Category: United States

Majority of Electric Vehicle Owners Are Intent on Purchasing Another One in the Future, JD Power Finds

2021-01-20

jillian.breska

Among the early adopters who own an electric vehicle (EV),¹ 82% say they “definitely will” consider purchasing another EV in the future, according to the inaugural JD Power U.S. Electric Vehicle Experience (EVX) Ownership Study,^SM released today. However, satisfaction with the current ownership experience is a key influencer for whether owners will purchase the same brand of EV again.

The overall EVX ownership index score measures electric vehicle owners’ satisfaction (on a 1,000-point scale) in premium and mass market segments across seven factors: accuracy of stated battery range; availability of public charging stations; battery range; cost of ownership; driving enjoyment; ease of charging at home; and vehicle quality and reliability.

“Brand loyalty can be fickle among EV owners,” said Brent Gruber, senior director of global automotive at JD Power. “While early adopters of EVs say they’ll remain loyal to EVs in general, staying with the same brand is not a sure thing. Auto manufacturers will have to keep EV owners and shoppers interested in their products beyond just the cost equation. With automakers expected to flood the market with EV launches during the next three years, to capture a share of the market they need to offer vehicles that evoke excitement and meet owners’ broader needs.”

The study finds that 95% of EV owners whose overall ownership satisfaction exceeds 900 points say they will purchase another EV. Nearly two-thirds (64%) of these owners say they “definitely will” repurchase the same brand. However, likelihood to repurchase the same brand lessens as satisfaction declines. Among owners whose satisfaction is between 600 and 750 points, 77% indicate they “definitely will” purchase another EV—although their likelihood of repurchasing the same brand is only 25%.

Following are key findings of the 2021 study:

• It’s mostly about range: When deciding which electric vehicle to buy, the most-often-cited factor in the purchase decision is battery and driving range. Even after the purchase is made, range is still a critical element of the ownership experience. In both premium and mass market segments, accuracy of the stated battery range and actual battery range experienced by the owner account for about 20% of owners’ overall satisfaction. “Even though most owners drive less than the stated range of their vehicle’s battery, they still want to know that the actual battery range is close to the stated battery range,” Gruber said. “It’s still about peace of mind.”
• Where to plug in: The public charging infrastructure is a key determinant of satisfaction for EV owners of both premium and mass market brands, yet significant differences exist between the two groups. Satisfaction among owners of premium battery electric vehicles (BEVs) with availability of public charging is 235 points higher than among owners of mass market BEVs, largely due to Tesla owners’ higher level of satisfaction with the Tesla public charging network. Regionally, satisfaction with the availability of public charging infrastructure is highest in the West (616) and lowest in the West North Central region (563), which includes Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. Satisfaction with the availability of public charging is 305 points higher among Tesla owners than among owners of other brands.
• Driving enjoyment vs. quality concerns: While driving enjoyment varies significantly by segment (892 for premium BEV and 758 for mass market BEV), only in the mass market segment does driving enjoyment outweigh quality and reliability. Quality and reliability is the most important factor of the premium electric vehicle ownership experience. It’s notable that, while Tesla is seen to have poor quality, Tesla owners are more highly satisfied overall, indicating their willingness to overlook quality problems.
• Show me the savings: Owners of both premium and mass market EVs agree on one reason for choosing electrification over internal combustion engines (ICE): the expected lower operating costs of an electric vehicle. Cost of ownership is a key driver in the purchase of an EV that typically has fewer parts to maintain, has less frequent service requirements and results in lower fuel costs than ICE vehicles.

Study Rankings

Tesla Model S ranks highest overall and highest in the premium BEV segment with a score of 798. Tesla Model 3 (790) ranks second. Overall satisfaction in the premium segment is 782.

Kia Niro EV ranks highest in the mass market BEV segment with a score of 782. Chevrolet Bolt (745) ranks second and Hyundai Kona EV (743) ranks third. Overall satisfaction in the mass market segment is 730.

The U.S. Electric Vehicle Experience (EVX) Ownership Study is driven by a collaboration with PlugShare, the leading EV driver app maker and research firm. This study sets the standard for benchmarking satisfaction with the critical attributes that affect the total or overall EV ownership experience for both BEV and PHEV vehicles. Survey respondents for the inaugural study include 9,632 owners of 2015-2021 model year BEVs and PHEVs. The study was fielded in October-November 2020.

For more information about the U.S. Electric Vehicle Experience (EVX) Ownership Study, visit https://www.jdpower.com/business/automotive/electric-vehicle-experience-evx-ownership-study.

Based in El Segundo, Calif., PlugShare maintains the most comprehensive census of EV infrastructure in the world. They make the PlugShare app for iOS, Android and the Web, the most popular EV driver app globally, in use by most drivers in North America and over one million EV drivers worldwide. PlugShare also provides sophisticated data tools, reports, custom consulting and comprehensive research on EVs for automakers, utilities, charging networks, government and the rest of the EV industry. It operates the world’s largest EV driver survey research panel, PlugInsights, now with over 63,000 members.

JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

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

¹An electric vehicle (EV) is a category that includes battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV) and hybrid electric vehicle (HEV).

 

Call Quality Should Continue to be High Priority for Wireless Carriers, JD Power Finds

2021-01-25

jillian.breska

Although network performance and reliability remain the highest prioritization of network traffic for wireless carriers, wireless carriers should also continue to prioritize network traffic to call quality, as call issues remain the most-often-cited problem, according to the JD Power 2021 U.S. Wireless Network Quality Performance Study—Volume 1, released today, Call issues account for 12 problems per 100 mobile device connections (PP100).

“Mobile phones have evolved from their roots as a voice-only product to provide incredible network-connected, app-driven experiences,” said Ian Greenblatt, managing director at JD Power. “While there is room for an identifiable boost in call quality satisfaction, the hardware of modern phones are not the culprit of call quality problems: ensuring the prioritization of call quality within network traffic will improve their voice experiences, and with it, overall satisfaction.”

Study Rankings

Verizon Wireless ranks highest in all six regions covered in the study, achieving the lowest network quality problems per 100 connections (PP100) in call quality, messaging quality and data quality in each region. 

The 2021 U.S. Wireless Network Quality Performance Study—Volume 1 is based on responses from 33,293 wireless customers. Carrier performance is examined in six regions: Mid-Atlantic, North Central, Northeast, Southeast, Southwest and West. In addition to evaluating the network quality experienced by customers with wireless phones. The study was fielded from July through December 2020.

For more information about the U.S. Wireless Network Quality Performance Study, visit https://www.jdpower.com/business/resource/jd-power-wireless-network-quality-performance-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]John Roderick; East Coast; 631-584-2200; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

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

 

JD Power Mourns Death of Company Founder James David Power III

2021-01-26

jillian.breska

JD Power mourns the loss of James David “Dave” Power III, founder and retired chairman of JD Power, who passed away this weekend at the age of 89.

“The world has lost a true pioneer and we have lost a visionary spirit that has continued to inspire, inform and galvanize our company’s growth for over 50 years,” said Dave Habiger, president and CEO of JD Power. “Those who were lucky enough to have worked closely with Dave remember a larger-than-life creative presence who encouraged constant innovation and close collaboration with a relentless focus on the values of independence, integrity and quality.”

Dubbed “Mr. Quality” by Motor Trend magazine, Power was widely credited with transforming the auto industry by channeling detailed customer experience data into practical insights and critical intelligence that changed everything from manufacturing to marketing. He founded the company in 1968 with his wife Julie, and together they quickly built JD Power into one of the world’s most recognizable brands. With customer feedback often seen as less important by companies who provided products or services, Power was constantly motivated to bring attention to the “Voice of the Customer.” And he would often express his immense pride in his colleagues, or “Associates,” making such groundbreaking contributions to the company and the industries it served.

Data and analytic insights enabled significant quality improvements across every major automotive manufacturer. Today, JD Power is known throughout the world as a global leader in consumer insights, advisory services and data and analytics across every major industry.

As JD Power studies began to detect nascent industry trends and critical quality flaws, the industry began to embrace the company’s data as a critical source of industry intelligence, and a key component to product strategy. That recognition was memorialized in 1992 when Power received the Automotive Hall of Fame’s Distinguished Service Citation, which is awarded each year to the industry’s most accomplished leaders.

In the years that followed, Power successfully diversified the business, expanding into the financial services, healthcare, home, insurance, technology, media and telecom, travel and hospitality and utilities industries. Building on Power’s foundation of concrete experiential data and analytics, JD Power is now a global leader in the use of big data, artificial intelligence (AI) and algorithmic modeling to understand consumer behavior.

Power stepped back from day-to-day leadership of the company in 2005 but continued to stay involved in an advisory capacity for many years.

“Even after his retirement, Dave’s indomitable presence was felt throughout our business, both through the many lives he touched personally and the strong foundation of uncompromising values of independence and integrity he built for our amazing company,” Habiger added. “He will be deeply missed by all of us, but his spirit will live on in the work we will carry forward each day.”

_______________________________

JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

 

Auto Sales Start Strong in 2021: January Retail Vehicle Sales Volumes, Transaction Prices Rise as Discounts Stay Low

2021-01-26

jillian.breska

The Retail Sales Forecast
New-vehicle retail sales for the month of January are expected to show growth from January 2020, according to a joint forecast from JD Power and LMC Automotive. Retail sales for new vehicles are projected to reach 890,800 units, a 6.1% increase compared with January 2021 when adjusted for selling days. January 2021 contains one fewer selling day and the same number of selling weekends when compared January 2020. Comparing the same sales volume without adjusting for the number of selling days translates to an increase of 1.8% year over year.

The Total Sales Forecast
Total new-vehicle sales for the month of January, including retail and non-retail transactions, are projected to reach 1,073,100 units, a 0.9% decrease from January 2020, when adjusted for selling days. Reporting the same numbers without controlling for the number of selling days translates to a decrease of 4.9% from January 2020. The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 16.3 million units, down 0.4 million units from 2020.

The Takeaways
Thomas King, president of the data and analytics division at JD Power:
“January continues the strong performance observed in Q4 of 2020 and points to a positive outlook for the balance of 2021. The growth in retail sales is encouraging, especially as it is being achieved with higher transaction prices and lower incentive levels. While retail demand remains strong, non-retail sales are still recovering, which is hampering total vehicle sales and SAAR.

“The primary risk to maintenance of the current retail sales pace is supply chain disruption. However, as January results show, the disruption has not yet become apparent in aggregate industry sales results.”

—–

Lean inventories mean that vehicles are selling quickly once they arrive at dealerships, and they are selling with lower discounts. The average number of days a new vehicle sits on a dealer lot before being sold is on pace to fall to 51 days, down 19 days from last year.

—–

The average incentive from manufacturers on new vehicles is on pace to be $3,639 per vehicle, a decrease of $510 from a year ago. Expressed as a percentage of the average vehicle MSRP, incentives for January are 8.4%, down two percentage points from a year ago, and the sixth consecutive month below 10%. For context, incentive spending per unit is 27% lower than when it peaked at $4,953 per unit in April 2020. Retailers also continue to offer smaller discounts on new-vehicle sales. Total grosses per unit, inclusive of finance and insurance income, are on pace to reach $2,212, an increase of $859 from a year ago.

—–

Average transaction prices are expected reach another monthly high, rising 8.4% to $37,165, the highest ever for the month of January and just below the record set in December 2020. Disciplined incentives and discounting, along with the shift towards more expensive trucks and SUVs, remain the key drivers of higher prices. SUVs and trucks are on pace to account for a combined 78% of retail sales compared with 73% a year ago. For context, average transaction prices are 20% higher in January 2021 than they were in January 2016 at $30,838.

Low interest rates and higher trade-in values also are supporting higher transaction prices. The average interest rate for loans in January is expected to fall 117 basis points from a year ago to 4.4%. Over the same time, the average monthly finance payment is up only $14 to $599. Concurrently, the average trade-in value has risen to $5,298, an increase of $773 or 17.1%, from a year ago. Loan terms are relatively stable with the average term up less than one month, to 70 months, compared with a year ago.

The combination of strong retail sales, higher transaction prices and smaller discounts means that January 2021 likely will be one of the most profitable Januarys ever for both retailers and manufacturers.

—–

Sales & SAAR Comparison

U.S. New Vehicle	January 20211	December 2020	January 2020
Retail Sales	890,800 units (+6.1% higher than January 2020)2	1,381,680 units	874,967 units
Total Sales	1,073,100 units (-0.9% lower than January 2020)2	1,619,554 units	1,127,869 units
Retail SAAR	14.1 million units	14.2 million units	13.5 million units
Total SAAR	16.3 million units	16.4 million units	16.7 million units

¹ Figures cited for January 2021 are forecasted based on the first 17 selling days of the month.
² January 2021 has 24 selling days, one fewer day than January 2020.

The Details

• The average new-vehicle retail transaction price in January is expected to reach a monthly record $37,165. The previous high for any month of $37,966 was set in December 2020.
• Average incentive spending per unit in January is expected to reach $3,639, down from $4,149 in January 2020. Spending as a percentage of the average MSRP is expected to reach 8.4%, down two percentage points from a year ago.
• Average incentive spending per unit on trucks and SUVs combined is expected to be down $551 to $3,680, while the average spending on cars is expected to be down $421 to $3,497.
• Consumers are on pace to spend $33.1 billion on new vehicles, up $3 billion from January 2020 and the highest ever for the month of January.
• Truck/SUVs are on pace to account for 77.9% of new-vehicle retail sales.
• Fleet sales are expected to total 182,300 units, down 25% from January 2020 on a selling day adjusted basis. Fleet volume is expected to account for 17% of total light-vehicle sales, down from 22% a year ago.
   

Global Outlook for January 2021
Jeff Schuster, president, Americas operations and global vehicle forecasts, LMC Automotive:

“Global light vehicle sales finished strongly in December, posting another pre-pandemic selling rate record of 91.6 million units. After revising November upward, December also marks the fourth consecutive month well above the selling rate of 90 million units. The month was 2.5% stronger than December 2019, with continued support from China and the United States. In addition, some stability returned to volatile markets like South America and parts of Europe. Global light vehicle sales in 2020 ended at 77.7 million units—down 14%—as improvement in the second half of the year drove the recovery.

“Our forecast for 2021 is for a continued recovery, with volume projected to increase to 86.4 million units, an 11% increase from 2020. However, while 2021 starts with some uncertainties now in our rearview mirror, there are new risks emerging such as the global semiconductor shortage and the potential for additional disruptions. Our initial assessment suggests there could be weakness in the first quarter due to vehicle production losses related to the lack of chips, but we don’t expect a lasting negative effect on the year.”

Media Relations Contacts
Geno Effler, JD Power; West Coast; 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

 

Level Up: Electric Vehicle Owners with Permanently Installed Level 2 Chargers Reap Benefits from Their Investment, JD Power Finds

2021-02-03

jillian.breska

Home charging is a significant part of the electric vehicle (EV)¹ ownership experience, with 88% of owners who say they charge their vehicle at home “often” or “always.” Overall home charging satisfaction is highest among EV owners who install a Level 2 permanently mounted charging station, with a score of 749 (on a 1,000-point scale), according to the inaugural JD Power U.S. Electric Vehicle Experience (EVX) Home Charging Study,^SM released today.

The study measures EV owners’ satisfaction within three charging segments:² Level 1 portable; Level 2 portable; and Level 2 permanently mounted (permanent) charging stations. Satisfaction is measured across eight factors: fairness of retail price; cord length; size of charger; ease of winding/storing cable; cost of charging; charging speed; ease of use; and reliability, providing a comprehensive assessment of the owner experience and charger performance.

Satisfaction is highest among EV owners who use a permanent Level 2 charger (749) than among owners who use a portable Level 2 charger (741). Satisfaction is notably lower among EV owners who use a much slower Level 1 charger, just 574.

“Permanently mounted chargers are a significant expense, so owners of such chargers need to determine if it’s the right investment for them based on their usage and vehicle,” said Brent Gruber, senior director of global automotive at JD Power. “Many such owners need to upgrade their service panel to accommodate their EV’s amperage, and installation may require extra permits. The cost experience is so different for these owners because many spend thousands of dollars to have a charger permanently installed. The upside for those who have done so is higher satisfaction.”

Following are key findings of the 2021 study:

• Owners of Level 1 chargers dramatically less satisfied with speed: Satisfaction with charging speed is 352 points lower among owners of Level 1 portable chargers than among owners of Level 2 permanently mounted chargers. This is exacerbated by owners of Level 1 portable chargers citing charging speed as being almost twice as important as it is to owners of Level 2 permanent chargers. Despite knowing that their charging speed will be very slow, owners of Level 1 chargers are still very dissatisfied. In addition to considerably lower satisfaction for charging speed, scores for Level 1 chargers are lowest in six of the seven remaining home charging experience factors.
• Northeast EV owners most critical of charging costs: While cost of charging has the least variation between the three segments—they are only separated by 73 points—regional differences in satisfaction scores are more pronounced. A gap of 167 points exists between the New England region (609) and the West South Central region (776), most likely due to high electricity costs.
• Tesla provides best overall home charging experience: More than half (54%) of respondents own a Level 2 permanent charger, with Tesla ranking highest in this segment in six of the eight factors measured in the study. Notable, too, is that satisfaction scores for reliability are 54 points higher among owners of Tesla Level 2 permanent chargers and 52 points higher for cord length. The Tesla Level 2 permanent charger also performs well in ease of use; size of charger; charging speed; and ease of winding/storing cable.
• Problems affect overall satisfaction with Level 2 permanent chargers: The most-often-cited problems with Level 2 permanent chargers are charger stopped working/needs repair (29%) and Wi-Fi issues (22%). While only 9% of problems with Level 2 permanent chargers are related to slower-than-normal charging speed, when this problem is experienced, it has the largest overall negative effect: satisfaction declines 126 points.
• Cost-saving utility programs are underused: Satisfaction with the cost of charging increases if EV owners use multiple utility offerings and/or programs such as lower rates during certain hours; EV-only electrical rate plans; itemized costs for home EV charging usage; and incentives for Level 2 permanent charger installation. Satisfaction improves 76 points when four or more programs are utilized instead of just one. However, only one in five owners (21%) say their utility provider utilizes multiple savings options. “Communication between utility companies and automakers is important to help alleviate frustration for EV owners,” Gruber said. “If utility companies have these cost-savings options available, but automakers aren’t helping to promote them, it’s a disservice to all involved parties.”

Study Ranking

The study examines the home-charging experience of EV owners across all three charger segments, but only Level 2 permanent charging stations are award eligible.

Tesla ranks highest among Level 2 permanent charging stations with a score of 798. The segment average is 749.

The U.S. Electric Vehicle Experience (EVX) Home Charging Study is driven by a collaboration with PlugShare, the leading EV driver app maker and research firm. This study sets the standard for benchmarking satisfaction with the critical attributes that affect the total or overall EV ownership experience for both BEV and PHEV vehicles. Survey respondents for the inaugural study included 9,127 owners of 2015-2021 model year BEVs and PHEVs. The study was fielded in October-November 2020.

For more information about the U.S. Electric Vehicle Experience (EVX) Home Charging Study, visit https://www.jdpower.com/business/automotive/electric-vehicle-experience-evx-home-charging-study.

Based in El Segundo, Calif., PlugShare maintains the most comprehensive census of EV infrastructure in the world. They make the PlugShare app for iOS, Android and the Web, the most popular EV driver app globally, in use by most drivers in North America and over one million EV drivers worldwide. PlugShare also provides sophisticated data tools, reports, custom consulting and comprehensive research on EVs for automakers, utilities, charging networks, government and the rest of the EV industry. It operates the world’s largest EV driver survey research panel, PlugInsights, now with over 63,000 members.

JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

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

¹Electric vehicles (EV) include battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV).

²JD Power defines charger segments as Level 1 portable; Level 2 portable; or Level 2 permanently mounted (permanent). Level 1 portable charging stations offer simple electric vehicle charging capabilities at home through a standard 120-volt electrical outlet. Level 2 portable charging stations offer faster charging capabilities at home through an upgraded 240-volt electrical outlet. Level 2 permanently mounted charging stations use an upgraded 240-volt electrical outlet via a permanently wall-mounted format.

 

Small Business Satisfaction with Merchant Services Providers Declines amid COVID-Related Struggles, JD Power Finds

2021-02-03

jillian.breska

With more than half (51%) of U.S. small businesses acknowledging significant sales revenue declines as a result of COVID-19, overall satisfaction with the merchant services providers that enable small businesses to process card and mobile wallet payments has declined from 2020. According to the JD Power 2021 U.S. Merchant Services Satisfaction Study,^SM released today, challenges with customer service, cost of service, and underwriting and onboarding have been more pronounced among businesses experiencing significant sales declines during the past year.

“In recent years, merchant services providers have introduced technology innovations that make it easier than ever for small businesses to accept card and digital wallet payments,” said Paul McAdam, senior director of banking and payments intelligence at JD Power. “This past year demonstrates that the technology is consistently meeting market needs, but achieving real, lasting customer satisfaction is as much about service levels as it is about technology. Payment processors should anticipate that many of the challenges and financial pressures small businesses faced in 2020 will continue to be a factor for the foreseeable future and tailor their customer-facing strategies to address those needs.”

Following are key findings of the 2021 study:

• Overall satisfaction declines: Overall small business customer satisfaction with merchant services providers is 836 (on a 1,000-point scale), down slightly from 2020. Among businesses that cite significant revenue declines due to COVID-19, the average satisfaction score is 827. Satisfaction among businesses that have experienced COVID-19-related disruptions are also significantly lower with contact center representatives; automated voice response (IVR) services; underwriting and onboarding; and cost of service.
• Tech performs well, while service suffers: While scores for service-related experiences such as interactions with the contact center and underwriting and onboarding have declined in this year’s study, overall small business customer satisfaction with technology functionality, reliability and ease of use are among the highest-scoring factors in the study.
• Satisfaction highest among e-commerce merchants: Among all sales channels evaluated, overall satisfaction with their merchant services providers is highest among E-commerce small businesses (851). This group also has the highest level of understanding of pricing and fees, as well as higher satisfaction with the options and tools available to manage chargebacks. However, satisfaction increases most among small businesses that accept card and digital wallet payments in physical (card present) environments. This year, satisfaction is higher among these businesses in the areas of timeliness of resolving service requests and clarity of pricing and fees.

Study Ranking

Square ranks highest in merchant services satisfaction with a score of 857. PayPal (852) ranks second. Bank of America Merchant Services (849) and PNC Merchant Services (849) rank third in a tie.

In the months prior to study fielding, many small businesses experienced unprecedented levels of disruption and change. Along with the effects of the pandemic, some small businesses were introduced to new payment processor brand names resulting from merger integrations at FIS, Fiserv and Global Payments. Some customers of Bank of America Merchant Services experienced the dissolution of the joint venture between Fiserv and Bank of America. Two of the banks in the study, PNC Merchant Services and Wells Fargo Merchant Services, utilize Fiserv to provide merchant services to their small business clients. Fiserv (shown in the rank chart as First Data is now Fiserv) also manages direct, standalone merchant services businesses that are distinct from these bank relationships.

The JD Power 2021 U.S. Merchant Services Satisfaction Study is based on responses from 3,253 small business customers of merchant services providers. The study was fielded from September through November 2020.

For more information about the U.S. Merchant Services Satisfaction Study, visit https://www.jdpower.com/business/resource/us-merchant-services-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

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

 

 

App Usage for Wireless Carrier Problem Resolution High across Generations, JD Power Finds

2021-02-03

jillian.breska

From Boomers to Generation Z¹, nearly 1 in 5 wireless customers are using the app for problem resolution, according to the JD Power 2021 U.S. Wireless Customer Care Mobile Network Operator Performance StudySM—Volume 1 and the JD Power 2021 U.S. Wireless Customer Care Mobile Virtual Network Operator Performance StudySM—Volume 1, released today.

“Wireless providers focusing on improvement in customer care must continue to invest in app optimization, as app usage is surely to increase over time,” said Ian Greenblatt, managing director at JD Power. “Yet again, customer satisfaction is profitable – by focusing more on improving the app, providers will have opportunity to more quickly satisfy customers at their own pace and at the same time capture meaningful operational cost savings through lower call center volume.”

Study Results

For Mobile Network Operators, T-Mobile ranks highest with a score of 832. Verizon Wireless (805) ranks second. The Mobile Network Operator segment average is 802.

For Mobile Virtual Network Operators, Metro by T-Mobile ranks highest with a score of 829. Cricket ranks second with a score of 827 and Xfinity Mobile ranks third with a score of 813. The segment average is 812.

For Value Mobile Virtual Network Operators, Consumer Cellular ranks highest with a score of 871. The segment average is 821.

The 2021 U.S. Wireless Customer Care Mobile Network Operator Performance Study—Volume 1 and the 2021 U.S. Wireless Customer Care Mobile Virtual Network Operator Performance Study—Volume 1 are based on responses from 13,963 customers who contacted their carrier’s customer care department within the past three months.  The studies evaluate customer care experiences across 6 factors: store service; phone service; website service; app service; social media service; and text service. The studies were fielded from July through December 2020.

For more information about the U.S. Wireless Customer Care Mobile Network Operator Performance Study and the U.S. Wireless Customer Care Mobile Virtual Network Operator Performance Study, visit https://www.jdpower.com/business/resource/us-wireless-customer-care-performance-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

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

¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.

JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

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

¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.

 

JD Power Launches Real-Time Auto Insurance Customer Loyalty Tracking Capability

2021-02-12

jillian.breska

The last decade of aggressive advertising, steadily rising premiums and expansion of direct-to-consumer offerings has eroded auto insurance customer loyalty. According to recent data[1] from JD Power, 77% of auto insurance customers say they are either actively shopping for a new carrier or have experienced an adverse event that triggered shopping activity. Against this backdrop of rapid-fire swings in customer sentiment, JD Power has developed an industry-first solution to provide daily metrics on auto insurance customer shopping activity at a brand level. The new JD Power Auto Insurance Loyalty Indicator & Shopping Trends (LIST), fueled by SurveyMonkey Market Research Solutions, offers the industry’s most current, comprehensive view of auto insurance customer shopping behaviors at the national and state level.

“It’s never been easier for auto insurance customers to shop and switch brands in a matter of minutes, making it critical for carriers to monitor up-to-the-minute trends in the behavior of their existing customers  and those of their competitors,” said Kyle Schmitt, vice president and managing director, insurance intelligence at JD Power. “With Auto Insurance LIST, carriers receive detailed data on who the active shoppers are, where they are shopping and which brands they are considering on a daily basis. This allows insurers to track performance of new campaigns; anticipate and adjust to changing market conditions down to a metropolitan statistical area; and understand the effects of operational changes on the end consumer.”

JD Power Auto Insurance LIST delivers daily data and monthly trends in auto insurance shopping behaviors across the top 25 auto insurance brands at the national and state level. The solution tracks a range of key metrics developed by the JD Power insurance intelligence team to spotlight where brands are winning and losing in customer acquisition, primary drivers of shopping behaviors and detailed shopper profiles. Underlying data for JD Power Auto Insurance LIST is drawn from daily surveying of 500-1,000 auto insurance customers sourced by SurveyMonkey’s market-leading platform.

Following a six-month pilot with a select group of national auto insurance carriers, JD Power Auto Insurance LIST is proving to be an invaluable resource for gathering competitive intelligence, assessing the effects of exogenous market conditions such as catastrophic events or regulatory changes in a particular region, tracking the performance of marketing campaigns and evaluating the performance of operational changes.

For more information about JD Power Auto Insurance LIST, visit https://www.jdpower.com/business/loyalty-indicator-shopping-trends.

JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

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

¹JD Power 2020 U.S. Insurance Shopping Study

 

Vehicle Dependability at All-Time High, JD Power Finds

2021-02-16

jillian.breska

 

Vehicle dependability is at an all-time high, with the overall level of problems cited by owners declining 10% from a year ago, according to the JD Power 2021 U.S. Vehicle Dependability Study^SM (VDS), released today.

“The study results validate what we have known for some time,” said Dave Sargent, vice president of global automotive at JD Power. “Automakers are making increasingly dependable vehicles—but there are still some problem areas that need to be addressed and some warning signs on the horizon.”

The study, now in its 32^nd year, measures the number of problems per 100 vehicles (PP100) experienced during the past 12 months by original owners of three-year-old vehicles. A lower score reflects higher dependability, and the study covers 177 specific problems grouped into eight major vehicle categories: audio/communication/entertainment/navigation (ACEN); engine/transmission; exterior; interior; features/controls/displays (FCD); driving experience; heating, ventilation and air conditioning; and seats.

The 2018 model-year vehicles measured in this year’s study were first examined in the JD Power 2018 U.S. Initial Quality Study (IQS),^SM when new-vehicle quality had improved for the fourth consecutive year and reached its best level ever. Six of the 10 brands that ranked highest in that study also appear among the ten highest ranked in the 2021 VDS.

“Today’s three-year-old vehicles are of higher quality and more dependable than in previous years,” Sargent said. “Most owners aren’t experiencing their vehicles breaking down or falling apart but, for many, vehicle technology continues to function poorly or inconsistently. If an owner can’t rely on a system to work as they expect, it is also considered a lack of dependability. It affects their overall view of the vehicle and their likelihood of staying loyal to their automaker. In the future, dependability will partially be determined by the ability to solve problems through vehicle updates and the avoidance of technology obsolescence.”

Following are key findings of the 2021 study:

• Vehicle dependability improves to best level ever: The industry average is 121 PP100—the lowest in the study’s history—and a 13 PP100 (10%) improvement from 134 PP100 in 2020. This is a much greater rate of improvement than in the past two years, which had improvements of 2 PP100 and 6 PP100, respectively.
• Trucks and SUVs have room—to improve: Cars continues to be the segment with the most dependable vehicles, averaging 111 PP100, while trucks average 130 PP100 and SUVs average 122 PP100. Given that trucks and SUVs currently account for approximately 80% of retail sales each month, it’s important for automakers to address problem areas in these two segments to achieve a similar level of dependability as for cars.
• Korean and Japanese brands perform well: Owners of Asian brand vehicles experience the fewest problems (115 PP100) compared with domestic brands (126 PP100) and European brands (131 PP100). This gap is due in part to Korean brands Kia, Hyundai and Genesis which, when combined, average just 99 PP100 and represent a 19-point gap vs. the Japanese brands (collectively 118 PP100).
• All problem categories have improved: All eight categories improve this year, led by exterior (3.7 PP100) and driving experience (2.2 PP100). ACEN (audio/communication/ entertainment/navigation) shows marginal improvement and remains the category with the most problems reported. “From early in the ownership experience, many owners complain about these systems being problematic,” Sargent said. “It’s a recurring theme. With smartphone apps increasingly giving owners an alternative, some will give up on the vehicle’s built-in systems that caused that initial frustration. That’s problematic for automakers, as a lot of the vehicle’s value is tied up in these systems and they don’t want to hand this business over to third parties.”
• Most Dependable Model: The Porsche 911 is the highest-ranked model in the 2021 study. It is the second time in three years that it has been named Most Dependable Model.
• Tesla profiled for first time: Tesla receives a score of 176 PP100. The automaker is not officially ranked among other brands in the study because it doesn’t meet the ranking criteria. Unlike other manufacturers, Tesla doesn’t grant JD Power permission to survey its owners in 15 states where it is required. However, Tesla’s score was calculated based on a robust sample of surveys from owners in the other 35 states.

Highest-Ranked Brands

Lexus ranks highest in overall vehicle dependability among all brands, with a score of 81 PP100. This is the ninth time in 10 years that Lexus ranks highest. Porsche (86 PP100) ranks second, followed by Kia (97 PP100), Toyota (98 PP100), Buick (100 PP100) and Cadillac (also 100 PP100).

Kia shows considerable improvement, with a reduction of 35 PP100 from 2020. This is also the first time Kia ranks highest overall among mass market brands. Other brands above industry average showing the greatest improvement in PP100 are Cadillac, Acura and Hyundai (all by 31 PP100), and Mitsubishi (by 30 PP100).

Toyota Motor Corporation receives five segment awards for the Lexus ES, Lexus GX, Toyota Avalon, Toyota Sienna and Toyota Tundra.

General Motors Company receives four segment awards for the Buick Envision, Chevrolet Camaro, Chevrolet Silverado HD and Chevrolet Tahoe.

Hyundai Motor Group also receives four segment awards for the Genesis G80, Kia Optima, Kia Sorento and Kia Sportage.

Chevrolet, Kia and Toyota each receive three segment awards, the most among all brands in the study.

The Consumer Ratings featured on JDPower.com, the car-shopping site, are generated using data from verified owners who have participated in JD Power automotive studies including U.S. Vehicle Dependability Study ^SM (VDS); U.S. Customer Service Index (CSI) Study^SM; U.S. Initial Quality Study (IQS)^SM; U.S. Automotive Performance, Execution and Layout (APEAL) Study^SM; and U.S. Sales Satisfaction Index (SSI) Study^SM.

“The insights uncovered about vehicle dependability are valuable not only to automakers but to car shoppers,” said Tanya Parkes, vice president of the consumer division at JD Power. “Shoppers who visit JDPower.com can also learn how a vehicle compares to others, which brings more clarity to the shopping experience. The JD Power 100-Point Scores are based on independent and unbiased insights from consumers who have actually owned these vehicles, and that’s something in which shoppers are keenly interested.” 

The 2021 U.S. Vehicle Dependability Study is based on responses from 33,251 original owners of 2018 model-year vehicles after three years of ownership. The study was fielded from July 2020 through November 2020.

To learn more about the U.S. Vehicle Dependability Study, visit https://www.jdpower.com/business/automotive/us-vehicle-dependability-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Shane Smith; East Coast; 424-903-3665; [email protected]

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

 

 

Easy-to-Understand Mobile Plan Features and Pricing are Keys to Driving Customer Satisfaction, JD Power Finds

2021-02-17

jillian.breska

Nearly one-third (31%) of consumers who had a purchase experience with a mobile network operator in the past three months don’t believe plan features and pricing are easy to understand, according to the JD Power 2021 U.S. Wireless Purchase Experience Mobile Network Operator Performance Study^SM—Volume 1 and the JD Power 2021 U.S. Wireless Purchase Experience Mobile Virtual Network Operator Performance Study^SM—Volume 1, released today.

“With the variable components to a mobile network plan, maintaining clear and concise verbiage can be the difference between a positive or negative purchase experience,” said Ian Greenblatt, managing director at JD Power. “Consumers that believed their plan features and pricing to be easy to understand had a significantly higher level of satisfaction than those who did not. Adjusting marketing materials and fully versing the sales teams with simpler, more conversational terms could be the push that network operators need to boost satisfaction.”

Study Results

Among Mobile Network Operators, T-Mobile ranks highest with a score of 813. AT&T (780) ranks second. The segment average is 766.

Among Mobile Virtual Network Operators, Metro by T-Mobile ranks highest with a score of 834. Spectrum (826) ranks second and Xfinity Mobile (824) ranks third. The segment average is 823.

Among Value Mobile Virtual Network Operators, Consumer Cellular ranks highest with a score of 882. The segment average is 850.

Now in the 18^th year of publication, the 2021 U.S. Wireless Purchase Experience Mobile Network Operator Performance Study and the U.S. Wireless Purchase Experience Mobile Virtual Network Operator Performance Study are based on responses from 12,415 customers who use any one of four purchase channels and evaluate the wireless purchase experience taking place via: phone calls; visits to a carrier store; the carrier website; or the carrier’s mobile app. Overall purchase experience satisfaction with both Mobile Network Operators and Mobile Virtual Network Operators is measured in two factors: Cost and Promotions and Purchase Process. The studies were fielded from July through December 2020.

For more information about the U.S. Wireless Purchase Experience Studies, visit 
https://www.jdpower.com/business/resource/us-wireless-purchase-experience-performance-studies.

JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

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