Category: Canada|United States

Record Catastrophic Claims in Western Canada Stress Home Insurers, JD Power Finds

2017-06-05

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TORONTO: 5 June 2017 — A record year for catastrophic disasters, from the Fort McMurray fire to floods in Quebec, have put Canadian home insurers to the test in 2017. According to the JD Power 2017 Canadian Home Insurance Study,^SM released today, a spike in major claims has created significant challenges for insurance carriers, with Western regional carriers as a group experiencing a 10-point year-over-year decline in customer satisfaction with the claims process.

“Catastrophic claims on the scale of what we’ve been seeing over the past few years in Western Canada, and over the past several weeks in Quebec, have put a tremendous strain on insurance carrier resources, affecting everything from longer than average claim payment cycles to customers experiencing greater annual premium increases,” said Valerie Monet, director of the insurance practice at JD Power. “Though the immediate effect of these spikes in claims is felt most by regional carriers, some leaders in the industry have found ways to buck that trend by providing truly great customer experiences even in periods of significant operational stress.”

In the overall relationship customers have with their insurer, claims represent a small component of customer satisfaction since not every customer files a claim. So, while claims satisfaction may be slightly down for regional carriers as a result of increased claim volume in the West, customer satisfaction still has improved overall by 37 points (on a 1,000-point scale) due to insurers significantly improving non-claims interactions through their website; local agent/broker; and customer service representatives.

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 center service representative; and website. Satisfaction is calculated on a 1,000-point scale.

Key Findings

• Western regional carriers challenged by Fort McMurray fire: While smaller, regional insurers typically outperform national carriers, claim satisfaction among Western regional carriers as a whole declines 10 points in 2017 to 796 from 806 last year. Conversely, claim satisfaction for national carriers in the Western region has increased 22 points year over year to 805. These changes in satisfaction may reflect capacity constraints put on regional carriers operating in Western Canada stemming from the Fort McMurray fire, which was the largest insured disaster in Canadian history.

• Disconnect between perceived and actual coverage: It is too soon to assess exactly how the recent floods in Quebec will affect customer satisfaction, but the study does find a disconnect between perceived and actual coverage for flood damage. Nearly half (48%) of respondents in Quebec say they have overland flood coverage; however, the Insurance Bureau of Canada estimates only 10-15% of Canadian homeowners actually have such coverage.

• One key is to manage expectations: While overall satisfaction among those in the Western region who have had to make a claim is lower compared to those in the Atlantic/Ontario region and Quebec (773, 789 and 812, respectively), average satisfaction scores for carriers in the West that provided a timeline for the claim process and met that timeline is 823.

“When dealing with losses on the scale of the Fort McMurray fire, the logistical challenges faced by carriers can be overwhelming,” Monet said. “But those companies that follow best practices for proactive customer communications can still achieve superior levels of customer satisfaction. This has huge implications for carriers currently dealing with an influx of calls stemming from the flooding in Quebec—regardless of whether the customer is covered.”

Study Rankings

The Co-operators ranks highest in the Atlantic/Ontario region with a score of 794, followed by Economical Insurance (792) and Allstate (784).

RSA Insurance ranks highest in Quebec with a score of 842, followed by La Capitale (832) and The Personal (828).

Portage Mutual Insurance ranks highest in the Western region with a score of 801, followed by The Co-operators (791) and BCAA (788).

The 2017 Canadian Home Insurance Study is based on responses from 7,422 homeowners insurance customers. The study was fielded in February-March 2017.

See the online press release at http://www.jdpower.com/pr-id/2017076.

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

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

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

 

Canadian Cable TV at Risk for Cord-Cutting as Alternative Video Service Use Grows, JD Power Finds

2017-06-07

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TORONTO: 8 June 2017 — As alternative video services continue to proliferate, more than one-fourth of Canadian cable and satellite television subscribers are deemed to be potential cord cutters (viewers who stop subscribing to cable television services), according to the JD Power 2017 Canadian Television Provider Customer Satisfaction Study^SM and JD Power 2017 Canadian Internet Service Provider Customer Satisfaction Study,^SM released today.

The studies find that a total of 27% of subscribers are either unsure or plan to drop (19% and 8%, respectively) their pay TV service within the next 12 months, while 73% say they plan to keep their television service. Younger pay TV customers appear more at risk of canceling, with 14% of those ages 18-34 indicating they plan to cut the cord in the next 12 months vs. 3% of those over 65 years old.

“While our data does not signify a mass exodus over the short term, TV subscribers are increasingly experimenting with—and liking—alternative streaming video options,” said Adrian Chung, director at JD Power. “The biggest concern for the cable industry should be the highly favorable customer satisfaction scores that alternative video services are receiving relative to traditional pay TV.  The availability of faster network speeds stands to further fuel this shift in viewing preferences.”

Following are additional findings of the 2017 study

• Alternative video service adoption rising: More than half (53%) of pay TV subscribers have used an alternative video service in the past year, up from 49% in 2016 and 42% in 2015. Among customers who’ve tried alternative video services, Netflix is by far the most widely used platform (73%).

• Satisfaction higher for alternatives than traditional: Customers rate their alternative video service higher than their traditional pay TV service for overall experience (7.58 vs. 7.04 on a 10-point scale). This is driven primarily by higher ratings for overall cost (7.84 vs. 5.97).

• Faster, faster, faster: Satisfaction with internet service providers is highest when customers have download speeds of 500 Mbps or higher. Satisfaction levels decline in lock-step with declining internet speeds.

• Usability is key: When asked to rate alternative video services on a scale of 1-10 for ease of use, customers gave Netflix a rating of 8.11 vs. the average of 7.91.

Study Rankings

In the East region, Videotron ranks highest in both television (788) and internet service satisfaction (782) for a fifth consecutive year. In television, Shaw ranks second (743) and Cogeco (741) ranks third. In internet service, Cogeco ranks second (734) and Eastlink (713) ranks third.

In the West region, SaskTel ranks highest in both television (727) and internet service satisfaction (715) for a fifth consecutive year. In television, TELUS ranks second (719) and MTS ranks third (718). In internet service, TELUS ranks second (697).

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 studies are based on responses from 9,308 TV customers and 9,207 internet customers in Canada. Both studies were fielded in September-October 2016 and March-April 2017.

See the online press release at http://www.jdpower.com/pr-id/2017079.

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

 

Representative Behaviours Key to Delighting Wireless Customers, JD Power Finds

2017-04-26

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TORONTO: 27 April 2017 — Customers who are delighted with their wireless carrier experience cite high rates of behaviours that demonstrate courtesy, concern and knowledge; delighted customers also have much higher levels of loyalty and advocacy, according to the JD Power 2017 Canadian Wireless Customer Care Study,^SM released today.

Delighted customers are those with overall satisfaction scores of 900 or higher (on a 1,000-point scale). The study measures wireless customers’ perceptions of their carrier’s performance, and 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 2017, overall wireless customer care satisfaction rises to 746 from 738 in 2016.

“Representatives who are empowered to resolve issues on their own, are consistently courteous, and who show that they value the customer’s time are key for increasing the number of customers who feel their care experience was exceptional,” said Peter Cunningham, senior director and technology, media & telecom practice leader at JD Power. “Moving customers into the delighted category can reduce churn, since these customers demonstrate very high levels of loyalty and advocacy.”

Regardless of whether the service contact occurs by phone, in the store or online, delighted customers experience representative behaviours pertaining to courtesy, concern or knowledge at higher rates than pleased customers. For example, among customers who speak with a phone service representative, 95% of delighted customers are offered assistance with other issues vs. only 89% of pleased customers (those with an overall satisfaction score of 750-899) who are offered this assistance. Similarly, among customers who visit a store for service, 72% of delighted customers are greeted vs. only 64% of pleased customers who are greeted. Among those who use online chat, 98% of delighted customers are thanked, compared with only 90% of pleased customers who are thanked.

Moreover, delighted customers are transferred between service representatives less frequently than pleased customers; spend a shorter amount of time trying to resolve their issues; and have a higher percentage of their issues resolved. For example, among delighted customers who speak with a phone service representative, only 19% are transferred (vs. 31% of pleased customers); the average time spent trying to resolve an issue is 7.6 minutes (vs. 10.3 minutes); and 86% of issues are resolved on the first contact (vs. 76%).

Nearly half (47%) of customers who are delighted with their care experience say they “definitely will not” switch carriers in the next 12 months, compared with 29% of pleased customers who say the same thing. Additionally, 70% of delighted customers say they “definitely will” recommend their carrier, compared with 43% of pleased customers who say the same thing. While delighted customers have made an average of 4.3 positive recommendations about their carrier during the previous 12 months, pleased customers have made only 2.6 positive recommendations.

Following are some additional findings of the 2017 study:

• In-store service factor improves most: While all factor scores improve from 2016, the in-store service factor has improved by 18 points.
• Customer service a major consideration: Two-fifths (40%) of customers cite “good customer service” as a reason they selected their carrier. “Good customer service” ties “price” as the second most commonly cited reason, after “offered good service plan options” (41%).
• Time matters: Overall satisfaction is 837 when it takes less than 5 minutes to resolve a problem online, compared with 693 when it takes 10 minutes or more to reach a resolution—a 144-point difference. Satisfaction is also affected when more web pages must be viewed to resolve an issue (765 for three or fewer pages vs. 676 for four or more pages).

Study Rankings

Virgin Mobile ranks highest in customer care satisfaction with a score of 801. Virgin Mobile performs particularly well in the phone customer service representative (CSR) and online service factors. Koodo Mobile (796) ranks second, followed by Videotron (789).

The study was fielded in September-October 2016 and March 2017 and is based on an online survey of more than 5,500 wireless customers who contacted customer service during the past six months.

See the online press release at http://www.jdpower.com/pr-id/2017049.

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]
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/about-us/press-release-info

 

Hotel Guest Satisfaction Plateaus as “Perks” Become Standard Expectations, JD Power Study Finds

2016-07-12

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COSTA MESA, Calif.: 13 July 2016 — As hotel guests increasingly come to expect amenities that used to be special perks, such as free Wi-Fi, complimentary breakfasts and premium bed linens, the industry may be reaching a customer satisfaction plateau, according to the JD Power 2016 North America Hotel Guest Satisfaction Index Study,^SM released today.

The study, now in its 20^th year, measures overall guest satisfaction across eight hotel segments: luxury; upper upscale; upscale; upper midscale; midscale; economy/budget; upper extended stay; and extended stay. Seven key measures are examined in each segment to determine overall satisfaction: reservation; check-in/check-out; guest room; food & beverage; hotel services; hotel facilities; and cost & fees. Satisfaction is calculated on a 1,000-point scale. 

Although overall satisfaction has improved for a fourth consecutive year, increasing by 2 points from 2015 to average 806, this represents a much smaller increase than in recent years. In past years, strong improvements in cost & fees played a key role in improving satisfaction overall. While satisfaction with cost & fees improved by 25 points between 2014 and 2015, this year it has improved by only 1 point.

“Customers have responded well to the enhanced offerings provided by some hotel brands to create value, but as those perks become standard, customers are quick to ask, ‘What have you done for me lately?’” said Rick Garlick, global travel and hospitality practice lead at JD Power. “When guests no longer see added value in the quality of amenities they receive, the only option to truly differentiate a brand is to develop a strong service culture that makes guests feel special and appreciated.”

Interestingly, while satisfaction in most segments has remained flat, the luxury segment has improved by 12 points overall. Much of this improvement is attributed to a 20-point improvement in cost & fees.

“Despite luxury hotels typically being the most expensive, this segment has been able to show guests that they’re providing additional value, which is clearly resonating,” said Garlick.

The study also finds that while satisfaction is higher among members of hotel rewards programs than among non-members, younger guests are less likely to be members than older guests. Only 39% of Gen Y guests belong to a rewards program, compared with 56% of Gen X and 66% of Boomer guests.[1] In every generational group, customer satisfaction is significantly higher among guests who are rewards program members.

“We’re finding that every succeeding generation seems to be less likely to be a member of a hotel rewards program than the one before,” said Garlick. “As we’ve seen across numerous industries that JD Power tracks, younger guests in particular are especially driven by the value proposition, underscoring the importance for hotel brands to make a stronger case for the benefits of loyalty to these travellers.”

Following are some of the key findings of the study:

• Online/Mobile check-in: Only 3% of guests take advantage of online or mobile check-in, though check-in/check-out satisfaction is highest among these guests than among those who used any other method.
• Most important amenities: The three most important amenities cited by guests are free Wi-Fi, breakfast and parking. In terms of hotels providing these amenities, 71% of guests say they received complimentary Wi-Fi; 56% received complimentary breakfast; and 61% received free parking. Luxurious bedding and linens, the fourth-most important amenity, is becoming increasingly important; however, only 37% of guests say this was offered in their room.
• Social media feedback: Among guests who posted something about their stay on social media, 75% of the posts were positive, compared with 13% that were negative. Overall satisfaction is 40 points higher among guests who post comments to social media.

Hotel Segment Rankings

The following hotel brands rank highest in guest satisfaction in their respective segments:

• Luxury: The Ritz-Carlton (for a second consecutive year)
• Upper Upscale: Omni Hotels & Resorts (for a second consecutive year)
• Upscale: Hilton Garden Inn
• Upper Midscale: Drury Hotels (for 11 consecutive years[2])
• Midscale: Wingate by Wyndham (for a second consecutive year)
• Economy/Budget: Microtel Inn & Suites by Wyndham (for a fourth consecutive year)
• Upper Extended Stay: Hyatt House
• Extended Stay: Home2 Suites by Hilton

Notably, The Ritz-Carlton earns the highest score in the history of the study at 896.

The 2016 North America Hotel Guest Satisfaction Index Study is based on responses gathered between June 2015 and May 2016 from more than 63,000 guests in Canada and the United States who stayed at a hotel in North America between May 2015 and May 2016.

For more information about the 2016 North America Hotel Guest Satisfaction Index Study, visit http://www.jdpower.com/resource/jd-power-north-america-hotel-guest-satisfaction-index-study.

For more information about Dependability Ratings, visit https://www.jdpower.com/cars/ratings/dependability

Media Relations Contacts

John Tews; Troy, Mich.; 248-680-6218; [email protected]

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

 

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[1] JD Power defines the generational groups as Pre-Boomers (born prior to 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004).

[2] Drury was previously ranked highest in the Midscale segment. It was included in the Upper Midscale segment in 2014.

 

JD Power Collaborates with Canadian Black Book To Provide Used Vehicle Transaction Data to Canadian Automobile Retailers

2014-05-19

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WESTLAKE VILLAGE, Calif.: 20 May 2014 — JD Power and Canadian Black Book (CBB) have signed an agreement to provide automotive dealers in Canada with meaningful and actionable sales transaction data to help them make key decisions regarding their used-vehicle inventories.

The respective companies are collaborating on used-vehicle market transaction data. The information will be added to CBB’s electronic online service and made available to current subscribers of the tool at no additional cost to users.

Combining real-time used vehicle retail transaction data from the Power Information Network^® (PIN) from JD Power with the Canadian Black Book Online tool enables auto dealerships to more effectively and efficiently manage their used-vehicle inventories and understand key market trends.

“The goal for both companies is to provide dealerships with more meaningful and actionable insights to help steer their buying decisions regarding used vehicles and vehicle trade-in transactions,” said Darren Slind, senior director of Canada and Latin America automotive operations at JD Power. “We’re confident that coupling Canadian Black Book’s vehicle values analysis with continuously updated retail transaction data will be a powerful profit-making tool for dealerships.”

Dealerships participating in the PIN program receive such information as the average transaction price for each vehicle model; the average number of days each vehicle sits on dealer lots before being sold; and the average dealer cost and gross profit for each model. For a limited time, any Canadian OEM franchised dealer who joins JD Power’s PIN program will receive a full year subscription to Canadian Black Book’s Vehicle Valuation Products.

“PIN data enables dealers to understand what is happening in the marketplace so they can decide which used vehicles they want on their lot and how to price those vehicles,” said Slind. “They can also use PIN data, along with the Canadian Black Book insights, to optimize their trade-in valuations.”

Among other services, Canadian Black Book provides present and future vehicle values to help dealers calculate vehicle wholesale, trade-in and lease residual values.

“For over 50 years, Canadian Black Book has been providing the industry with quality used-car market information,” said Josh Bailey, vice president of research and editorial at Canadian Black Book, “But the addition of transactional data from PIN to our CBB Online tool brings a new level of valuable real-time information to our clients. We are very proud to be working with JD Power, a company with a reputation for high standards when it comes to data quality, something Canadian Black Book can identify with.”

Select PIN data will be added to the CBB Online service at no additional charge for automakers’ franchised dealers that subscribe to CBB’s services. Subscribing dealers participating in the PIN data program will receive an extended set of data through CBB Online. In exchange for participating in the PIN program, automotive dealerships can use PIN data services at no charge. Dealers receive PIN data on a weekly basis for all of Canada as well as specifics on their local market.

About JD Power

JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw Hill Financial.

About McGraw Hill Financial

McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at http://www.mhfi.com.

About Canadian Black Book

For more than 50 years, Canadian Black Book has been the trusted and unbiased Canadian automotive industry source for vehicle values.  The company’s reports are considered ‘The Authority’ for vehicle values not only by car dealers, but also for the lending, leasing, financing and insurance sectors. Consumers can also benefit from the same expert insight. In 2010 Canadian Black Book introduced a web site for consumers with a free look-up tool to find out a vehicle’s Trade-in Value, Future Value and the Average Asking Price.

Media Relations Contacts:

John Tews; JD Power; Troy, Mich.; 248-680-6218; [email protected]
Josh Bailey; Canadian Black Book; Markham, ON.; 905-413-7614; [email protected]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com/about-us/press-release-info