Category: Canada

Customers Finally Adjusting to Shifting Bank Fee Structures; Mobile Adding Value across the Banking Experience, JD Power Study Finds

2016-07-27

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TORONTO: 28 July 2016 — Overall satisfaction with retail banks in Canada improves significantly as customers become more accepting of increased fees incurred during the past two years, according to the JD Power 2016 Canadian Retail Banking Satisfaction Study,^SM released today. 

The study, now in its 11th year, measures customer satisfaction with retail banks in two segments: Big 5 Banks¹  and Midsize Banks. In both segments, customer satisfaction is measured in seven factors 

(listed in order of importance): product; self-service; personal service; facilities; communication; financial advisor; and problem resolution. Satisfaction is calculated on a 1,000-point scale. 

Overall satisfaction improves by 23 points in 2016. Overall satisfaction in the Big 5 Banks segment averages 760, up from 737 in 2015, while satisfaction in the Midsize Banks segment increases to 783 from 759. 

The study finds that satisfaction has improved despite ongoing changes in fees. For example, 25% of Big 5 Banks customers in 2016 say they’ve experienced a change in their fee structure and 16% indicate that new fees were introduced, both about the same percentages as in 2015.  

“The improvements indicate that customers are becoming less sensitive to new pricing structures, which caused satisfaction to tumble in 2015,” said Paul McAdam, senior director of banking services at JD Power. “The banks are doing a better job communicating with their customers, who now are seeing the value they are getting in return for higher fees.”

Satisfaction improves across all factors, with the product and self-service factors being the highest-weighted drivers of the overall industry improvement, increasing by 6 points and 5 points, respectively. Within the product factor, satisfaction in the chequing subfactor increases dramatically year over year, while satisfaction in automated banking machines (ABM) and mobile are the primary drivers of improved satisfaction in the self-service factor.  

Mobile Changing the Banking World

The study finds that 34% of bank customers use mobile banking channels in 2016, up from 27% in 2015 and 20% in 2014. Overall satisfaction among customers who use and are satisfied with mobile banking is 836, compared with 760 among those who do not use the channel.

Among the banking channels in 2014, mobile banking generated the lowest satisfaction score (770). In 2016, satisfaction with mobile banking has improved by 34 points to 804, trailing only the in-person branch channel at 807.

“Mobile is changing customer interaction models and forcing banks to transform,” said McAdam. “Banking providers understand that customer expectations of interactivity with mobile devices are different than their expectations of other touch points. The effect of mobile is evident across many aspects of the banking customer experience.”

The impact of mobile goes beyond improving overall satisfaction with the bank. Highly satisfying mobile banking services can mitigate the negative impact of a problem or complaint; help maintain satisfaction with a smaller branch network; improve perceptions of available products and services; and reduce price sensitivity. For example, product satisfaction among customers who use and are satisfied with mobile is 795, compared with 710 among those who do not use mobile. Additionally, facility satisfaction among customers who have two or fewer branch offices nearby averages 788 among satisfied mobile users, compared with 739 among those who do not use mobile. 

“Self-service makes banking more convenient for customers, with mobile technology being a key element of self-service,” said McAdam. “Despite the growing number of digital channel interactions, there is more that banks can do to drive customers to self-service channels for routine transactions, which make it easier for the customer and more cost-effective for the bank.”

Emphasizing that opportunity is the fact that 57% of Millennial²  customers still make deposits and 42% make cash withdraws in-person at a branch office.

Additional key findings of the study include:

• Customers Value Proactive Outreach: Proactively reaching out to customers regarding product and service benefits or to provide guidance on financial goals boosts overall satisfaction. Among customers who receive a proactive contact from their bank tailored specifically for their personal needs, overall satisfaction is 837, compared with 746 among customers who are not contacted. 
• Problem Prevention Is Critical to Satisfaction: Overall satisfaction averages 773 among the 86% of customers who have not experienced a problem with their bank in the past 12 months. When customers experience one or more problems, satisfaction plummets to 705. Problem incidence is higher among affluent customers³  and those who carry a balance of $10,000 or more, compared with other customers.
• Problem Resolution Can Salvage Satisfaction: Even when customers experience a problem, banks can still keep them happy if they have processes in place to resolve issues quickly and efficiently. Simply resolving a problem increases satisfaction by 89 points, but resolving a problem on the first contact, on the same day and without transferring the customer improves satisfaction by 190 points. 

Study Rankings

RBC Royal Bank ranks highest in overall customer satisfaction among Big 5 Banks, achieving a score of 765. RBC Royal Bank performs particularly well in all seven factors, most notably in product.  TD Canada Trust ranks second with a score of 761.

Among Midsize Banks, Tangerine ranks highest in overall customer satisfaction for a fifth consecutive year, with a score of 840. Tangerine performs particularly well in product, personal service, self-service and communication. President’s Choice Financial ranks second with a score of 789.

The 2016 Canadian Retail Banking Satisfaction Study is based on responses from more than 13,000 customers who use a primary financial institution for personal banking. The study includes the largest financial institutions in Canada and was fielded from April through May 2016.

For more information about the 2016 Canadian Retail Banking Satisfaction Study, visit http://canada.jdpower.com/resource/canadian-retail-banking-customer-satisfaction-study. See the online press release at http://www.jdpower.com/pr-id/2016137.

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

1. Big 5 Banks are the largest five banks in Canada (BMO, CIBC, RBC Royal Bank, Scotiabank and TD Canada Trust); Midsize Banks include Alterna Bank, ATB Financial, HSBC Bank Canada, Laurentian Bank of Canada, Manulife Bank, National Bank of Canada, President’s Choice Financial and Tangerine. 

2. Millennials are defined as customers who are 22-34 years old.

3. Customers with a household income of $150,000-$500,000 and investable assets between $250,000 and $5 million.

 

JD Power Study Finds Customer Satisfaction with Homeowners Insurance Improves in Eastern Canada, while Claims Contribute to Drop in the West

2016-06-02

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TORONTO: 6 June 2016 — Customer satisfaction with homeowners insurance in Eastern Canada is improving, while catastrophic events contribute to lower satisfaction in the Western provinces, according to the JD Power 2016 Canadian Home Insurance Study,^SM released today.

The annual 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. Satisfaction is calculated on a 1,000-point scale.

Overall satisfaction in the Atlantic/Ontario region improves to 768 in 2016 from 759 in 2015, while satisfaction in the Quebec region jumps to 797 from 777. Satisfaction in both regions improves significantly in all factors, with the only exception being price in the Atlantic/Ontario region, which improves by a modest 1 point.

In contrast, overall satisfaction in the Western region drops to 732 in 2016 from 745 a year ago. Price is the leading cause of the drop in satisfaction, suffering a 23-point year-over-year decline.

Contributing to the decline in satisfaction is that home insurers in the Western provinces have been challenged with significant losses resulting from catastrophic events.  While fire-related claims have decreased to 5% of claims in 2016 from 6% in 2013, storm-related claims have increased to 44% from 37% over the same period. The Western provinces are still being impacted by the wind and thunderstorm event that took place in the summer of 2015 in Alberta and Saskatchewan, resulting in $56 million CAD in insured losses[1].

“The Western provinces have had some very severe events in recent years, like the current Fort McMurray wildfire, which have caused significant financial losses for insurers,” said Valerie Monet, director of the insurance practice at JD Power. “When insurers are managing losses, rate increases are common and cost control is a frequent focus. From a customer perspective, price satisfaction hasn’t improved over the years, and data suggests that many insurers have not had time to focus their efforts on improving the customer experience after the upheaval these claims events have had on their business.”

Monet noted that improving the customer experience is a primary area of differentiation for insurers. In most instances, the product purchased at a given price point is similar, if not exactly the same. The way insurers improve is by communicating the value of the product, ensuring customers understand what is and is not covered, and generally being easy to work with. Insurers that understand how to operate at the convergence of these three principles are making the most improvement.

Intended Loyalty Drops: The Quebec region has the highest intended loyalty , with 37% of customers saying they “definitely will” renew with their current provider, while 31% of customers in both Atlantic/Ontario and Western regions indicate the same.

High Satisfaction Increases Loyalty: Delighted customers (overall satisfaction scores of 900 or greater) are less likely to shop for new homeowners insurance; are more likely to renew; and are more likely to recommend their insurer than less satisfied customers. For example, 71% of delighted customers say they “definitely will” renew with their current insurer and 69% “definitely will” recommend their insurer to family and friends. In comparison, only 37% of pleased customers (scores of 750 through 899) say they “definitely will” renew with their current insurer and only 27% “definitely will” recommend.

Study Rankings

belairdirect ranks highest in the Atlantic/Ontario region with a score of 799 and in the Quebec region with a score of 814, while BCAA ranks highest in the Western region with a score of 792.

belairdirect is followed in the Atlantic/Ontario region by The Co-operators (796) and Intact Insurance (791), and in the Quebec region by Promutuel (809) and Desjardins General Insurance, Intact Insurance and La Capitale in a tie (806 each). BCAA is followed in the Western region by Alberta Motor Association (774) and The Co-operators (773).

The 2016 Canadian Home Insurance Study is based on responses from 7,438 homeowners insurance customers. The survey data was collected from March through April 2016.

For more information about the 2016 Canadian Home Insurance Study, visit http://canada.jdpower.com/resource/canadian-home-insurance-study

See the online press release at http://www.jdpower.com/press-releases/2016-canadian-home-insurance-study

Media Relations Contacts

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

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

 

Pick and Pay “Skinny” TV Program Packages Provide Cost and Channel Choices, Driving Higher Customer Satisfaction, Says JD Power Canadian Study

2016-05-24

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TORONTO: 2 June 2016 — As cable and satellite television providers in Canada continue to face competition from video streaming services, the Canadian Radio-television and Telecommunications Commission’s[1] mandate for providers to offer a “skinny” TV channel package with a $25 cap by December 2016 may help them stay relevant in the market and coexist with these alternative services.

According to the JD Power 2016 Canadian Television Provider Customer Satisfaction Study^SM and JD Power 2016 Canadian Internet Service Provider Customer Satisfaction Study^SM released today, customer satisfaction is highest when there is flexibility to “pick and pay” for television channels to add to their skinny program bundle at an affordable price.

The adoption of alternative video services (e.g., streaming services) is on the rise, as 49% of television customers indicate they have used one in the previous 12 months, compared with 42% in 2015. Facing a competitive risk as well as a regulatory deadline, television providers have offered price-conscious customers who wish to only pay for what they watch the option of basic or skinny program packages with the flexibility to add preferred channels. 

Satisfaction is highest among customers with a skinny service that allows them to expand and choose additional channels individually (761 on a 1,000-point scale), surpassing satisfaction among those with premium service (738), as well as those with a preset expanded basic package (708) or basic cable (700). More than one-fourth (28%) of customers have a skinny package that costs $25 or less, and 13% of customers pick and pay for additional channels above their skinny package. Satisfaction with cost is also high among customers in this group, which is encouraging for television providers as they generally receive much lower ratings than alternative video services on cost of service (6.0 on a 10-point scale vs. 7.8, respectively).

“Customers have long desired flexibility to pick and choose their own TV packages and not be forced to subscribe to channels they have no interest in watching,” said Adrian Chung, director in the telecom, media and technology practice at JD Power. “Having the option to choose a skinny TV package with channel upgrade options helps to meet that demand and for some, creating more room in their budget for streaming video content.  Instead of a growing number of so-called cord cutters, there is high perceived value in paying for access to content that isn’t available through standard programming, leading more customers to use a combination of services to meet their viewing needs.”

Following are some key findings of the 2016 TV and ISP studies:

• Satisfaction among television customers in Canada improves to 715 in 2016 from 692 in 2015, while satisfaction among internet customers is 699, up from 679 in 2015.
• On average, the cost of television service is $70 per month, down from $73 in 2015, and the cost of internet service is $58 per month.
• Among customers who used an alternative video service in the previous 12 months, 67% used Netflix instant streaming, which vastly exceeds the rates for other alternative video services, such as Shomi (16%) and CraveTV (9%).
• The percentage of customers who say internet connection speed is “better than expected” has increased to 12% from 10% in 2015.
• Customers in rural areas are more likely to say their internet connection speed is “worse than expected,” compared with those in urban areas (18% vs. 14%, respectively). Rural customers experience a relatively high incidence of network problems.
• The number of connected devices per household has risen to 9.9 from 4.5 in 2015.

Study Rankings

East Region

Videotron ranks highest in both television and Internet customer satisfaction in the East region for a fourth consecutive year. Videotron’s overall score for television service customer satisfaction is 782, followed by Shaw with a score of 754 and Cogeco with 733. Regarding Internet service customer satisfaction, Videotron ranks highest with a score of 777, followed by Cogeco with 732.

West Region

SaskTel ranks highest in both television and Internet service customer satisfaction in the West region for a fourth consecutive year. SaskTel’s overall score for television service customer satisfaction is 730, followed by TELUS with 715 and MTS with 704. In Internet service satisfaction, SaskTel ranks highest with a score of 709, followed by TELUS with 692.

The Canadian Television Provider Customer Satisfaction Study measures overall satisfaction with television service providers based on six factors (in order of importance): performance and reliability; cost of service; programming; communication; billing; and customer service. The Canadian Internet Service Provider Customer Satisfaction Study is based on five factors (in order of importance): performance and reliability; cost of service; communication; billing; and customer service. 

The 2016 Canadian Television Provider Customer Satisfaction Study and the 2016 Canadian Internet Service Provider Customer Satisfaction Study are based on responses from more than 3,300 TV customers in the West region and more than 5,700 TV customers in the East region; and more than 3,600 Internet customers in the West region and more than 5,400 in the East region. Both studies were fielded in September 2015 and April 2016.

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

For information about the 2016 Canadian Television Provider Customer Satisfaction Study and the
2016 Canadian Internet Service Provider Customer Satisfaction Study, visit http://canada.jdpower.com/industry/telecom-ca

See the online press release at http://www.jdpower.com/press-releases/2016-canadian-television-and-internet-service-provider-customer-satisfaction-studies

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

 

Increasing Data Demands from Mobile Features and Apps Strain Canadian Wireless Network Performance, Says JD Power Study

2016-05-17

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TORONTO: 26 May 2016 — Canadian wireless carriers are feeling the strain as more customers use data-heavy apps and features on the their phone stressing overall network quality performance, according to the JD Power 2016 Canadian Wireless Network Quality Study,^SM released today.

The study examines wireless carriers’ network performance in three areas: calling, messaging and data. Network performance issues are measured as problems per 100 (PP100) connections, with a lower score reflecting fewer problems and higher network performance. Carrier performance is examined in three geographic regions: East, Ontario and West.

Overall network problems have risen to 10 PP100 from 9 PP100 in the 2015 study, largely due to an increasing use of mobile apps and features, which is driving data problems upward by 1 PP100 to 15 PP100. However, the incidences of calling problems (13 PP100) and messaging problems (5 PP100) have remained stable.

In particular, usage incidences for most wireless phone features have increased from 2015, including those that use relatively large quantities of data such as video chatting (18% from 14% in 2015); share location (14% from 10%); and mobile payments (19% from 14%). Similarly, the incidence of customers who use apps on their smartphones has risen to 86% from 84% in 2015. For example, the usage of social networking apps during the previous seven day period has grown to 56% from 52%; Web browser use is up to 42% from 39%; and health and fitness app usage has increased to 18% from 15%.[1]

“The storage capacity and processing power of new devices provides consumers with an abundance of available apps prompting a rapidly rising consumption of data,” said Adrian Chung, director at JD Power. “This is placing a great deal of stress on network performance. Despite carrier infrastructure upgrades and claims of faster speeds, consumer perception is compromised when they experience disruptions and delays.”

Customers are also visiting more websites on their mobile phones than they did last year, with 11.1 sites, on average, visited during the previous 48 hours, compared with 10.1 visits in 2015. Among customers who visit a higher number of websites, there is a greater number of data problems experienced. For example, customers who visited from 5 to 9 websites in the previous 48 hours experience 13 data PP100, compared with 17 PP100 among those who visited 10 to 14 websites.

Following are some key findings of the 2016 study:

• Higher Usage Associated with More Problems: The incidence of overall network problems is 13 PP100 among those with unlimited data vs. 11 PP100 among those with data caps. Both groups have experienced an increase of 1 PP100 in overall network problems from 2015.
• Speed Correlated to Problems: Customers who indicate the data speed on their 4G-compatible phone is slower than expected tend to experience a higher incidence of problems. Among wireless customers who have a 4G-compatible smartphone, 12% of those who own an LG device indicate their data speeds are faster than expected, compared with 10% of HTC owners, only 9% of Apple iPhone owners, 9% of Blackberry owners, and 9% of Samsung owners who indicate the same.
• Fewer Problems, Lower Propensity to Switch Carriers: Customers who say they “definitely will not” switch carriers within the next 12 months experience an average incidence of overall network problems of 6 PP100, compared with 19 PP100 among those who say they “definitely will” switch carriers.
• Problems per Region: Wireless customers in the East region experience an average of 10 PP100, up from 8 PP100 in 2015, while the average incidence in Ontario is unchanged at 10 PP100. The number of problems experienced in the West region rises to 10 PP100 from 9 PP100 in 2015.
• Network Quality Lags in Rural Areas: Network problem incidence among rural customers (11 PP100) is higher than among those who live in suburban areas (9 PP100) and urban areas (9 PP100). The gap in problem incidences is greatest for data problems among rural customers (17 PP100), compared with among suburban and urban customers (14 PP100 each).

Wireless Carrier Rankings

In the East region, Bell Mobility, TELUS Mobility and Videotron tie ranking highest in overall network quality (9 PP100 each). Bell Mobility, Rogers Wireless, TELUS Mobility, and Videotron tie for the lowest incidence of messaging problems (5 PP100 each), which is on par with region average.

In Ontario, TELUS Mobility ranks highest in overall network quality (9 PP100), with its customers experiencing the lowest incidence of calling problems (11 PP100) in the region.

In the West region, SaskTel and TELUS Mobility rank highest in a tie in overall network quality (9 PP100 each), achieving a slightly lower overall problem rate than region average (10 PP100). SaskTel performs well with messaging problem incidence (4 PP100) and TELUS Mobility ties SaskTel for lowest calling problem incidence (11 PP100).

The 2016 Canadian Wireless Network Quality Study was conducted online in English and French. The overall problems per 100 (PP100) includes seven wireless carriers in the East; seven wireless carriers in Ontario; and nine wireless carriers in the West. Sample respondents were sent an email invitation with a link to the survey.

Wave 1 of the study is based on 2,210 responses in the East; 2,383 responses in Ontario; and 2,759 responses in the West collected between August 27, 2015 and September 22, 2015. Wave 2 of the study is based on 2,298 responses in the East; 2,329 responses in Ontario; and 2,764 responses in the West; and collected between March 1, 2016 and March 21, 2016.

Overall network performance is based on 10 problem areas that impact the customer experience: dropped calls; calls not connected; audio issues; late or failed voicemails; lost calls; text message transmission failures; late or failed text message notifications; Web connection errors; slow downloads; and email connection errors.

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

For information about the 2016 Canadian Wireless Network Quality Study, visit http://canada.jdpower.com/industry/telecom-ca

See the online press release at http://www.jdpower.com/press-releases/2016-canadian-wireless-network-quality-study

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

 

Canadian Wireless Customers Take Charge with Self-Service Online Tools for Problem Resolution; Satisfaction Rises, Says JD Power Study

2016-04-18

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TORONTO: 28 April 2016 — Wireless customers in Canada, notably Millennials (born 1982-1994), are increasingly taking a hands-on approach to resolving issues with their carrier by contacting customer service online and using chat tools, a shift in customer care preferences that has helped improve satisfaction, according to the JD Power 2016 Canadian Wireless Customer Care Study,^SM released today.

The study measures wireless customers’ perceptions of their carrier’s performance in the estimated $22 billion[1] wireless market. Satisfaction is measured across four factors (listed in order of importance): phone customer service representative (CSR); in-store service; online service; and phone automated response system (ARS). In 2016, overall wireless customer care satisfaction rises to 738 from 715 in 2015 on a 1,000-point scale.

Online Service Tools Surpass Traditional Phone

As wireless carriers face a maturing and potentially saturated market, customer service differentiation continues to be top of mind. According to the study, wireless customers are moving away from traditional phone contacts and instead adopting a self-service approach to resolving issues with their carrier by using online tools as their go-to method for contacting customer care. One-third (33%) of care contacts are conducted online (including carrier website and chat function), a sizeable increase from 28% in 2015. In terms of contact frequency, the online channel now surpasses each phone channel (ARS; ARS, then CSR; and CSR only).

Millennials Prefer to Self-Serve, Others Likely to Follow

The migration toward online channels is being driven by Millennials’ preference for self-service, which allows them to deal with issues whenever it’s convenient for them. Millennials, often digitally connected, are much more likely to have had a contact in a self-service-enabled channel than customers in the other generations. Four in ten (40%) Millennials contacted customer care online during the previous 6 months, compared with 29% of other customers. Millennials also show their preference for self-service by using the ARS only channel at a much higher rate than other customers (14% vs. 6%, respectively). Among Millennials who contact their carrier online, the incidence of those who use the chat feature has risen considerably from 2015 (51% vs. 45%, respectively) as has the rate of visiting a user forum (19% vs. 14%).

“Wireless carriers need to embrace the shift to online self-service across all customer segments to provide a gratifying experience that matches customer behaviours,” said Adrian Chung, director at JD Power.“While Millennials have initially led the migration, customers across all generational groups are also being exposed to self-service tools with companies outside of telecom to resolve customer service issues in a timely and efficient manner. The task for carriers is to create awareness, educate customers and communicate the benefits of using these digital channels.”

Millennials Contact Customer Care Twice as Often as Boomers

Millennials contact customer service with relatively high frequency. As they become a larger share of the customer base, customer service becomes an increasingly important aspect of the overall customer experience. In Canada, Millennials made an average of 4.9 customer care contacts during the previous 6 months, compared with 2.5 contacts made by Boomers (born 1946-1964). A similar finding is reported in the JD Power Millennials Insight Report: The Customer Experience Perspective^SM   released in the United States earlier this year. Among U.S. wireless customers, Millennials are also frequent users, having made an average of 1.7 care contacts in a 3-month period, compared with 0.5 contacts made by Boomers.

Following are some additional findings of the 2016 study:

• Efficient Problem Resolution Impacts Satisfaction: For customers using the online channel, there is a 220-point gap in satisfaction between customers whose most recent question was answered online and those whose question was not (760 vs. 540, respectively). This key performance indicator (KPI) is met 80% of the time.
• Time Matters in Problem Resolution: Satisfaction is 830 when it takes less than 5 minutes to resolve a problem online, compared with 677 when it takes 10 minutes or more for resolution—a 153-point difference. Satisfaction is also impacted when more Web pages must be viewed to resolve an issue (780 for one page vs. 654 for four or more pages).

• Satisfaction Influences Customer Loyalty: On average, 47% of delighted customers (overall satisfaction scores of 900 or higher) say they “definitely will not” switch to another carrier, while just 12% of displeased customers (scores of 549 or lower) say the same.

Wireless Carrier Rankings

Koodo Mobile ranks highest in customer care satisfaction with a score of 798. Koodo Mobile performs particularly well in the in-store service and online service factors. Videotron (790) ranks second, followed by SaskTel (785).

The 2016 Canadian Wireless Customer Care Study is based on responses from more than 5,500 wireless customers. The study was fielded in August – September 2015 (Wave 1) and March 2016 (Wave 2).

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]

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

For information about the 2016 Canadian Wireless Customer Care Study, visit http://canada.jdpower.com/industry/telecom-ca

See the online press release at http://www.jdpower.com/press-releases/2016-canadian-wireless-customer-care-study

For more information about the Millennials Insight Report: The Customer Experience Perspective, visit http://www.jdpower.com/Millennials

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

 

Satisfying Online Experience Triples Likelihood of Test Drive, Says JD Power Study

2016-05-05

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TORONTO: 11 May 2016 — Automotive manufacturers face the daunting task of providing an easy-to-use, content-rich website that meets the needs of both desktop and mobile users, without sacrificing speed, according to the JD Power 2016 Canadian Manufacturer Website Evaluation Study^SM (MWES), released today.

The study measures the usefulness of automotive websites and how each brand compares/performs during the new-vehicle shopping process by examining four key measures (in order of importance): information/content (34%), appearance (24%), navigation (22%) and speed (21%). Satisfaction is calculated on a 1,000-point scale.

The website experience helps automakers attract customers to dealerships. Among new-vehicle shoppers who are delighted with their experience on a manufacturer brand website (overall satisfaction scores of 901 or higher), 63% indicate they are more likely to test drive a vehicle after visiting the site, compared with only 21% of those who say they are “disappointed” (satisfaction scores of 500 or below).

Providing a positive website experience is growing increasingly more complicated as the percentage of vehicle shoppers using mobile devices to access manufacturer websites increases to 46% in 2015 from 41% in 2014[1]. Mobile devices users find the website experience less satisfying than do desktop shoppers overall (735 vs. 759, respectively) and in each key measure, with the largest gaps found in navigation (720 vs. 752) and speed (734 vs. 764).

Furthermore, shoppers have different expectations for their website experience and explore different content when on a mobile device than when on a desktop computer. While information/content is most important to shoppers regardless of how they access a site, speed is more important to mobile users than desktop users, while navigation and appearance are more important to desktop users than mobile users.

“It’s a fine balance between providing the critical information that shoppers want while maintaining speed and usability of the site, which is a particular challenge with mobile” said JD Ney, manager, automotive practice Canada at JD Power. “Having an effective website is critical for brands to help attract and maintain customers in a very competitive Canadian market.”

Shoppers with the fastest download speed experience the highest rate of speed-related issues (47%). Across all connection speeds, there is a significant impact on speed satisfaction when a slowdown is encountered, with a nearly 100-point drop in satisfaction, compared with when there is not a speed-related problem.

The combination of navigation and speed issues can be extremely detrimental to the shopping experience. There is 221-point gap in satisfaction between shoppers who experience no speed or navigation issues (825) and those who experience two or more navigation issues or speed issues (604).

“There is a correlation between speed and navigation, as automaker websites tend to perform similarly in speed and navigation site satisfaction,” said Ney. “Websites that achieve high satisfaction scores in speed generally also achieve high scores in navigation. Of course, the flip side is also true: low navigation satisfaction scores also tend to correlate with low satisfaction in the speed measure.”

Study Rankings

Lexus and Lincoln rank highest overall in a tie, each with a score of 782. Cadillac ranks third (781), followed by Infiniti (779) and Jeep (775). 

The JD Power 2016 Canadian Manufacturer Website Evaluation Study^SM (MWES) is based on responses from 3,380 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study was fielded from February 10, 2016, through March 7, 2016.

For more information about the 2016 Canadian Manufacturer Website Evaluation Study, visit http://canada.jdpower.com/resource/canadian-manufacturer-website-evaluation-study.

See the online press release at http://www.jdpower.com/press-releases/2016-canadian-manufacturer-website-evaluation-study

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]

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

 

Ease of Switching Carriers Increases with Unlocked Phones, Which Are Purchased More Often at Big Box Stores, Says JD Power Canadian Wireless Purchase Study

2016-05-03

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TORONTO: 12 May 2016 — While customer satisfaction with the wireless purchase experience is higher at carrier-branded stores and specialty electronics retailers, one-fourth of consumers choose to shop at big box stores. Among these shoppers, more are likely to purchase an unlocked phone, which is a risk for carriers as these customers are more likely to switch carriers when a better price or data plan offer arises, according to the JD Power 2016 Canadian Wireless Purchase Experience Study,^SM released today.

The 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. Overall wireless purchase experience satisfaction is   761 (on a 1,000-point scale), up 9 points from 2015.

Unlocked Phones Often Purchased at Big Box Stores: While purchase volume is highest at carrier-branded stores (57%), compared with just 25% at big box stores and 17% at specialty electronics retailers, consumers that shop big box stores often buy an unlocked phone off the shelf with no additional fees. Half (50%) of customers who purchase a phone from a big box retailer get an unlocked device, compared with 44% from specialty electronic retailers and just 28% at carrier-branded stores.

High-Risk Customers More Likely to Switch Carriers: Owners of unlocked phones represent a higher risk to carriers as device revenues are lost to other retailers, and these customers are more likely to switch when presented with a more competitive price or promotion. Unlocked devices are an attractive alternative for phone owners because switching costs are lower than they are with locked devices, which cannot be transferred between carriers. Customers owning an unlocked phone are far more likely to switch carriers than those who do not own one. Nearly one-fourth (24%) of customers say they “definitely will” switch carriers in the next 12 months, compared to just 8% of those without an unlocked phone.

“The purchase of an unlocked device puts more control in the hands of the customer,” said Adrian Chung, director at JD Power. “While the incidence of purchased unlocked phones remains below that of locked phones, the revenue dollars flowing to different retailers can be significant for smartphones in particular, as customers choose to upgrade devices on their own schedule. To help retain customers and drive return visits, the in-store retail experience needs to demonstrate added value through both service and the range of product offerings.”

Store Representatives Can Make or Break Satisfaction: Satisfaction in the store representative factor is relatively high at specialty electronic retailers (796) and carrier-branded stores (784), but much lower at big box stores (737). The 59-point difference between the highest and lowest performances is attributable to performance gaps in key performance indicators (KPIs) related to the in-store experience, most notably the percentage of times a customer is greeted, notified of possible extra charges or offered an explanation or demonstration of device operations. For example, the incidence of store rep greetings is 78% at specialty electronics retailers, 66% at carrier-branded stores and 51% at big box stores. Incidences of notification about possible extra charges are 72%, 68% and 58%, respectively, and incidences for reps offering to explain or demonstrate device operations are 72%, 69% and 62%.

Following are some additional findings of the 2016 study:

• Customer satisfaction with the purchase experience is higher at specialty electronics retailers (784) than at carrier-branded stores (774) or big box stores (739).
• Satisfaction in the store facility factor is 44 points lower at big box stores (765) than at smaller specialty electronics retailers (809) and 38 points lower than at carrier-branded stores (803).
• Big box retailers lag behind small specialty stores in value measures, performing 13 points lower in cost of service satisfaction (686 vs. 699, respectively) and 26 points lower in offerings and promotions satisfaction (735 vs. 761).
• In terms of the attractiveness of phones, tablets, and equipment to choose from, big box stores receive ratings that are considerably lower than those for smaller specialty retailers and carrier-branded stores (7.5 vs. 7.8 and 7.8, respectively, on a 10-point scale).

Wireless Carrier Rankings

SaskTel ranks highest in purchase experience satisfaction with a score of 798 and improves in most factors year over year. Videotron (796) ranks second, followed by Koodo Mobile (788).

The 2016 Canadian Wireless Purchase Experience Study is based on responses from 6,269 wireless customers. The study was fielded in August-September 2015 (Wave 1) and March 2016 (Wave 2).

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]

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

For information about the 2016 Canadian Wireless Purchase Experience Study, visit http://canada.jdpower.com/industry/telecom-ca

See the online press release at http://www.jdpower.com/press-releases/2016-canadian-wireless-purchase-experience-study

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

 

Satisfaction with Auto Insurance in Canada Improves For the First Time in Five Years, says JD Power Study

2016-04-25

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TORONTO: 4 May 2016 — Customer satisfaction with auto insurance in Canada increases for the first time in five years, according to the JD Power 2016 Canadian Auto Insurance Satisfaction Study,^SM released today. The increase in overall satisfaction comes at a time when there is a significant amount of consolidation in the market.

The study, now in its ninth 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. Satisfaction is measured on a 1,000-point scale.

Overall satisfaction averages 758 in 2016, up from 750 in 2015 and the same level as in 2014. Improvements in claims (+19 points), non-claim interaction (+13), policy offerings (+6) and billing and payment (+4) contribute to the year-over-year increase in satisfaction. Satisfaction with price improves just 3 points.

“Streamlining processes and improving digital self-service has been a core focus for many insurers as they look to improve the customer experience, and they are starting to see some return on that investment,” said Valerie Monet, director of the insurance practice at JD Power. “This is a notable improvement and a step in the right direction; however, it remains to be seen whether insurers can maintain this momentum through the expected significant consolidation in the market ahead.”

Monet noted that there has been considerable consolidation within the market, most recently Aviva’s announcement that it will acquire RBC General Insurance. “The customer experience has the potential to suffer during large, complex mergers, but with careful planning prior to implementation it doesn’t have to,” Monet said. “The one thing that is certain is that customers expect these transitions to be seamless, and as these large insurers merge processes and services, they retain the best traits each brand has to offer, resulting in an improved product and service for the end consumer.”

More than Price

Much of the improvement noted across the country can be attributed to improvements in process and communication with customers, while very little is associated with more positive perceptions of price. For example, there has been considerable attention given to the cost of insurance given Ontario’s rate reduction strategy, which had a stated goal of reducing rates by 15% by August 2015.

While many customers saw a reduction in their auto insurance premiums, this wasn’t the case for everyone. In fact, the percentage of customers who experienced a rate increase rose to 21% in 2016 from 20% in 2015. Still, Ontario actually posts the most significant improvement in customer satisfaction, compared with other regions—demonstrating that insurance companies can satisfy customers with items beyond price by focusing on the entire customer experience. Price is the only factor that doesn’t increase significantly in Ontario, improving by just 1 index point, yet claims improves by 24 points, non-claim interaction by 14 points, policy offerings by 8 points and billing and payment by 6 points, showing that customers want value over merely a low price.

“Rate reductions rarely affect every customer equally, with lower-risk customers, who typically have lower rates to start with, frequently being the first, and sometimes only, customers to see an actual price decrease,” said Monet. “Improvements in process and customer service benefit everyone and drive the overall improvements noted in Ontario.”

 KEY FINDINGS

• Nationally, 29% of customers indicate they were able to access their policy information online, up from 26% in 2015.
• Gen Y (38%) has the highest incidence of accessing policy information online, 9 percentage points above the second-highest generation, Gen X (29%), and 14 percentage points above Boomers (24%). Online access to policy information has increased among all generations year over year.
• Satisfaction has a strong correlation to customer retention and loyalty. Among delighted customers (overall satisfaction scores of 900 or higher), 77% say they “definitely will” renew with their current provider and 73% say they “definitely will” recommend their provider to others. Among pleased customers (scores of 750 to 899), only 38% say they “definitely will” renew and 29% “definitely will” recommend their provider.

Study Rankings

Customer satisfaction in the Alberta region averages 743, up 8 points from 2015. The Co-operators ranks highest in satisfaction in Alberta for a third consecutive year, with a score of 777. TD Insurance ranks second (754).

In the Atlantic region, customer satisfaction averages 768, up 6 points from 2015. The Co-operators ranks highest with a score of 797. Intact Insurance ranks second (780).

Customer satisfaction in the Ontario region averages 753, up 9 points from 2015. The Co-operators ranks highest with a score of 781. State Farm ranks second (768) and Intact Insurance third (764).

In the Quebec region, customer satisfaction averages 786, up 3 points from 2015. The Personal ranks highest for a fourth consecutive year, with a score of 820. Industrial Alliance ranks second (809) and Promutel third (797).

The 2016 Canadian Auto Insurance Satisfaction Study is based on responses from nearly 11,000 auto insurance policyholders. The study was fielded between January 21 and March 7, 2016.

For more information about the JD Power 2016 Canadian Auto Insurance Satisfaction Study,^SM visit http://canada.jdpower.com/resource/canadian-auto-insurance-satisfaction-study

See the online press release at http://www.jdpower.com/press-releases/2016-canadian-auto-insurance-satisfaction-study

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]
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

 

Delighting Customers Unlocks Significant Revenue Potential for Vehicle Service Providers in Canada

2015-08-25

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WESTLAKE VILLAGE, Calif.: 26 August 2015 — Delighting customers by providing an outstanding  service experience generates high levels of retention and unlocks significant revenue potential for vehicle service providers in Canada, according to the JD Power 2015 Canadian Customer Service Index Long-Term (CSI-LT) Study^SM released today.

The study, which measures the service experience, satisfaction and intended loyalty among owners of  vehicles that are 4 to 12 years old, analyzes the customer experience from both warranty and non-warranty service occasions. Overall satisfaction is based on the combined index scores of five factors 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 factor are reflected in an index based on a 1,000-point scale.

Overall customer satisfaction with automotive dealerships is 731, and satisfaction with aftermarket shops is 749.

Among vehicle owners who are “delighted” with their most recent service experience (with an overall satisfaction rating of 10 on a 10-point scale), 93 percent say they “definitely will” return to the service facility for work they are willing to pay for, compared with only 61 percent among those who rate their last service visit 8. 

“This underscores the importance for Canadian vehicle service facilities to focus on providing a consistently outstanding customer experience,” said JD Ney, manager of the Canadian automotive practice at JD Power. “There is a significant opportunity to improve the service experience, as just 15 percent of all service occasions in the past 12 months resulted in an overall customer satisfaction rating of 10, compared with 67 percent of service occasions rated 8 or below, among whom only 40 percent say they ‘definitely will’ return.”

Ney noted that to maximize satisfaction, service facilities should focus on the key performance indicators (KPIs) that generate the most positive impact on the customer experience. The top three performance measures and their impact on satisfaction scores include being completely focused on the customer’s needs (+63 points); providing an appointment on the day desired (+56); and providing helpful advice (+53). These KPIs have long been a focus for Canadian service facilities, as their average completion rate of at least 80 percent is already very high. However, among the top 10 KPIs measured in the study, there are three performance processes that are completed less than 80 percent of the time, creating a significant opportunity for service facilities to improve customer satisfaction. These KPIs include having the customer speak to an advisor immediately on arrival (+43 points; 44% completion); keeping customers informed on the status of their vehicle (+36; 75%); and contacting customers after the service occasion (+29; 38%).

Nearly half (46%) of owners of older vehicles exclusively selected an aftermarket facility for their service needs in the past year; a further 33 percent used only an original equipment manufacturer (OEM) dealer facility; and the remaining 21 percent took their vehicle to both an aftermarket and OEM dealer facility. That remaining 21 percent of owners represents a key battleground for vehicle service market share and a significant revenue potential for service providers in Canada, On average, owners of older vehicles who visit a service facility at least once—either a dealership or other service facility—make 1.2 visits to a dealer and 1.8 visits to a non-dealer per year. The average amount these customers spend per service visit is $232. At an average of three visits per year, each customer represents nearly $700, making the 21 percent battleground customers worth more than $1.5 billion in annual potential revenue for service providers.

KEY FINDINGS

• Customer satisfaction and the amount spent on a service visit increase when a service advisor properly educates customers on additional work that may be required. In fact, study results show that 46 percent of owners of 4- to 12-year-old vehicles indicate their service advisor recommended additional work. Of this group, nearly half authorized the work to be completed, spending an average of $527 on the visit, compared with an average of $225 among those who were not advised of additional work.
• Dealers are more likely than aftermarket providers to perform a multi-point inspection on vehicles (77% vs. 70%, respectively) and to have an advantage in knowing a customer’s service history (85% vs. 76%). Performing inspections more frequently and knowing a vehicle’s service history helps service facilities make more informed service recommendations, opening significant potential revenue opportunities.

Study Rankings

Lexus Dealerships rank highest in satisfying automotive service customers in Canada, with an overall satisfaction score of 809. NAPA AUTOPRO ranks second at 775, and Volkswagen Dealerships rank third at 772.

The 2015 Canadian Customer Service Index Long-Term (CSI-LT) Study is based on responses from more than 11,000 owners in Canada whose vehicle is between 4 and 12 years old. The study was fielded in March-April and May-June 2015.

Media Relations Contacts

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

Beth Daniher; Cohn & Wolfe; Toronto, Canada; 647-259-3279; [email protected]

John Tews; JD Power; Troy, Mich; 248-312-4119; [email protected]

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

About McGraw Hill Financial www.mhfi.com 

 

Retail Banks in Canada Losing Touch with Customers as Profits Climb While Satisfaction Declines

2015-07-28

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WESTLAKE VILLAGE, Calif.: 30 July 2015—While retail banks in Canada have achieved record profits, they may be losing touch with their customers, as satisfaction has declined due to high fees and an actual or  perceived reduction in the number of services, according to the JD Power 2015 Canadian Retail Banking  Satisfaction Study^SM released today.

The study, now in its 10th year, measures customer satisfaction with retail banks in two segments: Big 5 Banks[1] and Midsize Banks. In both segments, customer satisfaction is measured in seven factors
(listed in order of importance): product; self-service; personal service; facilities; communication; financial advisor; and problem resolution. Satisfaction is calculated on a 1,000-point scale.

Record profits for retailbanks in Canada are being achieved at the expense of customer satisfaction as customers report increased fees and reduced levels of service in the branch and on the phone. As a result, overall satisfaction in the Big 5 Banks segment averages 737, down 12 points from 2014, while satisfaction in the Midsize Banks segment is 759, down 7 points.

“When a retail bank increases fees and trims back on its core services to customers for the sake of increasing profits, they may be losing touch with one of the most important aspects of their business survival—the customer,” said Jim Miller, senior director of the banking practice at JD Power. “Retail banks that make their short-term earnings at the expense of their customers are trading long-term customer loyalty for short-term profits. Customers will wait only so long in line at a branch or on the phone to handle a transaction or resolve a problem, especially when they are already unhappy with high fees. Banks that don’t provide enough value for what their customers are paying are likely to find their customers  switching to low-cost competitors, some of which provide great customer service.”

In the Big 5 Banks segment, 46 percent of customers indicate paying a monthly maintenance fee for their chequing account, compared with 40 percent in 2014, with the average fee increasing year over year to $13.15 from $12.18. Among Midsize Banks, 25 percent of customers pay a monthly maintenance fee in 2015, compared with 27 percent in 2014, with the average fee increasing to $10.21 from $9.70.

Customer satisfaction with fairness of fees has declined among Big 5 Bank customers while remaining flat among Midsize Bank customers. Big 5 Bank customers rate the fairness of chequing fees attribute 6.5 on a 10-point scale, compared with 6.7 in 2014. In contrast, customers of Midsize Banks, which often charge lower fees, rate fairness of fees 7.8.

In-branch and phone wait times have increased from 2014. Industry wide, the average wait time to see a teller in a branch has increased to 5.7 minutes from 3.8 minutes in 2014, and the average wait time to talk to a live phone rep has increased to 6.5 minutes from 3.7 minutes.

KEY FINDINGS

• Customer satisfaction has an impact on their loyalty. Among Big 5 Bank customers who are dissatisfied, 9 percent say they “definitely will or probably will” switch banks in the next 12 months, compared with 7 percent in 2014. Midsize Banks have had a smaller increase, to 10 percent from 9 percent in 2014.
• Problem incidence has declined slightly year over year at Big 5 Banks (13% vs. 14%, respectively) and Midsize Banks (10% vs. 11%). Satisfaction with problem resolution at Big 5 Banks declines by 33 points to 633 in 2015, and declines by 62 points to 586 at Midsize Banks. 
• While Midsize Bank customers experience fewer problems, they are less satisfied with problem resolution than Big 5 Bank customers. The decline in problem resolution satisfaction is due to fewer problems being resolved, and among the issues that are resolved, fewer are taken care of in one contact and in one day compared to 2014.

Study Rankings

TD Canada Trust ranks highest in overall customer satisfaction among Big 5 Banks for a 10th consecutive year, achieving a score of 746. TD Canada Trust performs well in all seven factors, particularly in facilities.

Among Midsize Banks, Tangerine, formerly known as ING Direct Canada, ranks highest in overall customer satisfaction with a score of 811 for a fourth consecutive year. Tangerine performs particularly well in product, personal service, self-service and communication.

The 2015 Canadian Retail Banking Customer Satisfaction Study is based on responses from more than 14,000 customers who use a primary financial institution for personal banking. The study includes the largest financial institutions in Canada and was fielded from April 2015 through May 2015.

Media Relations Contacts

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

Beth Daniher; Cohn & Wolfe; Toronto, Canada; 647-259-3279; [email protected]

John Tews; JD Power; Troy, Mich; 248-312-4119; [email protected]

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

About McGraw Hill Financial www.mhfi.com