust and satisfaction. Every touchpoint – from scheduling a service appointment to interacting with customer service representatives – should reflect the brand’s commitment to excellence.  

As the automotive landscape continues to evolve, brands must adapt by focusing on more than just the sale. Customer-centric aftersales services are the key to not only keeping customers satisfied but turning them into lifelong advocates. By prioritising customer support, personalising value-added offerings, and outsourcing where needed, automotive brands can build stronger relationships and drive future success. The time to invest in these strategies is now – because in today’s market, loyalty isn’t just earned, it’s cultivated.