Category: Canada

Overall Customer Satisfaction Dips among Canadian Banking App Users, JD Power Finds

2018-06-06

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TORONTO: 8 June 2018 — Although nearly half of customers of Canadian retail banks are now considered “digital-centric” frequent users of mobile banking apps,^[1] customer satisfaction with the mobile banking experience has significantly declined this year. According to the JD Power 2018 Canada Banking App Satisfaction Study,^SM overall customer satisfaction with banking apps decreases 11 points (on a 1,000-point scale) this year as more customers adopt digital as their primary interaction channel.

“The large-scale push toward digital transformation by Canadian banks has had the desired effect of moving more customers onto more cost-effective digital channels but, in some cases, that transition is coming at the expense of customer satisfaction,” said Bob Neuhaus, Senior Director of Financial Services at JD Power. “As mobile apps rapidly become the primary interaction channel for retail bank customers, it’s become critical for banks to make sure their customers completely understand all of the features their apps include and continue to add value through the digital channel. Currently, fewer than 70% of customers in North America indicate they have a complete understanding of the feature-rich apps being offered by their banks.”

Following are some key findings of the 2018 study:

• Bank app satisfaction declines as mobile adoption grows: The overall customer satisfaction score for retail bank mobile apps is 824, which is 11 points lower than last year. Each bank profiled in the 2018 study has declined in overall satisfaction. With 43% of bank customers using their mobile apps in the past three months, mobile has become a critical interaction channel for the industry¹.

• Understanding feature-laden apps is important: The ability to completely understand all app features has the greatest effect on overall satisfaction among banking app users. Complete customer understanding of their mobile apps is associated with an 84-point improvement in overall satisfaction with banking apps. Despite this significant influence, fewer than 68% of customers in North America—less in Canada—indicate a complete understanding of all features in their banking and credit card apps.

• Frequent users have higher levels of satisfaction: Overall satisfaction increases by 61 points among customers who utilize their apps 12 or more times per month when compared with those using their apps three or fewer times per month.

• Highest-performing apps have rich feature set: The highest-performing apps in the study have a combination of high functionality and high performance, which means they have features such as multiple security login options, built-in chat functionality and account management functions, all of which are user-friendly and well-designed.

Study Rankings

RBC Royal Bank ranks highest in overall satisfaction for a second consecutive year, with a score of 832. TD Canada Trust ranks second with a score of 826 and CIBC ranks third with a score of 825. Illustrating the tight competition in the mobile app space, just 20 points separates the highest-ranked and lowest-ranked performers in the study.

The 2018 Canada Banking App Satisfaction Study measures overall satisfaction with mobile banking applications based on five factors (in order of importance): ease of navigation; appearance; clarity of information; range of services; and availability of key information. The study is based on responses from 1,741 retail bank customers nationwide. It was fielded in April-May 2018.

The Canada Banking App Satisfaction Study, visit http://canada.jdpower.com/business/resource/canadian-banking-mobile-app-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; Costa Mesa, Calif.; 714-621-6224; [email protected]

About JD Power and Advertising/Promotional Rules /business/about-us/press-release-info

 

In-store Experience Critical to Wireless Customer Satisfaction in Canada, JD Power Finds

2018-05-22

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TORONTO: 24 May 2018 — While brick-and-mortar stores lose their lustre in many retail categories, they continue to remain relevant to wireless carriers in Canada, according to the JD Power 2018 Canada Wireless Purchase Experience Study,^SM released today. Nearly two-thirds (63%) of customers who have purchased a wireless device over the past six months did it in a physical store and are making more purchases in-store, compared with 2017 (2.2 vs. 1.7, respectively).

The study finds that an in-store purchasing experience drives the highest level of customer satisfaction, compared with other channels, and increases year over year. The average customer satisfaction score from an in-store experience is 821 (on a 1,000-point scale), while the online and over-the-phone purchasing experiences yield 815 and 796 points, respectively. In fact, in-store purchasing satisfaction has increased by 22 points year-over-year, compared with a 12-point increase for online and a 13-point increase for over-the-phone.

Overall satisfaction averages 799. This marks a 15-point increase from 2017 (784) and a 38-point increase from 2016 (761).

“The tactile experience and immediate gratification are invaluable to customers who shop for and buy their new device in-store,” says Adrian Chung, Director of the Technology, Media & Telecom Practice at JD Power in Canada. “Clearly, the physical store is a very important sales channel for wireless carriers to attract new customers and retain current ones who opt to upgrade their phones. However, this comes with a caveat: in-store representatives’ pressure to up-sell or complete the transaction has a counter effect on customer satisfaction.”

According to study findings, 25% of customers who recently visited a wireless store felt pressured during their visit, resulting in a significant decline in satisfaction. The study finds a 136-point difference in satisfaction levels between non-pressured customers and highly pressured customers (846 vs. 710, respectively). Highly pressured customers also are less satisfied with their store representative and say they spent less per month, on average ($87), than those who did not feel pressured ($104).

Following are some additional findings from the 2018 study:

• Carrier stores have larger market share, offer more relaxed experience: More than half (55%) of recent in-store wireless purchases were made at a carrier store, compared with 45% at a non-carrier store. Nearly four in five (79%) customers felt that carrier stores exerted no pressure, compared with 70% who felt non-carrier stores exerted no pressure.
• In-store pressure silences brand advocacy, scares off customers: Customers who experienced high pressure from store representatives are not only less likely to recommend their carrier, but are also seriously considering switching providers. In fact, 49% of customers who experienced high levels of in-store pressure say they “definitely will” switch their wireless carrier.
• Carriers’ online purchase experience lags: Customers prefer to open their wallets at non-carriers’ virtual stores, with 71% making a purchase via a non-carrier website, resulting in satisfaction levels that are higher than carriers’ online stores (822 vs. 799, respectively). Timeliness of completing a transaction, ease of placing an order and ease of navigation are cited as the main causes of lower satisfaction levels from carriers’ websites.

Study Rankings

Koodo Mobile ranks highest in purchase experience satisfaction for the second consecutive year, with a score of 818. Videotron (809) ranks second and Fido (808) ranks third.

The 2018 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 3,605 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 2018.

For information about the Canadian Wireless Purchase Experience Study, visit http://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 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

 

Streamlined Issue Resolution a Key to Reducing Wireless Carriers’ Churn, JD Power Finds

2018-04-23

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TORONTO: 26 April 2018 —Canada’s wireless providers should take note of the effect their issue-resolution processes have on customer retention. According to the JD Power 2018 Canada Wireless Customer Care Study,^SM released today, 32% of customers indicate that it took a lot of effort to resolve a recent problem with their wireless carrier, while 41% who encountered hurdles in the resolution process are considering—or have decided—to switch their provider.

The study shows that the amount of effort required from a customer to resolve an issue significantly affects their satisfaction with, and impression of, their provider. Overall satisfaction among customers who faced challenges dealing with their wireless provider is 186 points lower (on a 1,000-point scale) than among those who had a seamless experience (652 vs.  838, respectively). Furthermore, customers who experienced an onerous problem-solving process viewed their wireless provider less favorably, perceiving the carrier to be more focused on the bottom line than customer service, unreliable and providing poor value.

“Without a doubt, a seamless customer care experience can positively affect a consumer’s view of their wireless provider and appetite to remain a loyal customer,” said Adrian Chung, Director of the Technology, Media & Telecom Practice at JD Power in Canada. “It is no secret that retaining customers is more cost-effective than acquiring new ones. Therefore, Canadian carriers should put a greater emphasis on streamlining the customer care experience and making it as effortless as possible. They should also be extra conscious about utilizing the appropriate contact channels.”

Nearly two-thirds (62%) of customers used their phone as a channel to resolve an issue with their wireless service provider in the past six months. While a phone call is still the most common channel among customers, the use of social media as an option for problem solving is on the rise, especially among younger customers. Nearly one-fourth (23%) of Gen Z^[1] wireless customers have used social media to post a question, compared with only 4% of Boomers. Similarly, 24% of Gen Z customers—but only 7% of Boomers—have researched social media for an answer.

“With generational shifts, social media’s role as a preferred channel for problem resolution continues to grow, but the study shows that wireless carriers are not fully able to handle the task yet,” Chung said. “Customers who do their own research on social media platforms are able to solve issues faster than those who post a question and have to wait for answers.”

Posting on social media to resolve an issue results in lower satisfaction levels (696), compared with using social media to independently research a problem (765). Among the unassisted channels, watching a carrier video increases satisfaction (769), compared with the unassisted care average (718).

Following are additional key findings of the 2018 study:

• The virtual hold keeps customers on hold: Customers who called for assistance and opted for a virtual hold waited 59 minutes, on average, for a call back, compared to the 12 minutes it took customers who waited on hold to speak to a representative. Virtual holds drag down satisfaction with the phone channel, which is 47 points lower than when not using virtual hold (719 vs. 766, respectively).

• Talking to a manager doesn’t guarantee resolution: Customers who phoned their wireless carrier with an issue that was escalated to a manager were less satisfied with their phone channel experience, compared with industry average (650 vs. 757, respectively). Also, only 73% of such customers were likely to resolve the issue, compared with the industry average of 83%.

Study Rankings

Virgin Mobile ranks highest in overall customer care satisfaction for the second consecutive year, with a score of 793. Koodo Mobile and SaskTel rank second in a tie with a score of 792. Videotron follows with a score of 789. The overall satisfaction average is 753.

The 2018 Canada Wireless Customer Care Study measures wireless customers’ perceptions of their carrier’s performance. Satisfaction is measured in two factors: assisted care and unassisted care. The assisted care channels include: phone customer service representative (CSR); in-store; online chat; email; post to social media; and carrier’s mobile app to ask a question or make a request. The unassisted care channels include: automated telephone system (ARS); website to look for information; social media site to look for information; and user forums.

The study was fielded in February-March 2018 and is based on an online survey of more than 5,000 wireless customers. Respondents are residents of Canada with a postpaid wireless service who had a customer service experience in the past six months.

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]
Stephanie Ronson, Cohn & Wolfe; Toronto, Canada; 647-259-3278, [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

 

Self-Directed Investors in Canada Increasingly Seek Advice, JD Power Finds

2017-09-13

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TORONTO: 14 Sept. 2017 — Self-directed investors do not necessarily want to go it alone, but advisory firms have yet to crack the code on the perfect hybrid solution, which effectively combines tailored advice with self-service tools and resources, a key finding of the JD Power 2017 Canadian Self-Directed Investor Satisfaction Study,^SM released today.

“With about half of investors whose primary account is self-directed—indicating a current or imminent need for full-service advice—self-service brokerages have significant assets at risk of attrition if they are not able to meet this need,” said Mike Foy, Senior Director of the Wealth Management Practice at JD Power. “The trend is even more pronounced among Millennials,[1] who are clearly looking for self-service-with-benefits models that allows them to manage their accounts but also receive advice from professionals when they need it. Firms that can get that balance right—and offer it at a competitive price—have a huge opportunity to fulfill an unmet need.”

Following are some additional findings of the 2017 study:

• High unmet need for professional advice among self-directed investors: Half of self-directed investors either already have a secondary full-service account or plan to open one in the next 12 months. That number jumps to 60% among Millennials. Just 28% of all investors indicate a low likelihood of opening a full-service account.
• Robo-advisor adoption still modest, but could pose threat to self-service: Overall, robo-advisor usage among self-directed investors has declined in 2017 to just 19%, down from 24% in 2016. Despite that low utilization rate, however, 55% of Millennials and 48% of older investors rate their robo-advisor as high as or higher than their primary self-directed provider, suggesting that as awareness and adoption increase, robo options are well positioned to fill the unmet need for guidance.
• Mobile trading continues to gain share: Among the increasing number of investors who use mobile for trading, mobile now accounts for 63% of overall trades, up from 48% in 2015, making it the primary trading channel for these self-directed investors. Firms that are able to shift other investor interactions like reviewing performance and doing research to mobile enjoy higher levels of satisfaction.

Study Rankings

Desjardins Online Brokerage ranks highest in self-directed investor satisfaction, with a score of 785 (on a 1,000-point scale). Following are Qtrade Investor (778), BMO InvestorLine (763) and Scotia iTRADE (762).

The Canadian Self-Directed Investor Satisfaction Study, now in its ninth year, measures investor satisfaction among those who do not work with an advisor for their primary account with their brokerage firm across six key factors (in order of importance): interaction; account information; information resources; trading charges and fees; product offerings; and problem resolution.

The study includes responses from 2,609 investors who primarily invest with self-directed investment platform providers in Canada. The study was fielded in May through June 2017.

For more information about the Canadian Self-Directed Investor Satisfaction Study, visit http://canada.jdpower.com/resource/canadian-self-directed-investor-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]
Jennifer McCarthy, Cohn & Wolfe; Toronto, Canada; 647-259-3305, [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

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Trust in Retail Banks Is Strong; Fake Accounts Not Pervasive, JD Power Finds

2017-09-01

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TORONTO: 7 Sept. 2017 — Retail banks have earned the trust of their customers, who believe banks help them find the right product based on their financial needs, according to the JD Power 2017 Canadian Banking Sales Practices and Advice Study,^SM released today. The inaugural study gauges the effect of retail bank sales practices and financial advice on overall customer satisfaction across the five largest banks in Canada. While unauthorized accounts opened by banks are a serious issue, the study finds such occurrences to be rare. More common issues that destroy trust are customers feeling pressured to open an account and being surprised by fees after opening an account.

“When it comes to the most fundamental issues in a retail banking relationship—customers trusting their bank to do the right thing and to act ethically—Canada’s retail banks get a clean bill of health,” said Jim Miller, Senior Director of Retail Banking Services at JD Power. “But there are still areas where the perception of overly aggressive sales practices and surprise fees are having a negative influence on overall customer satisfaction. This creates a unique opportunity for retail banks to stop selling so hard and to start offering tailored financial advice, which can improve customer satisfaction and solidify the strong trust base that has already been built.”

Following are key findings of the study:

• Customers trust their banks and believe they act ethically: Among retail bank customers, 81% say they either “somewhat agree” or “strongly agree” that they trust their bank to do the right thing, and 75% say they believe their bank acts ethically. In-depth analysis shows that a statistically insignificant proportion of customers—less than 0.1%—had an unauthorized account opened by their bank in the past year.

• Pressure to open new accounts persists with deleterious effect: When opening a new account, 9% of bank customers indicate they felt sales pressure from bank representatives. Of those, 14% say the pressure was significant. Overall satisfaction scores are 97 index points higher (on a 1,000-point scale) among customers who did not feel pressured by a representative when opening a new account, compared with those who did feel pressured.

• Customers surprised by fees are less satisfied: When it comes to fees, 10% of bank customers indicate being surprised by fees associated with a new account. Overall satisfaction scores are 115 index points higher among customers who were not surprised by fees when opening a new account vs. those who were surprised. Fee surprises also destroy trust. Among customers who were not surprised by a fee, 45% say they “strongly agree” that they trust their bank to do the right thing, but drops to 23% among those who were surprised by a fee.

• Fee transparency and customer engagement lead to higher satisfaction: When bank representatives completely explain fees up front, the frequency of fee-related surprises drops to 5%. Likewise, when representatives ask questions before suggesting a new account, overall satisfaction increases 78 index points and overall levels of trust increase by 12 percentage points.

• Advice—not sales—is key to greater satisfaction and loyalty: Among customers who received financial advice from their retail bank, 71% say they acted on it and roughly 59% of those customers say they opened a new account as a result of the advice. Overall satisfaction scores are 64 index points higher when bank customers receive financial advice, with 93% of customers who receive financial advice saying they either “probably will” or “definitely will” use the same financial institution the next time they need a bank account or product.

About the Study
The inaugural 2017 Canadian Banking Sales Practices and Advice Study measures customer satisfaction among retail bank customers of the five largest Canadian banks who have opened a new account in the past year with a bank representative; received financial advice in the past year from a bank representative; and customers who said they had an account opened without their consent in the past year. The study is based on responses from 8,792 retail bank customers and was fielded in June 2017.

Banks included in the study are BMO Bank of Montreal; CIBC; RBC Royal Bank; Scotiabank; and TD Canada Trust.

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
Stephanie Ronson, Cohn & Wolfe; Toronto, Canada; 647-259-3278; [email protected]
Gal Wilder, Cohn & Wolfe; Toronto, Canada; 647-259-3261; [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

 

Aftermarket Auto Service Providers Still Win Hearts of Canadian Vehicle Owners but Dealers Are Closing Gap, JD Power Finds

2017-08-29

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TORONTO: 31 Aug. 2017 — In the never-ending race for customers’ business, non-dealer auto service providers still win the hearts of vehicle owners in Canada over dealers, with higher average customer satisfaction levels across almost every category, according to the JD Power 2017 Canadian Customer Service Index Long-Term (CSI-LT) Study.

Aftermarket auto service providers outperform dealers in areas of service initiation (797 vs. 778 on a 1,000-point scale); service advisor (798 vs. 781); vehicle pick-up (773 vs. 751); and service quality (765 vs. 745). While dealers lag behind non-dealers in overall satisfaction (761 vs. 767, respectively), dealers do provide a better facility experience (746 for dealers vs. 681 for non-dealers) and are continuously closing the gap in the other categories, improving their scores by an average of 30 points over 2016.

“Customer satisfaction is at the core of every viable business and the automotive service market is no exception,” says JD Ney, senior manager of the Canadian automotive practice at JD Power. “The study clearly demonstrates the importance of maintaining high satisfaction levels in retaining loyal customers who also act as brand ambassadors and recommend their vehicle service provider. The higher the customer satisfaction score, the higher the likelihood of the vehicle owner returning to the facility for paid work. For auto service providers, this can lead to hundreds, if not thousands of additional service customers annually.”

According to the study, delivering exceptional customer service (901 points and higher) increases customer likelihood of returned paid visits (85% for dealers and 93% for non-dealers). This is compared to only 58% of dealer customers and 69% of non-dealer customers who say their service experience was outstanding (751-900 points) and are planning to return to the facility for service work.

The study also highlights the greater role service advisors play and the impact they have on customer satisfaction. Four of the top 10 most impactful key performance indicators (KPIs, or dealership processes that have the most impact on customer experience) are related to the service advisor. Additionally, in ratings for service advisor performance in people skills and knowledge, non-dealer service advisors outperform their dealership counterparts in every category, including: courtesy of the service representative (8.12 vs. 7.99 on a 10-point scale); responsiveness (7.96 vs. 7.77; thoroughness of explanation (7.80 vs. 7.63); and knowledge of service advisor (8.03 vs. 7.81).

“If auto service providers want to improve their business performance, they should pay closer attention to the front desk,” Ney said. “Service advisors play a critical role in driving a positive customer experience as they have the most interaction and visibility to the customer. Equipping service advisors with the right tools, training and knowledge can help auto service shops gain this competitive advantage that drives satisfied and returning clients.”

Following are additional findings of the study:

• Telephone is still the most popular method for customers to schedule an appointment with both dealers (82%) and non-dealers (65%), but the desire to book online today dramatically outpaces the ability to do so, with 13% saying they would rather book online vs. 5% who say they could do so.
• Keeping customers informed during the repair process, particularly via alternative communications methods, is an area where both dealers and non-dealers can improve, as the study finds that once a vehicle is in service, customers are rarely contacted by text message with updates (3% for dealers, 1% for non-dealers), although 17% of dealer customers and 12% of non-dealer customers would prefer to be contacted this way. Text messaging in particular is an area where both dealers and non-dealers should improve to better serve younger customers, who indicate by a significant margin that they prefer this method.
• Tablet usage as part of the overall service process is on the rise by both dealers and non-dealers (20% and 16% respectively)—and positively elevates customer satisfaction levels. This adoption rate is still relatively low, with plenty of room for auto service providers to boost satisfaction levels using handheld devices to provide owners with more information about the service performed on their vehicle.

Study Rankings
Lexus Dealerships rank highest in satisfying automotive service customers in Canada for a third consecutive year, with an overall satisfaction score of 808. Mercedes-Benz Dealerships ranks second (800), followed by Audi Dealerships (793), NAPA AUTOPRO (790) and Volkswagen Dealerships (788).

The JD Power Customer Service Index Long-Term (CSI-LT) StudySM 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 the combined index scores of five measures that comprise the overall service experience (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 from 11,430 owners in Canada whose vehicle is 4-12 years old. The study was fielded from March through June 2017.

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
Stephanie Ronson; Toronto, Canada; 647-259-3278; [email protected]
Samantha Eng; Toronto, Canada; 647-259-3290; [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

 

Canadian Auto Insurance Customer Satisfaction Climbs despite Premium Increases, JD Power Finds

2017-05-15

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TORONTO: 15 May 2017 — Customer satisfaction with auto insurance in Canada increases for the second consecutive year despite nationwide premium increases, according to the JD Power 2017 Canadian Auto Insurance Satisfaction Study,^SM released today.

“It does seem counterintuitive to see customer satisfaction increase as premiums rise, but customers are content to pay more when they believe they’re getting value for their money,” said Valerie Monet, senior director of the insurance practice at JD Power. “While low prices can be effective at getting new customers in the door, those customers are ultimately willing to pay higher premiums for exceptional service. Key performance metrics, such as making sure customers understand their policies and providing follow-up calls from customer service interactions, translate into higher satisfaction—regardless of an above-average premium.”

Following are some of the key findings of the 2017 study:

• Satisfaction increases amid double-digit premium growth: Across all study regions, price satisfaction and the median annual premium per vehicle are increasing. Reported premiums are up 17% in Quebec; 16% in the Atlantic region; 11% in Alberta; and 1% in Ontario over the past two years. Notably, the lowest reported premium increases are in Ontario, indicating that these customers may finally be realizing Ontario’s Auto Insurance Rate Reduction Strategy to reduce premiums. While new-vehicle prices and costly options are driving premiums higher, the reduction strategy seems to be slowing premium increases in other provinces.

• Willing to pay for value: Price satisfaction is 63 index points higher (on a 1,000-point scale) among auto insurance customers who are paying premiums above the regional median and who completely understand their policies vs. those who are paying less than the regional median and who do not understand their policies.

• Telematics adoption still low: Of the 32% of auto insurance customers who are aware their insurer offers telematics, just 8% are currently participating in safe driver discount programs that are monitored by in-vehicle computers.

Study Rankings

Overall satisfaction with Canadian auto insurers averages 784,¹ up 26 points from 2016. Key drivers of the performance improvement are increased understanding of policy and what is covered and better overall customer service.

Customer satisfaction in the Alberta region averages 762, up 19 points from 2016. The Co-operators ranks highest in satisfaction in Alberta for a fourth consecutive year, with a score of 779. Johnson Insurance ranks second (776).

In the Atlantic region, customer satisfaction averages 790, up 22 points from 2016. The Co-operators ranks highest in satisfaction for a third consecutive year, with a score of 828. Wawanesa ranks second (801).

Customer satisfaction in the Ontario region averages 783, up 30 points from 2016. The Co-operators ranks highest in satisfaction for a second consecutive year, with a score of 809. The Personal ranks second (798).

In the Quebec region, customer satisfaction averages 813, up 27 points from 2016. Industrial Alliance ranks highest with a score of 838. Promutuel ranks second (833).

The Canadian Auto Insurance Satisfaction Study, now in its 10^th year, measures customer satisfaction with primary auto insurers in Canada. Satisfaction is measured across five factors (in order of importance): non-claim interaction; price; policy offerings; billing and payment; and claims. Insurers are ranked in four regions (in alphabetical order): Alberta, Atlantic, Ontario and Quebec. The study is based on responses from nearly 11,000 auto insurance policyholders. The study was fielded in February-March 2017.

For more information about the Canadian Auto Insurance Satisfaction Study, visit http://canada.jdpower.com/resource/canadian-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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe.

Media Relations Contacts

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

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

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

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¹ Excludes government insurers: ICBC (Insurance Corporation of British Columbia), MPI (Manitoba Public Insurance) and SGI (Saskatchewan Government Insurance)

* View the French Version of the press release.

 

Ease of Online Purchasing Drives Satisfaction with Wireless Purchase Experience, JD Power Finds

2017-05-10

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TORONTO: 11 May 2017 — Overall customer satisfaction with wireless purchases continues to improve year over year as online purchasing becomes easier and customers increasingly use the channel, according to the JD Power 2017 Canadian Wireless Purchase Experience Study,^SM released today.

Whether it’s buying a new phone, buying a SIM card, signing up for new wireless service or a myriad of other retail transactions, the in-store channel remains the most widely used purchase channel. However, the percentage of customers making an in-store purchase in the previous six months has declined to 61% from 65% in 2016. Conversely, the percentage of customers going online to make a purchase has risen to 42% from 39% a year ago.

“The online purchase experience continues to get smoother as carriers refine their websites and customers get more accustomed to going online for wireless needs,” said Adrian Chung, director at JD Power. “Delivering an experience that delights customers and matches online expectations will continue to grow in importance for customers of all ages.”

Following are some additional findings of the 2017 study:

• Online purchases getting easier and faster: All attribute ratings in the online channel have notably improved from last year, with the highest gains in ease of navigating website (+0.44 points on a 10-point scale) and timeliness of completing the purchase (+0.46 points). Only 23% of customers who made an online purchase had a website problem, an improvement of four percentage points from 2016. The average time to complete an online purchase dropped to 9.6 minutes from 10.1 minutes.
• Age doesn’t matter: Customers in all age brackets (18-34; 35-44; 45-54; 55-64; and 65 or older) are more likely to have made an online purchase compared with a year ago, with the highest incidence among those 18-34 (48%) and the largest year-over-year increase among those 35-44 (to 46% from 40%). Additionally, satisfaction in the online purchase factor improves considerably from 2016 among all age groups, with the largest increase among those 35-44 (+50 points).
• Slow or frozen website leaves customers in the cold: Despite declining to 10% from 12% in 2016, slow or frozen websites remain the most common problem customers experience when shopping online. Overall satisfaction is 735 among customers who experience this problem vs. 794 among those who do not.
• Higher satisfaction encourages bundling: Slightly more than two-thirds (67%) of delighted customers (overall satisfaction score of 900 or higher) say they “definitely will” or “probably will” bundle an additional wireline service with their wireless carrier the next time they are in the market, while 51% of pleased customers (overall satisfaction of 750-899) and 39% of indifferent customers (overall satisfaction of 550-749) say the same thing. Only 28% of displeased customers (overall satisfaction of 549 or less) say the same thing.
• Satisfaction varies with transaction type: Overall satisfaction is notably high among those who signed up for new wireless service (802); purchased a phone (796); or purchased a tablet (796). Overall satisfaction is lowest among those who changed an existing service plan or feature (780).

Study Rankings

Koodo Mobile and Virgin Mobile rank highest in purchase experience satisfaction with a score of 812 each. Videotron (802) ranks third, followed by Freedom Mobile (793).

Overall satisfaction is 784 (on a 1,000-point scale), up 23 points from 2016. Satisfaction in the online purchase factor improves by 41 points from 2016, considerably more improvement than in any other factor.

The Canadian 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 6,705 wireless customers and was fielded in September-October 2016 and March 2017.

Media Relations Contacts

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

Jennifer McCarthy, Cohn & Wolfe, Toronto, Canada; 647-259-3305, [email protected]

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

For information about the Canadian Wireless Purchase Experience Study, visit http://canada.jdpower.com/industry/telecom-ca

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

 

First Impression of Automotive Manufacturer Websites is Best Sales Tool, JD Power Finds

2017-05-10

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TORONTO: 10 May 2017 — Manufacturer websites that tell a good brand story will help them win the battle with third-party sites for consumer attention, according to the JD Power 2017 Canadian Manufacturer Website Evaluation StudySM released today.

“An experience with a brand’s website is an experience with the brand itself,” said JD Ney, senior manager, auto practice Canada at JD Power. “Manufacturers’ websites are designed to entice shoppers to learn more about specific vehicles and, hopefully, drive them to visit a showroom. Whereas consumers used to visit several dealerships before making a purchase, they’re now shopping from home and removing brands from their consideration list while sitting in their living room. The better the experience they have visiting a manufacturer website, the more likely they are to have a positive perception of that brand.”

Among shoppers who have an excellent experience with their website visit (overall satisfaction score of 901 or higher on a 1,000-point scale), overall impression of the brand increases by 55% compared with 17% among those who had a poor experience (500 and below). As satisfaction improves, brand perception of innovation and reliability also improve.

The study finds that auto shoppers often search for online reviews before making a purchase. When asked what types of products or services drive them to consult online reviews during their purchase decision-making process, shoppers most frequently identified cars/trucks (63%); consumer electronics (63%); and appliances (53%).

“Deciding to make a large purchase is one that consumers don’t take lightly, so it’s a natural progression that online reviews have become part of that process,” Ney said. “We live much of our lives online, so automakers must recognize this and use it to turn shoppers into buyers.”

Study Rankings

Porsche ranks highest overall with a score of 796. Land Rover ranks second (783), followed by Jaguar (781), Cadillac (779) and Kia (777).

The 2017 Canadian Manufacturer Website Evaluation Study evaluates manufacturer websites from two perspectives: overall site function and the importance of various site features to online shoppers. The four key features that are measured (in order of importance) are: information/content (31%); appearance (25%); navigation (23%); and speed (20%).

The study is based on 3,320 evaluations of automotive manufacturer websites by new-vehicle shoppers who indicated they will be in the market for a vehicle within the next 24 months. This study examines which current site functions and designs are most effective in helping shoppers narrow their consideration set and increasing the likelihood of a test drive. The study was fielded in February-March 2017.

For more information about the Canadian Manufacturer Website Evaluation Study, visit http://canada.jdpower.com/resource/canadian-manufacturer-website-evaluation-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.

Media Relations Contact

Geno Effler; West Coast; 714-621-6224; [email protected]

Shane Smith; East Coast; 424-903-3665; [email protected]

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

 

Vehicle Owners Expecting Connected Service Experience, JD Power Study Finds

2016-08-29

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TORONTO: 31 August 2016 — “Connected car” is the buzz phrase for the auto industry, but connected service may soon be part of the nomenclature as well. From scheduling a service visit to amenities available while customers wait for their vehicle, technology and connectivity are becoming an increasingly important part of the service experience, according to the JD Power 2016 Canadian Customer Service Index Long-Term (CSI-LT) Study,^SM released today.

“Consumers are demanding a connected service experience,” said JD Ney, manager of the Canadian automotive practice at JD Power. “From scheduling appointments to interacting with the service advisor to staying connected via unobstructed Wi-Fi access, customers expect these services from their local coffee shop, so why wouldn’t they expect the same of their dealership or aftermarket service facility?” 

While only 6% of service customers in Canada scheduled their last service visit via the Internet, 14%—more than twice as many—indicate the Internet is their preference for scheduling future visits. Currently, 74% of customers schedule their visits by phone.

Customers also like it when their service advisor is connected. The study finds that 21% of customers say their service advisor used a tablet device during their service visit. The use of a tablet seems to build a level of confidence in the advisor, as among customers whose advisor used a tablet and recommended additional work to their vehicle, 61% had the work done. When the advisor didn’t use a tablet but recommended additional services, only 44% had the work done.

Furthermore, customers want technology such as computers and Internet access available while they wait for their vehicle. Access to the Internet and electronic technologies are among the least frequently offered amenities, despite generating the highest service facility satisfaction scores. For example, only 42% of dealerships and 14% of aftermarket facilities currently offer wireless Internet access for their waiting customers. Additionally, only 17% of dealers and 5% of aftermarket facilities offer their customers computers with Internet access, yet the amenity has the highest overall service facility satisfaction score among dealer customers (771 on a 1,000-point scale) and the second-highest score among aftermarket facility customers (759). 

Tablet computers or video games, the least offered amenity, has the highest service facility score among aftermarket facility customers (772) and the second-highest score among dealer customers (770). 

Technology amenities can also help build customer loyalty and advocacy.  For example, among customers of dealers that offer wireless internet access, 53% say they “definitely will” return to the dealer for future service that they have to pay for and 40% say they “definitely will” recommend the dealer to others. This compares with only 42% of customers who say they “definitely will” return and only 30% who say they “definitely will” recommend the facility, when Wi-Fi is absent.  

“Customers want, and frankly expect, to stay connected while they wait for their vehicle so they can either be productive or entertained,” said Ney. “Simple Wi-Fi access requires the service facility to make a small investment, but the reward is a higher degree of customer engagement, which leads to higher customer loyalty.”

Among delighted dealer service customers (overall satisfaction scores of 901 or higher), 84% say they “definitely will” return to the facility for future paid service work. When customers are merely pleased with their dealer service experience (751-900), intender service loyalty drops to 59%. For aftermarket facilities, 92% of delighted customers say they “definitely will” return to the facility for future paid service work, compared with 73% of pleased customers who say the same.  

The study, which measures satisfaction and intended loyalty among owners of vehicles that are 4 to 12 years old, analyzes the customer experience in both warranty and non-warranty service visits. Overall satisfaction is based on the combined index scores of five measures that comprise the overall service experience (in order of importance): service initiation (24%); service quality (23%); service advisor (20%); service facility (17%); and vehicle pick-up (16%). Scores for each measure are reflected in an index based on a 1,000-point scale.

Other key findings of the study include:

• Overall Satisfaction with Dealer Service Dips: Overall customer satisfaction with automotive dealerships is 729 in 2016, down from 731 in 2015, while satisfaction with aftermarket shops remains at 749.
• More Visits, More Money: On average, customers make 2.5 service visits per year, up very slightly from an average of 2.4 visits per year in 2015. Customers make an average of 1.1 visits per year to a dealer for service and 1.4 visits per year to an aftermarket service facility. Overall, the average amount spent per service visit increases to $241 in 2016 from $232 in 2015. The average amount spent per service visit at a dealership in 2016 is $297, compared with $200 per visit at an aftermarket service facility.
• Service Advisor Can Make or Break Satisfaction: When a customer says the service advisor is completely focused on their needs, overall satisfaction can increase by as much as 82 points. When the service advisor offers the customer helpful advice, it can boost overall satisfaction by as much as 48 points. And when the service advisor greets customers immediately upon their arrival, it can improve overall satisfaction by as much as 44 points. 

Study Rankings

Lexus Dealerships rank highest in satisfying automotive service customers in Canada for a second consecutive year, with an overall satisfaction score of 819. Great Canadian Oil Change ranks second (789), followed by Fountain Tire (786), NAPA AUTOPRO (768) and Volkswagen Dealerships (758).

The 2016 Canadian Customer Service Index Long-Term (CSI-LT) Study is based on responses from 12,340 owners in Canada whose vehicle is between 4 and 12 years old. The study was fielded from March through June 2016.

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. 

Media Relations Contacts

Viktoria Liepold, Cohn & Wolfe, Toronto, Canada, 647-259-3273, [email protected]

John Tews, JD Power, Troy, Michigan, 248-680-6218, [email protected] 

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