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  • 2013 U.S. Self-Directed Investor Satisfaction Study

    Overall Satisfaction with Self-Directed Investment Firms Decreases, as Communication with Investors Remains a Challenge

    2013-06-17

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    WESTLAKE VILLAGE, Calif.: 17 June 2013 — Overall investor satisfaction with self-directed investment firms decreases from 2012, as investment firms struggle to find the right method and frequency of communicating with investors, according to the JD Power & Associates 2013 U.S. Self-Directed Investor Satisfaction StudySM released today. 
    Key Findings
    • Self-directed investor satisfaction declines to 752 in 2013 from 768 in 2012.
    • Scottrade ranks highest in investor satisfaction with a score of 810.
    • Combining the desired frequency of contact with the preferred method of contact–e.g., email, phone or mail¬–has a positive impact on investor satisfaction.

    The study, now in its 12th year, measures investors’ satisfaction with their investment firm based on performance in six factors (in order of importance): interaction; account information; trading charges and fees; account offerings; information resources; and problem resolution. Overall satisfaction in 2013 averages 752 (on a 1,000-point scale), down from 768 in 2012.

    Challenges with effective communication are contributing to the decline in satisfaction. Although investment firms are offering more online tools and information for self-directed investors in 2013, the additional content and capabilities may actually make it more difficult to access the functions investors are seeking if a website is not easy to navigate and communication is not clear. For example, overall satisfaction declines by 72 points when website functions are difficult to locate. When investment firms do not communicate frequently enough and do not communicate via investors’ preferred methods, satisfaction declines by 62 points.   
    Further, the study finds that, industry-wide, performance in meeting several key communication-related metrics has declined from 2012, including:
    • The percentage of investors who say they “completely” understand their fee structure has dropped to 35 percent in 2013 from 39 percent in 2012.
    • The proportion of investment firms that have contacted investors two or more times in the past 12 months–the minimum standard–regarding products, services or educational seminars has declined to 34 percent from 39 percent, which impacts multiple aspects of a firm’s relationship with its investors.
    • The incidence of investor awareness/use of at least one financial planning tool has declined to 28 percent from 31 percent.
    “Investment firms miss an important opportunity to keep self-directed investors informed about fees, investor tools and other product offerings by not communicating in the manner and frequency that investors prefer,” said Craig Martin, director of the wealth management practice at JD Power. “Firms need to know how their investors would like to be notified—whether it occurs via email, phone or other means.  It’s important to contact investors proactively and at the appropriate frequency based on investor preference.” 
    The study also finds that the type of information firms are communicating is another important driver of satisfaction. For example, although 55 percent of investors indicate their firm offers investment education seminars to inform them about investment tools, news, guidance and research/analysis, only 7 percent of investors indicate attending one of these seminars. 
    “While, in theory, offering more tools and services may seem to be better, those offerings will have limited value if the features and benefits aren’t applicable to the majority of investors,” said Martin. “Investment firms need to understand the trading behaviors of their investors and provide them with information, tools and other capabilities that will address their highest priority needs. Taking a one-size-fits-all approach is likely to result in fewer investors being satisfied.”  
    For self-directed investors, JD Power offers the following tips:
    • Leverage the tools and resources, such as educational seminars, available from your investment firm to help you research, analyze and invest more prudently.
    • Make sure your investment firm knows your preferred method of contact–e.g., email, phone, or mail–so you will receive all communications in a timely manner.
    • Consider increasing the interaction with your investment firm’s local branch, which is an excellent resource for investment guidance.
    2013 Self-Directed Investor Satisfaction Rankings
    Scottrade ranks highest in self-directed investor satisfaction with a score of 810 and performs highest in the following study factors: interaction; account information; and trading charges and fees. Charles Schwab & Co., Inc. ranks second with a score of 797, followed closely by Vanguard at 795. 
    The 2013 U.S. Self-Directed Investor Satisfaction Study is based on responses from 3,619 investors who make all of their investment decisions without the counsel of an investment advisor. The study was fielded in January and February 2013.
     

    About JD Power

    JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
    Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]  
    John Tews; Troy, Mich.; (248) 680-6218; [email protected] 

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/corporate

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  • 2013 U.S. Business Wireline Satisfaction Study

    Bundling and Network Quality Drive Higher Satisfaction among Wireline Business Customers

    2013-06-13

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    WESTLAKE VILLAGE, Calif.: 13 June 2013 — Overall satisfaction with their telecommunications service provider is higher among business wireline customers who bundle their voice and data services, according to the JD Power 2013 U.S. Business Wireline Satisfaction StudySM released today. 
    Key Findings
    • Forty percent of customers have not experienced any instances of slow network performance during the past 6 months.
    • Among customers who bundle services, the average overall satisfaction score is 668.
    • Network quality is more important than ever, as customers who experience only one service outage consider switching providers.

    The study measures customer satisfaction with providers of telecommunications voice and data services in three segments: very small businesses (companies with between one and 19 employees, with a corporate service plan); small/medium businesses (companies with between 20 and 499 employees); and large enterprise businesses (companies with 500 or more employees). Satisfaction is measured across six factors: performance and reliability (23%); cost of service (21%); sales representatives and account executives (19%); billing (14%); communications (14%); and customer service (10%). In 2013, overall customer satisfaction averages 661 (on a 1,000-point scale).

    The ability of business wireline customers to bundle their voice and data services has an impact on overall satisfaction and customer loyalty. Among business customers bundling their services, satisfaction is 668, compared with 660 among those purchasing only data services from a single provider, and 653 among those purchasing only voice services from a single provider. Average performance in four of six factors (performance and reliability; sales reps and account execs; billing; and communications) is highest among customers bundling their services. 
    According to the study, wireline business customers’ desire to bundle services is increasing. In 2013, 15 percent of customers indicate that their main reason for selecting their provider was the ability to bundle services, up from 6 percent in 2012. Along with lower price, the convenience and simplification of service bundling is also driving purchase decisions as to which company to choose. Additionally, business customers that bundle data and voice services are less likely to contact their service provider with customer service needs, which can lower overhead for providers. These customers are also the most loyal to their service provider, with 21 percent saying they “definitely will not” switch providers in the next 12 months—a higher percentage than any other group.
    “Bundling offers businesses the convenience of having a single contact and bill for multiple services, which streamlines and simplifies the company’s day-to-day telecom management,” said Kirk Parsons, senior director of telecommunications services at JD Power. “In many cases, businesses experience a cost savings, as most wireline providers will offer incentives to customers who bundle services. Combined, these factors contribute to a more satisfied and loyal customer.” 
    Performance and reliability of the network remains a crucial component in ensuring business customer satisfaction. Among business customers that purchase voice services and that experience more than one lengthy outage, 32 percent indicate they are likely to switch providers in the next 12 months, while only 10 percent of those that experience no outages indicate they will switch. Among business customers that purchase data services and that experience lengthy outages, the percentage indicating they are likely to switch providers in the next 12 months is more than double that among those that do not experience lengthy outages (24% vs. 10%, respectively). 
    The study finds that overall satisfaction among business customers that purchase data services and that have experienced slow network performance at least once within the past 6 months is 615, compared with 725 among those that did not experience any slow network performance. 
    “While network quality and speed are better than ever, business customer expectations are higher than they’ve ever been,” said Parsons. “The occasional service outage or slow network that was once acceptable is now sufficient motivation for customers to seek alternative data and voice providers because it is so critical to business continuity.”
    Business Wireline Customer Satisfaction Results
    Cox ranks highest in customer satisfaction in both the very small business and small/medium business segments, performing particularly well in performance and reliability, and billing. Optimum Business follows Cox in the very small business segment, while Verizon ranks second in the small/medium business segment. 
    In the large enterprise business segment, Time Warner Cable ranks highest in overall satisfaction and performs particularly well in five of the six factors: performance and reliability; billing; sales representatives and account executives; cost of service; and customer service. 
    The 2013 Business Wireline Satisfaction Study is based on responses from 4,784 business customers of data and voice services at very small, small/medium, and large enterprise businesses in the United States and includes evaluations of their data and voice service providers. The study was fielded in October 2012 and March 2013.

    About JD Power

    JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    John Tews; Troy, Mich.; (248) 680-6218; [email protected]
    Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/corporate

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  • 2013 Georgia Natural Gas Retailer Residential Customer Satisfaction Study

    Georgia Natural Gas Retailers Improve Customer Communications

    2013-06-12

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    WESTLAKE VILLAGE, Calif.: 12 June 2013 — Georgia natural gas retailers are contacting their customers more frequently, increasing customer satisfaction with communication from their gas provider, according to the JD Power & Associates 2013 Georgia Natural Gas Retailer Residential Customer Satisfaction StudySM released today.

    Key Findings
    • Overall customer satisfaction among natural gas customers in Georgia averages 692 on a 1,000-point scale.
    • Satisfaction increases more than 100 points when customers are aware of their natural gas providers’ corporate citizenship activities.
    • Only 3 percent of customers receive communication from natural gas retailer via social media.
    The study measures customer satisfaction with retail natural gas providers in Georgia by examining six key factors (listed in order of importance): price; billing and payment; corporate citizenship; communications; enrollment/renewal; and customer service. Beginning in 1998, the natural gas utility market in Georgia was deregulated and opened to retail competition. According to the Energy Information Administration, approximately 1.4 million Georgia households are served by retail natural gas providers.
    Overall satisfaction among natural gas customers in Georgia averages 692 on a 1,000-point scale in 2013, a two point increase from 2012. But customer satisfaction with communications increases 24 points to 650 in 2013. 
    The study finds that 45 percent of Georgia customers have received communications from their natural gas provider, separate from their bill or payment process, with the average frequency of communications being three times in the last 3 months.  Walton EMC has the largest percent of customers (58%) who report having heard from their gas provider with an average frequency of three in the last 3 months. 
    “It’s no surprise that communication is a key factor in overall customer satisfaction,” said Andrew Heath, senior director of the energy practice at JD Power. “But it’s not just communicating for the sake of communication, it’s the message and delivery mode that matter.”
    Among the three percent of customers who report receiving communications from their natural gas retail via social media, their overall satisfaction averages 796.  
    “Social media represents an untapped resource for communications for natural gas retailers,” said Heath. “Social media is a quick and easy way to stay in touch with customers, whether it’s to handle customer service issues, provide energy tips or keep them informed about the company’s role in the local community.”
    Yet Heath cautions that natural gas retailers should develop a communication strategy to make sure their messages are delivered to the right audience at the appropriate frequency via the right channels, otherwise, they risk alienating customers. 
    “Gas retailers run the risk of oversaturating the market with their communications efforts,” said Heath. “We have seen retailers that have high awareness because of their commercials and newspaper ads and brochures, but lose market share because their messages were not as effective as they had hoped they would be. A plan to deliver the right message to the right audience at the right frequency is essential.”
    High Satisfaction Equals High Loyalty
    In Georgia, where the retail natural gas market is deregulated, customers can select which retailer they want to serve their natural gas needs. Price remains the leading reason customers selected their current gas retailer (53%), followed by recommendations from family or friends (13%). Low cost/fees is also the key reason they will stay/renew with their gas retailer. Among highly satisfied customers, 79 percent indicate that they will remain loyal to their current retailer and would be disappointed if they could no longer be a customer, while 94 percent are likely to recommend the company to their family and friends. However, customer loyalty and advocacy falls below 10 percent among customers  with low satisfaction.   
    “Natural gas customers in Georgia have a choice of which retailer to use, so if they’re not satisfied with their current provider, there is a probability that they will switch,” said Heath. “The cost of retaining a customer is much lower than the cost to acquire a new customer.” 
    Corporate Citizenship 
    Many natural gas retailers in Georgia, like businesses in other sectors, are good corporate citizens–involved in the local community, make efforts to be good environmental stewards and have energy-efficiency or conservation programs in place. The study finds that when natural gas customers are aware of their providers’ corporate citizenship activities, their overall satisfaction with their provider increases more than 100 points.  The challenge is making customers aware. For example, only 21 percent of customers are aware of their provider’s efforts to improve its impact on the environment, 29 percent are familiar with their provider’s energy efficiency or conservation programs and only 12 percent have seen their provider’s employees volunteering/working in the community.
    Enrollment and Renewal
    First impression on recently acquired and renewing customers impacts customer satisfaction. In the last 12 months, 49 percent of customers renewed their natural gas contract and 21 percent enrolled for the first time. The customer’s experience at this stage has a notable impact on overall satisfaction.  For example, customer satisfaction increases from 6.7 (on a 10-point scale) with their previous provider to 7.3, on average, with their new provider when a customer switches. Providers that have high overall customer satisfaction also tend to have high satisfaction among acquired or renewed customers. 
    Georgia Natural Gas Retailer Residential Results
    Walton EMC ranks highest among natural gas retailers in Georgia for a third consecutive year, achieving a score of 731 and performing well across all factors. 1Scana Energy improves significantly in 2013 to rank second with 7101, while Coweta-Fayette EMC ranks third with 705.
    The 2013 Georgia Natural Gas Retailer Residential Customer Satisfaction Study is based on responses from more than 2,900 customers of natural gas retailers in Georgia. The study was fielded quarterly between July 2012 and April 2013.

    1Scana Energy is ranked separately from Scana Energy Regulated Division. The Scana Energy Regulated Division provides natural gas service to low-income and elderly customers and to individuals whose credit history prohibits them from obtaining service from other gas retailers.  

    About JD Power

    JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
    Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]  
    John Tews; Troy, Mich.; (248) 680-6218; [email protected] 

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/corporate

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  • 2013 Windows and Patio Doors Satisfaction Study

    While Distribution Channels Vary among Window Manufacturers, Customers Hold the Brand Accountable for Both the Process and Product

    2013-06-12

    jdp-root

    WESTLAKE VILLAGE, Calif.: 12 June 2013 — Whether manufacturers have direct interactions with their customers or whether they depend on a dealer base, customers ultimately hold the brand responsible for their satisfaction, according to the JD Power & Associates 2013 Windows and Patio Doors Satisfaction StudySM released today.

    Now in its seventh year, the study measures satisfaction among customers who purchased new windows or patio doors based on performance in five factors: ordering and delivery; operational performance and durability; appearance and design features; price paid for products and services received; and warranty. 

    Simonton and Window World tie for highest in overall customer satisfaction with windows and patio doors with a score of 801 each (on a 1,000-point scale), which is 16 points higher than the next highest brand.

    Simonton performs particularly well in two of the five factors: ordering and delivery; operational performance and durability.  Window World (in a tie with Simonton) ranks highest in the study for the first time and performs particularly well in the price paid for products and services received and warranty factors.  

    Key Findings
    • In 2013, the average customer reported spend for windows and patio doors is $3,702.
    • The most commonly purchased glass types are Dual-Pane Glass (59%) and Low-E Glass (42%).
    • 75 percent of customers were aware that their windows are Energy Star Certified.

    “Simonton and Window World are great examples of how companies deliver an outstanding customer experience despite varying sales and delivery methods,” said Christina Cooley, director of the home improvement practice at JD Power. “What customers care most about are having an easy, convenient and reliable ordering, delivery and installation process, and feeling confident that the windows they purchased will meet their needs in the long term. Both Simonton and Window World have been able to deliver on their brand promises through their own differentiated strengths.” 

    Overall satisfaction with windows and patio doors is 774 and remains relatively flat year over year. The only brands to notably increase are those that rank above the study average: Window World, Thermastar by Pella and Champion. All other brands either remain consistent year over year or decline in satisfaction.  

    The study finds that window and patio door brands that earn high levels of customer satisfaction tend to often also have higher levels of customer loyalty. Among window and patio door customers, 28 percent say they “definitely will” recommend their window and patio door brand to others, and 22 percent say they “definitely will” purchase the same brand again. 

    “With overall satisfaction remaining stable, we’re seeing more competition among the leaders who have an opportunity to differentiate themselves to drive consideration, conversion to purchase and then use their delighted customers as advocates for their brand to continue to capture more share,” said Cooley. “Brands that promote value, quality products and an efficient process with outstanding customer service have the perfect combination to further differentiate themselves from their competitors.”

    The 2013 Windows and Patio Doors Satisfaction Study is based on responses from more than 2,550 customers who purchased new windows or patio doors during the previous 12 months. Customers may have installed the windows or patio doors themselves or with help from family and friends; hired an independent contractor, remodeler or handyman; used an installation service provided by a home improvement retailer; or used an installation service recommended or provided by the product manufacturer. The study was fielded in January and February 2013.

    About JD Power

    JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/corporate

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  • 2013 Home Improvement Retailer Satisfaction Study

    Ace Hardware Ranks Highest in Customer Satisfaction Among Home Improvement Retailers For a Seventh Consecutive Year

    2013-06-05

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    WESTLAKE VILLAGE, Calif.: 5 June 2013 — Customer satisfaction is highest among home improvement retailers that provide a knowledgeable and readily available staff to address customer needs, according to the JD Power & Associates 2013 Home Improvement Retailer Satisfaction StudySM released today.

    Key Findings

    • Ace Hardware ranks highest in customer satisfaction with a score of 803.
    • Staff and service is the most influential factor on customer satisfaction.
    • While sales and promotions help drive traffic to retail, customer service keeps customers loyal.

    For a seventh consecutive year, Ace Hardware ranks highest in satisfying home improvement retail store customers. Ace Hardware achieves a score of 803 on a 1,000-point scale and performs particularly well in the staff and service and store facility factors. Menards ranks second with a score of 770, and performs particularly well in the price and sales and promotions factors.  

    The study, now in its seventh year, measures customer satisfaction with home improvement retail stores based on performance in five factors: staff and service (including availability, courtesy, knowledge, ease of checkout and ease of returning merchandise); store facility (including ease of finding merchandise, cleanliness, store layout and design, availability of parking and convenience of store location); merchandise (including availability, variety, usefulness of product information displays and selection of brands available); price; and sales and promotions. 

    Staff and service is the most influential factor on customer satisfaction. For example, the average wait time for assistance at retail remains at about four minutes. However, the wait time for help varies by retailer from less than two minutes to nearly six minutes. More than 80 percent of customers request help locating a product in the store, reinforcing the importance of having a knowledgeable sales person readily available. 

    Overall, only 5 percent of customers experience a problem while shopping at their primary retailer; however, this varies by retailer, with the highest incidence of problems experienced at 12 percent. In 2013, return rates are down slightly year over year (42% vs. 45% of customers who returned merchandise during the past year).

    “By remaining focused on meeting customer needs through superior sales staff and service, home improvement retailers have the opportunity to leverage a positive customer experience into an increased share of wallet and more customer advocates,” said Christina Cooley, director of the home improvement industries practice at JD Power. 

    According to the study, on average 27 percent of customers say they “definitely will” purchase at their primary retailer  again, and 30 percent “definitely will” recommend the retailer to others.  However, among the highest ranked retailers these percentages go as high as 32 percent and 43 percent, respectively.   

    The average amount customers spend per year is slightly lower in 2013 at $1,626, compared with $1,719 in 2012, making the competition to capture a greater share of wallet more fierce. Customers spend an average of 73 percent of their annual spend at their primary home improvement retailer. 

    While location is a primary driver for customers to select a home improvement retail store, it’s an outstanding experience that keeps them coming back to the store. Notably, retailers performing below average have a higher rate of customers purchasing online at the store’s website compared with higher-performing retailers. Though spend through any channel is positive, this may also indicate that when customers are not satisfied with a retailer’s in-store experience they may avoid going  to the store altogether or choose another retailer with better sales and staff service. Retailers may also miss out on the ancillary purchases made once a customer is in the store.

    “Home improvement retailers are continually looking for alternative ways to stay competitive and gain a larger share of wallet,” said Cooley. “Before you can satisfy a customer, you have to create a compelling reason for them to come in the door. Once they arrive, you have many opportunities to delight them with staff assistance and store services.”

    For consumers, JD Power offers the following shopping ideas: 

    • Do-it-yourself (DIY) customers may pick up important tips to streamline their project by visiting a home improvement retail store, where they can receive the necessary assistance and guidance to successfully complete their project. 

    • When planning a budget for a home improvement project, add 10 to 15 percent. There are usually some surprises with a DIY project, which, by definition, aren’t known until the project is underway. 

    • Whether buying paint, lumber or wiring, calculate how much you will need for your project and buy a little extra. That may save you a return trip to the store in the middle of your project.  You can return extra materials later or use them for another project.

    The 2013 Home Improvement Retailer Satisfaction Study is based on responses from more than 4,100 customers who purchased a home improvement product or service within the previous 12 months from a retail store that sells home improvement products. Customers evaluated their primary home improvement retailer. The study was fielded in January and February 2013.

    About JD Power

    JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/corporate

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  • 2013 Japan Winter Tire Customer Satisfaction Index Study

    With Winter Tires Being Driven on Non-Winter Roads More Than One-Half the Time, Tire Performance for Use on Both Regular and Winter Roads Is Crucial

    2013-05-31

    jdp-root

    Tokyo: 31 May 2013 — While customer satisfaction with winter tires has decreased from 2012, the level of satisfaction with performance of winter tires on icy/snow-covered roads is higher than or equal to the level of satisfaction with performance on dry/wet roads, according to the JD Power Asia Pacific 2013 Japan Winter Tire Customer Satisfaction Index StudySM released today. 

    The study, now in its 10th year, measures customer satisfaction with winter tires by examining six key factors (in order of importance): performance in icy conditions (25%); performance in snow-covered conditions (25%); durability/reliability (15%); ride/quietness on dry or wet roads (13%); appearance (12%); and handling/traction on dry or wet roads (10%). Overall satisfaction with winter tires averages 581 index points (on a 1,000-point scale) in 2013, down from 588 in 2012.

    The study finds that, on average, winter tires are driven on regular (dry/wet) roads 66 percent of the time, and 38 percent in heavy snow fall areas[1].  Overall, customer satisfaction with the performance of winter tires on winter roads is higher than or nearly equal to satisfaction with performance on regular roads. 

    “The majority of winter tire use isn’t being done in extreme road conditions, so improving basic performance of winter tires on regular roads is a key to increasing customer satisfaction and differentiating manufacturers from their competitors in the winter tire market,” said Taku Kimoto, executive director of the automotive division at JD Power Asia Pacific, Tokyo.

    The study also breaks down satisfaction with performance of winter tires based on the number of seasons used. The study finds that as customers perceive aging and deterioration of their winter tires over the number of seasons the tires are used, particularly when used on winter roads versus regular roads, the influence these conditions have on overall customer satisfaction increases.  For example, while wet roads have a 14 percent influence on customer satisfaction during both the second and third seasons used, icy roads have a 24 percent influence the second season, and 28 percent influence on the third season. 

    The study also finds a high correlation between customer satisfaction and brand loyalty. Among customers who are less satisfied (index scores that are in the bottom 25%) with their winter tires, 38 percent indicate they would purchase the same brand for their replacement tires for next summer. The percentage rises to 68 percent among customers who are highly satisfied (index scores among the top 25%). 

    Furthermore, customers who purchased their winter tires from a tire shop or automobile dealership have a higher rate of purchase intent of the same brand from the same shop or dealer, which presents opportunities for these shops or dealers to retain their existing customers. In particular, customers who purchased from automotive dealers tend to purchase their tires based on dealer staff recommendations without first comparing them to other brands.

    “Customers rely on the information they get from their dealers, so from a tire manufacturer’s standpoint, developing relationships with dealerships to help promote their products represents a good opportunity to help develop loyal customers,” said Kimoto.

    Among the 10 brands ranked in the study, Michelin ranks highest in overall customer satisfaction for a 10th consecutive year, with a score of 644 points. Michelin has continued to lead the industry since the study was launched in 2004. Michelin performs particularly well across all factors. Basic tire performance, such as handling/traction on dry/wet roads, continues to be an area of particular strength for Michelin, while the manufacturer posts higher scores in performance on snow-covered roads, compared with 2012.

    The 2013 Japan Winter Tire Customer Satisfaction Index Study is based on responses from 7,464 vehicle owners who purchased new winter tires for their personal passenger vehicle (including mini-cars) between May 2010 and February 2013 and who are still using these tires. The online survey was fielded in February 2013.

    The Japan Winter Tire Customer Satisfaction Index Study is one of 10 benchmark studies conducted by JD Power Asia Pacific in Japan. Other studies conducted by JD Power Asia Pacific include:

    • The Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new- vehicle sales process

    • The Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership

    • The Japan Customer Service Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities

    • The Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership

    • The Japan Original Equipment Tire Satisfaction Index Study, which measures customer satisfaction with original equipment tires equipped on new vehicles

    • The Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with original equipment and aftermarket navigation systems

    • The Japan Replacement Tire Satisfaction Study, which measures customer satisfaction with replacement tires (excluding winter tires).

    • The Japan Light-Duty Truck Ownership Satisfaction Study, which measures customer satisfaction with light-duty truck manufacturers and their respective local authorized truck dealers

    • The Japan Heavy-Duty Truck Ownership Satisfaction Study, which measures customer satisfaction with heavy-duty truck manufacturers and their respective local authorized truck dealers

    [1] Snow fall areas include Hokkaido, Aomori, Iwate, Akita, Yamagata, Niigata, Toyama, Ishikawa, Fukui and Tottori.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    About JD Power & Associates

    Headquartered in Westlake Village, Calif., JD Power & Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power & Associates is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power & Associates, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com..

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power & Associates. www.jdpower.com/corporate

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  • 2013 India Dealer Satisfaction with Automotive Manufacturers Index (DSWAMI) Study

    Increasing Number of Auto Dealers in India Foresee a Decline in Profits

    2013-05-31

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    SINGAPORE: 31 May 2013 — One-in-five dealers in India expect to take a financial loss in 2013, more than double the number compared with 2012, and only 44 percent of dealers expect to make a profit for the 2012-2013 financial year, according to the JD Power Asia Pacific 2013 India Dealer Satisfaction with Automotive Manufacturers Index (DSWAMI) StudySM released today.  

    “Declining profitability for dealerships in India not only highlights the impact that the slowdown in new-vehicles sales has on the viability of a growing number of dealers, but also underlines the importance placed on automakers to provide adequate support to their respective networks” said Mohit Arora, executive director, JD Power Asia Pacific.

    Now its third year, the study measures dealer satisfaction with vehicle manufacturers or importers in India and identifies dealer attitudes regarding the automotive retail business. Overall dealer satisfaction is determined by examining nine factors: marketing and sales activities; product; vehicle ordering and delivery; sales team; parts; warranty claims; after-sales team; training; and support from the manufacturer. 

    The study provides feedback on how dealers view their relationship with automakers, the outlook on their financial viability and identifies areas for improvement. In particular, with the slowdown in India’s GDP growth and decline in new-vehicle sales, the study is able to provide automakers with important information on how best to assist dealers in achieving their overall business objectives.

    Need to improve the supply chain 

    In 2013, the largest decline in dealer satisfaction is in parts operations, with notable brand level declines around the prompt delivery of parts and ease of ordering parts. 

    “This highlights the need for some automakers to further support dealers with an improved and more efficient supply chain,” said Mohit Arora, executive director, JD Power Asia Pacific. “Improving the speed of parts delivery not only allows for work orders to be handled more efficiently, but also ensures customers are not troubled by unexpected delays or extended wait times.”

    Decline in satisfaction with the product lineup

    An attractive range of vehicles remains critical for both dealers and automakers to succeed in any market. The study shows a large variance in dealers’ opinions on the competitiveness of their brand’s model lineup. On average, 82 percent of dealers indicate their brand provides a model range that can effectively compete in the highly contested Indian auto market. However, fewer than 65 percent of dealers for some of the volume brands indicate the same. 

    “With changes in customer preferences, the industry needs to adapt by providing a contemporary lineup across the main and niche segments,” said Arora. “The importance for both automakers and dealers in the market is the need to increase customer traffic in the showrooms with an attractive model range.”

    Dealers must diversify to survive the headwinds 

    The study finds that it is important for dealers to diversify their revenue base in order to mitigate any sudden decreases in their income and protect their viability during a slowdown in new-vehicle sales. Dealers that increase their share of revenue on after-sales maintenance and repair work—as well as promote other parts of their business, such as finance and insurance, spare parts and accessories and used-vehicles—can better spread their risk. 

    The study finds that the main revenue sources for dealerships are service (29%), new-vehicle sales (28%) and spare parts (14%). 

    High satisfaction comes from collaboration 

    Among the manufacturers included in the 2013 study, Maruti Suzuki and Toyota perform particularly well in overall satisfaction. Dealer satisfaction for both manufacturers has improved from 2012.

    “The success of Maruti Suzuki and Toyota not only demonstrates the automakers’ commitment to ensuring the dealers’ operations are viable, but it also their active support regarding such areas as training, marketing and sales activities,” said Arora.

    On average, 88 percent of dealers believe that they definitely would continue to work with their automaker in two years.  Among dealers in the top quartile of satisfaction, 98 percent expect to be working with the same automaker in 2015.  In contrast, dealers who rate their experience with the automaker in the bottom quartile of satisfaction, only 72 percent expect to be working with the same nameplate in two years’ time. 

    About the Study

    The 2013 India Dealer Satisfaction with Automotive Manufacturers Index (DSWAMI) StudySM is based on responses from 618 dealership general managers or dealer principles across all main nameplates. The study was conducted in association with the Federation of Automobile Dealers Associations (FADA), and was fielded between February 2013 and April 2013.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    About JD Power & Associates

    Headquartered in Westlake Village, Calif., JD Power & Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power & Associates is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power & Associates, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com..

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power & Associates. www.jdpower.com/corporate

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  • 2013 Philippines Customer Service Index (CSI) Study

    Sales Advisor and Service Initiation Gain Importance in Customer Satisfaction With Vehicle After-Sales Service in the Philippines

    2013-07-31

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    SINGAPORE: 31 July 2013 — Having exceptional service advisors as a first point of contact and solid customer-centric processes for new-vehicle owners during vehicle servicing are becoming increasingly important drivers of customer satisfaction, according to the JD Power Asia Pacific 2013 Philippines Customer Service Index (CSI) StudySM released today.   

    Philippines – Special video interview with James Yalung, Country Rep for Philippines *Must Watch for Automakers and Car Owners!*

    In this video, we tackled the following issues:

    • Introduction to the 2013 Philippines CSI Study

    • Importance of Soft Skills in Customer Service

    • Discussion of the rankings in the study

    • Quantifying the importance of Customer Service for manufacturers and consumers

    Now in its 13th year, the study measures overall satisfaction among vehicle owners who visit an authorized service center for maintenance or repair work during the first 12 to 24 months of ownership based on five factors (listed in order of importance): service quality; service advisor; vehicle pick-up; service initiation; and service facility. The importance weights of the service advisor and service initiation factors have increased from 2012 (22% vs. 13% and 19% vs. 13%, respectively). In addition, service quality increases importance to 40 percent from 25 percent in 2012.

    “When evaluating their experience at dealerships, customers are giving more weight to personal interaction,” said Mohit Arora, executive director at JD Power Asia Pacific, Singapore. “Manufacturers and dealerships, therefore, need to focus on communication and soft skills, such as managing customer expectations.”

    Overall satisfaction with authorized dealer customer service in the Philippines is 825 (on a 1,000-point scale) in 2013, improving 4 points from 2012. Among the 11 brands measured in the study, Toyota ranks highest with a score of 832. Toyota performs particularly well in the service advisor and vehicle pick-up factors. Following Toyota in the rankings is Honda, which achieves a score of 831 and performs particularly well in the service facility factor.  

    Satisfaction among customers who indicate their service advisor was familiar with their vehicle’s service history is 826, compared with 802 among customers who indicate otherwise.  

    “Managing customers by having prior knowledge of the work done on their vehicle is a critical first step in the service initiation stage,” said Arora. “This lets customers know that the dealership cares and is prepared before they arrive at the dealership for service.” 

    The study identifies eight relationship measures, or dealer practices, that enhance the service experience of vehicle owners. These measures range from the ability of service advisors in dealing effectively with customers to a dealership’s propensity to stand guarantee the quality of its service. The study finds 69 percent of customers experience all eight relationship measures in 2013—the highest proportion since 2009. Overall satisfaction among customers experiencing all relationship measures is 834. In contrast, satisfaction among customers who experience five measures or fewer is 645.

    Advocacy and loyalty are closely related to satisfaction levels with the overall service performance of a dealer. Nearly 66 percent of highly satisfied customers (service satisfaction scores 877 and above) say they “definitely will” return to the same dealership for post-warranty service. In contrast, 25 percent of highly dissatisfied customers (satisfaction scores 799 and below) indicate the same.

    “Efforts to build positive relationships with customers, supported by the right people and processes, translate into higher levels of satisfaction, which in turn creates a long-term financial impact in terms of the business gained from loyal customers who are willing to return to the dealership for service post-warranty,” said Arora.

    The 2013 Philippines Customer Service Index (CSI) Study is based on responses from 1,834 vehicle owners who purchased their vehicle between February 2011 and May 2012 and took their vehicle for service to an authorized dealer or service center between August 2012 and May 2013. The study was fielded between February 2013 and May 2013.

    About JD Power Asia Pacific

    JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

    About JD Power

    JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    XingTi Liu; JD Power Asia Pacific; 08-Shenton Way, #44-02/03/04; Singapore, 068811; Phone +65-67338980; [email protected]

    John Tews; JD Power; Troy, Mich.; (248) 680-6218; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/corporate

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  • 2013 U.S. Dealer Financing Satisfaction Study

    Overall Satisfaction with Dealer Financing Increases; Lenders’ Strong Support Continues to Fuel Auto Industry’s Sales Increases

    1970-01-01

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    WESTLAKE VILLAGE, Calif.: 30 July 2013 — Dealer satisfaction has increased in all finance provider areas for the second consecutive year, with product offering contributing to increases in satisfaction, according to the JD Power 2013 U.S. Dealer Financing Satisfaction StudySM released today.

    The study examines dealer satisfaction with lenders in four finance areas: prime retail credit; sub-prime retail credit1; retail leasing; and floor planning. Satisfaction is measured across three factors in the prime and sub-prime retail credit areas: finance provider offering; application/approval process; and sales representative relationship. Four factors are measured in the retail leasing area: finance provider offering; application/approval process; sales representative relationship; and vehicle return process. Three factors are measured in the floor planning area: finance provider credit line offering; floor plan support; and floor plan portfolio management.

    Overall dealer satisfaction with prime retail credit lenders is 890 on a 1,000-point scale, an increase of 5 points from 2012, and retail leasing satisfaction is 896, up 5 points from 2012. Floor planning satisfaction has increased the most among the three award-eligible lending areas—an increase of 11 points from 2012 to 924 in 2013.

    Increasing industry adoption rates of such process innovations as eContracting combined with improvements to dealer support and a solid product offering have contributed to satisfaction increases. The study finds that 30 percent of lenders offer dealers such options with 39 percent of dealers that are using these options indicating they will give more business to their eContracting lender.  

    “In addition to more improved services, competition and new entrants into the market provide dealers with more choices and product innovations,” said Michael Buckingham, senior director of the auto finance practice at JD Power. “This combination also creates a highly competitive marketplace for dealers to select their finance provider and increase vehicle sales.”  

    Although satisfaction in the auto financing industry is improving, the study finds the following three best practices separate the lenders with average satisfaction scores from those with high scores: 

    • Sales representative excellence: To dealers, the sales representative is the most important touch point with a lender. Sales reps must have the knowledge and tools to teach and train dealers on the various finance product offerings.
    • Organizational speed and efficiency: Building processes and an infrastructure that provide fast underwriting for all retail products, as well as fast funding of retail products and floor planning, is mission critical. 
    • Service excellence: Dealers support lenders that have personnel who are knowledgeable, friendly and customer focused.

    “Indirect auto finance lending is a relationship business between dealer and lender,” said Buckingham. “A customer-focused staff is a cornerstone for success.”

    DEALER FINANCING SATISFACTION RANKINGS

    Prime Retail Credit

    Alphera Financial Services ranks highest among prime retail credit lenders, with a score of 970. Following in the rankings are BMW Financial Services (965) and Mercedes-Benz Financial Services (953).

    Retail Leasing

    BMW Financial Services ranks highest among lenders in the retail leasing area for a second consecutive year, with a score of 958. Following in the rankings are Mercedes-Benz Financial Services (954) and Ford Credit (929).

    Floor Planning

    Mercedes-Benz Financial Services ranks highest among floor planning lenders for a third consecutive year, with a score of 971. Following in the rankings are BMW Financial Services (966) and Ford Credit (948). 

    The 2013 U.S. Dealer Financing Satisfaction Study is based on responses from 3,962 dealers who were surveyed between March and April 2013.

    [1] Sub-prime retail credit is included in the study, but is not eligible for an award.

    About JD Power

    JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts

    John Tews; Troy, Mich.; (248) 680-6218; [email protected]
    Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com
     

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  • 2013 Canadian Auto Claims Satisfaction Study

    Auto Insurance Claims Make or Break the Customer Relationship with Their Insurance Provider

    2013-07-29

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    TORONTO: 29 July 2013 — How well auto insurance providers handle claims may make or break the relationship with their customers, according to the JD Power 2013 Canadian Auto Claims Satisfaction StudySM released today.

    The inaugural study measures customer satisfaction with the claims experience for auto physical damage loss. Depending on the complexity of the claim, a claimant may experience some or all of the following factors that are measured in the study: first notice of loss; service interaction; appraisal; repair process; rental experience; and settlement. Settlement is the most important factor of overall satisfaction among both total loss and repair claimants.

    Although settlement is the most important factor, the first notice of loss (FNOL)—the first phone call a customer makes to their insurance provider after they have been in a vehicle accident or experienced damage to their car—sets the tone for the rest of the claims process.  The first phone call averages 18 minutes, according to the study.

    “The first call to notify the provider of the damage is critical to customer satisfaction with the entire claims process,” said Jeremy Bowler, senior director of the insurance practice at JD Power. “If that initial call goes well, odds are good that the claims process will go well and also bodes well for the long-term relationship with the customer.”

    Bowler notes that anyone involved in an accident or who experiences damage to their vehicle should contact their insurer or agent as soon as possible after the incident, even if the damage is not their fault.  Before calling their provider, it’s a good idea to write down any questions regarding the claim and keep notes on the answers received. 

    The study finds that claimants who receive an explanation during the first call with their provider of what to expect during the claims process are significantly more satisfied than are claimants who do not receive this explanation. While a majority (87%) of claimants receive an explanation, overall satisfaction declines by a substantial 169 index points, on average, when claimants don’t receive an explanation of the process.

    Additionally, overall satisfaction is higher when insurers are able to answer all claimant questions during the first call than when they are not able to answer all questions.  Satisfaction among claimants who have all of their questions answered during the first call averages 810, compared with an average of 651 among claimants who do not get all of their questions answered during this call.

    “Filing a claim can be a stressful situation, so it’s easy to forget to ask key questions or get confused about the information the insurer provides during the call,” said Bowler. “Keeping good records of all calls regarding the incident is helpful for reference later in the claims process, if necessary. It is also advisable for claimants to take pictures of the vehicle damage for their records.”

    The settlement process focuses on identifying the expenses the insurance company will cover, including damage to the vehicle, the facility where repairs will be made, and, if needed, a tow truck and rental car.  Managing claimants’ expectations regarding the settlement—and avoiding surprises—is critical to a satisfying settlement experience.  The study finds that, overall, 90 percent of claimants are satisfied with the settlement—which is the largest contributor to overall satisfaction with the claims process.  However, when expectations are not met, settlement satisfaction declines dramatically, by more than 250 index points, on average. 

    “Communication between the provider and the claimant is critical during the settlement phase,” said Bowler. “The claimant wants to know what is and isn’t covered by their policy, the extent of the damage to the vehicle, and how and when it will be repaired or replaced. It’s really about setting claimants’ expectations and then meeting them.”   

    While claimants are most satisfied with the repair process, which averages 805 index points, satisfaction with the appraisal process—when the vehicle’s damages are assessed by a representative of the insurer—is lower than for any other factor in the study. 

    “Insurance is a product people buy because they have to, but hope they never need to use,” said Bowler.  “They really see the value of their investment if they need to file a claim.  If the appraisal of damages comes in lower than what they expect, they are naturally going to be disappointed.”

    Regional Findings

    Overall customer satisfaction with the auto claims experience in among Canadian provinces included in the study averages 787. Satisfaction varies greatly by province, ranging from a high of 840 in Quebec to a low of 753 in Manitoba.  Among other provinces, Ontario averages 800; Alberta 770; British Columbia 767; and Saskatchewan 760.

    Provider Results

    Among the eight rank-eligible insurance providers included in the study, RBC Insurance ranks highest in overall customer satisfaction with the claims process with an index score of 815.  RBC Insurance performs particularly well in the first notice of loss and settlement factors.

    Intact Insurance ranks second with 806, followed by Aviva Insurance (803), State Farm (802) and TD Insurance (796).

    Making the Auto Insurance Claims Process Smoother and Easier 

    JD Power offers the following tips to auto insurance customers when filing a claim: 

    • Call the police for any auto accident that results in more than minor damage to the vehicle (more than $500 is a suggested amount).

    • Take down the names and addresses of individuals involved; the accident location; the make, model and plate number of the vehicle(s); names and contact information of any witnesses; and make note of any injuries sustained. 

    • Ask the police to file an accident report, or at least an incident report, so that there is a record to provide to your insurance company.

    • Always get a copy of the police report if you are involved in a multiple-vehicle accident.

    • Contact your insurer or agent as soon as possible after the incident, even if the other party is at fault. This will allow your insurer to be better able to protect your interests.  

    • If possible, contact your insurer or agent from the location where the incident occurred.

    • Take photos of damage to your vehicle using a device such as a cell phone or tablet or a regular camera.

    • Keep records of all calls regarding the incident. 

    • If you have questions about the insurance adjustor’s appraisal, contact your insurer or agent directly.

    The 2013 Canadian Auto Claims Satisfaction Study is based on responses from 2,458 auto insurance customers in Canada who settled an auto insurance claim within the past 18 months. The study excludes claimants whose vehicle incurred only glass/windshield damage or was stolen, or who filed a roadside assistance claim only. The study was fielded between April and June 2013.

    About JD Power

    JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

    Media Relations Contacts:

    Gal Wilder; Cohn & Wolfe; Toronto, Canada; (647) 259-3261; [email protected]
    Beth Daniher; Cohn & Wolfe; Toronto, Canada; (647) 259-3279; [email protected]
    John Tews; JD Power; Troy, Mich.; (248) 680-6218; [email protected]

    Follow us on Twitter: @JDPower

    No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/corporate

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