Category: Canada

Canadian Banks Lose Appeal with Younger Customers, JD Power Finds

2019-04-29

jdp-root

TORONTO: 2 May 2019 – While overall customer satisfaction with Canada’s large and midsize banks increases slightly this year, the banks are losing some appeal with customers under the age of 40, according to the JD Power 2019 Canada Retail Banking Satisfaction Study,^SM released today.

Overall satisfaction with Canada’s retail banks increases to 785 from 782 (on a 1,000-point scale) in 2019. However, satisfaction among customers under age 40 declines to 777 from 780, while satisfaction among customers age 40 and older increases to 792 from 785. A five-point satisfaction difference between the two age segments in 2018 has grown to a 15-point difference in 2019.

The decline among customers under age 40 spans every factor, with the biggest declines in: in-person bank branch service (-14); problem resolution (-13 points); automated phone service (-13); live phone service (-10); and assisted online service (-10). Satisfaction declines are smaller in automatic banking machines, online and mobile banking service.

The study shows that the number of digital-centric¹ retail banking customers increases 6 percentage points, while the number of branch-dependent customers declines 6 percentage points. While customers are expanding their use of digital banking services and use branches less often, these customers experienced service quality declines during problem resolution, branch and telephone interactions.

“The findings highlight a key battleground for banks,” said Paul McAdam, Senior Director of Banking Intelligence at JD Power. “Younger and digital-centric customers are vital to future business growth, but younger customers are more likely to receive inconsistent service levels. Banks have invested heavily in convenience, in digitizing transactions and in making products easier to use. Service quality, however, is not keeping pace in omni-channel interactions. Banks that don’t address the gaps in service expectations are at an increased risk of client departures.”

According to the study, younger customers are three times more likely to switch banks than older customers. During the past year, 9% of bank customers under the age of 40 say they have switched banks, compared with 3% of those age 40 and older.

Following are additional key findings of the 2019 study:

• Products and fees deliver: Year over year, overall customer satisfaction with bank products and fees has increased significantly, driven by improved satisfaction with the reasonableness of fees and the competitiveness of interest rates on chequing and savings accounts. Customers cite reduced incidences of paying fees, and customer understanding of bank fee structures improves from 2018.
   
• Frequent communication appreciation: Another category showing an increase in satisfaction is communication and advice. Communications improves between banks and their customers—especially in terms of relevancy and frequency.
• Problem resolution is…problematic: The incidence of customer problems declines slightly, but satisfaction with bank problem resolution also declines due to lower ratings for the ease of getting problems resolved and with the knowledge of bank representatives involved in problem resolution.
   
• Telephone service declines: Satisfaction with live representative telephone service declines due to lower ratings for the speed of completing transactions and the knowledge of phone representatives. Customers also cite higher incidences of being placed on hold as well as lower incidences of phone reps providing their name and greeting customers by name.

Study Rankings

The study measures customer satisfaction with Canada’s large and midsize banks. The scores reflect satisfaction of the entire retail banking customer pool of these banks, representing a broader group of customers than in just the branch-dependent and digital-centric segments.

Among the Big 5 banks, TD Canada Trust ranks highest with a score of 789. RBC Royal Bank (784) ranks second and BMO Bank of Montreal (782) ranks third.

Among midsize banks, Tangerine ranks highest for an eighth consecutive year, with a score of 827. ATB Financial (815) ranks second and Desjardins (803) ranks third.

The Canada Retail Banking Satisfaction Study measures customers’ satisfaction in six factors (listed in alphabetical order): channel activities; communication/advice; convenience; new account opening; problem resolution; and products/fees. Channel activities include seven sub-factors (listed in alphabetical order): assisted online service; ABM; branch service; call centre service; IVR/automated phone service; mobile banking; and online banking. The study is based on responses from more than 15,000 retail banking customers of Canada’s largest and midsize banks regarding their experiences with their retail bank. It was fielded in two waves from June 2018 through January 2019.

For more information about the Canada Retail Banking Satisfaction Study, visit https://canada.jdpower.com/resource/canada-retail-banking-satisfaction-study.

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
Gal Wilder, Cohn & Wolfe; 647-259-3261; [email protected]
Sandy Caetano, Cohn & Wolfe; 647-259-3288: [email protected]
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]

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

¹ Digital-centric customers use the online and mobile banking services of their banks but have used branch offices no more than once in the past three months. Branch-dependent customers have used branches two or more times in the past three months and may or may not have used online and mobile banking services.

 

Aging Infrastructure Weighs Heavily on Water Utilities, JD Power Finds

2019-05-07

jdp-root

COSTA MESA, Calif.: 8 May 2019 — The Environmental Protection Agency (EPA) estimates that $473 billion in drinking water infrastructure investment will be needed during the next 20 years as aging pipes and treatment and storage facilities require upgrades and replacement. According to the JD Power 2019 Water Utility Residential Customer Satisfaction Study,^SM released today, the ability of water utilities to successfully manage that process will increasingly be determined by how well they communicate with customers while also minimizing service interruptions and quality issues.

“The good news is that customer reports of water quality issues have been declining steadily from the highs we saw in 2016, and that’s having a positive effect on water utility customer satisfaction,” said Andrew Heath, Senior Director of the Utility Practice at JD Power. “However, water utilities nationwide are staring down a period of massive infrastructure investment, construction and possible disruption. Effective communication will be critical throughout the process.”

Following are key findings of the 2019 study:

• Water quality problems decline: Reports of water quality issues have declined to 29% of all residential water customers from a high of 34% in 2016. The most frequently cited quality issues are low water pressure (12%) and bad taste (10%).

• Water quality and service interruptions still present serious challenges: Water quality issues and service interruptions have the most significant negative effect on water utility customer satisfaction. Water quality issues, such as low pressure or bad taste, are associated with a 104-point decline (on a 1,000-point scale) in customer satisfaction scores, while service interruptions are associated with a 50-point decline in customer satisfaction.

• Customer awareness of infrastructure investment drives goodwill: Customer awareness initiatives focused on infrastructure investments can significantly offset declines in customer satisfaction. Satisfaction among customers who are aware of utility efforts to replace old water infrastructure are 48 points higher, on average, than among those who are unaware of such efforts. Additionally, satisfaction among customers who say their water utility does a good job maintaining current infrastructure are 248 points higher, on average, than among those who are unaware of utility infrastructure investments.

• Proactive communications have powerful effect, but few utilities deliver: Overall satisfaction scores are 84 points higher when customers recall receiving a proactive communication from their utility (e.g., phone call, e-mail, text message, social media message) than when customers do not recall a proactive communication. Despite the powerful effect proactive communication has on customer satisfaction, just 28% of water utility customers recall receiving any communications from their utility.

Study Rankings by Region

The following utilities rank highest in customer satisfaction in their respective region:

• Midwest: Indiana American Water (759)
• Northeast: NYC Environmental Protection (750)
• South: Cobb County Water System (782)
• West: San Gabriel Valley Water Company (749)

The Water Utility Residential Customer Satisfaction Study, now in its fourth year, measures satisfaction among residential customers of 89 water utilities that deliver water to at least 400,000 customers and is reported in four geographic regions: Midwest, Northeast, South and West. Overall satisfaction is measured by examining 33 attributes in six factors (listed in order of importance): delivery; price; conservation; billing and payment; communications; and customer service.

For more information about the Water Utility Residential Customer Satisfaction, visit https://www.jdpower.com/resource/water-utility-residential-customer-satisfaction-study.

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
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Understanding, Transparency Key to Wireless Purchase Satisfaction in Canada, JD Power Finds

2019-05-21

jdp-root

TORONTO: 23 May 2019 — Overall customer satisfaction with wireless purchase experience in Canada declined across four of six factors in 2019, especially in the factor of cost of service, according to the JD Power 2019 Canada Wireless Purchase Experience Study^SM released today. Overall satisfaction is 793 (on a 1,000-point scale), compared with 799 in 2018.

Through the in-store experience, the study finds a strong connection between customers’ level of trust in the brand and their understanding of the plan’s fit, features and cost. Customers who receive an explanation from a store representative about the components of their bill have higher satisfaction with the cost of service than those who did not receive an explanation (714 vs. 601). Such an explanation also leads to a greater perception of carrier trust (43%) and a higher percentage of brand loyalty (40%) than those who do not receive an explanation (28% and 25%, respectively).

“Brick-and-mortar stores remain a critical sales channel for carriers, providing a unique opportunity to leverage customer interaction that builds trust and loyalty,” said Adrian Chung, Director of the Technology, Media & Telecom Practice at JD Power in Canada. “Sales reps need to be proactive, ensuring the customer is matched with the right plan—while explaining the features and billing structure—in order to clearly set expectations and leave a positive impression of both the brand and store.”

As advertising is the primary way carriers communicate their brand promise to customers and prospects, the study also examines the effect advertising has on customer perception of the brand and the company. The study finds that a carrier’s overall trustworthiness rate is significantly higher (6.25 on a 7-point scale) among customers who think their wireless provider’s advertising is very truthful. When consumers perceive their carrier’s advertising as less truthful or untruthful, the wireless provider is perceived as deceptive (the score goes as low as 2.45 points) and customers are more likely to act as detractors.

Following are some key findings of the 2019 study:

• Carriers’ stores are preferred: The most common location for wireless purchase is the carriers’ own brick-and-mortar stores, with 56% of customers making their purchase there. Satisfaction is higher among customers who make a purchase at a carrier’s store (824) than those who make a purchase at a non-carrier store (816).
   
• Understanding leads to trust: Customers who say the features of their plan and pricing are easy to understand and meet their needs, give carriers a higher trustworthiness mark (6.38 and 6.3, respectively, on a 7-point scale). Customers who say features and pricing were not easy to understand and didn’t meet their needs had a low trust level in the brand (3.01 and 3.10, respectively).
   
• The Amazon factor: When it comes to online purchase of wireless equipment, Amazon is the preferred destination for customers. More than one-third (37%) of respondents purchase wireless equipment on Amazon, while 33% make their purchase on the carrier’s website.

Study Rankings

Koodo Mobile ranks highest in purchase experience satisfaction for the third consecutive year, with a score of 831. Videotron (826) ranks second and SaskTel (812) ranks third.

The 2019 Canada Wireless Purchase Experience Study examines wireless carriers’ performance across sales-related activities in stores, over the phone and online. Satisfaction is measured in six factors: store representative; online purchase; phone purchase; facility; offerings and promotions; and cost of service. The study is based on responses from 5,435 wireless customers with a postpaid plan from an eligible carrier and who have had a purchasing experience in the past six months. The study was fielded in February-March 2019.

For more information about the Canada Wireless Customer Experience Study visit https://canada.jdpower.com/business/resource/canadian-wireless-purchase-experience-satisfaction-study.

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
Gal Wilder, Cohn & Wolfe; 647-259-3261; [email protected]
Sandy Caetano, Cohn & Wolfe; 647-259-3288: [email protected]
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]

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

 

Canada’s Home Insurers Miss the Mark When Addressing Top Customer Issues, JD Power Finds

2019-03-27

jdp-root

TORONTO: 28 March 2019 – When it comes to addressing insurance pain points of homeowners in Canada, insurance companies are falling short in meeting their expectations, according to the JD Power 2019 Canada Home Insurance Satisfaction Study.^SM In fact, all seven of the most important attributes that affect customer satisfaction receive lower average scores than those in less-influential areas of customer interaction.

“Insurers who want to increase market share as well as attract and retain customers need to shift focus and improve in areas that most influence customer satisfaction,” said Tom Super, Director of the Insurance Practice at JD Power. “Highly satisfied customers have better policy lifetime expectancy (PLE) scores and are much more likely to recommend their insurer to friends or family.”

Additionally, the study finds that more than 50% of customers indicate their insurer failed to deliver on key performance indicators (KPIs) that they rate as most important related to price, policy and service.

Following are some key findings of the 2019 study:

• Improvement in customer satisfaction tied to market share gains: Carrier improvements in customer satisfaction initiatives to better meet customer expectations correlate to more favorable top-line results, such as market share improvements by a number of insurers, year over year.
• Delighted for the long run: Delighted customers (measured as satisfaction scores of 900 and above, on a 1,000-point scale), tend to stay with the same home insurer an average of nearly 13 years. These customers are more likely to act as a brand ambassador and recommend their insurer to family and friends.
• Product improvement presents opportunity: Improvements in product offerings, such as more competitive discounts and more flexible underwriting standards, are areas in which insurers can differentiate themselves and thus improve customer satisfaction. Specifically, satisfaction is higher when customers receive lesser-known discounts for online purchase, association memberships and automatic or full-policy payments than when they receive more common discounts for claim-free records, security systems and fire alarms.
• Digital divide: The largest gap in satisfaction scores between the highest- and lowest-performing insurers is for digital capabilities. The study’s highest-ranked insurer scores 850 for providing digital capabilities for insureds, while the bottom performer scores just 670. This indicates that a large divide exists between insurers that meet their customers’ digital expectations and those that do not.

Nationwide, the median homeowners’ insurance premium during the past year was $1,200. On a regional basis, insureds in the Atlantic/Ontario region paid the highest for homeowners’ insurance coverage ($1,260), followed by the Western ($1,248) and Quebec ($984) regions.

Study Rankings

The Co-operators ranks highest in overall satisfaction in the Atlantic/Ontario region with a score of 791. RBC Insurance (774) ranks second and Allstate (764) ranks third.

In the Quebec region, The Personal ranks highest with a score of 830. Industrial Alliance (824) ranks second, while belairdirect and La Capitale rank third in a tie with 809.

In the Western region, BCAA ranks highest with a score of 800. The Co-operators (779) ranks second and TD Insurance (749) ranks third.

Quebecers are the most satisfied with their homeowners’ insurers, with a region average of 800 points, while their neighbours in the Western region are the least satisfied, with an average score of 740. The Western region also has the lowest score for competitiveness of discounts offered.

The 2019 Canada Home Insurance Satisfaction Study measures customer satisfaction with their homeowners’ insurance company by examining five factors (in order of importance): product/policy offerings; price; billing and payment; interaction (non-claim); and claims. The interaction (non-claim) factor includes three sub-factors: local agent and/or broker; call centre representative; and assisted online.

The 2019 study is based on responses from 5,809 homeowner insurance customers across Canada and was fielded from November 2018 through January 2019.

For more information about the Canada Home Insurance Satisfaction Study, visit https://canada.jdpower.com/resource/canadian-home-insurance-study.

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
Gal Wilder, Cohn & Wolfe; 647-259-3261; [email protected]|
Sandy Caetano, Cohn & Wolfe; 647-259-3317: [email protected]
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]

 

Satisfaction with Auto Insurers at Risk as Record-Level Claims Drive Premiums Higher, JD Power Finds

2019-02-12

jdp-root

TORONTO: 14 Feb. 2019 — Fueled by a rising frequency and severity of insurance claims and repair costs, vehicle owners in Canada are seeing auto insurance premiums soar and, as a result, customer satisfaction levels are suffering, according to the JD Power 2019 Canada Auto Insurance Satisfaction Study,SM released today.

To offset rising costs, auto insurers have been pushing premiums upward to where the national average premium has risen $298. Insureds in Alberta have seen the highest spike in auto insurance costs ($326), followed by those in Ontario ($311), Atlantic ($286) and Quebec ($213).

“With such a dramatic increase in premiums, price sensitivity becomes an issue to which insurers should be very mindful,” said Tom Super, Director of the Insurance Practice at JD Power. “While we have seen pockets of claims frequency begin to stabilize, carriers continue to face profitability challenges in the auto sector, especially for those carriers that lagged the market on rate action.”

The study finds that providing clarity and transparency when an insurer initiates a premium increase could help limit the negative effect on satisfaction. Satisfaction is higher among customers who experienced an insurer-initiated increase once they discussed discount options (688 on a 1,000-point scale) and also completely understood their bill (722). For customers who discussed discount options, completely understood their bill and completely understood their policy, satisfaction increases to 741. Satisfaction among those customers who say they did not understand their policy offerings and only saw their insurance cost going up, is much lower at 619.

“There are multiple ways to help customers realize the value of their policy,” Super added. “Providing easy access to policy information via digital channels and having at least one annual touch point to review customers’ changing needs can go a long way in increasing satisfaction and loyalty.”

Nearly two-thirds (62%) of customers who can access their policy online and were contacted by their insurer during the past year intend to keep their business with their current insurer and recommend it to others. In stark contrast, fewer than half (45%) of customers who neither had personal contact nor access to their policy plan to continue with the same insurer and are not likely to recommend it.

Study Rankings by Region

Alberta Motor Association and The Co-operators share the top rank for the highest satisfaction in Alberta, each with a score of 781. For The Co-operators, this is the sixth consecutive year the company leads auto insurance customer satisfaction in the region. Of note is that among all four regions included in the study, customer satisfaction is lowest among drivers in Alberta, at 754 points.

In the Atlantic region, The Co-operators ranks highest with a score of 820 and is followed by Intact Insurance(799).

The Co-operators ranks highest in the Ontario region with 809 points. The Personal ranks second with 798.

The province of Quebec experiences the highest level of customer satisfaction with an average score of 817. The Personal ranks highest with a score of 836. SSQ ranks second with a score of 834.

The Canada Auto Insurance Satisfaction Study, now in its 12th year, measures customer satisfaction with primary auto insurers in Canada. Satisfaction is measured across five factors (in order of importance): product/policy offerings; price, billing and payment; interaction (non-claims); and claims. Insurers are ranked in four regions (in alphabetical order): Alberta, Atlantic, Ontario and Quebec. The study is based on responses from 8,688 auto insurance policyholders. The study was fielded From October to December 2018.

For more information about the Canada Auto Insurance Satisfaction Study, visit https://canada.jdpower.com/resource/canada-auto-insurance-satisfaction-study.

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
Gal Wilder, Cohn & Wolfe; 647-259-3261; [email protected]
Sandy Caetano, Cohn & Wolfe; 647-259-3288; [email protected]
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]

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

 

Canadian Retail Banks Face Untapped Opportunity in Financial Advice, JD Power Finds

2019-01-30

jdp-root

TORONTO: 31 Jan. 2019 — Financial advice—particularly the type that can be delivered digitally—is the great untapped frontier of the Canadian retail banking industry. According to the JD Power 2019 Canada Retail Banking Advice Study,^SM 85% of bank customers in Canada are interested in receiving financial advice from their primary bank and 72% of those who receive advice act on it, but customer satisfaction with the advice provided has declined slightly this year.

The study, now in its second year, measures retail banking customer satisfaction with the retail bank-provided advice and account opening processes of five major Canadian banks.

“There is clear demand for financial advice among Canadian bank retail customers, and when banks get the formula right, that advice drives significant customer loyalty and advocacy, but many banks are still missing the mark,” said Paul McAdam, Senior Director of the Banking Practice at JD Power. “Increasingly, all signs are pointing to digital advice offerings as the channel where retail banks can drive the most significant improvement. Nearly 60% of customers indicate they’d like to receive advice via digital channels, but just 10% of them actually receive advice that way.”

Following are key findings of the 2019 study:

• Customer satisfaction with retail bank advice declines year over year: Overall customer satisfaction with the advice provided by a primary retail bank decreases 2 points to 789 (on a 1,000-point scale) in 2019 vs. 2018, and younger customers (under age 40) are slightly less-satisfied with bank-derived advice than their older counterparts. This stands in stark contrast to the results of the JD Power 2019 U.S. Retail Banking Advice StudySM which saw overall satisfaction scores increase by 15 points, driven largely by younger customers.

• Digital advice in focus: A majority of bank customers (57%) say their preferred means of receiving advice is digital content (interactive tools, articles, videos) delivered through a bank website or mobile app. However, just 10% of bank customers say they have received their most recent advice in this manner.

• Investment-related advice resonates most: Among the most common types of advice retail bank customers seek are investment-related advice (49%); quick tips to help improve their financial situation (44%); retirement-related advice (44%); advice to help keep track of spending and household budgets (34%); and in-depth view of personal financial situation (32%).

• Advice satisfaction directly linked to trust, retention and advocacy: Among retail bank customers who are highly satisfied with the advice provided by their institution, (overall advice satisfaction score of 850 or higher), 86% say they “definitely will” reuse their bank for another product; 76% are identified as Net Promoters®[1]; and 49% say they have opened a new account based on the advice received.

• Advice often delivered during new account opening, and transparency is critical: When new accounts are opened, transparency about customer benefits and fees is critical. Overall satisfaction with the account opening process increases 155 points when benefits and features are explained completely and 126 points when fees are clearly explained. Approximately one-third of the time, consumers in Canada leave the account-opening experience with less than a complete understanding of product features, benefits and fees.

Study Rankings

Scotiabank ranks highest in customer satisfaction with retail banking advice with a score of 806. RBC Royal Bank ranks second with a score of 803 and BMO Bank of Montreal ranks third with a score of 792.

The 2019 Canada Retail Banking Advice Study surveyed 1,451 retail bank customers in Canada who received any advice/guidance from their primary bank regarding relevant products and services or other financial needs in the past 12 months. The study also surveyed 1,291 retail bank customers in the Canada who opened a new account within the past 12 months. It was fielded in October 2018.

For more information about the Canada Retail Banking Advice Study, visit 

https://www.jdpower.com/business/resource/canada-banking-advice-satisfaction-study.

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
Gal Wilder, Cohn & Wolfe; 647-259-3261; [email protected]

Sandy Caetano, Cohn & Wolfe; 647-259-3317: [email protected]

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

About JD Power and Advertising/Promotional Rules: http://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.

 

 

Battle for Vehicle Service Market Share in Canada Heats Up

2018-09-11

jdp-root

TORONTO: 13 Sept. 2018 — The service market among 4-12-year-old vehicles in Canada is worth nearly $10 billion annually, a huge amount that has both dealers and aftermarket repair facilities competing fiercely for their share. Moreover, the answer of who is winning the battle depends largely on the question one asks.

Results from the JD Power 2018 Canada Customer Service Index Long-Term StudySM reveals that non-dealer service locations hold a majority when it comes to the share of service occasions (53.5% vs. 46.5% for dealers). However, dealership service facilities carry the day when it comes to share of overall service spend, capturing 53% of the total dollars spent on vehicle service over the past 12 months. Spending at aftermarket shops has grown from an average of $223 per visit from $204 in 2017, while spending at dealerships has declined to $291 per visit, on average, from $303 in 2017.

The study, which measures repair service satisfaction levels of original vehicle owners in Canada whose vehicles are 4-12 years old, also finds that younger vehicle owners (Gen X[1], Y and Z) are more likely to service their vehicles at non-dealer facilities, compared with Boomers and Pre-Boomers.

“The service and repair market among this lucrative set of vehicle owners in Canada remains highly competitive,” says JD Ney, Automotive Industry Practice Leader at JD Power Canada. “With the vast majority of these vehicles being out of warranty, customers are rethinking their brand loyalties and exploring their options.”

Prior experience plays a critical role in customer retention and is cited by half of vehicle owners as one of the leading reasons for choosing a service facility (52% of those who chose a dealership and 50% of those who chose an aftermarket shop). The reason is more prominent among Boomers and Pre-Boomers (60% and 74%, respectively), while Gen Z and Gen Y owners tend to choose service facilities based on a recommendation provided by a friend or relative (36% and 26%, respectively) more frequently.

“Customer satisfaction is critical for brand loyalty and advocacy of auto service facilities,” Ney said. “Service facilities that want to build customer loyalty need to provide positive experiences to meet this goal.”

Following are additional findings of the 2018 study:

• Satisfaction brings recommendations: According to the study, 86% of the most satisfied customers (overall satisfaction of 901 or higher, on a 1,000-point scale) consistently say they “definitely will” return and 84% of those customers “definitely will” recommend their service facility. For those with a lower satisfaction level (between 601 and 750), 38% say they “definitely will” return and 25% say they “definitely will” recommend their service facility.

• Vehicle brand affinity declines over time: For the first time, the study includes a Net Promoter  Score,®[2] which measures customers’ likelihood to recommend their vehicle brand on a 0-10 scale. The NPS® shows that vehicle owners’ affinity for their brand declines over time. While owners act as brand promoters for the first three years of ownership, enthusiasm wanes the longer the vehicle is owned. This is important insight for OEMs that rely on client interaction and service satisfaction at the dealership to sustain and support vehicle brand loyalty.

• Highly satisfied customers spread the word: Creating brand promoters from existing customers is critical to attracting younger customers (Gen Y and Gen Z), since they are more recommendation-oriented.

• Younger owners drive more kilometers: On average, average miles driven by Gen Y owners is 106,602 Km and Gen X owners drive an average of 105,527 Km. By comparison, Boomers drive an average of 99,571 Km and Pre-Boomers an average of 85,754 Km.

Study Rankings

Lexus Dealerships rank highest in overall customer service satisfaction for a fourth consecutive year, with a score of 826. NAPA AUTOPRO (799) ranks second and Great Canadian Oil Change (798) ranks third.

The Customer Service Index Long-Term (CSI-LT) Study measures satisfaction and intended loyalty among owners of vehicles that are 4-12 years old and analyzes the customer experience in both warranty and non-warranty service visits. Overall satisfaction is based on five factors (in order of importance): service initiation (24%); service quality (23%); service advisor (20%); service facility (17%); and vehicle pick-up (16%). The study is based on responses 10,681 owners and was fielded in March through June 2018.

For more information about the Canadian Customer Service Index Long-Term (CSI-LT) Study, visit http://canada.jdpower.com/resource/canadian-customer-service-index-long-term-study.

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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. 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.

Media Relations Contacts
Gal Wilder, Cohn & Wolfe, Toronto, Canada; 647-259-3261, [email protected]
Sandy Caetano, Cohn & Wolfe; Toronto, Canada; 647-259-3288, [email protected]
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]

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

# # #

 

Understanding, Redeeming Rewards Key to Satisfaction for Credit Card Holders, JD Power Finds

2018-09-06

jdp-root

TORONTO: 10 Sept. 2018 — Credit card holders in Canada place a high value on their rewards programs, so much so that 48% who switched their primary credit card during the past year did so for a better rewards program, according to the JD Power 2018 Canada Credit Card Satisfaction Study,^SM released today. This is a significant finding from the inaugural study, considering that 87% of credit card holders are enrolled in a rewards program.

“There’s more to a satisfying rewards program than just the amount of points, miles or cash card holders can earn,” said Jim Miller, Vice President, Banking and Credit Card Practice at JD Power. “Understanding how to redeem rewards—and having redeemed rewards recently—has a significant effect on satisfaction and loyalty levels. As such, card issuers need to educate card holders on how to redeem their rewards and design programs in a manner that encourages frequent redemptions.”

According to the study, 64% of card holders say they completely understand how to redeem rewards. Overall satisfaction is 87 points higher among this group than among card holders who say they do not fully understand how the system works (796 vs. 709, respectively, on a 1,000-point scale). Furthermore, rewards redemption and frequency also contribute to higher satisfaction and loyalty levels. Satisfaction is higher among card holders who realized tangible benefits by redeeming rewards in the past month (792), compared with satisfaction among those who redeemed 1-3 months ago (780); those who redeemed more than a year ago (753); or those who have never redeemed (740). Cash back and airline tickets are the top two rewards card holders choose.

Within this context, it was recently announced that Air Canada, TD Bank, CIBC and Visa Canada jointly plan to buy Aeroplan, a coalition loyalty program. (Approximately 10% of card holders in Canada use an Aeroplan card as their primary credit card.) Prior to the announcement, the uncertainty surrounding Aeroplan was seen to have affected customer satisfaction.

“Air Canada buying Aeroplan is good news for Aeroplan card holders,” Miller added. “The Aeroplan program will move to a new Air Canada rewards program in 2020. It will be critical for the airline and credit card partners to build a new rewards program that is transparent and easy to understand.”

Following are some key findings of the 2018 study:

• Two is better than one: On average, consumers in Canada used two credit cards for the purchase of goods and services in the past three months, with 81% of their total spend charged on their primary card. The average length of time card holders stay with the same credit card issuer is 10 years, with a median monthly spend on the primary credit card of $600.

• Card holders in Canada embrace mobile, led by Gen Z[1]: More than half (51%) of credit card holders in Canada have used mobile apps during the past three months to manage their account, redeem rewards and take advantage of other benefits. This mobile adoption level is significantly higher than in the United States (39%). Among card holders in Canada, those in the Gen Z generational group have the highest level of mobile app adoption (79%).  Perceptions of security may be hindering mobile adoption, as only 41% of card holders perceive their personal information is very secure when using a credit card app, and 36% perceive the mobile app is less secure than the website.

• Understanding the mobile app drives satisfaction: Mobile app adoption results in a slight lift in overall satisfaction (761 vs. 755, respectively), but the real benefit occurs when card holders say they completely understand the mobile offering. Overall satisfaction is 77 points higher among card holders who completely understand the mobile app than among those who do not completely understand the app (810 vs. 733, respectively).

“Usage and understanding of mobile apps have a strong correlation to customer satisfaction,” Miller said. “This, coupled with a higher adoption rate of mobile platforms by younger card holders, signals the future for credit card issuers. To gain a competitive advantage, issuers should focus on improving their mobile offerings and on educating their card holders about the benefits and security they provide.”

Study Rankings

President’s Choice Financial ranks highest in overall customer satisfaction, with a score of 788, which is 30 points higher than the industry average (758). American Express (780) ranks second and Canadian Tire (774) ranks third.

The Canada Credit Card Satisfaction Study measures satisfaction of card holders’ primary credit card issuer. The study measures performance in six factors (in alphabetical order): benefits; communication; credit card terms; customer interaction; key moments; and rewards. The study was fielded in May 2018 and includes responses from more than 6,000 card holders who used a major credit card in the past three months.

For more information about the Canada Credit Card Satisfaction Study, visit http://canada.jdpower.com/business/resource/canada-credit-card-satisfaction-study.

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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. 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.

Media Relations Contacts
Gal Wilder, Cohn & Wolfe, Toronto, Canada; 647-259-3261, [email protected]
Sandy Caetano, Cohn & Wolfe; Toronto, Canada; 647-259-3288, [email protected]
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]

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

 

Homeowners in Canada More Satisfied with Insurers, Driven by Channel Improvements, JD Power Finds

2018-06-26

jdp-root

TORONTO: 28 June 2018 — Homeowners in Canada are more satisfied with their insurance providers, although premiums have been on the rise, according to the JD Power 2018 Canada Home Insurance Study.^SM Overall satisfaction has risen for the third consecutive year, now at 786 (on a 1,000-point scale).

Rising customer satisfaction can be attributed to step-change improvements in channel performance.  Higher levels of satisfaction are driven by the industry’s collective focus on improving the way customers interact with their brands, particularly local agent and online relationships.

“Insurers understand the important role channels play in shaping customer satisfaction,” said Tom Super, Director of the Insurance Practice at JD Power. “Within an environment that has experienced both premium increases and several large CAT events, an effective channel strategy can help mitigate the negative effects of those events if managed properly.”

On the issue of rate action, the study finds that homeowners’ satisfaction with price is driven more by perception rather than actual dollar value. Customers who pay above their regional median average premium and do not receive an insurer-initiated premium increase are more satisfied than those who pay below the regional median premium and receive an insurer-initiated premium increase (753 vs. 672, respectively). The upshot of this finding is that the negative perception of receiving a premium increase affects satisfaction levels more than the actual price homeowners are paying.

“Transparency is the best strategy when it comes to rate action,” Super added. “Insurers that do a better job of proactively communicating an increase to customers are more effective in retaining quality-driven insurance customers than those insurers that are less forthright.”

Following are some key findings of the 2018 study:

• Highs and lows of premiums: Although experiencing the highest price increase since 2016 (13%), customers in the Quebec region still pay the lowest annual home insurance premiums ($960), followed by those in the Western region ($1,200). Homeowners in the Atlantic/Ontario region have the highest median annual premiums ($1,284).

• A spotlight on Fort McMurray wildfire: The Fort McMurray wildfire that devastated the city in 2016-17 reportedly generated 60,000 insurance claims totaling $3.8 billion in losses. Of those claims, more than 900 remain unsettled, elevating residents’ frustration. While satisfaction has steadily improved among customers in the Alberta province over the past three years, the province average is still lower than the national average (769 vs. 786, respectively), indicating that insurers have room for improvement.

• The factors in which insurers excel the most: The year-over-year improvement in customer satisfaction can be attributed to insurers’ improvements in the following three factors: billing and payment (+10 points); non-claim interaction (+9); and policy offerings (+7).

Study Rankings

In the Atlantic/Ontario region, RBC Insurance ranks highest in overall satisfaction with a score of 814. The Co-operators (809) ranks second and Allstate (803) ranks third.

In the Quebec region, The Personal ranks highest with a score of 823, followed by La Capitale (818) and Intact Insurance (816).

In the Western region, BCAA and The Co-operators rank highest in a tie with a score of 799. TD Insurance (778) ranks third and Alberta Motor Association (776) ranks fourth.

Homeowners in the Quebec region are the most satisfied with their home insurance company, with a region satisfaction average of 810. Homeowners in the Western region have the lowest satisfaction level, averaging 769.

The 2018 Canada Home Insurance Study examines customer satisfaction with their homeowners’ insurance company by examining five factors (in order of importance): non-claim interaction; policy offerings; price; billing and payment; and claims. The non-claim interaction factor includes three subfactors: local agent or broker; call centre service representative; and website.

The study is based on responses from 5,676 homeowner insurance customers across Canada and was fielded from March-May 2018.

For more information about the Canada Home Insurance Study, visit http://canada.jdpower.com/business/resource/canadian-home-insurance-study.

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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. 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.

Media Relations Contacts
Gal Wilder, Cohn & Wolfe, Toronto, Canada; 647-259-3261, [email protected]
Sandy Caetano, Cohn & Wolfe; Toronto, Canada; 647-259-3288, [email protected]
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]

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

 

Connected Devices, Smart Home Technology Change Expectations in Canada for TV and Internet Service Providers, JD Power Finds

2018-06-19

jdp-root

TORONTO: 21 June 2018 — As smart home appliances and Internet of Things (IoT) devices are increasingly making their way into Canadian households, they are changing the dynamics and expectations of consumers for their internet service providers (ISPs), according to the JD Power 2018 Canada Television Service Provider Customer Satisfaction Study^SM and JD Power 2018 Canada Internet Service Provider Customer Satisfaction Study.^SM

Customer satisfaction with their ISP increases with the number of connected devices being used at home. Overall satisfaction is higher among customers with two or more connected devices (742 on a 1,000-point scale) than among those with only one connected device (721) or none (713).

Study findings show that customers with smart home products are less price-sensitive and are willing to pay more for better service. Nearly two-thirds (63%) of customers with smart home products indicate having a willingness to pay more for internet service, compared with only 50% of those with no smart home devices. However, while these findings are good news for ISPs, they do come with a caveat: customers with connected devices are the least loyal to their internet providers and will easily switch for reasons such as better features (24%); more reliable service (22%); or just to try something different (21%).

“Technology advancements continue to influence the way consumers use the internet,” said Adrian Chung, Director of the Technology, Media & Telecom Practice at JD Power in Canada. “They’ve become enablers in peoples’ lives and, as such, customer expectations of service providers are evolving. Reliability and faster speeds are increasingly more important factors in customer expectations and satisfaction, especially among younger and more tech-dependent users. The ability of ISPs to unlock the potential of their premium service offerings will be critical to success as adoption rates of connected and smart homes devices increase.”

Following are some key findings of the 2018 studies:

• Younger generations make homes smarter: Nearly 1 in 5 Gen Z^[1] and Gen Y customers have a smart home device connected to their home internet (21% and 18%, respectively), compared with only 5% of Pre-Boomers and 8% of Boomers. Younger customers also are more likely to own multiple devices. Smart Security and Smart Appliances are the most common smart home applications.

• Gaming consoles not just for games: Nearly every internet customer surveyed (96%) has some type of gaming device that is connected to the internet and 22% own a dedicated internet-connected gaming console (e.g., PlayStation, Xbox and Wii). Owners of dedicated internet-connected gaming consoles are more likely to cut ties with wireline TV service providers, with 32% watching streaming content on their device. Additionally, 15% of console owners plan to drop their TV service in the next 12 months, citing streaming service as their most likely product to switch to.

• Loss of television service leads to lower satisfaction: Customers who experience a loss of television signal or service are significantly less satisfied than those who do not experience such an issue (739 vs. 831, respectively). Nearly half (48%) of customers have experienced this issue in the past three months.

• PVR owners more likely to binge-watch: Nearly half (48%) of TV service subscribers who own a PVR say they have binge-watched programming from their provider, compared with only 36% of those without a PVR.

Study Rankings

In the East region, Videotron ranks highest in both TV (788) and internet service provider satisfaction (787) for a sixth consecutive year. Shaw (750) ranks second in TV satisfaction. Cogeco ranks third (743) in TV satisfaction and second in internet service (737).

In the West region, SaskTel ranks highest in both television (764) and internet service satisfaction (730) for a sixth consecutive year. In TV satisfaction, TELUS (736) ranks second and Shaw (723) ranks third. In internet service provider satisfaction, Shaw (713) ranks second and TELUS (710) ranks third.

The 2018 Canada Television Provider Customer Satisfaction Study is based on six factors (in order of importance): performance and reliability; cost of service; programming; communication; billing; and customer service. The 2018 Canada Internet Service Provider Customer Satisfaction Study measures overall satisfaction with internet service providers and is based on five factors (in order of importance): performance and reliability; cost of service; communication; billing; and customer service. The studies are based on responses from 7,286 internet customers and 7,342 TV customers in Canada. Both studies were fielded in March-April 2018.

For information about the Canada Television and Internet Service Provider Satisfaction studies, visit http://canada.jdpower.com/business/resource/canadian-wireline-satisfaction-study-ca.

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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. 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.

Media Relations Contacts
Gal Wilder, Cohn & Wolfe; Toronto, Canada; 647-259-3261, [email protected]
Sandy Caetano, Cohn & Wolfe; Toronto, Canada; 647-259-3288, [email protected]
Geno Effler; JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]

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