An individual’s willingness to pay a premium is driven by immediate needs. As today’s customer evolves, the focal aspects of premiumisation has shifted from functionality to experience. These aspect may translate as personalised convenience, omnichannel browsing or even exclusivity in customer support.
Differentiating at the right journey touchpoints is the key to value creation
Pre - purchase
Purchase
Post - purchase
Despite a strong overall performance, the segment score is low on the customer-prioritised attribute of website quality
Q1 - Was I able to assess my options well and arrive at a decision?
Voice of customer insights
Customers research online as well as within their social circle while assessing their requirements
- “I did a lot of research on different models. I asked a lot of people. I went through various sites before making my buying decision”
- “The site is a bit complicated and there is no way to know if it is official or unofficial. Many unofficial sites have been created, so it becomes a bit problematic."
Customers seek support from sales staff prior to making the final decision
- “The salespeople couldn’t explain the features to me well, else I would have chosen brand A”
- “Brand B salesperson just mentioned two or three things and gave a quotation. I didn't find it that interesting. Brand C on the other hand explained the features very well."
Customers highly value the showroom experience and financing options when making their purchase decisions
Q2 - Was the purchase experience smooth and comprehensive?
Voice of customer insights
Customers have cited that a visit to the showroom helped drive their decision
- “The showroom was very nice, and the management there was excellent. They showed us a lot of things, and also gave us a test drive so that we could see how it feels to drive it. That experience made me sure of my decision..”
Customers value seamless booking and payment experience
- “Bike's payment process wasn't as complicated as expected. We got the financing done without much hassle. It was done instantly because our credit score was good. So, everything being seamless was great as it was my first bike purchase.”
The quality of resolution and availability of spare parts are the most important aspects for customers post-purchase
Q3 - Did the brand's product and services meet my expectations?
Voice of customer insights
Customers appreciate prompt service support and quick complaint resolution
- “There was a slight problem with my engine, so I went to the service center. At the service center, their service was so fast that we went in the morning and got back by evening. Otherwise, the other services I've seen usually take around two or three days. For my friend’s bike, it took two days to fix the same engine problem”
- “I filed a complaint that the bike was hitting the speed breaker at the bottom. Even in the updated models, they are not rectifying that stand issue. This new model also has the same problem. If this continues like this, I will have to choose another brand.”
Availability of spare parts and resale value are important considerations for the customers
- "I like the Brand X. Wherever I need a replacement for a part, it is easy to find in the market. The resale value of Brand Y and Z is not good. That's why I always chose and recommend Brand X.”
Striking the right balance between delighting the customer and the cost of servicing them is key to maximising value
Performance of the segment on prioritised experience attributes
Brands can focus on the following prioritised attributes to maximise customer value
- Expand the vehicle portfolio to include to include electric and hybrid options, catering to the growing demand for eco-friendly transportation
- Improve service experience by implementing a streamlined and user-friendly service booking system, ensuring a quick and efficient maintenance and repairs
- Ensure responsive support by establishing a 24/7 customer support hotline with knowledgeable representatives to address customer queries and issues promptly
- Enhance trust and transparency by providing detailed information on vehicle performance, maintenance costs, and customer reviews on the official website.
Customer retention is low, with 58 per cent switchers seeking great performance from the vehicle, and empathetic support from staff
Customer segmentation based on satisfaction and loyalty
(percentage share of respondents)
Customer retention is dependent on their satisfaction with the brand and their tendency to explore alternatives. ‘Ambassadors’ are highly satisfied customers who will keep contributing to the brand’s success. ‘Switchers’, on the other hand, are always seeking better options. ‘Critics’ as the third segment, actively convey negative feedback about the brand if not satisfied. Finally, ‘Dependents’ are customers who remain loyal despite low satisfaction due to lack of alternatives in the market.
38 per cent of the customer base are strong ambassadors as their brand of choice meets their expectations on the vehicle performance, promised features and value for the price paid
However, 58 per cent of the customers are likely to substitute their preferred brand if it fails to meet their expectations
- Customers rely on the consistent quality of their vehicles for safety, performance, and durability. Any deviation in quality standards can lead to dissatisfaction and drive them to explore more reliable options
- Two-wheeler customers value attentive and understanding service, especially during purchase, maintenance, or issue resolution
- A trusted brand name instills confidence in customers. If the brand fails to uphold its reputation through poor product performance or misleading promises, customers may seek out competitors with stronger credibility.
Customers want brand to meet expectation while providing proactive support throughout the purchase journey
Performance across the KPMG in India's Six pillars of customer experience
(Weightage of the pillars to the overall experience requirements)
‘Expectation’ (23 per cent) and ‘Empathy’ (21 per cent) are the key pillars of experience influencing customers’ purchase decisions.
Brands can meet customer expectations by –
- Ensuring dealerships have sufficient inventory and are equipped to provide exceptional service and test drive experiences enhances customer satisfaction
- Providing intuitive websites and mobile apps for easy browsing, purchasing, and customer service creates a seamless experience
- Offering transparent pricing and flexible financing options makes two-wheelers more accessible to a wider customer base.
Brands can improve performance on the ‘Resolution’ pillar by –
- Providing dealerships with the tools, resources, and authority to handle customer issues locally, reducing resolution time and improving customer satisfaction
- Equipping customer service teams with comprehensive product knowledge and problem-solving skills to address issues efficiently and effectively
- Implementing systems and processes to minimise response and resolution times, such as automated ticketing and escalation mechanisms.
Brands can enhance value by offering helpful, personalised purchase experience, reinforced by responsive customer support
Top experience attributes influencing the customer’s willingness to pay
-
Helping, respectful and empathetic service from staff across online/offline channels
-
Responsive customer support with proactive resolution, turning a bad experience into a better one
-
Consistently bringing new-age, high performance vehicles to the market
-
Personalisation across point-of-sale in the form of product customisation, and discount offers
-
Complete delivery of promises made on brand/product experience for the money paid
Thoughtful and understanding interactions build trust and increase customers’ willingness to invest in a brand by 33 per cent.
25 per cent of the customers will pay premium if they believe that the brand will provide a high quality product and quick resolution of their concerns –
- Consistent quality assures that customers are getting the best possible product for their investment
- Timely and effective support builds trust and confidence, assuring customers that their concerns will be addressed quickly, making them more willing to pay for a reliable ownership experience.
For 23 per cent of customers, customised financing options or vehicle features aligned with their preferences enhance the sense of value and satisfaction
Customers prioritise brands that deliver on promises, with 22 per cent willing to pay more for a reliable brand.
Our customer experience (CX) insights across sectors
Key Contacts
- This content sets forth the views of KPMG based on the completeness and accuracy of responses received from the participants and any assumptions that were included. If any of the responses is not complete or accurate, it could have a material effect on our conclusions.
- In accordance with its policy, KPMG advises that neither it nor any partner, director or employee undertakes any responsibility arising in any way whatsoever, to any person in respect of the matters dealt with in this content, including any errors or omissions therein, arising through negligence or otherwise, howsoever caused.
- While preparing the content, we have assumed the authenticity of all the responses or information referred or provided. We have not independently verified the accuracy, completeness, correctness or authenticity of the same. We assume no responsibility for content or any responses or information referred or provided.
- We have not performed an audit and do not express an opinion or any other form of assurance. Further, content is not intended, nor should it be interpreted to be legal advice or opinion.
- In connection with the content or any part thereof, KPMG does not owe duty of care (whether in contract or in tort or under statute or otherwise) to any person or party to whom the content is circulated to and KPMG shall not be liable to any party who uses or relies on this content. KPMG hereby disclaims all responsibility or liability for any costs, damages, losses, liabilities, expenses incurred by such third party arising out of or in connection with the content or any part thereof.
- The content contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
- By reading the content the reader shall be deemed to have accepted the terms mentioned hereinabove.
KPMG Assurance and Consulting Services LLP, Lodha Excelus, Apollo Mills Compound, NM Joshi Marg, Mahalaxmi, Mumbai – 400 011 Phone: +91 22 3989 6000, Fax: +91 22 3983 6000.
© 2025 KPMG Assurance and Consulting Services LLP, an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.