Category: Uncategorized

Home Security Companies Continue to Raise the Bar on Customer Satisfaction, JD Power Finds

2019-10-28

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COSTA MESA, Calif.: 29 Oct. 2019 — Money may not buy happiness or peace of mind, but it can buy today’s high-tech home security systems that seem to deliver both to customers, according to the JD Power 2019 Home Security Satisfaction Study,^SM released today.

The study expanded to include not only the professionally installed (Pro Install) home security systems but also do-it-yourself (DIY Install) systems.

“The growth of the DIY home security market has fueled customer satisfaction and made the industry more competitive than ever,” said Christina Cooley, Director, Home Improvement and Technology Practice at JD Power. “As newer entrants gain market share, more established companies must continue to find ways to differentiate themselves to capture and keep new customers. Understanding what motivates customers to purchase a security system, being highly competitive with pricing and staying on the cutting edge of technology are key to staying competitive in a fast-changing industry.”

Following are key findings of the 2019 study: 

• In search of the latest and greatest: The desire to upgrade is the most common reason customers in both the Pro Install and DIY Install segments start shopping for a home security system. Nearly half of customers (45% in the Pro Install segment and 40% in the DIY Install segment) cite the desire to upgrade as their top motivation to shop for a new system. But they have other motivations too. Customers who purchased a Pro Install system are spurred to act by special discounts and bundled packages (24%), as well as the purchase of a new home (24%). DIY customers are largely motivated by peace of mind (36%) and protecting their property (34%). 
   
• Brand reputation and pricing are important: When it comes to selecting a provider, priorities differ between the two segments. Pro Install customers are driven mostly by brand reputation (42%) while DIY Install customers lean more heavily on price (63%) to aid their decision making. 
   
• DIY Install customers are more satisfied: Customers who self-install their systems have the highest overall satisfaction across the six areas measured. DIYers are especially satisfied when it comes to pricing (860 vs. 785 for the Pro Install segment). It’s critical to provide pricing options that meet customers’ needs and are easily understood by customers, as each has a significant effect on the customer’s perception of the provider as being customer-driven. DIY Install customers are more likely to have additional security-related products beyond a control panel/keypad/hub and alarm sensors, such as video doorbells, exterior home cameras and alarm sirens. 

Study Rankings

In the Pro Install segment, Brinks Home Security ranks highest in customer satisfaction with a score of 857. ADT (847) ranks second.

In the DIY Install segment, Ring Alarm ranks highest with a score of 904. SimpliSafe (900) ranks second.

This year’s expanded study measures customer satisfaction with home security systems based on six factors: billing and payment; customer service; price; professional monitoring; purchase and installation; and quality of home security system.

The 2019 Home Security Satisfaction Study^SM is based on responses from 5,289 customers and was fielded in July-August 2019. To participate in the study, customers are required to have a professionally monitored system which has been installed by the system provider (Pro Install) or self-installed (DIY Install).

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.

For more information on the JD Power Home Security Satisfaction Study, visit https://www.jdpower.com/business/resource/home-security-satisfaction-study

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

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

 

 

 

Retail Sales Remain Robust in October as Average Transaction Price Exceeds $34,000 for First Time Ever

2019-10-28

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The Retail Sales Forecast

New-vehicle retail sales in October are expected to be similar to a year ago, according to a forecast developed jointly by JD Power and LMC Automotive. Retail sales are projected to reach 1,134,400 units, a 0.9% decrease on a selling day adjusted basis compared with October 2018. Reporting the same numbers without controlling for the number of selling days translates to an increase of 2.9% from last year. (Note: This year contains one additional selling day compared with October 2018.)

The Total Sales Forecast

Total sales in October are projected to reach 1,394,400 units, a 1.3% decrease on a selling day adjusted basis compared with October 2018. Without controlling for the additional selling day results in an increase of 2.5%. The seasonally adjusted annualized rate (SAAR) for total sales is expected to be 17.3 million units, down 200,000 units from a year ago.

The Takeaway

Thomas King, Senior Vice President of the Data and Analytics Division at JD Power:
“Demand for new vehicles remains robust in October, with sales volumes expected to be similar to year-ago levels. While volumes are steady, average transaction prices are up dramatically. In fact, prices in October are on track to be the highest ever, exceeding $34,000 for the first time and up almost $1,300 from a year ago.”

The combination of strong sales volumes coupled with record prices means that consumers will spend a record amount on new vehicles for the month of October. Overall expenditure of $38.8 billion on new vehicles is up nearly $2.5 billion from last year.

The rise in prices is due in part to the ongoing demand shift from cars to more expensive trucks and SUVs, which account for more than 72% of sales in October, up 2.4 percentage points from last year. However, prices of both cars and trucks/SUVs are rising. The average transaction price for cars (up 4% to $27,739) is rising at a faster rate than trucks/SUVs (up 3% to $36,474).

Also notable is the spread in sales performance at different price points. Sales of vehicles with a price less than $30,000, which account for 46% of the market, are down 7%, while sales of vehicles priced higher than $30,000 are up 6%.

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While the top-line industry results for October are impressive, they are being powered by large discounts from manufacturers. Incentive spending is on pace to exceed $4,000 per unit for the fourth consecutive month as record levels of old model-year inventory persist. New model-year vehicles are expected to account for only 28% of sales in October, more than 4 percentage points behind last year. This means that the industry will sell nearly 71,000 additional older model-year vehicles compared with October 2018.

Spending on cars is expected to be up $145 to $3,789, while spending on trucks/SUVs is up $308 to $4,272.

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Looking forward, discounts are expected to remain strong as the industry heads into November. Traditionally, promotional activity increases as manufacturers attempt to leverage the large number of shoppers in the market around the Thanksgiving holiday weekend. Last year, more than 200,000 vehicles were sold over the Thanksgiving holiday period, with more than 40% of those sales coming on Black Friday.

“This year, manufacturers will be eager to finally clear out inventories of old model-year vehicles and close out the year with strong sales results. The discounts necessary to deliver these results could force the return of unhealthy incentive levels seen in prior years,” King said.

Sales & SAAR Comparison

JD Power and LMC Automotive U.S. Sales and SAAR Comparisons

¹ Figures cited for October 2019 are forecasted based on the first 17 selling days of the month.
² October 2019 has 27 selling days, one day more than October 2018.

The Details

• The average new-vehicle retail transaction price in October is expected to reach $34,217, the highest for any month on record. The previous record—$33,924—was set in December 2018. Last year’s transaction price of $32,951 was the previous high for the month of October.
   
• Average incentive spending per unit in October is expected to reach $4,145, up from $3,872 last year.
   
• Consumers are on pace to spend $38.8 billion on new vehicles in October, up $2.5 billion from last year’s level.
   
• Trucks/SUVs account for 72.3% of new-vehicle retail sales through Oct. 20, the highest level ever for the month of October.
   
• Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 74 days through Oct. 20. This is up 6 days from last year.
   
• Fleet sales are expected to total 260,000 units, down 3% from October 2018. Fleet volume is expected to account for 19% of total light-vehicle sales, flat vs. last year.

Outlook for the Year

Jeff Schuster, President, Americas Operations and Global Vehicle Forecasts, LMC Automotive:
“With the close of 2019 near, auto sales are expected to be above 17 million units for the fifth straight year. Attention is now shifting to 2020 and, while retail sales are expected to decline for the fifth straight year, the outlook has improved somewhat. Trade risk and vehicle affordability remain top concerns for the coming year, but the economy is expected to remain supportive with growth at a sub-2% level. A higher probability of a recession has been pushed out to 2021 or later.”

LMC’s forecast for 2019 total light-vehicle sales has been revised upward by 50,000 units to 17.1 million units, a decline of 0.9% from 2018. The upward retail revision is for volume at 13.7 million units, a decline of 1.6% from 2018. Total light-vehicle demand in 2020 is forecast at 16.8 million units and retail light-vehicle demand is at 13.5 million units, a decline of 1.8% and 1.6%, respectively.

Media Relations Contacts
Geno Effler; JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
Emmie Littlejohn; LMC Automotive; Troy, Mich.; 248-817-2100; [email protected]

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

 

 

Design-Related Issues Become More Prevalent in Initial Quality, JD Power Finds

2019-10-29

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SINGAPORE: 29 Oct. 2019 — New vehicle owners in Indonesia continue to cite design-related problems, which now account for almost half of the total initial quality problems, according to the JD Power 2019 Indonesia Initial Quality Study^SM (IQS), released today. The share of design-related problems rises steadily to 46% from 27% in 2015, and up from 39% in 2018, with 13 of the top 20 problems this year related to design. The top problems in the design-related issues are associated with seats, connectivity and air-conditioning in the vehicle.

Initial quality measures the number of problems experienced per 100 vehicles (PP100) during the first two to six months of ownership, with a lower score reflecting higher quality. In this year’s study, the industry average increases to 64 PP100 from 62 PP100 in 2018. Problems are almost equally split between design (30 PP100) and manufacturing (34 PP100) categories.

Manufacturing-related problems are declining over last year as a result of improvements in function-related issues, which account for 10.2 PP100 (16.6 PP100 in 2018). Largest improvements are seen in the following areas: speakers, front windshield wipers/washers, rear window wiper/washer and horns. In contrast, more customers are reporting noise-related issues this year (8.7 PP100) in comparison to last year (6.9 PP100). Customers who report any noise-related problem with their vehicle report lower overall quality and reliability rating (7.9 on a 10-point scale), as compared to those who do not experience these issues (8.4 on a 10-point scale).

This year’s study also finds that vehicle owners below 35 years of age cite more problems (81 PP100) than vehicle owners who are 35 or older (54 PP100). Noise-related problems mentioned by younger owners are nearly twice that cited by older customers (12.4 PP100 Vs. 6.4 PP100).

“Even though manufacturers are consistently improving vehicle quality, they must note the feedback from younger Indonesian vehicle owners, who make up 40% of all new-vehicle buyers,” said Srabani Bandyopadhyay, Country Manager, Indonesia, at JD Power. “Younger customers travel more, which results in prolonged vehicle use and increased sensitivity toward problems associated with noise, vibration, material degradation and connectivity.”

Following are additional key findings of the 2019 study:

• Frequent commuters report more problems: Customers who drive their new vehicles more than 7,000km, on average, cite more initial quality problems (76 PP100) than owners who travel fewer than 7,000km (61 PP100). Most problems are in the categories of engine and transmission (14.4 PP100), exterior (11.3 PP100) and interior (11.3 PP100).

• Bigger vehicles have more problems: Customers who own vehicles in segments such as SUVs and MPVs cite more problems (68 PP100), compared with owners of smaller cars (58 PP100) with more problems in vehicle interior (+6.3 PP100); features, controls and displays (+3.5 PP100); and heating, ventilation and air conditioning (+2.7 PP100).

• Good product quality enhances likelihood to promote brand: The Net Promoter Score®[1] (NPS) measures customers’ likelihood to recommend both their vehicle make and model on a 0-10 scale. Promoters (vehicle owners who provide a rating of 9-10 points on the likelihood that they will recommend the vehicle model) average 61 PP100, compared with 92 PP100 by detractors (those who provide a rating of 0-6 points on their likelihood to recommend the model).

Study Rankings

The Daihatsu Sigra (46 PP100) ranks highest in the entry compact segment. The Honda HR-V (40 PP100) ranks highest in the entry SUV segment. Mitsubishi Pajero Sport (43 PP100) ranks highest in the SUV segment and the Mitsubishi Xpander (51 PP100) ranks highest in the entry MPV segment.

The 2019 Indonesia Initial Quality Study is based on responses from 2,230 new vehicle owners who purchased their vehicle between September 2018 and July 2019. The study includes 43 passenger cars and utility vehicle models representing eight brands. The study was fielded between March and September 2019.

The study serves as the industry benchmark for new vehicle quality by examining problems experienced by new vehicle owners within the first two to six months of ownership in two distinct categories: design-related problems and defects and malfunctions. It includes more specific diagnostic questions around eight problem categories: exterior; driving experience; features/controls/displays; audio/communication/ entertainment/navigation; seats; heating/ventilation/air conditioning; interior; and engine/transmission. The overall initial quality score is determined by problems reported per 100 vehicles (PP100), with a lower number of problems indicating higher quality. 

Media Relations Contacts

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [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 has offices serving North America, South America, Asia Pacific and Europe.

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

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

 

Life Insurance and Annuity Providers Are More Customer-Centric but Gaps Remain, JD Power Finds

2019-10-29

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COSTA MESA, Calif.: 31 Oct. 2019 — Individual life insurance and annuity providers have begun the process of shifting their approach from producer focused to end-customer focused by introducing more online access capabilities and more frequent customer touch points, but they still have a long way to go to catch up to providers in other financial services and insurance industries in which JD Power conducts studies when it comes to overall customer satisfaction. However, according to the JD Power 2019 U.S. Life Insurance Study,^SM released today, overall customer satisfaction with individual life insurance and annuity providers still lags far behind that of most other financial and insurance providers.

“For many years, life insurance and annuity providers viewed their ‘customer’ as the producers that sell their products,” said Robert M. Lajdziak, Senior Consultant of Insurance Intelligence at JD Power. “More recently, that focus has begun to shift to end-user customers in the form of better and more frequent interactions and the availability of online access to policy information. These are important steps for the industry because customer satisfaction with life insurance and annuity products is directly linked to the value customers perceive, and the more that value equation is reinforced through regular, positive interactions, the more customer satisfaction improves.”

The 2019 study finds that the overall satisfaction score for providers of annuity products is 776 (on a 1,000-point scale) and the average score for providers of individual life insurance products is 761. These products rank near the bottom when compared with financial services and other insurance products measured by JD Power such as retail banking (807), full-service investor (835) and auto insurance (831). 

Study Rankings

Northwestern Mutual ranks highest among individual life insurance providers with a score of 810. State Farm (808) ranks second and Mutual of Omaha (795) ranks third.

RiverSource ranks highest among annuity providers with a score of 814. New York Life (808) ranks second and TIAA (804) ranks third.

The JD Power 2019 U.S. Life Insurance Study is a syndicated benchmarking study profiling the experiences of customers of the largest life insurance and annuity companies in the United States. The study is based on responses from 6,249 individual life insurance customers and 3,586 annuity customers, and was fielded from June through August 2019.

To measure customer satisfaction, critical-to-customer experience factors are examined using an index model. The model identifies the dominant factors that impact customer satisfaction and behavior and provides a benchmark of excellence for each. The U.S. Life Insurance Study measures overall customer satisfaction based on performance in six factors (in alphabetical order): application and orientation; communications; interaction; product offerings; price; and statements.

The study was redesigned this year to include annuities, in addition to individual life insurance. Two new study factors affecting the customer experience have been added: application and orientation process and ongoing communications. The study also examines brand image for the first time, specifically how well a company’s image meets customers’ experiences and how brand awareness affects its ability to grow.

For more information about the U.S. Life Insurance Study, visit
http://www.jdpower.com/business/resource/us-individual-life-insurance-study.

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

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

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

 

Rest Easy: Mattress Customer Satisfaction Improves as New Competitors Enter the Market, According to JD Power

2019-10-29

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COSTA MESA, Calif.: 30 Oct. 2019 — Mattress customer satisfaction is up significantly this year as many new direct-to-consumer retailers offering “bed-in-a-box” style mattresses have entered a market that previously had been dominated by brick-and-mortar retail. According to the JD Power 2019 Mattress Satisfaction Report,^SM released today, overall customer satisfaction with mattresses is up 8 points (on a 1,000-point scale) from 2018, with improvement seen in all factors.

In recognition of the growth of the mattress industry, this year’s report evaluates mattress in two categories: retail mattress and bed-in-a-box mattress. 

Tempur-Pedic ranks highest in customer satisfaction among retail mattresses, performing above the industry average with a score of 893. Sleep Number (884) ranks second and Ikea (854) ranks third.

Purple ranks highest in customer satisfaction among bed-in-a-box mattresses, with a score of 872. Casper (862) ranks second and Nectar (849) ranks third.

The 2019 Mattress Satisfaction Report, now in its fifth year, measures customer satisfaction with mattress purchases based on seven factors (in order of importance): comfort; price; support; durability; warranty; variety of features; and customer service.

The report is based on responses from 1,847 customers who purchased a mattress in the 12 months prior to fielding the survey. The report was fielded in September-October 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
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
John Roderick; St. James, N.Y.; 631-584-2200; [email protected]

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

 

Small Details Count: Focus on Service Processes Will Increase Service Satisfaction

2019-10-29

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COSTA MESA, Calif.: 30 Oct. 2019 — Satisfaction scores tend to increase when aftermarket service advisors perform consistent service processes, such as a vehicle walkaround before initiating service and when the customer is contacted after the work was completed; however, these activities aren’t regularly implemented into the service process, according to the inaugural JD Power 2019 U.S. Aftermarket Service Index (ASI) Study fueled by SurveyMonkey Audience,^SM released today.

The study measures customer satisfaction with aftermarket service facilities, providing a numerical index ranking of the highest-performing U.S. aftermarket service facilities, split into two segments—general maintenance and tire replacement—which are based on the combined scores of six different measures (in order of importance) that comprise the vehicle owner service experience. These measures for general maintenance are fairness of charges (19%); service quality (18%); service advisor (18%); service facility (16%); service initiation (15%); and vehicle pick-up (14%). For tire replacement, the measures are service initiation (20%); fairness of charges (18%); service quality (18%); service advisor (16%); vehicle pick-up (15%) and service facility (13%). In total, customers are most satisfied with their service quality (755 points on a 1,000-point scale).

“Owners are holding onto their vehicles past when factory scheduled maintenance packages and warranties expire, meaning they’ll be responsible for footing the full repair bill when their vehicles need service,” said Chris Sutton, Vice President, U.S. Automotive Retail Practice at JD Power. “Depending on the work needed, this can be a pretty significant expense, so owners want to be assured their vehicle is in capable hands and that they’re getting what they pay for. Aftermarket service providers need to ensure a great experience so customers will want to return for future service, and might even recommend the facility to family members and friends. A lot of times, simple things like following up with a customer after a service experience can make the difference between a good and great experience.”

Vehicle walkarounds are the second-most influential Key Performance Indicator (KPI) for general maintenance and tire replacement. However, this only occurs 72% of the time for general maintenance and 75% for tire replacement. When a vehicle walkaround is performed, satisfaction scores improve 49 points for general maintenance and 47 points for tire replacement. Follow-up calls are only made approximately 33% of the time for general maintenance and 38% for tire replacement, but such calls can account for satisfaction scores that are 28 points higher for general maintenance service and 21 points higher for tire replacement service.

Following are key findings of the 2019 study:

• Value of fixing it right the first time: Completing the work the first time is the most important activity for increased customer satisfaction and it’s completed a vast majority of the time in both segments (93% for general maintenance and 94% for tire replacement). In the general maintenance segment, satisfaction scores increase 247 points, which is roughly five times greater than performing a vehicle walkaround. Satisfaction scores in the tire maintenance segment are 231 points higher when work is completed right the first time. Battery replacement and tire maintenance have the highest satisfaction for general maintenance (754 and 758, respectively). Tire alignment has the highest satisfaction in the tire replacement segment (772).
   
• Prior experience vs. recommendations: Among all age groups, the most common reason why customers select their service provider is prior experience, stressing the importance of providing a highly satisfying experience to retain customers. More than half (56%) of “Boomers”¹ choose service providers based on prior experience with the facility, compared with 34% of Generation Z service customers who have less prior experience. Generation Z customers are most likely to choose a service facility based on recommendations from others.
   
• Service satisfaction affects advocacy: Net Promoter Score®² (NPS) measures customers’ likelihood of recommending their service facility on a 0-10 scale. Customers are grouped into either the detractor (0-6), passive (7-8) or promoter (9-10) categories. Service customers were either “dissatisfied” (550 and below); “indifferent” (551-750); “pleased” (751-900); or “delighted” (901 and above). NPS increases dramatically as customers are more highly satisfied with their service. NPS scores improve 70 points (on a 100-point scale) between “indifferent” and “delighted” customers in the general maintenance segment and 65 points in the tire replacement segment. Nearly all “delighted” customers are also promoters of their service facility.
   
• Dealer service visits decline as vehicles age: The study finds that, among customers who had aftermarket service, 33% of owners within the first year of ownership also had service at a new-vehicle dealership in the past year. This percentage steadily declines as vehicles age, down to 21% for owners of five-year-old vehicles, and 16% for nine-year old vehicles. Only 8% of aftermarket service customers who own vehicles 10 years or older have visited a dealer in the past year.

“Customer experience is the cornerstone when it comes to satisfaction with aftermarket service,” said Jon Cohen, Chief Research Officer at SurveyMonkey. “The data show how providers who excel at basic customer touchpoints—from vehicle walkarounds to check-up calls—have a clear edge among consumers. The data are also clear that even as larger companies embrace customer centricity, they’re lagging behind many of the regional providers.”

“Shops that specialize in more complex work may be at a slight disadvantage compared to those that solely focus on oil changes,” Sutton concluded, “so it’s vitally important to compensate by focusing on other activities that can improve customer satisfaction, like the amenities offered while customers wait and developing positive relationships between the customer and service advisor.”

Study Rankings

Les Schwab Tire Centers and Christian Brothers Automotive rank highest in a tie for satisfaction for general maintenance, with a score of 823. Grease Monkey (782) ranks third, followed by Goodyear Tire & Auto Service (780) and Valvoline Instant Oil Change (754).

Les Schwab Tire Centers ranks highest in satisfaction for tire replacement, with a score of 824. Discount Tire ranks second (793), followed by Costco Wholesale (780), Goodyear Tire & Auto Service (771) and Sam’s Club (763).

The 2019 U.S. Aftermarket Service Index Study is based on responses from 12,554 vehicle owners and was fielded in August-September 2019.

For more information about the 2019 U.S. Aftermarket Service Index Study, visit
https://www.jdpower.com/business/resource/us-aftermarket-service-index-asi-study.

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

SurveyMonkey (NASDAQ: SVMK) is a leading global survey software company on a mission to power the curious. The company’s People Powered Data platform empowers over 17 million active users to measure and understand feedback from employees, customers, website and app users, and the market. SurveyMonkey’s products, enterprise solutions and integrations enable 335,000+ organizations to solve daily challenges, from delivering better customer experiences to increasing employee retention. With SurveyMonkey, organizations around the world can transform feedback into business intelligence that drives growth and innovation.

Media Relations Contacts
Geno Effler, JD Power; Costa Mesa, Calif.; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]
Sandra Gharib, SurveyMonkey; [email protected]

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

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¹ JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Generation X (1965-1976); Generation Y (1977-1994); and Generation Z (1995-2004).
² Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

 

Wireless Router Satisfaction Declines as Bandwidth Demand Increases, JD Power Finds

2019-10-29

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COSTA MESA, Calif.: 30 Oct. 2019 — As wireless routers become the hub of home entertainment and steadily growing number of connected devices and appliances, customer satisfaction is declining. According to the JD Power 2019 Wireless Router Satisfaction Report,^SM released today, overall customer satisfaction with wireless routers falls 6 points (on a 1,000-point scale) from 2018, driven by declines in reliability and speed factors.

The 10 factors measured in the 2019 report include (in order of importance): Wi-Fi range; reliability; speed of upload/download; restore connection easily; security capabilities; price; ease of set-up; variety of features; intuitive user interface; and customer service. 

“The customer perception of Internet speed and reliability is increasingly affecting satisfaction with wireless routers,” said Ian Greenblatt, Technology, Media & Telecom Intelligence Lead at JD Power. “Only 16% of customers indicated having problems with their routers, and satisfaction with price and customer service are the same or increasing. But with increased bandwidth demand comes an increased expectation of speed and reliability that router manufacturers need to address.”

Wireless Router Satisfaction Rankings

TP-Link (854) ranks highest in customer satisfaction with wireless routers, an increase of 11 points from its score in 2018. D-Link (848) ranks second and ASUS (844) ranks third. 

The 2019 Wireless Router Satisfaction Report, now in its fifth year, is based on responses from 1,179 current owners of wireless routers who purchased their device during the 12-month period prior to report fielding in September and October 2019.

For more information about the U.S. Wireless Router Satisfaction Report, visit
https://www.jdpower.com/business/resource/jd-power-wireless-router-satisfaction-report

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

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

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

 

Majority of Cardholders Still Prefer Cash for Transactions Abroad, JD Power Finds

2019-10-30

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SINGAPORE: 30 Oct. 2019 – Customers’ overall satisfaction with their primary credit card issuer dips 6 points this year to 712 (on a 1,000-point scale), according to the JD Power Singapore Credit Card Satisfaction Study^SM released today. Eight issuers are ranked in this year’s study, with American Express maintaining the top position, followed by DBS and POSB. Tied in fourth place are Citibank and OCBC. Moving two places up the ranking and closer to industry average, is UOB, followed by Standard Chartered and HSBC.  

Faced with lofty transaction fees and forex rates, 70% of cardholders are put off from using their credit card abroad. And with the added fear of fraudulent transactions when overseas, cash is the still the preferred choice, amounting to 50% of total spend abroad.  This is despite the offer of higher reward points on overseas spend by most of the issuers. 

“According to SingStat, Singapore residents on average travel twice a year. Our Study shows they spend approximately $4,800 annually during these trips, and that’s a missed opportunity for credit card issuers to fully capture overseas spending,” said Anthony Chiam, Regional Practice Leader, Asia and Australia, Global Business Intelligence at JD Power. “It should be a cause for concern, given the rapid availability of other payment choices in the market.”

While 89% of cardholders are aware of the plethora of benefits that come with their cards, 72% use three or fewer of the benefits offered. Still, benefits are key for cardholders: 64% have used discounts or special privileges offered by issuers’ strategic partners. Given that benefits are critical to customer acquisition and engagement, issuers must make sure they remain relevant by keeping up with the changing preferences of cardholders.

Following are other key findings of the 2019 study:

• Essential to be the card of choice: On average, cardholders have four cards in their wallet, but 77% of their total credit card spend is with their primary card. In addition, more cardholders actively use only one card, as 44% say they used only their primary card in the past year, up from 27% in 2018. The percentage is even higher among millennials (born in and after 1980) at 48%. It is essential for cards to be the front of wallet, given this notable development.
   
• Well-designed and intuitive mobile app is a hygiene factor: More than one-third (38%) of customers with high satisfaction (average index score of 800 and higher) are four times more likely to recommend their primary card compared with dissatisfied customers (600 and lower) at 8%.
   
• Customer focus is key: Customers’ perception of whether their primary card issuer is customer-driven strongly correlates with their overall brand satisfaction. The top-ranked brands are also top rated for being customer-driven.

Study Rankings

American Express ranks highest in credit card satisfaction with an overall score of 755. DBS ranks second with a score of 737, while POSB ranks third with a score of 721.

The 2019 Singapore Credit Card Satisfaction Study measures overall satisfaction in six factors: interaction (31%); rewards (18%); credit card terms (17%); communications (15%); benefits and services (14%); and key moments (6%).

The study is based on responses from 2,805 credit cardholders. Now in its fifth year, the study includes 10 major credit card issuers in the market, eight of which rank eligible, and scores are based on cardholders’ experiences with their primary card. The study was fielded in August-September 2019. In addition to Singapore, JD Power also conducts credit card studies across key financial markets that include Australia, Canada, Hong Kong, Japan and the United States.

The study includes the Net Promoter Score^® (NPS),^[1] which measures cardholders’ likelihood to recommend their card issuer on a 0-10 scale.

Media Relations Contacts

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [email protected]

Geno Effler; JD Power; Costa Mesa, Calif., USA; 001-714-621-6224; [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 has offices serving North America, South America, Asia Pacific and Europe.

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

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

 

New-Vehicle Buyers in Malaysia Climb the Value Ladder, JD Power Finds

2019-10-30

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SINGAPORE: 30 Oct. 2019 — New-vehicle buyers in Malaysia are increasingly moving up the value ladder with more vehicle buyers showing interest in SUVs, according to the JD Power 2019 Malaysia Sales Satisfaction Index (Mass Market) Study,^SM released today. Customers who purchased an SUV have higher satisfaction than small car buyers (806 vs. 794 points, on a 1,000-point scale). Overall sales satisfaction in the mass market segment is 800, an increase of 16 points from 2018.

In 2019, SUV buyers comprised 20% of new vehicle buyers as compared with a mere 6% in 2015. Across this five-year growth trajectory for SUVs, the proportion of small car and MPV/van buyers have both dropped (each by 5 percentage points). Even though the average transaction price of SUVs in 2019 is 2.6 times higher than small cars, buyers are showing a preference to purchase SUVs, citing vehicle styling, performance, technology and safety features. For small car buyers, good fuel efficiency and low monthly instalments cumulatively make up 48% of the main reasons for purchase.

“As lifestyles evolve and become more digitally connected, it is no surprise customers expect their choice of vehicle to be in sync with their needs and personal image,” said E-Ling Cheah, Country Manager for Malaysia at JD Power. “SUVs with their higher hip point provide a commanding seating position, which provides better visibility and perception of safety. Newly launched contemporary-style SUVs are also equipped with advanced connectivity and safety features. Furthermore, manufacturers have introduced more affordable SUVs, bringing them within reach of more buyers.”

The study also finds the proportion of replacement vehicle buyers is increasing (26% vs. 21% in 2018) and that of additional vehicle buyers decreasing (51% vs. 56% in 2018). On a related note, vehicle trade-ins—ever important to dealer profitability—are on the rise (21% vs. 17% in 2018). However, more customers are unhappy with the trade-in price received, stating it is below expectations (34% vs. 28% in 2018).

Following are additional key findings of the 2019 study:

• Clear communications on vehicle price: Customers who say they paid more than expected for their new vehicle have lower satisfaction than those who found the price to be in line with expectations (751 vs. 810, respectively).This underlines the need for clear communications to avoid unwelcome surprises during the sales journey.

• Upgraded facilities get a thumbs up: More dealership facilities are equipped with amenities to enhance customer comfort for a better sales experience. Improvements are seen in features ranging from displays of vehicle accessories (48% vs. 43% in 2018) to something as essential as comfortable seating space (84% vs. 77% in 2018).

• Test drives boost satisfaction: While only 6% of buyers were told that a test drive vehicle was not available, this is essential for dealerships. Buyers who experience this scenario typically have a lower satisfaction (-94 points) than those who take test drives at the dealership of purchase.

Study Rankings

Toyota ranks highest in overall sales satisfaction with a score of 835. Mitsubishi (831) ranks second and Nissan (810) ranks third.

Now in its 17th year, the Malaysia Sales Satisfaction Index (Mass Market) Study examines six factors that contribute to overall customer satisfaction with their new vehicle purchase experience in the mass market segment. In order of impact on overall sales satisfaction, those factors are: dealer sales consultant (26%); dealership facility (21%); delivery process (20%); paperwork completion (17%); working out the deal (13%); and dealership website (4%).

The study is based on responses from 2,045 new vehicle owners who purchased their vehicle between July 2018 and July 2019, and was fielded from January through September 2019.

The study also includes the Net Promoter Score® (NPS)[1] which measures new vehicle owners’ likelihood to recommend their vehicle brand on a 0-10 point scale.

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

Shahilia Bhagat; JD Power; Singapore; 65-3165-0120; [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

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

 

Small Business Banking Customers Finally Embrace Mobile and Customer Satisfaction Surges, JD Power Finds

2019-10-30

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COSTA MESA, Calif.: 31 Oct. 2019 — Mobile banking has finally made good on the promise to drive improved levels of customer satisfaction among small business customers, while also reducing bank reliance on individual account managers. According to the JD Power 2019 U.S. Small Business Banking Satisfaction Study,^SM released today, 61% of small business customers now use their bank’s mobile app compared with 53% in 2018. More importantly, that growing majority of mobile banking users are expressing significantly higher levels of satisfaction than those who do not use mobile banking.

“Bank investments in mobile offerings are starting to pay off in the form of higher satisfaction scores as a critical mass of small business customers adopts the technology,” said Bob Neuhaus, Vice President, JD Power Banking Intelligence. “This has been a major challenge for banks for many years as they’ve tried to balance the high-touch customer service needs of the small business banking segment with the high cost of providing hands-on account management. Now, for the first time, we’re starting to see well-designed mobile banking offerings contribute to improved customer relationship management.”

Following are some key findings of the 2019 study:

• Small business banking customer satisfaction reaches record high: Overall small business bank customer satisfaction is 820 (on a 1,000-point scale) in 2019, up 20 points from 2018—with satisfaction scores increasing across every aspect of the small business banking experience.
   
• Mobile banking adoption reaches tipping point among small business customers: The total number of small business customers using their bank’s mobile app has increased to 61% in 2019, up from 53% in 2018. The small business customer mobile adoption rate is also trending higher than mobile banking adoption rates in the retail banking sector. Through the first two fielding waves of the upcoming JD Power 2020 U.S. Retail Banking Satisfaction Study,SM mobile banking usage stands at just 53%.
   
• Among mobile banking users, retention and satisfaction are significantly higher: Among small business customers who have used their bank’s mobile app, 67% say they “definitely will” reuse their bank for their next business banking product/service, vs. just 53% among non-users of mobile offerings. Overall satisfaction among mobile users is 43 points higher, on average, than among non-users (837 vs. 794, respectively).
   
• Mobile banking users more likely to be high growth, younger: Analyzing the demographics of small business users of mobile banking offerings, 71% are classified as high-growth businesses while 52% are moderate- or low-growth businesses; 71% are age 40 or less and 54% are age 40 or older.

Study Rankings

Huntington ranks highest in the Midwest region with a score of 852, followed by Chase (830) and PNC Bank (827).

Capital One ranks highest in the Northeast region with a score of 850. Chase (842) ranks second and Citizens Bank (833) ranks third. 

TD Bank ranks highest in the South region with a score of 854. Chase (844) and Regions Bank (844) rank second in a tie.

Chase ranks highest in the West region for a seventh consecutive year, with a score of 831. Bank of the West (820) ranks second and Union Bank (814) ranks third.

The 2019 U.S. Small Business Banking Satisfaction Study includes responses from 8,287 small business owners or financial decision-makers who use business banking services. The study was fielded from June through August 2019.

For more information about the U.S. Small Business Banking Satisfaction Study, visit
https://www.jdpower.com/resource/us-small-business-banking-satisfaction-study.

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

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

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