Category: Europe

Compounded by Pandemic: Credit Cardholders in Australia May Have Wrong Card, JD Power Finds

2020-05-04

jillian.breska

SYDNEY: 5 May 2020 — Many consumers in Australia are holding the wrong credit card for their individual situations, a fact compounded by increased financial hardship and altered spending behaviours as a result of the COVID-19 pandemic, according to the JD Power 2020 Australia Credit Card Satisfaction Study,^SM released today./

With 42% of customers spending less since the pandemic—and using their card more often for transactions including household necessities and monthly bills—the result is that 27% of cardholders plan to acquire a different credit card. This is driven by respondents saying they’re holding a credit card that no longer meets their needs (16%) or they need more credit (11%).¹ 

Australia has a high percentage of cardholders (62%) paying an annual fee, yet only 34% say the value they receive from their card outweighs the annual fee they pay. Cardholders with higher annual fees are less satisfied and redeem rewards less often than lower-fee customers and are failing to take advantage of their superior card benefits. 

“People are relying on their credit cards to help cashflow, which makes it even more important that they are suitably matched to the right cards,” said Bronwyn Gill, head of banking and payments intelligence at JD Power Australia. “While a strong mismatch was occurring before the pandemic, the change in spending habits is heightening this disconnect, affecting reward accumulation and perceived value. Cardholders are evaluating the existing cards they hold, and issuers need to ensure they are creating value for their customers to weather this storm.”

Following are some key findings of the 2020 study:

• Cardholders are facing increased financial hardship: Nearly one in five respondents (19%) say that since the pandemic began, they cannot make their minimum monthly credit card payment.²
• COVID-19 has changed spending behaviour: While 42% of cardholders say they are spending less on their credit card, 27% indicate using their card for more household necessities. More than one-fourth (27%) are making more online purchases and 23% are using their card more often to pay household bills.³
• Rewards and benefits redemption play significant role in perceived value:  Cardholders who are receiving more value from their primary card compared with the annual fee paid are significantly more likely to use benefits (63%) compared with those card holders who say they have less value (49%).
• Majority of airline card holders are holding wrong card: Of the 14% of cards aligned with airline rewards, 63% of those cardholders have spending and usage habits that don’t align with card offerings. Airline cards will likely need to modify benefits/reward programs given the pandemic’s effect on the industry.
• Communication received digitally has highest positive influence: Only 38% of customers were contacted by their issuer in the past 12 months. Nearly three-fourths (71%) of communications are received digitally, and this method has the highest positive influence on overall satisfaction (+41 points).

Study Rankings

Bendigo Bank ranks highest in customer satisfaction among credit card issuers in Australia, with an overall score of 772 (on a 1,000-point scale). American Express (743) ranks second and St. George (733) ranks third. The industry average is 719, a one-point increase from 2019.

The Australia Credit Card Satisfaction Study, now in its sixth year, measures overall satisfaction in six key factors: interaction; credit card terms; communications; rewards; benefits and services; and key moments. The study includes 20 major credit card issuers in the market, 15 of which are rank eligible. Scores are based on cardholders’ experiences with their primary card. The study is based on responses from 4,808 credit cardholders and was fielded in February-March 2020. In addition to Australia, JD Power also conducts credit card studies across key financial markets including the United States, Canada and China.

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

Media Relations Contacts
Bronwyn Gill, JD Power; Sydney, Australia; 0452-605-946; [email protected]
Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [email protected]

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

¹Australia Financial Services CoronaVirus Pulse Study, JD Power, April 2020
²Australia Financial Services CoronaVirus Pulse Study, JD Power, April 2020
³Australia Financial Services CoronaVirus Pulse Study, JD Power, April 2020

 

Manufacturers of Not So “Smart” Vehicles Struggle to Master Technology, JD Power Finds

2019-05-08

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LONDON: 9 May 2019 — The race by manufacturers to cram new vehicles with the latest technologies is turning into a headache for owners, with audio/communication/entertainment/navigation (ACEN) systems comprising half of the 10 most problematic issues that owners cite in their new vehicle, according to the JD Power 2019 UK Vehicle Dependability Study,SM released today.

The study, now in its fifth year, measures the number of problems experienced per 100 vehicles (PP100), with a lower score indicating better performance. The study measures 177 problem symptoms in eight categories: vehicle exterior; driving experience; features/controls/displays (FCD); audio/communication/entertainment/navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; and engine and transmission.

The ACEN category averages 16.6 PP100 overall, a slight improvement from 2018, but issues with built-in Bluetooth, built-in voice recognition, navigation systems and poor radio reception mean ACEN remains one of the most problematic categories.

Following are some key findings of the 2019 study:

• Problems decreasing: All problem categories, except seats, improve in PP100 compared with 2018. Even though ACEN problems have decreased from 2018, this category is still mostly driven by issues with navigation systems. Owners of premium vehicles cite more problems than owners of volume vehicles, mostly because a higher percentage of premium vehicles have built-in navigation systems than volume vehicles.
• Engine failure: Engine problems have the greatest negative effect on quality and reliability scores across the industry, as well as among premium brands. In particular, owners of premium vehicles are 12 percentage points less likely to repurchase the same brand when an engine problem occurs.
• Owners loyal to green vehicles: Problems with electric and hybrid vehicles are higher in total—and in the areas of ACEN, seats and engine—than with vehicles with internal combustion engines. However, electric and hybrid owners are more likely to repurchase or lease the same brand in the future.
• Design issues affect APEAL: Of the 10 problems that most influence the APEAL (Automotive Performance, Execution and Layout) Index, eight of them relate to design, including excessive road noise; excessive wind noise; and materials scuff/soil easily.

As technology becomes more sophisticated—and is considered a point of brand selection differentiation—brands are creating more potential problem areas. For instance, the average score for newer safety technology features (e.g., blind spot monitoring, collision avoidance and lane departure warning systems) is 2.4 PP100 (1.8 PP100 for volume brands and 4.0 PP100 for premium brands), which is notably higher than 1.5 PP100 for other optional FCD systems (e.g. alarm system, keyless entry, cruise control).

“When we look at the PP100 scores of relatively new safety technologies, it’s clear that manufacturers still have work to do to perfect those systems—particularly premium brands that use them as a major selling point,” said Josh Halliburton, Head of European Operations at JD Power. “It’s also going to be vital for vehicle makers to win customer trust in this technology if they are to convince potential buyers that fully automated vehicles in the future will be reliable. For example, such buyers are quite likely to question the safety of self-driving cars if brands still struggle with the accuracy of their navigation systems.”

The study also shows that repurchase intention has increased, as 49% of respondents this year say they “definitely will” repurchase the same brand, compared with 43% in 2015. Repurchase intent in 2019 is 54% among owners who did not experience problems, the same percentage as last year.

However, costly repairs significantly affect repurchase intent. Among all owners who rate the cost of ownership as very unsatisfactory due to costly repairs (5 or below on a 10-point scale), just 16% say they “definitely will” repurchase the same brand.

Brand Rankings

Peugeot ranks highest overall among all brands with a score of 77 PP100. Among the top 10 brands, nine brands are volume brands. Skoda (88 PP100) ranks second and Hyundai (90 PP100) ranks third.

Among premium brands, Volvo ranks highest with 106 PP100 and Mercedes-Benz (136 PP100) ranks second.

Vauxhall and Volkswagen each receive two segment awards. Vauxhall earns awards for the Insignia (midsize car) and Mokka/Mokka X (small SUV), and Volkswagen earns awards for the Up! (city car) and Tiguan (compact SUV).

Another metric for dealers to consider is the Net Promoter Score® (NPS),1 introduced in the study last year, which measures customers’ likelihood to recommend their vehicle model on a 0-10 scale. Customers are segmented into three groups: detractor (0-6); passive (7-8); or promoter (9-10). NPS® is calculated by subtracting the percentage of detractors from the percentage of promoters. The NPS® score for the volume segment in this year’s study is 46 (56% promoters vs. 10% detractors), and the score for the premium segment is 48 (58% promoters vs. 9% detractors).

The 2019 UK Vehicle Dependability Study is based on responses from 11,530 owners of new vehicles registered from November 2015 through January 2018. The study, which measures problems experienced during the past 12 months by original owners of vehicles in the UK after 12-36 months of ownership, was fielded from November 2018 through January 2019.

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

Media Relations Contacts
Ricky Vazquez, RVi Communications; London; +44(0)7501 589612; [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

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1Net Promoter System®, Net Promoter Score®, NPS®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Sametrix Systems, Inc.

 

Unreliable Technology Leads to More Problems in Premium Vehicles Than Volume Vehicles,JD Power Finds

2018-07-09

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LONDON: 11 July 2018 — Emerging and new technologies in premium vehicles are resulting in more owner-reported problems than in volume brand vehicles, according to the JD Power 2018 UK Vehicle Dependability Study,SM released today.

Following are some key findings of the 2018 study:

• In-vehicle technology slightly more problematic: Technology problems continue to be common for owners after 1-3 years. Bluetooth phone/device frequent pairing/connectivity issues and voice recognition not recognizing commands are both among the six most common problems in the UK VDS.

• Despite advancements in automotive technology, engine and transmission problems remain: Although not common, owners still worry about engine and transmission problems, as they are the most dangerous or costly. Despite advances in technology, the most severe problem in the industry remains an engine failing to start.

• Not all problem areas are created equal: Experiencing any of the 10 most severe problems strongly affects the satisfaction of vehicle owners. The APEAL (Automotive Performance, Execution and Layout) Index drops well below the industry average of 767 (on a 1,000-point scale). The most severe problems result in a 5-13% drop in APEAL scores when they occur.

“Automotive systems are more complex than they’ve ever been and premium brands especially are incorporating autonomous driving building blocks—adaptive cruise control, lane keep assist, automatic braking—into theirmodels,” said Josh Halliburton, Head of European Operations at JD Power. “It’s imperative for manufacturers to address this issue in order to improve the level of consumer trust in the technology.”

Study Rankings

Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality. The top 13 brands in the UK for vehicle dependability are volume brands. Hyundai ranks highest in overall vehicle dependability with a score of 78 PP100. Suzuki ranks second with 87 PP100, followed by Kia with 94 PP100. Mercedes-Benz (124 PP100) is the highest-ranking premium brand, and 14th overall.

Škoda has two models (Octavia and Yeti) that receive segment awards. Hyundai i10, Volkswagen Tiguan, Mercedes-Benz E-Class (the highest-ranking premium vehicle in the UK),Vauxhall Insignia and Peugeot 208 also receive a segment award.

The study, now in its fourth year, measures problems experienced during the past 12 months by original owners of vehicles in the UK after 12-36 months of ownership. The study examines 177 problem symptoms across eight categories: vehicle exterior; driving experience; features/controls/displays (FCD); audio/communication/entertainment/navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; and engine and transmission.

Among owners who experienced no problems with their vehicle, 54% say they “definitely will” purchase/lease the same brand again. Among those who experienced one of the top 10 highest-severity problems, only 37% say they “definitely will” purchase/lease the same brand again.

Another metric for dealers to consider is the Net Promoter Score® (NPS),[1] new to the 2018 UK VDS, which measures customers’ likelihood to recommend both their vehicle make and model on a 0-10 scale. Customers are segmented into three groups: detractor (0-6), passive (7-8) or promoter (9-10). NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. For example, the NPS make score for the volume segment in this year’s study is 42 (52% promoters vs. 10% detractors).

The 2018 UK Vehicle Dependability Study is based on responses from 13,536 owners of new vehicles registered from February 2015 through February 2017. The study was fielded from February through April 2018.

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
Michael Kelly; Edelman; London; +44 (0) 20 3047 2119; [email protected]
Geno Effler; JD Power; Costa Mesa, Calif., USA; +1 714-621-6224; [email protected]

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

 

Personal Recommendations Most Likely to Drive Young Customers’ Dealer Loyalty for Vehicle Servicing, JD Power Finds

2018-06-01

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LONDON: 5 June 2018 — Young customers are less likely than older customers to have a dealer they are loyal to for service, so they rely more often on recommendations from friends and relatives when choosing a servicing dealer, according to the JD Power 2018 UK Customer Service Index (CSI) Study.^SM Additionally, overall satisfaction scores, which are based on a 1,000-point scale, improve 12 points from 2017.

“These results illustrate the importance of developing passionate advocates, not only for the product but also for the dealership itself, when trying to attract younger people as new customers,” said Josh Halliburton, Vice President and Head of European Operations at JD Power. “Recommendations among customers in this group are far more important than dealership advertising, promotional materials or coupons.”

Another metric for dealers to consider is the Net Promoter Score^® (NPS^®)^[1], new to the 2018 UK CSI, which measures customers’ likelihood to recommend both their vehicle make and model on a 0-10 scale. Customers are segmented into three groups: Detractor (0-6), Passive (7-8) or Promoter (9-10). NPS^® is calculated by subtracting the percentage of Detractors from the percentage of Promoters. For example, the NPS^® for the volume segment in this year’s study is 45 (54% Promoters vs. 9% Detractors).

Following are key findings of the 2018 study:

• Internet scheduling more satisfying than via phone: Service initiation satisfaction is higher among customers who schedule service over the internet (799) than among those who schedule via phone (792).
• Text message communication not meeting customers’ preferences: While text messaging and messaging app updates continue to be used more frequently to communicate with service customers (increasing by 2 percentage points and 1 percentage point, respectively, from the 2017 study), there is still a large gap between current usage and what customers prefer, particularly customers under the age of 40. Nearly one-third (30%) of customers prefer communication by text, but only 13% received that type of communication during their most recent service visit.
• Service advisors are key to customer satisfaction: Vehicle pick-up satisfaction is 15 points higher among customers who handled payment with their service advisor than among those who dealt with a cashier.
• Explanation of work and charges is time well spent: Satisfaction is higher among customers who have the work and charges explained for services performed on their vehicle even though it may take 11-15 minutes to complete their paperwork than among those customers who take less time to complete paperwork (0-5 minutes) and do not have the work and charges explained.
• Brand promoters are loyal customers: In addition to providing positive word of mouth recommendations to others, 64% of customers in the Promoter segment of the NPS “definitely will” return to their dealer for paid service work and 62% are likely to repurchase the same make of vehicle in the future.

Satisfaction and Brand Rankings

Land Rover ranks highest among premium brands for a second consecutive year, with a score of 824, a 16-point improvement from 2017. Land Rover is followed by Volvo (808) and Mercedes-Benz (805).

MINI ranks highest among volume brands, with a score of 822, a 37-point improvement from 2017. Honda ranks second (815), followed by Kia (808).

The study, now in its fourth year, measures customer satisfaction with their service experience at a franchised dealer facility for maintenance and repair work. The study explores customer satisfaction with their service dealer by examining five measures (listed in order of importance): service quality (26%); service initiation (23%); service advisor (19%); vehicle pick-up (17%); and service facility (16%).

The 2018 UK Customer Service Index Study is based on data collected from 7,899 respondents who registered their new vehicle between February 2015 and April 2017. The study was fielded in February-April 2018.

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 Contact
Michael Kelly; Edelman; London; +44 (0) 20 3047 2119; [email protected]
Geno Effler; JD Power; 714-621-6224; [email protected]

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

 

Increase in Number of Problems in Premium Vehicles Doesn’t Deter Buyers, JD Power Finds

2017-08-15

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LONDON: 16 Aug. 2017 — Premium vehicle owners generally have higher intended loyalty than volume owners, but they also put a higher importance on a problem-free ownership experience, according to the JD Power 2017 UK Vehicle Dependability Study,^SM released today.

The study, now in its third year, measures problems experienced during the past 12 months by original owners of vehicles in the UK after 12-36 months of ownership. The study examines 177 problem symptoms across eight categories: vehicle exterior; driving experience; features/controls/displays (FCD); audio/communication/entertainment/navigation (ACEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; and engine and transmission. Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

Among premium owners who experience no problems with their vehicle, 58% say they “definitely will” purchase/lease the same brand again. That number declines to 48% among premium owners experiencing one or more problems.

Volume owners experience a steep decline in intended loyalty upon experiencing the first problem (to 40% from 49%), and loyalty steadily declines from there as the number of problems experienced increases.

“Minor issues like foggy windows, noisy brakes or navigation systems that are difficult to use can be very frustrating for owners and can negatively affect brand loyalty,” said Mark Lendrich, head of research at JD Power Europe. “These design problems aren’t easy to fix at a service appointment and, if the owner has to live with these problems for the duration of time they have the vehicle, they’re less likely to purchase the same brand in the future.”

Following are some of the study’s key findings:

• Owners most satisfied with vehicle exterior: While the most frequently reported problems are in the exterior category (20.6 PP100), premium and volume owners show high satisfaction with their vehicle’s exterior. Nearly one-third (31%) of owners indicate that exterior styling was a key reason for the purchase of their vehicle. Satisfaction with exterior among premium owners is 805 points on a 1,000-point scale, compared with 759 among volume owners.
• Fuel economy key factor in purchase decision: Among the reasons for purchasing, more owners cite fuel efficiency (50%) than any other reason, making this an important area for automakers to fulfill. Satisfaction with fuel economy is relatively low among owners of premium and volume vehicles alike. Further, it is the category of lowest satisfaction among premium customers (742).
• Technology shows room for improvement: Technology problems continue to be common for owners after three years. Bluetooth phone/device frequent pairing/connectivity issues (3.0 PP100) and voice recognition not recognizing commands (2.2 PP100) are both among the six most common problems in the UK.

Study Rankings

Kia and Volvo rank highest in a tie in vehicle dependability among all brands, with a score of 83 PP100. Škoda ranks third with 89 PP100, followed by Suzuki with 92 PP100.

Vauxhall has two models (Insignia and Meriva) that receive segment awards. Škoda Fabia, Peugeot 108, Volvo V40 and Jaguar XF also receive a segment award.

The 2017 UK Vehicle Dependability Study is based on responses from more than 12,000 owners of new vehicles registered from February 2014 through April 2016. The study was fielded from February through April 2017.

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

Daniel Adkins; Edelman; London; +44 (0)20 3047 2310; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; +1 714-621-6224; [email protected]

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

 

Volume Auto Brands Outperform Tech-Heavy Premium Brands In Overall Dependability Among UK Buyers, JD Power Study Finds

2016-07-12

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LONDON: 13 July 2016 — Volume automotive brands in the United Kingdom collectively have fewer problems than premium brands, according to the JD Power 2016 UK Vehicle Dependability Study^SM (VDS), released today.

The study, now in its second year, measures problems experienced during the past 12 months by original owners of vehicles in the UK after 12-36 months of ownership. JD Power examined 177 problem symptoms across eight categories: engine and transmission; vehicle exterior; driving experience; features/controls/displays (FCD); audio/communication/entertainment/navigation (ACEN); seats; heating, ventilation and cooling (HVAC); and vehicle interior. Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

Volume brands average 99 PP100, compared with the premium brand average of 161 PP100—a difference of 62 PP100. Volume brands also outpaced premiums in 2015, but by a smaller margin (52 PP100). However, premium brands also have more tech features—one of the largest sources of quality issues. Five of the top 10 problems in the industry are related to technology in the ACEN category. The most often reported ACEN problem is built-in Bluetooth mobile phone/device frequent pairing/connectivity issues.

Premium brands have a huge opportunity to improve the ownership experience by providing needed customer support and training for technology features like ACEN.

Commenting on the survey, Dr. Axel Sprenger, senior director of European automotive operations at JD Power, said, “Customers in the UK expect their vehicle to be problem-free, not only in the first 90 days, but also during the first three years of ownership. When owners experience even a single problem with their vehicle, this can be the initiation of losing confidence in the vehicle and the brand.”

Dependability Strongly Linked to High Loyalty: JD Power studies find that expected reliability is one of the most important considerations when purchasing a new vehicle. When the vehicle meets those expectations, customer loyalty and advocacy is quite high. The VDS measures both defect and design problems. Defect problems are things that break or do not work as expected, while design problems are those that work as engineered but do not meet the owner’s expectations. Both have a similar effect on owner loyalty and advocacy.

Among owners who experience no defect problems with their vehicle, 46% say they “definitely will” purchase/lease the same make again and 66% say they “definitely will” recommend the make/model to others. In contrast, among owners who experience one or more defect problems with their vehicle, 38% say they “definitely will” purchase/lease the same make again and 55% “definitely will” recommend the make/model to others.

Similarly, among owners who experience no design problems with their vehicle, 45% say they “definitely will” purchase/lease the same make again and 64% “definitely will” recommend the make/model to others. Intended loyalty and advocacy drop to 38% and 53%, respectively, among owners who experience one or more design-related problems with their vehicle.

“There is a direct correlation between the number of problems customers experience with their vehicle and the decisions they make when the time comes to purchase or lease their next car,” said Sprenger. “While a small drop in actual loyalty may not sound like much, with the average price of a new vehicle in the UK at approximately £22,000, a percentage point drop in share can mean millions of pounds in lost revenue to an automaker.”

Fewer Exterior and Engine Problems

Owners are reporting fewer problems in the exterior category, which remains the most problematic category (17.9 PP100), and the engine/transmission category (12.8 PP100). Owners consider engine-related problems among the most severe because they tend to affect the drivability of the vehicle more than other problems.   

Rankings

Škoda ranks highest in vehicle dependability among all nameplates for a second consecutive year, with a score of 66 PP100. Suzuki ranks second with 79 PP100, followed by Kia with 80 PP100; Vauxhall with 90 PP100; and Peugeot and Volkswagen in a tie with 92 PP100 each. The overall industry average is 113 PP100, a slight improvement from 114 PP100 in 2015.

Škoda has two models (Fabia and Yeti) that receive segment awards. Ford B-MAX, Kia Picanto, Mercedes-Benz E-Class, Toyota Auris and Vauxhall Insignia also receive a segment award.

The 2016 UK Vehicle Dependability Study is based on responses from more than 13,000 owners of 2013-2015 model-year vehicles. The study was fielded from February through April 2016. 

See the online press release at http://www.jdpower.com/pr-id/2016120.

Media Relations Contacts

Fraser Walters; Edelman; London; +44 (0)203 047 2480; [email protected]

Mark Williams; Edelman; London; +44 (0)203 047 4079; [email protected]

John Tews; JD Power; Troy, Mich., USA; +1 248-680-6218; [email protected]

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

 

Car Dealer Service Quality Holds Key to Customer Loyalty, JD Power Study Finds

2016-06-02

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LONDON: 8 June 2016 — The automobile dealership service department is the No. 1 determinant of customer satisfaction and dealership loyalty, according to the JD Power 2016 UK Customer Service Index (CSI) Study,^SM released today.

Among highly satisfied customers (overall satisfaction scores of 900 or higher on a 1,000-point scale), 92% say they “definitely will” return to the same service facility for future warranty service (work they do not have to pay for), and 83% say they “definitely will” return for future paid service (work they do have to pay for). When satisfaction slips just slightly (800-899), intended loyalty drops to 74% for warranty service and 58% for paid service.

“When auto dealerships manage to get the service department’s customer service equation right, they earn incredibly loyal customers,” said Dr. Axel Sprenger, senior director of European automotive operations at JD Power. “The service event is also instrumental in driving sales, as it is likely the most recent experience the customer has had at the dealer prior to shopping for a new vehicle.”

According to the study, 78% of customers who are highly satisfied with their service experience say they “definitely will” purchase or lease their next new vehicle from the servicing dealership. When service satisfaction drops to 800-899, intended purchase loyalty dips to 44% and tumbles to 23% when satisfaction is between 600 and 799.

Following are additional key findings of the study:

• Service Advisor Can Make or Break Satisfaction: When the service advisor greets customers immediately upon their arrival, it can improve service satisfaction by as much as 48 points; yet, 61% of customers indicate they had to wait for a greeting. When the service advisor knows the customer’s vehicle history and the customer says the service advisor is completely focused on their needs, service satisfaction can increase by as much as 46 and 56 points, respectively. Additionally, while only 34% of customers indicate their service advisor used a tablet during their service visit, overall satisfaction can increase by as much as 31 points when the advisor uses this device.

• Pick-Up Process Is Important: Service customers in the UK spend an average of 9 minutes to finish the paperwork and pick up their vehicle after maintenance or repairs. Overall satisfaction is highest (778) among the 53% of service customers who indicate the pick-up process took 5 or fewer minutes. Satisfaction drops to 750 among the 28% of customers who say the process took 6 to 10 minutes and dips to 714 among the 9% who say it took 11 to 15 minutes.

• Transparency on Work Provided and Cost Is Valued: Overall satisfaction averages 742 among the 81% of customers who received an explanation of the charges after service was completed, compared with 653 among those who did not receive an explanation. Similarly, overall satisfaction is 741 among the 84% of customers who received an explanation of the work performed on their vehicle, compared with 637 among those who did not receive an explanation.

Satisfaction and Brand Rankings

Overall customer satisfaction with dealer service, which is based solely on the first three years of ownership, averages 761 in the premium brand segment in 2016, the same as in 2015, and 744 in the volume brand segment, up from 737.

Mercedes-Benz ranks highest among premium brands, with a score of 774, an 18-point improvement from 2015 when it ranked fourth. Mercedes-Benz is followed by Land Rover (773) and Audi (761).

Toyota ranks highest among volume brands, with a score of 776, a 17-point improvement from 2015.  Honda ranks second (775), followed by Kia (765), MINI (757) and Suzuki (753).

The study, now in its second year, measures UK customer satisfaction with their service experience at a franchised dealer facility for maintenance and repair work. The study explores customer satisfaction with their service dealer by examining five measures (listed in order of importance): service quality (26%); service initiation (23%); service advisor (19%); vehicle pick-up (17%); and service facility (16%).

The 2016 UK Customer Service Index Study is based 8,478 respondents who registered their new vehicle between February 2013 and April 2015. The study was fielded from February through April 2016.

See the online press release at http://www.jdpower.com/press-releases/2016-uk-customer-service-index-csi-study

Media Relations Contacts

Fraser Walters; Edelman; London; +44 (0)203 047 2480; [email protected]

Mark Williams; Edelman; London; +44 (0)203 047 4079; [email protected]

John Tews; JD Power; Troy, Mich., USA; +1 248-680-6218; [email protected]

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

 

Škoda Ranks Highest in Vehicle Dependability in Inaugural UK Study

2015-08-05

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MUNICH: 7 August 2015 — Škoda ranks highest in vehicle dependability among all nameplates in the United Kingdom, according to the inaugural JD Power 2015 UK Vehicle Dependability Study^SM (VDS) released today.

The study measures problems experienced during the past 12 months by original owners of vehicles in the United Kingdom after 12-36 months of ownership. The study examines 177 problem symptoms across eight categories: engine and transmission; vehicle exterior; driving experience; features/controls/displays; audio/communication/entertainment/navigation (ACEN); seats; heating, ventilation and cooling (HVAC); and vehicle interior. Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

Škoda ranks highest with a score of 77 PP100. Kia ranks second with 83 PP100, followed by Suzuki with 86 PP100; Nissan with 87 PP100; and Toyota and Mercedes-Benz in a tie with 88 PP100 each. The overall industry average is 114 PP100. Mercedes-Benz and Volvo, which ranks sixth (93 PP100), are the only premium brands to rank above industry average.

Five of the top 11 problems in the industry are related to technology in the ACEN category. The most often reported ACEN problem is with built-in Bluetooth mobile phone/device frequent pairing/connectivity issues.

“As we’ve seen in studies in the United States and other markets, owners want in-vehicle technology, and their expectations of advanced technology capabilities are growing,” said Dr. Axel Sprenger, senior director of European automotive operations at JD Power. “When they have a problem with the technology—and the definition of dependability is increasingly influenced by usability—vehicle owners are disappointed.”

That disappointment affects owner loyalty and advocacy. The study finds that among those who report three or more problems, only 33 percent say they “definitely will” purchase the same brand next time, compared with 48 percent of owners who report no problems.

Highest-Ranked Models

Mercedes-Benz has two models (E-Class and C-Class) that receive segment awards. Kia (cee’d), Suzuki (Alto), Nissan (Juke) and Honda (Jazz) each receive one award. While the Škoda nameplate does not receive any model-level awards, every Škoda model included in the study performs better than its segment average.

KEY FINDINGS

• ŸThe most frequently reported problems are in the exterior category (19 PP100), followed by features/controls/displays (17 PP100) and interior (17 PP100).
• ŸThe overall average score among premium nameplates is 155 PP100, which is 52 PP100 more than the volume average of 103 PP100. The problem categories with the largest gaps in dependability scores between the premium and volume vehicle segments are features/controls/displays (26 PP100 vs. 15 PP100, respectively) and interior (24 PP100 vs. 15 PP100).
• ŸIn addition to reporting problems experienced with their 1- to 3-year-old vehicles, owners also rate the severity of each problem they experience. The scale for problem severity ranges from 1 (very minor problem) to 5 (very serious problem). Seven of the 10 most severe problems are in the engine/transmission category and two are in the driving experience category. Among owners who experience most of these problems, only 60 to 70 percent, depending on the problem, take their vehicle to their dealer to service the problem.
• ŸAmong owners who report an excessive fuel consumption problem, only 22 percent say they “definitely will” purchase the same brand of vehicle again, compared with 43 percent of those who do not report such a problem.
• ŸThe 2015 UK VDS also measures owner satisfaction with their vehicle. Owners are asked to rate the various aspects of their vehicle, including its interior, exterior, ACEN, driving dynamics and visibility and safety, which comprise an overall vehicle satisfaction index based on a 1,000-point scale. Overall satisfaction among premium brand owners averages 765, while overall satisfaction among volume vehicle owners is 715.
• ŸAmong owners of premium vehicles, satisfaction is highest with the exterior (794) and driving dynamics (784) aspects of their vehicle and lowest with fuel economy (719) and storage and space (739). Among owners of volume vehicles, satisfaction is highest with the exterior (735) and visibility and safety (731) aspects and lowest with their vehicle’s ACEN system (690).

The 2015 UK Vehicle Dependability Study is based on 13,451 respondents who purchased their vehicle between April 2012 and March 2014. The study was fielded between March and May 2015.  The UK VDS, along with the JD Power 2015 UK Customer Service Index (CSI) Study,^SM scheduled to release on August 12, replace the JD Power UK Vehicle Ownership Satisfaction Study^SM (VOSS), providing deeper and more detailed insights into vehicle dependability and after-sales solutions for automakers, suppliers and dealerships. 

Media Relations Contacts

Joshua Leigh; Edelman; London; +44 (0)203 047 2259; [email protected]

John Tews; JD Power; Troy, Mich., USA; +1 248-680-6218; [email protected]

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

About McGraw Hill Financial www.mhfi.com

 

Owners in the UK Look First for Quality, Comfort and Safety When Selecting a Vehicle

2014-05-28

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MUNICH: 28 May 2014 — Owners of both volume and premium vehicles in the United Kingdom indicate that reliability/durability, interior comfort and safety are among the most important factors in their choice of vehicle make and model, according to the JD Power 2014 UK Vehicle Ownership Satisfaction Study^SM (VOSS) released today.

The study examines satisfaction with the vehicle ownership experience among owners of 1- to 3-year-old vehicles. Overall satisfaction is based on evaluations of four key measures that comprise the ownership experience (in order of importance): vehicle appeal (31%), which includes performance, design, comfort and features; ownership costs (25%), which includes fuel consumption, insurance and costs of service/repair; vehicle quality and reliability (22%); and service satisfaction (22%).

In addition to citing quality, comfort and safety as important factors influencing their choice of vehicle, owners of volume vehicles indicate fuel consumption and low maintenance costs as important to their choice. The majority of premium vehicle owners cite quality of workmanship and performance among the most important factors determining their vehicle choice. Factors with the least influence on volume owners’ choice of vehicle include high resale value, environmental impact and advanced vehicle technology, while environmental impact and AWD/four-wheel drive capability have little influence on premium vehicle owners.

“Given the size and importance of the UK market, which is among the 10 largest in the world, it’s vital for automakers to understand the most important factors driving vehicle shoppers’ choice of make and model,” said Dr. Axel Sprenger, senior director of European automotive operations at JD Power. “A lot of time and money is spent to develop, produce and sell vehicles. In this very competitive market, automakers increasingly must focus on the features that make vehicles most appealing to consumers.”

Overall Satisfaction

Overall vehicle ownership satisfaction in the UK averages 772 on a 1,000-point scale in 2014, down from 776 in 2013.

Jaguar and Lexus rank highest in a tie in satisfaction with a score of 808 each. This is the third consecutive year Jaguar has ranked highest and the 11th time in 13 years Lexus has ranked highest. Following Jaguar and Lexus in the rankings are Mercedes-Benz (801), Škoda (800) and Volkswagen (791).

Volkswagen receives four of the nine segment-level awards, with the Golf Plus, Scirocco, Touran and Up! models each receiving an award in their respective segment. Up! ranks highest in the City Car segment with a score of 851, the highest score among all models in the study. The Up! performs well across all four factors, with particularly strong scores for quality and service.

Other models ranking highest in their respective segments are the Citroën DS3; Kia Venga; Mercedes-Benz C-Class; Škoda Yeti; and Volvo V70/XC70.

KEY FINDINGS

1. The percentage of owners who use the Internet to shop for their vehicle increases to 76 percent in 2014, up from 73 percent in 2013.
2. The devices used to shop for new vehicles online have changed notably in 2014. The majority (94%) of shoppers using the Internet to shop for a vehicle continue to use traditional desktop and laptop computers, although the percentage has declined slightly from 96 percent in 2013. The use of tablets has increased to 27 percent in 2014 from 16 percent in 2013, while smartphones usage has jumped to 23 percent from 18 percent. As a result, the use of apps during the shopping process has increased to 17 percent in 2014 from 10 percent in 2013.
3. Owners of 1- to 3-year-old vehicles take their vehicle for service an average of 3.1 times per year, down from 3.3 times per year in the 2013 study. Authorized dealers capture only 58 percent of these visits, or 1.8 visits per year. When vehicle owners have their vehicle serviced at a dealer, 26 percent do so at a dealer other than the one from which they purchased their vehicle.
4. Service satisfaction has a significant impact on customer loyalty. Among customers who are highly satisfied (900 points and above) with the service experience at a dealership, 81 percent are likely to return to that same dealership for paid service. Loyalty drops to 58 percent among satisfied customers (800-899 points).
5. The top problems owners experience with their vehicle that have the greatest impact on satisfaction are also the two most frequently reported problems and are both related to the HVAC system: windows fog up a lot/don’t clear as wanted and heater doesn’t get hot quickly enough.

The 2014 UK Vehicle Ownership Satisfaction Study is based on 15,562 online evaluations by vehicle owners in the UK after an average of two years of ownership. The study was fielded January through March 2014. This annual JD Power study provides consumers with reliable and accurate information regarding many vehicle models, and helps manufacturers provide highly satisfying experiences to their customers. Additional study results are published exclusively in the July issue of What Car?, which goes on sale May 29, 2014.

Media Relations Contacts

Mark Lendrich, Munich, Germany; Tel: +49 0-89-288 03 66-11; [email protected]

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

About McGraw Hill Financial www.mhfi.com

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After Declining in 2010, Satisfaction with Retail Banks in the United Kingdom Increases in 2011

1970-01-01

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LONDON: 24 November 2011 — Despite an environment of cynicism toward banks, overall satisfaction with retail banks in the UK has increased from 2010, according to the JD Power and Associates 2011 UK Retail Banking Satisfaction Study^SM released today.

The study measures customer satisfaction with banks in the UK based on six factors that drive overall satisfaction: problem resolution; account activities; fees; product offerings; account information; and branch facility.

Overall satisfaction among retail banking customers averages 698 on a 1,000-point scale, up from 683 in 2010. A considerable increase in satisfaction with the branch facility factor has helped drive this improvement. However, satisfaction remains relatively low in three key factors: fees, product offerings and problem resolution.

“It appears that banks have taken action to improve the customer experience, and this effort has paid off,” said Stuart Crawford-Browne, director of the services and emerging industries division at JD Power and Associates. “However, retail banks in the UK are still not consistently delivering on customer pain points, such as fees, problems and complaints.”

While overall problem incidence declines slightly from 2010, with 19 percent of retail banking customers experiencing a problem in the past year (compared with 21% in 2010), the negative impact of problems remains large. In fact, 25 percent of customers who have experienced a problem during the past 12 months say they “definitely will” or “probably will” switch institutions in the next year, while just 8 percent of customers who have experienced a problem say the same. More than one-half (55%) of customers who have had a problem or complaint say they are disappointed with the resolution process.

The study finds that problems with poor customer service, fees and service charges have a substantial negative impact on overall satisfaction. In addition, customers who experience a problem are considerably more likely to indicate that their fee structure has changed in the past year (30%, compared with 14% of customers who did not have a problem).

“Retail banking customers tend to be especially dissatisfied with overdraft fees and monthly service charges, particularly the amount of these fees,” said Crawford-Browne. “It’s important for banks to clearly articulate the value customers receive through the benefits, services and features of their banking relationship as a way to mitigate some of the negative sentiment caused by a monthly service fee or overdraft fee.”

The study also finds that while incentives are important in attracting new customers, customer service is key to retention. Fifteen percent of customers say that they selected a particular bank because of an incentive, such as a promotional gift or cash award. However, nearly 40 percent of customers left their bank because of a poor service experience, and an additional 43 percent cite poor service as a top reason for intending to leave their bank.

“While incentives have the short-term benefits of attracting business, that business can go out the back door just as quickly as it comes through the front door if banks aren’t delivering a solid customer experience,” said Crawford-Browne. “Relying on incentives only works if customers are highly satisfied. Banks can reap the benefits of high recommendation and retention rates when customers are satisfied with the service they receive.”

First Direct ranks highest in customer satisfaction with a score of 774,[1] followed by The Co-operative Bank (734) and Nationwide (723). First Direct performs particularly well in four of the six factors: account activities; account information; product offerings; and fees.

The 2011 UK Retail Banking Satisfaction Study is based on responses from 3,899 customers of banks throughout the UK. The study was fielded in September and October 2011.

About JD Power and Associates
The European headquarters of JD Power and Associates is located in Munich, Germany. With world headquarters in Westlake Village, California, U.S.A., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
McGraw-Hill is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. Leading brands include Standard & Poor’s, S&P Capital IQ, S&P Indices, Platts energy information services and McGraw-Hill Education. With sales of $6.2 billion in 2010, the Corporation has approximately 21,000 employees across more than 280 offices in 40 countries. On September 12, 2011, the Corporation announced its intention to separate into two public companies – McGraw-Hill Markets (working name), primarily focused on global capital and commodities markets and McGraw-Hill Education focused on digital learning and education services worldwide. Additional information is available at http://www.mcgraw-hill.com/.

[1] First Direct offers only direct service channels, but customers may utilise the branch network of parent company HSBC. First Direct’s performance in the study includes ratings for First Direct/HSBC ATMs and branch facilities.