Luxury vehicles losing luster in customer satisfaction

Customer satisfaction in the automobile industry has fallen again, though the decline was not as steep as last year. But if automakers think this is cause for celebration, they might want to pump the brakes.

After a 3.7% drop a year ago, with 21 of 27 nameplates recording ACSI declines, the industry sinks another 1.3% in 2020 to a score of 78 (out of 100), according to our most recent Automobile Report.

While only 17 brands incurred worse satisfaction scores this year, automobiles and light vehicles slump to an industry low that hasn’t been seen since 1999. And it’s luxury vehicles that need a tune-up most of all.

Slumping satisfaction across the whole luxury segment

In 2019, six luxury nameplates took a hit in driver satisfaction, and the segment fell just 1% overall to a score of 82. This year, things are much worse.

Luxury cars backtrack 4% overall to an ACSI score of 79. And no one was impervious to the fallout. All nine nameplates suffer worsening driver satisfaction year over year

Lexus, which leads the luxury segment and the auto industry for the fourth straight year, falls 2% to an ACSI score of 82 – its lowest score ever.

Mercedes Benz (80) and Infiniti (79) each slip 4%. BMW and Volvo both take significant knocks as well, dropping 5% each to 78, while last-place Lincoln falters 6% to an all-time low score of 77.

What’s even more interesting is that the gap between luxury and mass-market vehicles has all but disappeared.

Advantage over mass-market vehicles is shrinking

The luxury segment’s customer satisfaction long-time advantage over mass-market vehicles has narrowed considerably.

From 2008 to 2012, luxury cars led mass-market vehicles by an average of 4 points for driver satisfaction. That gap has shrunk to just 2 points in 2020, as customer satisfaction with mass-market vehicles dips just 1% to a score of 77.

In terms of the overall driver experience, the luxury segment sees declines pretty much across the board. And in many instances, the luxury vehicles benchmarks are now just above – or even equal to – those in the mass-market segment.

For example, in dropping 3% to 83 for driving performance, luxury vehicles now hold just a 1-point advantage over mass-market cars (82). The same goes for vehicle safety, with luxury vehicles down 2% to 83, just a single point ahead of the mass-market segment (82). Mass-market vehicles are also just 1 point behind luxury vehicles for mobile app quality (81 to 82), mobile app reliability (80 to 81), website satisfaction (81 to 82), and gas mileage (76 to 77).

Furthermore, luxury cars are no longer considered as dependable as they once were. Thanks to a 2% slide to 82, that benchmark is now the same as mass-market vehicles.

Problematic pattern of declines

Following the arrival of COVID-19, U.S. automobile industry sales took a huge hit in Q2 of 2020. While they rebounded a bit in July as the country started reopening, it doesn’t change the fact that the industry was hit hard and must still contend with a problematic, pre-existing period of customer satisfaction declines.

Although the luxury vehicle segment still outpaces its mass-market counterpart by wide margins in areas like comfort (84 to 81), interior (84 to 81), technology (82 to 78), and warranties (80 to 76), the overall gap in driver satisfaction is the smallest it’s been in years. Luxury doesn’t have the same luster it once did.

Social Media Spotlight: Why Facebook continues to miss the mark with users

The social media industry mirrored the overall e-business segment during COVID-19, experiencing foundering customer satisfaction despite surges in usage.

This continues a long-running trend.

Despite 79% of the American population having a social media profile as of 2019 – up 2% from the year before – customer satisfaction with social media slides 2.8% overall to a score of 70, according to our most recent E-Business Report. That mark puts social media among the bottom five of all ACSI-measured industries.

If this weren’t bad enough, social media has another problem: the sizeable gap between the first and last place individual platforms. Even with a 4% dip year over year, Pinterest (77) remains 13 points ahead of Facebook (up 2% to 64).

Facebook has its problems with privacy and advertising, among many controversies. But those aren’t the only reasons it continuously lags at the bottom of the social media industry. There are plenty of other reasons why customers aren’t satisfied.

Advertisements and privacy: An ongoing struggle

Users feel that the amount of advertising on social media sites improved slightly over the past year, rising 1.5% to 69. They also feel that privacy has gotten a tad worse, dipping 1.4% to the same score of 69.

Although these two customer experience benchmarks have inched in opposite directions lately, they remain the most dissatisfying aspects of social media overall. And Facebook scores the worst in both areas – by a wide margin.

With a score of 60 for advertisements, Facebook is six points worse than the next closet platform, Tumblr. It trails leaders Wikipedia and Pinterest by 15 points.

Facebook scores even worse in privacy, at 58. That’s 11 points below the industry average and 20 points less than top scoring Pinterest. Its closest competition is Twitter. However, there’s a 10-point gap between the two.

A content crisis

While not on the same level as advertisements and privacy, the freshness (73) and relevance (71) of content are also growing concerns among social media users. Facebook struggled mightily in these areas as well.

For content freshness, the social media site scored 66, seven points below the industry average. The next closet platform was Tumblr with a score of 69. Pinterest topped the category once again a full 10 points higher.

In terms of content relevance, Facebook scored much worse than its closest competitor, LinkedIn, with the former posting 63 and the latter 69. Who took top marks? You guessed it: Pinterest.

Mobile improvements aren’t enough

Social media users agree that mobile app performance remains the best aspect of the user experience. Mobile app quality ranks the highest, up 1.3% to 81. Mobile app reliability trails slightly but is still up 1.3% to 79.

Facebook progresses in both areas. However, it scores five points below the industry average and 10 points behind the leader.

Here are the facts: Customer satisfaction with Facebook climbed 2% year over year to a score of 64. But even with this jump, it can’t escape the bottom of both social media and the e-business category overall, proving that while advertisements and privacy issues are the main culprits, the social media giant has much more to fix if it hopes to turn around its customer satisfaction woes.