Category: APAC

Critical Moment for Banks as Financial Situations Worsen and Engagement Shifts to Digital, JD Power Finds

2020-08-31

jillian.breska

Retail banking customer satisfaction in Australia is being challenged by a shift to digital interactions at a critical time when customers with poor financial health need more support from banks. According to the JD Power 2020 Australia Retail Banking Satisfaction Study,^SM released today, customer satisfaction is highest for midsize banks, averaging 785 (on a 1,000-point scale) compared with 768 for the Big 4 banks and 775 for the industry.

Many customers are facing increased financial hardship with 25% saying the effect of COVID-19 has been devastating or severely hurtful. Concerningly, 39% feel that that the worst is yet to come and more than half feel that their financial situation will be worse for at least six more months.¹

As the pandemic prolongs, the financial health of bank customers is increasingly at risk. Nearly half (46%) of Australian banking customers are not satisfied with their personal financial condition, and these customers are significantly less satisfied with their bank compared with customers who feel more positive about their finances (739 vs. 806, respectively). These customers have struggled in the past 12 months with managing their financial lives in a variety of ways, with 90% saying they always spend more than their income; only 57% saying they always pay bills on time; and only 12% saying they always save for retirement. Despite financial struggles, only 20% of customers not satisfied with their personal financial condition say their bank supports their overall financial health.

“Banks must narrow the gap in support between customers with good and bad financial health,” said Bronwyn Gill, head of banking and payments Intelligence at JD Power. “Helping struggling customers make better financial decisions and manage their spending has many positive outcomes, including higher satisfaction, lower attrition, increased reuse and improved advocacy. It is imperative that banks understand how to provide better support remotely with no current end in sight to social restrictions.”

The study shows that the pandemic is affecting how customers manage their banking, and the effect on channel usage is evident. Across all age cohorts, online and mobile banking usage is now higher than usage of branches and live phone. The implication for banks is that providing highly functional digital banking is key to maintaining satisfaction and preventing attrition.

Following are key findings of the 2020 study:

• Younger customers present attrition risk: The greatest threat to attrition for Australian banks is Gen Z,² in which 22% intend to switch banks during the next year—more than four times the switching intent of Pre-Boomers/Boomers (5%). The top three reasons that drive banking customers across all ages to consider switching are: interest rates not competitive (40%); charged too many fees (23%); and poor service experience (19%).
• Tailored and consistent communication an opportunity: Gen Z customers are the least likely to feel that communications are consistent and tailored to their needs. Improved communication will help raise the understanding of this age group, which is least likely to understand account features, least likely to feel that fees are transparent and least likely to understand their mobile banking product.
• Problem resolution satisfaction lower with move from in-person to digital: As customers avoid in-person interactions, problem resolution at the branch has declined considerably, down to 24% of all problems resolved from 36% in 2019. Coincidentally, only 31% of customers say their problem resolution experience was outstanding, down 7 percentage points from 2019. Younger customers are embracing digital for problem resolution, with 47% of Gen Y customers resolving their most recent problem through a digital channel, compared with only 23% of Pre-Boomer/Boomers.
• Mobile wallets and payment apps gaining popularity: Mobile wallets and payment apps are used by 43% of customers, with 22% using these because they are a faster way to pay. The most frequently used mobile wallet/payment app is Apple Pay, used by 26% of bank customers, followed by Afterpay (17%) and CommBank Tap & Pay (13%). Gen Z customers are most likely to utilise digital wallets/payment apps, with 72% using such an app.

Study Rankings

Heritage Bank ranks highest among midsize banks in retail banking satisfaction with a score of 872. Commonwealth Bank ranks highest among the Big 4 banks with a score of 776.

The Australia Retail Banking Satisfaction Study measures customer satisfaction with the products and services provided by their primary financial institution. The study measures overall satisfaction in six key factors (in order of importance): channel activities; convenience; product and fees; communication and advice; account opening; and problem resolution.

The 2020 Australia Retail Banking Satisfaction Study is based on responses from 5,584 bank customers. Now in its fifth year, the study includes 23 major retail banks in the market, 18 of which are rank eligible, and scores are based on customers’ experiences with their primary bank. The study was fielded between May and June 2020. In addition to Australia, JD Power also conducts retail banking studies across key financial markets that include United States, Canada and China.

Media Relations Contacts
Bronwyn Gill, JD Power; Sydney, Australia; 0452-605-946; [email protected]
Geno Effler, JD Power; USA; 001-714-621-6224; [email protected]

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, Asia Pacific and Europe.

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

¹Australia Financial Services COVID-19 Pulse Survey, JD Power, July 2020 
²JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004).

 

Trust and Efficiency are Proven “Musts” to Increase Customer Service Levels, JD Power Finds

2019-08-19

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SYDNEY: 20 Aug. 2019 — Vehicle owners in Australia expect service advisors to focus fully on their needs from the moment they arrive at the service department, up to the time of vehicle pick-up at the end of the experience, according to the JD Power 2019 Australia Customer Service Index (CSI) Study,SM released today.

The study finds that among the 38% of customers who are met immediately by the service advisor when handing over their vehicle, satisfaction is 83 points higher (on a 1,000-point scale) than those who had to wait. Furthermore, among the 44% of customers who had their paperwork completed within five minutes at the end of the service, satisfaction scores are 821 vs. 769 for those customers who waited longer.

Customers also expect the service advisor to be attuned to their requests and needs. Among the 72% of customers whose advisors knew the vehicle’s service history, satisfaction is higher than when the advisor did not know the history (822 vs. 701). Similarly, 75% of customers indicate that service work was explained to them before it was carried out. Satisfaction is higher among these customers than those who did not receive an explanation (820 vs. 697).

“It is evident that after-sales customers want a quick and efficient drop-off and pick-up process,” said Bruce Chellingworth, Director and Country Manager of Australia, JD Power. “At the heart of it, dealers must still ensure that service advisors build trust with their customers. Throughout this challenging year for the Australian automotive industry, mass market brands have increased their customer satisfaction level for the service experience. As mass market brands improve their service levels, facilities and processes, luxury brands need to re-emphasise their difference and value proposition.”

Every mass market brand ranked in the study has a higher satisfaction score as an outcome of the 2019 study, with the mass market average lifting by 24 points to 788 in 2019.The difference in overall after-sales service satisfaction is 10 points between mass market (788) and luxury (798) brands.

Following are additional key findings of the 2019 study:

• Leave vehicle settings and controls unchanged: Among customers whose vehicle settings and controls were left unchanged during servicing (55%), satisfaction is 93 points higher than when settings and controls are changed (827 vs. 734). This highlights the positive effect that a service advisor has to ensure the vehicle is completely ready for the customer before pick-up.

• Keep the relationship going: Satisfaction is 78 points higher among customers who are informed of their next service visit than when they are not informed. Informing customers of upcoming service schedule is a win-win for both parties as customers are more satisfied and dealers have the opportunity to maintain the relationship.

• Inspiring confidence: While dealerships are delivering on getting the service/repair work done right the first time (94%), there is room for improvement in other areas like conducting multi-point inspection at the start of the service (74%). Attention to detail and efficiency go a long way in giving the customer confidence in trusting the dealership.

Study Rankings

Mazda ranks highest among the mass market brands with an overall score of 819, followed by Toyota (799) and Honda (793).

Audi ranks highest among the luxury brands, with an overall score of 802. Mercedes-Benz (796) ranks second and BMW (790) ranks third.

The JD Power 2019 Australia Customer Service Index (CSI) Study^SM is based on responses from 5,624 mass market owners and 540 luxury owners who purchased their vehicle between February 2014 and June 2019 and took their vehicle for service to an authorized dealership service centre between February 2018 and June 2019. The study was fielded from February to June 2019.

Now in its 10th year, the study covers owners who bought their vehicle in the past 0-60 months and serviced it at least once in the past 12 months at an authorized OEM service centre. The study measures overall service satisfaction by examining dealership performance in five factors (in order of importance):  service quality (27%); service initiation (22%); vehicle pick-up (18%); service advisor (17%); and service facility (15%).

The study also includes the Net Promoter Score® (NPS),[1] which measures customers’ likelihood to recommend their vehicle brand on a 0-10 scale.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected] 

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

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[1] Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

Dealers Not Capturing Full Potential of Online Experience, JD Power Finds

1970-01-01

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BANGKOK: 12 Sept. 2019 — Auto dealers are not fully leveraging their online capabilities to meet customer expectations, as only a small percentage of shoppers indicate they use digital channels during the sales process, according to the JD Power 2019 Thailand Sales Satisfaction Index (SSI) Study,^SM released today.

The study finds that only 22% of shoppers use dealership websites. Among those who do, satisfaction with the website is 824 (on a 1,000-point scale), up 5 points from 2018. Also, 26% of shoppers are interacting with dealers through online channels such as websites, social platforms and email. For these customers, overall satisfaction is 845, a 13-point improvement from 2018. However, these online-related scores are still lower than the study’s overall satisfaction score of 848, which outlines the experience gap for digitally focused customers.

“Whether online or offline, the sales experience should be aligned and seamless across all channels,” said Siros Satrabhaya, Regional Director for Thailand and Vietnam at JD Power. “As internet usage rises, automotive brands and their network must continue to invest and improve the customer experience online. To get the most out of the online experience, brands and dealers should provide comprehensive content focused on meeting customer needs, such as booking test drives, live chats with consultants and live updates on model availability.”

Overall, 84% of shoppers visited the vehicle showroom during the initial shopping process. That number declines to 76% among shoppers who are age 34 or younger. However, in-store satisfaction declines to 847 in 2019 from 856 in 2018. This is mainly attributed to shortcomings in the dealership facility and amenities provided.

Following are additional key findings of the 2019 study:

• Declining satisfaction with vehicle delivery: Satisfaction with the delivery process has declined 9 points to 854 from 863 in 2018, contributing to a drop in overall sales satisfaction (848 in 2019 vs. 853 in 2018).

• Quality time on delivery day drives satisfaction: Customers whose delivery process took more than 60 minutes are the most satisfied, compared with those who took less time (858 vs. 842 points, respectively). More than three-fourths (78%) prefer to take the time to learn about all features of their new vehicle on delivery.

• Product or delivery specialists add value: Customers whose vehicles are delivered by product or delivery specialists are more satisfied than those who received the car from a sales consultant (862 vs. 847 points, respectively). 

Study Rankings

Toyota ranks highest with an overall satisfaction score of 854 and performs well in four of the six factors: dealership facility; dealer sales consultant; working out the deal; and delivery process. Isuzu and Mazda rank second in a tie with a score of 853.

The JD Power 2019 Thailand Sales Satisfaction Index (SSI) Study^SM measures overall sales satisfaction based on six factors (in order of importance): sales consultant (25%); delivery process (23%); dealership facility (18%); paperwork completion (16%); working out the deal (16%); and dealership website (2%).

The study, now in its 20^th year, is based on responses from 3,027 new vehicle owners, who purchased their vehicle from August 2018 through May 2019. The study was fielded from February through July 2019.

The study also includes the Net Promoter Score® (NPS)^[1], which measures customers’ likelihood to recommend their vehicle brand on a 0-10 scale.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

 

Credit Card Issuers Must Compete to Be the Only Card that Consumers Carry, JD Power Finds

2019-07-30

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SYDNEY: July 30, 2019 — More credit cardholders in Australia are carrying only a single card, which presents a risk to loyalty and attrition, according to the JD Power 2019 Australia Credit Card Satisfaction Study,^SM released today.  

The number of cardholders who only own one credit card has increased to 61% in 2019, up from 56% in 2018. When so many cardholders hold only one credit card, competition has shifted from being the primary card of use, to the only card that cardholders carry. Therefore, to gain loyalty and minimise attrition, issuers not only need to offer enticing rewards and benefits, but also present a holistic and seamless cardholder experience across all their interactions with their card issuer.

The cardholders’ view of benefits and services will become even more crucial, in view of regulatory reforms that constrain card issuers’ abilities to fund richer rewards programs. The study finds that benefits and services—perks provided by the issuer, regardless of spend—are vital to the acquisition of new cardholders, with 21% of cardholders citing them as a reason for choosing their primary card.

“In the age of hyper-personalisation, it is more critical than ever that issuers tailor their benefits and service offerings based on cardholders’ evolving needs,” said Bronwyn Gill, Head of Global Business Intelligence at JD Power. “An overwhelming number of cardholders use fewer than three types of benefits and services, so issuers should focus on quality instead of quantity. They must innovate and adapt best practices relating to personalisation of their products and services.”

A parallel concern amidst shrinking demand for more credit cards, is the rise of alternative installment services. More than one in five cardholders (22%) have utilised “buy now, pay later” services, with younger cardholders adopting these services almost three times faster than other cardholders. While traditional issuers still lead the market, their dominance cannot be taken for granted in the long-term.

Following are some key findings of the 2019 study:

• Unsolicited credit limit increases still common: Post the July 2018 introduction of legislation prohibiting unsolicited credit limit increases, it is surprising to find that 57% of cardholders who were offered credit limit increases said that such offers were unsolicited.
   
• Simplifying terms to cardholders: Less than half (48%) of cardholders have read the terms and conditions of their primary card. Amongst those who have not read the terms and conditions, reluctance to read is primarily due to the length of the text (53%). Amongst those who have read them, 84% say they do not fully understand them, with the top reason being the complexity of the language used (62%). The onus is on card issuers to make terms concise and reader-friendly.
   
• Mobile app usage rates plateau: Less than half (44%) of cardholders used their credit card mobile app in the past 12 months, which represents only a 1% increase from 2018. The top reason cited by cardholders for not using credit card mobile apps in the past 12 months is the adequacy of other channels in meeting their needs (31%). This should be a concern for card issuers that place a strong emphasis on a digital experience and have invested in a mobile first approach.

Study Rankings

Bendigo Bank ranks highest in credit card satisfaction with an overall score of 763 (on a 1,000-point scale). American Express ranks second with a score of 757, while Commonwealth Bank ranks third with a score of 732. Overall satisfaction increased by 7 points to 717.

The 2019 Australia Credit Card Satisfaction Study measures overall satisfaction in six key factors: interaction (30%); credit card terms (30%); communications (16%); rewards (11%); benefits and services (9%); and key moments (5%)[1].

The study is based on responses from 4,609 credit cardholders. Now in its fifth year, the study includes 20 major credit card issuers in the market, 16 of which rank eligible, and scores are based on cardholders’ experiences with their primary card. The study was fielded in May-June 2019. In addition to Australia, JD Power also conducts credit card studies across key financial markets that include China, Hong Kong, Singapore, Canada and the United States.

The study includes the Net Promoter Score® (NPS)[2], which measures cardholders’ likelihood to recommend their card issuer on a 0-10 scale.

Media Relations Contacts

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

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[1] Due to rounding, percentages may not always appear to add up to 100%.

[2] Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc. Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

Gap Between Mass Market and Luxury Sales Experience Shrinking, JD Power Finds

2019-07-30

jdp-root

SINGAPORE: 30 July 2019 — While overall customer satisfaction with new vehicle purchase and delivery experience in the mass market segment is on the rise, the luxury segment, while high, has largely stayed the same, according to the JD Power 2019 Taiwan Sales Satisfaction Index (SSI) Study^SM, released today.

Overall satisfaction for the mass market segment is 819 (on a 1,000-point scale), an increase of 17 points from 2018, and 832 for the luxury segment, a decrease of 3 points from last year.

The increase in satisfaction among mass market customers is partially attributed to improvement of in-store amenities, not just for increased customer comfort but to make the sales experience more engaging. In 2019, there has been a rise in dealerships offering free Wi-Fi (up 9 percentage points from 2018); complimentary snacks (up 6 percentage points); touchscreens to view vehicle models (up 4 percentage points); and counter/viewing area for accessories (up 7 percentage points).

“While luxury brands are lowering their threshold with entry-level models, mass market brands are also launching new cars with advanced features,” said Anthony Tay,Territory Manager, Taiwan at JD Power. “With mass market brands gaining momentum, luxury brands cannot afford to just maintain the status quo—evidenced by the stagnant satisfaction scores—as customers are becoming more discerning and are expecting a differentiated and more engaging experience.”

The study finds that more dealerships of luxury brands are offering a signed formal offer and finalising the price in a larger private office thus outperforming their mass market counterparts by providing a better closing experience. However, sales consultants for mass market brands perform better than their luxury counterparts when it comes to not pushing for a sale (70% vs 63%, respectively) and providing a straight answer to their customers on the vehicle price (86% vs 82%, respectively).

Following are additional key findings of the 2019 study:

• Differences in buyer needs: Performance, interior and exterior styling remain the key purchase reasons cited across all segments. However, buyers of import mass market models are mirroring the luxury segment by placing higher emphasis on vehicle image (33% for domestically produced mass market; 41% for import mass market; 58% for luxury).
   
• Going the extra mile pays off: Customers who received additional follow-up explanation of vehicle features are more satisfied than those who did not receive an explanation (+38 points for mass market, +120 points for luxury). Customers with whom dealers shared fuel efficiency tips are also more satisfied (+70 points for mass market, +106 points for luxury).

Study Rankings

Hyundai ranks highest among the mass market brands, with an overall score of 831. Nissan ranks second with a score of 827 and Volkswagen ranks third with a score of 824.

Mercedes-Benz ranks highest among the luxury brands, with an overall score of 856. Lexus ranks second with a score of 819 and BMW ranks third with a score of 816.

The JD Power 2019 Taiwan Sales Satisfaction Index (SSI) Study^SM is a comprehensive analysis of the new-vehicle purchase and delivery experience. The study is based on responses from 2,574 mass market segment new-vehicle buyers and 816 luxury segment new-vehicle buyers who purchased their vehicle between July 2018 and March 2019 and was fielded from January through May 2019.

Now in its 21st year, the study examines five factors that contribute to overall customer satisfaction with the new-vehicle purchase experience. In order of importance, they are sales consultant (26%); dealer facility (22%); delivery process (21%); working out the deal (18%); and paperwork completion (13%).

The study also includes the Net Promoter Score® (NPS)^[1], which measures new vehicle owners’ likelihood to recommend their vehicle brand on a 0-10 point-scale.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

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^[1] Net Promoter, ® Net Promoter System, ® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

Needs of Many Not Outweighing Few; First-Time Vehicle Buyers Less Satisfied, JD Power Finds

2019-07-30

jdp-root

SINGAPORE: 31 July 2019 — While first-time buyers make up 79% of the new-vehicle buyers, they are less satisfied than repeat buyers, according to the JD Power 2019 Philippines Sales Satisfaction Index (SSI) Study,^SM released today. The study finds that first-time buyers have an overall satisfaction of 815 (on a 1,000-point scale) with the new-vehicle sales experience, while satisfaction of repeat buyers (those either replacing or buying an additional vehicle) is 837.

The difference in satisfaction between first-time and repeat buyers is most apparent in areas relating to working out details of the deal and paperwork completion. Informal modes of presenting the price, such as handwritten figures, are used more often with first-time buyers (72%) than repeat buyers (44%). Overall, customers who are presented with a signed formal offer have higher satisfaction than those not given one (838 vs. 811, respectively).

“Getting your first car is an exciting experience but not an easy decision to make,” said Sigfred M. Doloroso, Country Manager, Philippines JD Power. “Dealers can add value by not only making sure that customers get the right car for the best price, but also spending the time to celebrate this first new purchase. This can be made possible through better understanding the customers’ profile, needs and preferences.”

The study finds that when it comes to delivering the new vehicle, sales outlets are less likely to provide first-time buyers with a special ceremony compared with repeat buyers (66% vs. 73%, respectively). Furthermore, first-time buyers (33%) are also less likely to compare prices across dealerships than repeat buyers (51%), and more first-time buyers (81%) are financing their new vehicle purchase with a loan than repeat buyers (69%). This highlights the need for dealers to take more time to guide, advise and help new customers get the best deal possible.

Following are additional key findings of the 2019 study:

• Digital tools to demonstrate vehicles features: Sales consultants are using digital devices more extensively to demonstrate vehicle features during the vehicle selection process (59% vs 50% in 2018). Satisfaction is 22 points higher among customers who experienced this.
   
• Using background information an asset: Customers finding the dealer to be “very effective” in using information provided prior to visiting the dealership increases to 79% in 2019 from 72% in 2018. These customers have a satisfaction level that’s 29 points higher than those who found the dealer’s use of information only “somewhat effective.”
   
• Exact model/variant not always available: Only 9% of customers indicate that the exact model/variant they were interested in was not available at the dealership. There is 24-point gap in satisfaction between customers who found the exact model versus those who did not.

Study Rankings

Honda ranks highest in overall sales satisfaction with a score of 832. Mitsubishi ranks second with a score of 829 and Toyota ranks third with a score of 823.

The JD Power 2019 Philippines Sales Satisfaction Index (SSI) Study^SM is a comprehensive analysis of the new vehicle purchase and delivery experience. The study is based on responses from 1830 new vehicle owners who purchased their vehicle between July 2018 and April 2019 and was fielded between January and June 2019.

Now in its 19th year, the study examines six factors that contribute to overall customer satisfaction with the new vehicle purchase experience. In order of importance, they are sales consultant; dealer facility; delivery process; paperwork completion; working out the deal; and dealer website.

The study also includes the Net Promoter Score® (NPS)^[1], which measures new vehicle owners’ likelihood to recommend their vehicle brand on a 0-10 point-scale.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

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^[1] Net Promoter, ® Net Promoter System, ® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

Customers Want More Banking Choices and Welcome the Entry of Digital Banks, JD Power Finds 

1970-01-01

jdp-root

SINGAPORE: 1 Aug. 2019 – The Monetary Authority of Singapore’s issuance of five new digital banking licenses will affect existing banks, as even more customers indicate they are interested to try digital banks, according to the JD Power 2019 Singapore Retail Banking Satisfaction Study.^SM

Overall, customers’ satisfaction with their primary bank decreased marginally to 749 (on a 1,000-point scale) in 2019 from 755 in 2018. Nearly two-thirds (65%) of customers are interested in opening digital bank accounts, compared with 52% last year. This disruption is likely to spur traditional banks to up their game in meeting evolving customer needs.    

The majority (70%) of younger customers (those born in or after 1980) have raised their hands for the digital banks, compared with 59% for the remainder of customers. The Study found that while non-branch users are receptive to digital banks (64%), regular branch users are just as willing to using digital banks (66%). 

“Customers are the winners when they have more choices,” said Anthony Chiam, Regional Practice Leader, Global Business Intelligence at JD Power. “On average, customers in Singapore have about five accounts, which include transaction, savings and deposit. If banks build relationships and help customers navigate financial planning complexities, they will benefit from the lifetime value of the customer.”

The study also finds that nearly half of the customers (47%) have multi-account programmes[1]. These accounts enable banks to attract new funds, but more importantly provide ways to deepen relationships with their customers. However, 23% of customers with these accounts are likely to switch their primary bank for better interest in the next 12 months, compared with 14% of customers who are not using multi-account programmes. This brings into question whether this move by the banks to increase customer loyalty is actually achieving its purpose.    

Following are some key findings of the 2019 study:

• Customer ratings are essential to acquisition: More than three quarters (76%) of customers believe that knowing overall customer satisfaction rankings are important when choosing their primary bank.  
   
• Spike in mobile banking adoption: Mobile app usage sharply increases to 65% in 2019 from 53% in 2018, while the use of other channels remains constant. This is much higher when compared with Hong Kong at 43%[2].
   
• Customers do not feel they have a relationship with their bank: The advancement of digital channels means fewer human interactions with their customers. This has resulted in only 29% of customers feeling they have a close relationship with their banks. 

Study Rankings

HSBC ranks highest in retail banking customer satisfaction with a score of 769. HSBC scores highest in three of the six study factors: product offerings, fees and problem resolution. OCBC ranks second with a score of 764 and DBS ranks third with 752. 

The 2019 Singapore Retail Banking Satisfaction Study examines customer satisfaction with the products and services provided by their primary financial institution. The study measures overall satisfaction in six factors: account activities (39%); account information (17%); facility (12%); product offerings (12%); problem resolution (11%); and fees (10%).

The study is based on responses from 2,515 retail banking customers. Coverage includes eight major banks in the market, six of which are rank-eligible, with scores based on customers’ primary bank experiences. The study was fielded in May through June 2019. JD Power conducts a series of retail banking studies across key financial markets, including Australia, Canada, China, Hong Kong and the United States. 

The study includes the Net Promoter Score® (NPS)[3], which measures cardholders’ likelihood to recommend their card issuer on a 0-10 scale.

Media Relations Contacts

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

[1] Multi-account programme is a special saving programme that gives a customer extra interest when they credit salary and use other services, such as credit card, loan, bill payment or investment.

[2] JD Power 2019 Hong Kong Retail Banking Study

[3] Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc. Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

Two Steps Forward, One Step Back; Mixed Verdict on Service Experience, JD Power Finds

2019-08-05

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SINGAPORE: 6 Aug. 2019 — Year-over-year gains in some aspects of customer service satisfaction were offset by losses in other areas, resulting in an overall customer satisfaction increase of 7 points to 761 (on a 1,000-point scale) from 2018, according to the JD Power 2019 Malaysia Customer Service Index (Mass Market) Study,^SM released today.

The study finds that dealers are performing better in many aspects of the customer journey which drive satisfaction. When it comes to routine maintenance, more customers (80% vs. 75% in 2018) were notified and there is a 60-point difference in satisfaction between those who are notified, compared with those who were not. During the service process, more customers (86% vs. 74% in 2018) are kept informed of their vehicle status; with a 119-point difference in satisfaction between those who are kept informed and those who are not. Furthermore, more customers (71% vs. 64% in 2018) had their vehicle returned to them with controls and settings unchanged; satisfaction is 43-points higher in such instances.

“As sales trends are flattening, dealers are putting in more effort to enhance customer service experience,” said E-Ling Cheah, Country Manager for Malaysia at JD Power. “Though there are improvements in the overall service experience, it will not be fully realised until areas such as time management improves. Dealers must keep in mind that growth is not always linear; consistent and continuous efforts are critical to further boost customer satisfaction.”

Managing service turnaround time is a key area that needs to be addressed. While majority of customers (89%) had their vehicles serviced on the same day, fewer customers had their vehicle serviced within two hours (52% vs. 62% in 2018). Satisfaction among this group of customers is higher (776 points) than among those whose service took longer (748 points). The proportion of customers who are not told when their vehicle would be ready has also increased (12% vs. 6% in 2018).

Following are additional key findings of the 2019 study:

• Facilities are improving: Facilities are increasingly offering amenities like complimentary snacks/ beverages (+2 percentage points from 2018) and workspaces to plug in computers (+8 percentage points). However, slightly fewer customers are staying at the dealership (65% vs. 68% in 2018); getting customers to stay back at the dealership matters as they are 11 points more satisfied than those who decided to leave and return later.
   
• Rise of the digital channels: While calls remain the most frequently used mode of communication with 73% of customers using it to fix appointments, there is an emergence of digital modes as the preferred mode for scheduling. Among these are manufacturer apps (9%); chat or messaging services such as WhatsApp, Messenger (8%); website (4%); and SMS/text messages (4%). Additionally, the functionality of digital channels is also improving. Among customers who make online appointments, 28% indicated they are able to enter all required information and complete service scheduling online without follow-ups, up from 18% in 2018.

Study Rankings

Mitsubishi ranks highest in overall satisfaction with a score of 791. Toyota ranks second with a score of 788 and Mazda ranks third with a score of 785.

The JD Power 2019 Malaysia Customer Service Index (Mass Market) Study^SM is based on responses from 2,644 vehicle owners, who received delivery of their new vehicle between February 2016 and June 2018 and took their vehicle for service to an authorized dealer or service centre between February 2018 and June 2019. The study was fielded from February through June 2019.

Now in its 17th year, the study covers owners who bought their vehicle in the past 12-36 months and serviced it at least once in the past 12 months at an authorised service centre. The study measures overall service satisfaction among owners who took their vehicle to an authorised service centre by examining dealership performance in five factors (in order of importance): service quality (25%); vehicle pick-up (21%); service initiation (20%); service facility (17%); and service advisor (16%). Overall satisfaction for the industry averages 761 points.

The study also includes the Net Promoter Score® (NPS)^[1], which measures customers’ likelihood to recommend their vehicle brand on a 0-10 scale.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

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^[1] Net Promoter, ® Net Promoter System, ® Net Promoter Score, ® NPS, ® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

After-Sales Satisfaction Dips as Wait Times Increase, JD Power Finds

2019-06-25

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SINGAPORE: 26 June 2019 — Primarily driven by challenges in the service centre, overall customer satisfaction among vehicle owners in the Philippines decreases to 803 (on a 1,000-point scale) in 2019 from 812 in 2018, according to the JD Power 2019 Philippines Customer Service Index (CSI) Study,^SM released today.

The study finds that customer wait times have increased compared with 2018. More than one-third (35%) of customers experience wait times of more than 30 minutes to handover their vehicle for service, an increase of 11 percentage points from 2018. Satisfaction among these customers is lower than those who experienced a shorter hand-over time (787 vs. 812, respectively).

“This situation is not new to the industry, the time spent by customers to dropoff a vehicle for service is a key contributor towards their overall satisfaction,” said Sigfred M. Doloroso, Country Manager for the Philippines, JD Power. “However, this is an issue that can be mitigated through the efficient use of a proper appointment system. Dealers need to actively encourage the scheduling of appointments and ensure they consistently deliver not only a more personalised service to after-sales customers but also a faster turnaround from drop-off to pick-up.”

Findings from the study also show that the service process is slower, with 69% customers indicating that service took three hours or more to finish, an increase of 11 percentage points from 2018. Furthermore, 72% of customers indicate that paperwork completion took more than 10 minutes during the vehicle pick-up. Customers who spent more than 10 minutes doing paperwork are less satisfied than those who experienced a faster paperwork process (793 vs. 831, respectively).

Following are additional key findings of the 2019 study:

• Encourage appointment setting: Nearly three-fourths (73%) of customers scheduled an appointment for their vehicle service, which is 10 percentage points lower than in 2018. Customer satisfaction is higher when customers make an appointment vs. when they do not (807 vs. 793, respectively). Nearly two-thirds (62%) of customers indicate a preference in making appointments over the phone.
   
• Promote quick/express service: Only 39% of customers were offered the option of an express service, a drop of 16 percentage points from 2018. Notably, among customers who made service appointments, satisfaction is 23 points higher when they were offered express service than when they weren’t (820 vs. 797, respectively). 
   
• Keeping customers in the know from the start: More than half (59%) of customers were informed of the time needed for service during drop-off, a decline of 13 percentage points from 2018. Satisfaction is 31 points higher when customers are informed earlier, compared to when informed later (815 vs. 784, respectively).

Study Rankings

Mazda ranks highest, with an overall score of 824. Mazda performs particularly well in four of the five factors: service initiation; service facility; vehicle pickup; and service quality. Nissan ranks second with a score of 814 and Hyundai ranks third with a score of 811.

The JD Power 2019 Philippines Customer Service Index (CSI) Study^SM measures customer satisfaction with the servicing and vehicle-return process. The study is based on responses from 2,384 new-vehicle owners who purchased their vehicle between January 2016 and April 2018 and took their vehicle for service to an authorized dealer or service center between January 2018 and April 2019.

Now in its 19th year, the study measures overall satisfaction among vehicle owners who visited an authorized service center for maintenance or repair work during the first 12 to 36 months of ownership based on five factors (in order of importance): service quality (28%); service initiation (20%); service facility (20%); vehicle pick-up (17%); and service advisor (16%). Overall satisfaction for the industry is 803 points.

The study now also includes the Net Promoter Score® (NPS),¹ which measures customers’ likelihood to recommend their vehicle brand on a 0-10 scale.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]
Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

¹ Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

Satisfaction Increases in Taiwan, but Customers Cautious of Add-on Services, JD Power Finds

2019-06-27

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SINGAPORE: 27 June 2019 — Overall customer satisfaction with automotive service has increased across the board in 2019 for both mass market and luxury brands, according to the JD Power 2019 Taiwan Customer Service Index (CSI) Study,^SM released today. The overall satisfaction score is 824 (on a 1,000-point scale) for mass market and 823 for the luxury segment, an increase of 25 points for both segments from 2018.

The rise in satisfaction can be attributed to improvements throughout the customer service journey— from pre-scheduling the appointment, enhanced service facilities and even to vehicle pick-up. Notably, dealers have placed greater focus on improving service facilities and technology. For example, more dealers in the mass market segment (82% in 2019 vs. 71% in 2018) are offering workspaces for customers to plug in their laptops. A similar uplift is also observed in the luxury segment (88% in 2019 vs. 78% in 2018). Service advisors are also increasing the usage of tablets in customer interactions (mass market increasing to 69% from 66% in 2018; luxury to 84% from 79% in 2018).

“It is a credit to the industry to see customer satisfaction levels improve, especially with plateauing sales and the tug-of-war between domestic and imported models,” said Anthony Tay, Territory Manager, Taiwan at JD Power. “However, with ever-increasing customer expectations—even with the encouraging rise in satisfaction— it is important that dealers place an emphasis on ensuring service advisors are highly trained as trusted go-to advisors and experts.”

The study also finds that 38% of mass market customers and 33% of luxury customers do not take up the additional work recommended by their service advisor. This highlights the importance for service advisors to be more empathetic to customers’ needs and only recommend services that are relevant.

Following are additional key findings of the 2019 study:

• Enabling the digital shift: While 57% of mass market customers call in to schedule appointments, only 48% choose it as a preferred method. For apps, however, 24% of mass market customers say they used the platform to schedule appointments, with a preference of 32%.
   
• Setting cost expectations upfront: In the mass market segment, there is a gap in satisfaction of 35 points between those who were provided a detailed estimate before work started vs. those who were not.
   
• Attention to detail: In the mass market segment, there is a 42-point gap between customers who had their vehicle returned with the same settings and controls vs. those whose were changed. Furthermore, customer satisfaction among those who had their vehicle washed (or washed and vacuumed) is 827, while those whose vehicles were not cleaned at all is 792.
   
• Younger customers are harder to please: Gen Y^[1] customers, who comprise 57% of the mass market segment, have relatively lower satisfaction (820) than Gen X customers (827) and Boomers (839).

Study Rankings
Luxgen ranks highest among the mass market brands, with an overall score of 841. Nissan ranks second with a score of 840 and Toyota ranks third with a score of 829.

Lexus ranks highest among the luxury brands, with an overall score of 843. BMW ranks second with a score of 823 and Mercedes-Benz ranks third with a score of 814.

The JD Power 2019 Taiwan Customer Service Index (CSI) Study^SM is a comprehensive analysis of new-vehicle service experience. The study is based on responses from 3,115 mass market new vehicle owners and 1,056 luxury new vehicle owners who received delivery of their new vehicle between February 2016 and April 2018 and took their vehicle for service to an authorized dealer or service centre between February 2018 and April 2019. The study was fielded from February – April 2019.

Now in its 22nd year, the study covers owners who bought their vehicle in the past 12–36 months and serviced it at least once in the past 12 months at an authorized OEM service centre. The study measures overall service satisfaction by examining dealership performance in five factors. In order of importance, they are service quality (30%); vehicle pick-up (19%); service initiation (18%); service advisor (17%); and service facility (15%).

The study now also includes the Net Promoter Score® (NPS),^[2] which measures new vehicle owners’ likelihood to recommend their vehicle brand on a 0-10 point-scale.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power has offices serving North America, South America, Asia Pacific and Europe.

Media Relations Contacts
Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]
Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press-release-info

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^[1] JD Power defines generational groups as Pre-Boomers (born before 1946), Boomers (1946-1964), Gen X (1965-1976), Gen Y (1977-1994), Gen Z (1995-2004)

^[2] Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.