Category: APAC

Service Centres Fail to Stand Out Despite Record-High Customer Satisfaction Scores, JD Power Finds

2019-07-25

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SINGAPORE: 25 July 2019 — Customer satisfaction with after-sales service has climbed to a record high of 814 points (on a 1,000-point scale), according to the JD Power 2019 Indonesia Customer Service Index (Mass Market) Study,^SM released today. However, with only a 23-index points difference between the top-ranking and the lowest performing brand, it is clear dealers must do more to provide a distinct and differentiated customer experience.

“Brands have to be congratulated on delivering a consistently high level of customer service,” said Srabani Bandyopadhyay, Country Manager for Indonesia, JD Power. “However, with a marginal gap between ranked brands, it could be seen that service centres are providing a homogenous, rather than distinct, experience. The challenge for the industry is to grasp the opportunity to really excel and delight customers by differentiating the services and products they offer. This, in turn, increases business and encourages further recommendations.”

Results from the study show that 71% of delighted customers, who rate their after-sales experience 881-index points or above, revisit their dealership for paid service work, compared with only 32% of customers who rate their experience in the lowest quartile of satisfaction (756 index points or below). Moreover, 74% of delighted customers will recommend their dealer to friends and family, compared with only 28% in the lower satisfaction group.

Following are key findings of the 2019 study:

• Promoting online booking and apps: While only 6% of customers used their manufacturer’s website or app to book their appointments, their overall satisfaction is notably higher (853) compared with 43% who called for an appointment (817) or 34% who showed up at the dealer without an appointment (793).
   
• Increase in wait, decrease in satisfaction: Customers are least satisfied when it comes to vehicle handover upon arrival and at pickup at the end of service. Waiting times are another pain-point for after-sales customers, with 23% of customers waiting more than 30 minutes to hand over their vehicle (up from 21% in 2018), and 43% indicating a vehicle pick-up time of more than 15 minutes (unchanged from last year).
   
• Clear and transparent service costs: More than one-fourth (26%) of customers felt the service costs during their last service was higher than expected. Among those, satisfaction is 784, 30 points lower than the study average of 814. More than 13% of customers were not provided with a detailed estimate of the work at the start of the visit, an explanation of the work performed, and/or the charges provided.
   
• Providing a personal touch: Customers are more satisfied when the dealer’s personnel escorts them to their vehicle (818) or the vehicle is retrieved for them (813). Simply pointing out the location, not escorting or meeting the customer directly at their newly serviced vehicle lowers satisfaction (798).

Study Rankings

Mitsubishi ranks highest, with an overall score of 819. Mitsubishi performs particularly well in two of the five factors: service initiation and service advisor. Toyota ranks second with a score of 818 and Honda ranks third with a score of 815.

The JD Power 2019 Indonesia Customer Service Index (Mass Market) Study^SM is based on responses from 2,786 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 19th 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 (24%); service initiation (20%); vehicle pick-up (19%); service advisor (19%); and service facility (18%).

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.

 

One in Four Big Four Bank Customers Considering Switching, JD Power Finds

2019-05-28

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SYDNEY: 28 May 2019 — The inaugural JD Power 2019 Australia Bank Brand Authenticity Study, released today, outlines a path forward for the financial services sector post the Financial Services Royal Commission, highlighting the importance for banks to demonstrate authenticity in their conduct with their customers.

Authenticity determines how well a brand is seen by its customers as truthful, relevant, honest and trustworthy. The study finds that three core dimensions—character, brand relationship and history/continuity—contribute to brand authenticity. Credibility/integrity which determines the character of the bank, is found to be the most important driver (56%) of how authentic the brand is, followed by brand relationship (29%) and history/continuity (15%).

The study found a strong correlation between customers likeliness to switch and their perception of the bank’s authenticity. Customer-owned banks and direct banks have the lowest share of customers saying they were likely to switch in the next 12 months (5% and 6%, respectively). Customers of the Big 4 Banks have the highest potential to switch (18%).

“The outcome and recommendations from the recent Financial Services Royal Commission highlighted the need for financial institutions to build a strong culture of putting customers first, in order to be more authentic to earn back the trust of customers and improve advocacy and loyalty,” said Bronwyn Gill, Head of Global Business Intelligence, Australia at JD Power. “Banks need to start demonstrating authenticity in their relationships with customers by acting with integrity in all of their customer interactions. It is no longer enough to rely on their history and the continuity of the relationship, as this only accounts for a small percentage of how the brand’s authenticity is perceived by customers.”

The findings also show that banks belonging to Customer Owned Banking Association (COBA) are perceived as most authentic, achieving a Perceived Brand Authenticity (PBA) score of 579 (on a 700-point scale). This reflects their focus in representing the needs of their members in the service, products and communication provided, as well as benefiting from a more community-based approach to banking.

The following are additional key findings of the study:

• Customers are more likely to recommend an authentic bank: Banks which rate strongly on PBA also have a higher Net Promoter Score®^[1].
• More authentic banks have higher levels of satisfied customers: Banks belonging to COBA obtained the highest PBA score of 579 (out of a scale of 700) and the second highest overall satisfaction score of 811^[2] (out of a scale of 1000).

Study Rankings 

Customer-owned banks rank highest in perceived brand authenticity (579) with an overall satisfaction score of 811.

The JD Power 2019 Australia Bank Brand Authenticity Study measures how authentic customers find their primary financial institution across predefined dimensions. The study is based on responses from 4,730 customers who were asked to rate their own primary financial institution. The study was fielded in October 2018.

JD Power’s PBA index rates Australian financial institutions from a minimum of 100 to a maximum of 700 index points. The study includes the four Australian bank segments covering 26 banks and measures responses across three key dimensions of character; branding relationship; and history and continuity. There are 12 attributes relating to brand authenticity: trustworthy; honesty; delivers value; customer first; moral; cares about customers; provides meaning to lives; reflects consumer values; connects with people; heritage; timeliness; and survives trends.

The study construct uses the work previously conducted by Professor Felicitas Morhart, et al., Brand Authenticity: An integrative framework and measurement scale. JCP 25, 2 (2015) 200-218. Professor Morhart, from the University of Lausanne in Switzerland, also advised on the question wording and attributes applied in the JD Power Australia Bank Brand Authenticity Study.

The study includes the Net Promoter Score® (NPS), which measures customer advocacy to recommend their financial institution to family and friends based on a scale of -100 to 100.

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. The approach classifies consumers into Promoters, Passives and Detractors, with the score calculated by subtracting the number of Detractors from Promoters. 

^[2] Source: JD Power 2018 Australia Retail Banking Satisfaction Study,^SM

 

To Win and Keep Cardholders, Issuers Need to Actively Deliver a More Customer-centric Approach, JD Power Finds

2019-06-24

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SINGAPORE: 24 June 2019 — While there is an increase in overall customer satisfaction in the last year, the fight to be the card of choice in an ever-crowded payment landscape is intensifying, according to the JD Power 2019 Hong Kong Credit Card Satisfaction Study,^SM released today.

Overall customer satisfaction increases 12 index points (on a 1,000-point scale) to 715 from 703 last year, with one of the notable increases being in digital interaction channels. Acknowledging the growing competition from non-traditional companies with payment services, the established card issuers are countering with improved digital offerings. This is evidenced by 87% of customers saying their card issuer’s website/ mobile app compares favourably to those of select technology companies.

Customers have many payment choices, with 61% of cardholders having three or more credit cards in their wallet. At the same time, mobile wallet penetration increases 12 percentage points (64% in 2019 vs. 52% in 2018) ^[1], highlighting the competitive nature of the Hong Kong payment market.

“New payment companies are aggressively growing their presence in the market, offering consumers more choice when it comes to their everyday spend,” said Anthony Chiam, Regional Practice Leader of Global Business Intelligence for Asia and Australia at JD Power. “As they become further embedded in the consumers daily lives and more widely accepted by merchants—even with the encouraging rise in satisfaction—card issuers need to ensure they remain relevant and top-of-mind. As consumers are presented with more options, issuers need to engage with their customers, especially at the beginning of the relationship.”

Findings from the study also show that 37% of cardholders are likely to switch card issuers within the first year. This could put into question the validity of introductory offers and sign-up incentives as a tactic to build customer relationships.

Following are additional key findings of the 2019 study:

• Growing consumer acceptance of non-bank issuers: More than half (56%) of cardholders are likely to apply for a card with a non-bank issuer such as technology companies.

• Slowdown of growth in mobile app usage: Mobile app usage rate increases by 6 percentage points to 60% in 2019, compared with a rise of 26 percentage points in 2018 from 2017 (54% vs. 28%).

• Cardholders still do not understand card terms: More than 8 in 10 (81%) cardholders do not read the card terms, with 71% pointing to the extensive length as the reason. Amongst those who read the terms, only 29% say they fully understand them.

Study Rankings

American Express ranks highest in credit card satisfaction with a score of 768 and performs well across all six factors. HSBC ranks second with a score of 727, and DBS ranks third with a score of 718.

The JD Power 2019 Hong Kong Credit Card Satisfaction Study examines customer satisfaction with the products and services provided by their primary card issuer. The study measures overall satisfaction in six key factors: interaction (27%); benefits and services (19%); rewards (17%); communications (17%); credit card terms (16%); and key moments (4%).

The study is based on responses from 2,770 credit card customers. Coverage includes 11 major credit card issuers in the market, nine of which are rank-eligible, with scores based on the customer’s primary card used. The study was fielded in April-May 2019. JD Power conducts a series of credit card studies across key financial markets, including Australia, China, Singapore and the United States.

The study now also includes the Net Promoter Score® (NPS)^[2], which measures cardholders’ likelihood to recommend their card issuer 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] Source: JD Power 2019 Hong Kong Retail Banking StudySM

^[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.

 

As Customer Expectations Evolve, Needs of 1 in 5 New-Car Buyers Not Being Met, JD Power Finds

 

2019-01-30

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SYDNEY: 31 Jan. 2019 — Nearly one in five new-vehicle buyers in Australia indicate the sales consultant only partially understands their needs when buying a new vehicle, according to the JD Power 2018 Australia Sales Satisfaction Index (SSI) Study,^SM released today.

Sales consultants come further under flak from the 17% of customers who were not asked about their preferences when buying a new vehicle. The same proportion of first-time buyers also experienced the same.

“Given the slowdown in sales, it is essential that sales consultants spend the required time with each shopper to identify the best model and variant for their requirements,” said Bruce Chellingworth, Director & Country Manager – Australia at JD Power. “Simply ‘pushing metal’ won’t help the dealership gain positive referral, ensure customer loyalty or promote the brand. In an increasingly competitive market, it is imperative that dealers understand and build trust with their customers.”

Following are additional key findings of the 2018 study:

• Test drives are typically too short: While more than four in five customers chose to take a test drive, half of customers only spend 20 minutes or less in the vehicle, with 19% experiencing only 10 minutes or less on the road. Customers experiencing a test drive lasting 31 minutes or longer (12%) are more satisfied than those who experience 10 minutes or less on the road (821 vs. 807, respectively, on a 1,000-point scale).

• Sales consultants still pressuring customers to buy: The study finds thatyounger shoppers (39 years old or younger) and first-time new-car buyers experience higher levels of pressure from the dealer to purchase a new vehicle (35% and 24%, respectively).

• Delivery of a new vehicle not celebrated with the customer: A new car is a major purchase for the vast majority of consumers, but only 56% of customers recall any special ceremony taking place during handover. Providing acknowledgement via a special ceremony not only enhances sales satisfaction scores compared with instances when no ceremony takes place (827 vs. 779, respectively) but also increases the proportion of customers who “definitely will” recommend the selling dealership to friends and family (70% vs. 54%, respectively).

Study Rankings

Among the 11 mass market brands ranked in the study, Holden and Mazda rank highest in a tie with a score of 822. Toyota ranks third with a score of 815, followed by Nissan (804) and Ford (802).

BMW ranks highest in sales satisfaction among luxury brands, with a score of 861. Audi ranks second with a score of 836, while Mercedes-Benz ranks third with a score of 814.

The 2018 Australia Sales Satisfaction Index (SSI) Study measures satisfaction with the sales experience among new-vehicle buyers. Buyer satisfaction is based on six measures: dealer sales consultant; delivery process; dealership facility; working out the deal; paperwork completion; and dealership website.

The study is based on responses from 3,075 buyers who purchased or leased their new vehicle between March 2017 through January 2019. The study is a comprehensive analysis of the new-vehicle purchase experience and measures customer satisfaction with the selling dealer (satisfaction among buyers). The study was fielded from March 2018 through January 2019.

The study now 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.

About JD Power in the Asia Pacific Region

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

Aisling Carty; JD Power; Singapore; 65-3165-0119; [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

 

Auto Customers Expect Timeliness in Sales Process to Be Improved, JD Power Finds

2019-02-26

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SINGAPORE: 26 Feb. 2019 — Reducing the time taken to complete the various sales processes of purchasing a new vehicle, for example, by using technology devices and improving the manner in which features are explained and demonstrated, is crucial to achieve an enhanced customer experience, according to the JD Power 2018 Vietnam Sales Satisfaction Index (SSI) Study,^SM released today.

The study finds that the timeliness of completing the final delivery and paperwork of the vehicle are the aspects of the sales process in which new car owners in Vietnam feel least satisfied. The delivery process takes 50 minutes on average — however, customer satisfaction is highest (841 points on a 1,000-point scale) if the delivery process could be completed within 30 minutes compared to 824 points when more than 30 minutes is taken.

“Customers are sensitive about the time they spend in the showroom during the delivery process,” said Siros Satrabhaya, Regional Director, Automotive Practice at JD Power. “Dealer staff need to ensure that they spend their time with customers efficiently and in a way that brings the most value to the customer, for example, by explaining how to use vehicle features and reviewing sales paperwork. Using tablet devices to demonstrate features during the delivery process, in addition to providing follow-up explanations of features after delivery could help to reduce the duration of the process on the day of delivery and ensure an improved customer experience.”

The study finds that customers who receive follow-up explanations of features at the dealership or over the phone (842 points and 832 points, respectively) are more satisfied than those who do not (753 points). Similarly, customers who experience demonstrations of vehicle features via technology devices at delivery are more satisfied than those who do not experience the same (839 vs. 793 points, respectively).

The following are additional key findings of the 2018 study:

• Test drive experience improving: Satisfaction among customers offered a test drive is higher than among those not offered the same (830 vs. 722, respectively). The study finds that more customers in 2018 were offered a test drive compared to the previous year (95% vs. 85%, respectively) and more customers took the vehicle for a test drive compared to 2017 (88% vs. 70%, respectively).
   
• Purchasing with car loan lowers satisfaction: Customers who financed the purchase of their vehicles were less satisfied across all attributes compared with customers who paid cash. The largest differences in satisfaction occur in relation to the ease of coming to an agreement on the final price (8.14 vs. 7.58, respectively, on a 10-point scale), the transparency of the paperwork/finance process (8.37 vs. 7.83, respectively) and the timeliness of completing the final paperwork process (8.19 vs. 7.66, respectively).
   
• Shorter waiting time results in higher satisfaction: New vehicle owners must wait 11 days on average to have their car delivered from the showroom. Customers who receive their car within three days after purchase are more satisfied compared to those who must wait for more than seven days (854 vs. 800, respectively).
   
• Excellence in vehicle purchase experience enhances likelihood to promote brand: The Net Promoter Score® (NPS) [1] measures customers’ likelihood to recommend their vehicle make on a 0-10 scale. The NPS overall score in this year’s study is 51. Promoters (customers who provide a rating of 9-10 points on the likelihood that they will recommend the vehicle brand) reported an SSI score of 871 points, compared with 668 points reported by detractors (those who provide a rating of 0-6 points on their likelihood to recommend the brand).

Study Rankings

Among the eight brands ranked in the study, Hyundai and Toyota rank highest in a tie with 838 points. Hyundai performs particularly well on dealership website, dealership facility and working out the deal, whereas Toyota performs well on sales consultant, paperwork completion and the delivery process.

The 2018 Vietnam Sales Satisfaction Index (SSI) Study is based on responses from 1,257 new-vehicle owners who purchased their vehicle from October 2017 through December 2018. The study was fielded online from June through December 2018.

Now in its 10th year, the study measures overall sales satisfaction based on six factors (in order of importance):  delivery process (23%); paperwork completion (19%); dealership facility (19%); sales consultant (19%); working out the deal (14%); and dealership website (6%).

About JD Power in the Asia Pacific Region
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
Aisling Carty; JD Power; Singapore; 65-3165-0119; [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. 

 

Half of Customers Do Not Completely Trust Their Bank, JD Power Finds

1970-01-01

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Singapore: 28 Feb. 2019 — Trust needs to be at the core of a customer’s relationship with their bank, particularly as they look to their bank as their trusted adviser for financial planning. It is significant that more than half (54%) of customers do not completely trust their primary bank, according to the JD Power 2019 Hong Kong Retail Banking Satisfaction Study,^SM released today.

The study finds that four in five (83%) customers say that their bank representatives do not spend enough time identifying their specific needs before offering products and services, with the level of trust being 69% for those whose needs were identified compared to 43% for those who do not experience the same. Similarly, in the age of hyper-personalisation, of those customers whose marketing communication is personalised, 64% trust their bank, compared to 43% who do when communication is not personalised.

“Banking is fundamentally an industry of trust and when customers trust their banks, they are also more receptive to financial advice and less likely to switch from their primary bank to other providers, particularly virtual banks,” said Anthony Chiam, Regional Practice Leader, Global Business Intelligence – Asia & Australia at JD Power. “When banks consistently fulfil their service promise, trust will be earned over time. This trust often becomes embedded in a customer’s relationship with the bank and influences future financial decisions and planning.”

As trust is a key driver of loyalty and advocacy, more than one-third of customers (36%) who do not completely trust their bank say that they will likely switch provider. With the use of digital channels becoming more prevalent, the strength of these channels is also instrumental in building customers’ trust in banks. Of customer’s who are satisfied^[1] with their bank’s digital channels, 72% trust their bank. In comparison, only 21% trust their bank when they are not satisfied with their bank’s digital channels.

When customers trust their primary bank, they are generally more satisfied (742 points, on a 1,000-point scale), compared with those who do not (649 points) — demonstrating the long-term impact that gaining trust may have.

Following are some of the key findings of the study:

• Need for improved communication on account features and fee structure: At least four in five customers do not fully understand the features and benefits associated with their main account (80%) and their primary bank’s fee structures (81%).
   
• Improve understanding of mobile banking: Although mobile app usage has grown by 13 percentage points (43% in 2019 vs. 30% in 2018), two-thirds of customers (65%) still do not completely understand which mobile banking products, services, or features are available to them.
   
• Alipay is the most frequently used mobile wallet: One-third of customers who use mobile wallets indicate they use Alipay (32% in 2019 vs. 14% in 2018), following by Apple Pay (22% in 2019 vs. 19% in 2018).

Study Rankings

Citibank ranks highest for the second consecutive year in retail banking customer satisfaction with an overall satisfaction score of 722. Citibank achieves the highest score in four of the six study factors: product offerings; account information; account activities; and fees. DBS ranks second with 714 points and Bank of East Asia ranks third with 694 points.

The 2019 Hong Kong 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: account activities (33%); account information (19%); fees (16%); facility (16%); product offerings (12%); and problem resolution (4%).

The study, now in its second year, is based on responses from 2,342 retail banking customers. The study was fielded between November and December 2018.

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

About JD Power in the Asia Pacific Region

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

Aisling Carty; JD Power; Singapore; 65-3165-0119; [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] Comparison between Highly Satisfied (index score above 782 points) and Dissatisfied (index score below 599 points).  

^[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.

 

Lack of Trust Creates Customer Satisfaction Gap between Major Banks and Other Financial Institutions in Australia, JD Power Finds

2018-12-03

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SYDNEY: 4 Dec. 2018 — With recent concerns about transparency and customer retention weighing heavily on Australia’s banking industry, the Big Four banks are facing mounting challenges to deliver an enhanced customer experience. This is even more evident with the increasing availability of alternative banking providers, according to the JD Power 2018 Australia Retail Banking Satisfaction Study,^SM released today.

The study finds that nearly half (42%) of Australian customers with major banks do not trust their bank, compared to a quarter (24%) of customers with other financial institutions who say the same. 

“Traditionally, the bank-customer relationship is built on trust. When trust is compromised, customers may bank elsewhere, particularly when alternative providers are so readily available,” said Anthony Chiam, Regional Practice Leader, Financial Services at JD Power. “Over time, as customers weigh their options, this will undoubtedly have a financial impact on banks. To compete in this new climate, banks need to go back to basics through both traditional and digital channel interactions, which will provide a more customer-centric experience and build brand loyalty.” 

It is interesting to note that over one third (35%) of customers with major banks and a quarter (24%) of customers with other financial institutions did not receive clear information on items such as fees charged to their account. This further highlights the need for transparency and a clearer channel of communication. The study also finds that nearly one in five (18%) customers with major banks will likely switch from their primary bank in the next 12 months and a quarter (24%) would not recommend their bank to their friends and families. 

Following are some key findings of the 2018 study: 

• Lack of personal touch during interactions: In the past 12 months, 45% of customers who had a problem solved via the phone were not pleased with their overall experience. Nearly a quarter (23%) did not receive a simple “thank you” acknowledgement while visiting a branch. 

• Banks need to offer relevant advice and prompt follow-ups: More than three-quarters (77%) of customers say they did not receive financial advice from their bank regarding relevant products, services or other financial needs. Similarly, three-quarters (74%) of Australian customers say they did not receive any follow-up communication on the products or services offered to them. 

• Improve the customer experience with hassle-free digital platforms: The average use of digital platforms has grown during the past year with an increase of 14 percentage points in mobile app usage. However, half (48%) of customers do not completely understand which mobile banking products, services, or features are available to them. 

• Customers open to branchless banking: Half of banking customers say they would stay with their bank even if it closed all physical branches (57% of Millennials[1] vs. 47% of non-Millennials). Moreover, a quarter (26%) of Australian customers expressed their likelihood to bank with non-traditional financial institutions (39% of Millennials vs. 22% of non-Millennials).

Study Rankings

ING ranks highest in retail banking customer satisfaction among other financial institutions (Non-Major Banks), with an overall satisfaction score of 864 (on a 1,000-point scale). ING achieves the highest score in four of the six study factors: product offerings; account information; account activities; and fees. 

Westpac Bank ranks highest among major banks with a score of 731. Westpac Bank performs particularly well in the account information and account activities factors. 

The 2018 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: account activities (36%); fees (16%); product offerings (16%); account information (15%); facility (13%); and problem resolution (5%). 

The study, now in its third year, is based on responses from 4,730 retail banking customers. The study was fielded in October 2018. 

The study now also includes the Net Promoter Score® (NPS)[2], which measures customers’ likelihood to recommend their bank to others on a 0-10 scale. 

About JD Power in the Asia Pacific Region

JD Power has offices in Singapore, Bangkok, Beijing, Shanghai and Tokyo that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries in the Asia Pacific region. Together, the five offices bring the language of customer satisfaction to consumers and businesses in Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, Taiwan, Thailand, the U.A.E. and Vietnam. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Information regarding JD Power and its products can be accessed through the internet at asean-oceania.jdpower.com. 

Media Relations Contacts

Aisling Carty; JD Power; Singapore; 65-3165-0119; [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 Millennials as those born between 1982 and 1994.

[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.

 

Despite Drop in Overall Vehicle Problems, Owners Experience More Design-Related Issues, JD Power Finds

2018-12-19

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BANGKOK: 20 Dec. 2018 — While the overall number of problems per 100 vehicles has decreased across most of the key segments, new-vehicle owners in Thailand are increasingly facing design-related issues, such as audio, communication, entertainment and navigation (ACEN), according to the JD Power 2018 Thailand Initial Quality Study^SM (IQS), released today.

The study finds that problems per 100 vehicles (PP100) has dropped to 70 PP100 this year from 83 PP100 in 2017, with the biggest improvement in the exterior and engine/ transmission categories. It is noteworthy that the proportion of manufacturing defects has decreased to 44% of all problems in 2018, compared with 61% last year. All problems are summarized as the number of problems per 100 vehicles (PP100), with lower PP100 scores indicating a lower incidence of problems and, therefore, higher initial quality.

The study also finds that 51% of all problems experienced by new-vehicle owners are design-related, compared with 18% in 2017, particularly in relation to difficulties with poor or no radio reception, cup holders that are difficult to use, air conditioning failing to reach or maintain the desired temperature and noisy brakes.

“As reflected by the narrowed defect problem gap across the industry, manufacturers have demonstrated their commitment to improving the build quality of their vehicles. Despite these improvements, there are still opportunities to focus on improving design quality, particularly with advanced control and display interface features, so that functions are easier to understand and operate,” said Siros Satrabhaya, Regional Director, Automotive Practice at JD Power. “Dealership staff play a critical role in bridging the knowledge divide by offering customers comprehensive explanations and demonstrations of more complex features during the delivery process.”

The following are additional key findings of the study:

• Manufacturer-related problems still most reported: Among the top five problems reported, three are manufacturer-related and two are design-related. The most often cited manufacturer-related problems are excessive wind noise from around the vehicle (5.8 PP100); unpleasant interior smell/ odor (3.2 PP100); and abnormal suspension noises (1.8 PP100). The most often cited design-related problems are radio with poor/ no reception (8.5 PP100); and cup holders being difficult to use (3.9 PP100).

• First-time new-vehicle owners report fewer problems: Buyers purchasing their first vehicle report fewer problems than repeat buyers (68 PP100 vs. 74 PP100, respectively).

• Good product quality enhances likelihood to promote brand: The Net Promoter Score®^[1] (NPS) measures customers’ likelihood to recommend both their vehicle make and model on a 0-10 scale. The NPS overall score in this year’s study is 52. Promoters (new-vehicle owners who provide a rating of 9-10 points on the likelihood that they will recommend the vehicle brand) reported 61 PP100, compared with 121 PP100 reported by detractors (those who provide a rating of 0-6 points on their likelihood to recommend the brand).

Study Rankings

• Toyota Yaris Ativ ranks highest in the compact segment with 62 PP100.
• Mazda2 ranks highest in the entry midsize segment with 53 PP100.
• Honda Civic ranks highest in the midsize segment with 53 PP100.
• Mitsubishi Pajero Sport ranks highest in the large SUV segment with 63 PP100.
• Chevrolet Colorado X-Cab ranks highest in the pickup extended cab segment with 68 PP100.
• Ford Ranger Hi-Rider D-Cab and Toyota Hilux Revo D-Cab rank highest in the pickup double cab segment with 63 PP100.

The study measures problems experienced by new-vehicle owners during the first two to six months of ownership in two distinct categories: design-related problems and defects and malfunctions. The study includes specific diagnostic questions covering eight problem categories: exterior; driving experience; features/ controls/ displays; audio/ communication/ entertainment/ navigation; seats; heating/ ventilation/ air conditioning; interior; and engine/ transmission.

The 2018 Thailand Initial Quality Study (IQS) is based on responses from 5,106 new-vehicle owners who purchased their vehicle from September 2017 through September 2018. The study covers 13 different brands that include 74 passenger car, pickup truck and utility vehicle models. The study was fielded from March through November 2018.

About JD Power in the Asia Pacific Region

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

Aisling Carty; JD Power; Singapore; 65-3165-0119; [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

 

New-Vehicle Owners More Perceptive of Design-Related Vehicle Problems, JD Power Finds

2019-01-22

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SINGAPORE: 23 Jan. 2019 — While overall manufacturing quality-related problems are on the decline, auto owners in Indonesia are becoming more aware of vehicle design-related problems. The proportion of design-related problems compared to manufacturing-related problems has almost doubled in the last three years to 40% in 2018 from 27% in 2015, according to the JD Power 2018 Indonesia Initial Quality Study^SM (IQS), released today.

The study finds that the most-cited problems in vehicle design are related to difficulties with air conditioning failing to reach or maintain the desired temperature; seat material that scuffs or soils easily; and frequent pairing and connectivity issues with built-in Bluetooth® mobile phones. 

The study finds that overall, the number of problems per 100 vehicles (PP100) in 2018 is 63. In addition to design-related problems, new-vehicle owners also found defects in manufacturing quality-related problems, although less so compared with 2017. These issues include speakers and front windshield wipers that are either broken or not working properly and an unpleasant interior smell. 

“From the reduced number of manufacturing problems cited, OEMs are clearly listening to and solving customers’ pain points” said Srabani Bandyopadhyay, Country Manager, Indonesia at JD Power. “However, customers are increasingly becoming more discerning towards design problems in their vehicle. In a city like Jakarta, where heavy traffic often results in longer commutes, owners spend a longer time inside their vehicle and thus become more observant of issues relating to design and comfort. It is therefore crucial that manufacturers look to address these design-related issues to enhance the overall customer experience.” 

Following are additional key findings of the 2018 study: 

• First-time new vehicle owners report less problems: Buyers purchasing their first vehicle cite lesser problems than repeat buyers (56 PP100 vs. 73 PP100, respectively). 

• Younger car owners report more problems: Customers who are 29 years or younger report a higher problem count compared with those customers who are 30 years or older (75 PP100 vs 59 PP100, respectively). Younger car owners report higher instances of problems in the interior, exterior and seats categories, compared with older customers. 

• Good product quality enhances likelihood to promote brand: The Net Promoter Score®^[1] (NPS) measures customers’ likelihood to recommend both their vehicle make and model on a 0-10 scale. Promoters (new-vehicle owners who provide a rating of 9-10 points on the likelihood that they will recommend the vehicle brand) reported 68 PP100, compared with 123 PP100 reported by detractors (those who provide a rating of 0-6 points on their likelihood to recommend the brand). 

Study Rankings 

The Daihatsu Sigra ranks highest in the entry compact segment (42 PP100). The Honda HR-V ranks highest in the entry SUV segment (49 PP100). Mitsubishi Pajero Sport ranks highest in the SUV segment (50 PP100) and the Suzuki Ertiga ranks highest in the entry MPV segment (30 PP100). 

The 2018 Indonesia Initial Quality Study (IQS) is based on responses from 2,576 new-vehicle owners who purchased their vehicle between October 2017 and September 2018. The study includes 52 passenger cars, pickup and utility vehicle models of 10 brands. The study was fielded between May and December 2018. 

The study serves as the industry benchmark for new-vehicle quality by examining problems experienced by new-vehicle owners within the first two to six months of ownership in two distinct categories: design-related problems and defects and malfunctions. It includes more specific diagnostic questions around eight problem categories: exterior; driving experience; features/ controls/ displays; audio/ communication/ entertainment/ navigation; seats; heating/ ventilation/ air conditioning; interior; and engine/transmission. The overall initial quality score is determined by problems reported per 100 vehicles (PP100), with a lower number of problems indicating higher quality.  

About JD Power in the Asia Pacific Region

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

Aisling Carty; JD Power; Singapore; 65-3165-0119; [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.

 

Design and Function of Audio, Entertainment and Navigation Systems Have Biggest Effect on Vehicle Appeal, JD Power Finds

2019-01-25

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BANGKOK: 28 Jan. 2019 — Audio, entertainment and navigation system (AENS), help make vehicles considerably more appealing to their owners and has the highest relative importance among all factors contributing to the overall performance and design of a new vehicle, according to the JD Power 2018 Thailand Automotive Performance, Execution and Layout (APEAL) Study,^SM released today.

The study finds that the attributes under AENS which customers are least satisfied with are: attractiveness of audio and navigation display; ease of syncing external music devices; sound quality of calls when using Bluetooth® mobile phone connection; and look and feel of audio controls.

“As it is becoming increasingly important for customers to feel connected—whether through syncing their smartphones’ music or navigation app with their car’s audio system—it is crucial that the performance and design of these aspects function to the highest standard,” said Siros Satrabhaya, Regional Director, Automotive Practice at JD Power. “Among all factors, customers are least satisfied with the ACEN of their vehicle which makes the need to address design, layout and execution pain-points even more pressing. Automotive OEMs and suppliers need to focus on these areas, especially if they want to exceed customer expectations.”

The study also finds that overall satisfaction averages 846 points (on a 1,000-point scale) in 2018. Utility vehicle owners are the most satisfied with the vehicle appeal (855), followed by pickup owners (845) and passenger car owners (843).

The following are additional key findings of the 2018 study:

• More quality problems reduce satisfaction with vehicle appeal: Customers who experienced no quality problems with the vehicle are more satisfied with overall vehicle appeal than those who experienced 3 problems or more (861 vs. 810, respectively).
• Storage and space design aspects require improvement: Satisfaction with rear cup holders, center console storage and glove boxes as well as the space for passengers in the second-row seat (head, leg and foot room) are among the lowest-rated APEAL index model attributes.
• First-time new-vehicle owners are less satisfied: Buyers purchasing their first vehicle report a lower APEAL score than repeat buyers (842 vs 852, respectively).
• Good design and execution enhance likelihood to promote brand: The Net Promoter Score®¹ (NPS) measures customers’ likelihood to recommend both their vehicle make and model on a 0-10 scale. The NPS overall score in this year’s study is 52. Promoters (new-vehicle owners who provide a rating of 9-10 points on the likelihood that they will recommend the vehicle brand) reported an APEAL score of 879 points, compared with 724 points reported by detractors (those who provide a rating of 0-6 points on their likelihood to recommend the brand).

Study Rankings

• Mitsubishi Mirage ranks highest in the compact segment with an APEAL score of 849.
• Honda Jazz ranks highest in the entry midsize segment with an APEAL score of 846.
• Mazda3 ranks highest in the midsize segment with an APEAL score of 852.
• Toyota Fortuner ranks highest in the large SUV segment with an APEAL score of 865.
• Chevrolet Colorado X-Cab and Toyota Hilux Revo Prerunner Smart Cab rank highest in the pickup extended cab segment an APEAL score of 850.
• Ford Ranger Hi-Rider D-Cab ranks highest in the pickup double cab segment an APEAL score of 859.

The study measures what factors satisfy owners in Thailand regarding their new vehicle’s performance and design during the first two to six months of ownership. The study examines 79 attributes in 10 vehicle categories: exterior; interior; storage and space; audio/ communication/ entertainment/ navigation; seats; heating, ventilation and air conditioning; driving dynamics; engine/ transmission; visibility and driving safety; and fuel economy.

The 2018 Thailand APEAL Study is based on responses from 5,106 new-vehicle owners who purchased their vehicle from September 2017 through September 2018. The study covers 13 different brands that include 74 passenger car, pickup truck and utility vehicle models. The study was fielded from March through November 2018.

About JD Power in the Asia Pacific Region

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

Aisling Carty; JD Power; Singapore; 65-3165-0119; [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

¹Net 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.