Category: United States

Health Plans Have a Customer Engagement Problem, JD Power Finds

2020-05-14

jillian.breska

TROY, Mich.: 14 May 2020 — More than half (60%) of privately insured U.S. health plan members say they were not contacted by their health plan with guidance or information related to COVID-19, and nearly half (48%) say their health plan has not shown concern for their health since the pandemic began. According to the JD Power 2020 U.S. Commercial Member Health Plan Study,^SM released today, these two data points are the most visible indicators of a health insurance marketplace that lacks focus on customer engagement, making it ripe for disruption as a growing crop of alternative health insurance providers prepare to enter the marketplace.

“Health plans are widely perceived as lacking a customer-centric mindset and not putting the best interests of their members first,” said James Beem, managing director, global healthcare intelligence at JD Power. “The COVID-19 pandemic has amplified these shortcomings, but they are not new. If traditional health insurance plans want to resist the threat from disruptors, they need to demonstrate partnership with members—and on behalf of employers—to improve member health, reduce costs and help members navigate the healthcare system.”

Following are key findings of the 2020 study:

• Health plans lack customer centricity: Just 36% of commercial health plan members say their health plan acts in their best interest “always” or “most of the time,” and just 25% of members say they view their health plan as a trusted partner in their health and wellness. This lack of a customer-centric positioning results in an overall satisfaction score this year for commercial health plans of 719 (on a 1,000-point scale), among the lowest of all industries evaluated by JD Power.
• Customer satisfaction directly linked to customer engagement: Proactive efforts by health plans to engage with members—by providing advice on how to control costs or helping to coordinate care—drive significant improvement in overall customer satisfaction. For example, when a health plan helps members keep out-of-pocket costs low, the average overall satisfaction score is 819, which is 152 points higher than when no such effort is made.
• Telehealth growth creates wildcard opportunity: Expanding telehealth usage is associated with a 39-point increase in overall customer satisfaction. Additionally, with telehealth utilization surging since the COVID-19 pandemic began, JD Power projects this trend will continue to grow rapidly. According to this study, which was fielded largely before the COVID-19 pandemic hit the United States, just 9% of commercial health plan members have used telehealth. Of those who have not, 48% say they would consider using it if it were covered by their plan. Moreover, based on additional JD Power research conducted March 15-May 1 of this year, 75% of U.S. health insurance members are aware of telehealth, yet 54% do not understand if telehealth services are offered as part of their healthcare benefits.

Study Rankings by Region

The study measures customer satisfaction with commercial member health plans in 21 geographic regions. Highest-ranking health plans and scores, by region, are as follows:

• California: Kaiser Foundation Health Plan (784)
• Colorado: Kaiser Foundation Health Plan (718)
• East South Central: Blue Cross and Blue Shield of Alabama (761)
• Florida: Humana (783)
• Heartland: Blue Cross and Blue Shield of Kansas City (719)
• Illinois/Indiana: Blue Cross and Blue Shield of Illinois (733)
• Maryland: Kaiser Foundation Health Plan (802)
• Massachusetts: Blue Cross and Blue Shield of Massachusetts (722)
• Michigan: Blue Cross and Blue Shield of Michigan (736)
• Minnesota/Wisconsin: HealthPartners (721)
• Mountain: Regence BlueCross BlueShield of Utah (723) and SelectHealth (723)
• New Jersey: Horizon Blue Cross and Blue Shield of New Jersey (728)
• New York: Independent Health Association (783)
• Northeast: Anthem Blue Cross and Blue Shield of Connecticut (726)
• Northwest: Kaiser Foundation Health Plan (739)
• Ohio: Aetna (727)
• Pennsylvania: Geisinger Health Plan (739)
• South Atlantic: Kaiser Foundation Health Plan (791)
• Southwest: Cigna (730)
• Texas: Humana (797)
• Virginia: Aetna (735)

The U.S. Commercial Member Health Plan Study, now in its 14^th year, measures satisfaction among members of 149 health plans in 21 regions throughout the United States by examining six key factors: billing and payment; cost; coverage and benefits; customer service; information and communication; and provider choice. The study also measures several other key aspects of the experience and member engagement. The study is based on responses from 31,283 commercial health plan members and was fielded from January through March 2020.

For more information about the U.S. Commercial Member Health Plan Study, visit https://www.jdpower.com/business/resource/commercial-member-health-plan-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, Asia Pacific and Europe.

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

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

 

 

Property & Casualty Insurers Raise Digital Games as COVID-19 Elevates Customer Expectations, JD Power Finds

2020-05-22

jillian.breska

TROY, Mich.: 1 June 2020 — Significant investments in direct-to-consumer website and mobile design have helped property and casualty (P&C) insurance companies improve their digital service and shopping experiences. According to the JD Power 2020 U.S. Insurance Digital Experience Study,^SM released today, insurers have made across-the-board improvements in clarity of information, but many still struggle with the balance of too much information and a minimalist approach.

“The COVID-19 pandemic has thrust digital shopping and customer self-service solutions into the spotlight,” said Tom Super, head of property and casualty insurance intelligence at JD Power. “Even before the pandemic, P&C insurers were investing heavily in digital to capture the growing legions of customers and prospects who are experiencing their brands largely via web and mobile. Across the board, we’ve seen the fruits of those investments: overall satisfaction scores for both new insurance shopping and existing account servicing have risen sharply during the past year.”

The study, now in its ninth year, evaluates digital consumer experiences among P&C insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities. The study examines the functional aspects of desktop, mobile web and mobile apps based on five factors: ease of navigation; appearance; availability of key information; range of services; and clarity of the information. The study was conducted in partnership with Centric Digital, the leader in digital intelligence, and Corporate Insight, the leading provider of competitive intelligence and user experience research to the financial services and healthcare industries.

“The line between brand and digital brand is rapidly disappearing as the lion’s share of insurance shopping and customer support interactions move to digital platforms,” said Michael Ellison, president of Corporate Insight. “Increasingly, insurers’ ability to balance providing the right information at the right time in a format that represents their unique identity will be the key differentiator that separates industry leaders from the rest of the pack.”

Following are key findings of the 2020 study:

• P&C industry meeting customer digital expectations—for now: Overall customer satisfaction with the P&C insurance customer service experience improves 9 points year over year (on a 1,000-point scale) and overall satisfaction with the shopping experience improves 18 points, as the past several years of investment in digital start to pay off. However, customer expectations continue to rise, with shoppers consistently accessing more information than they have in the past, across more channels than ever before.
• TMI vs. minimalist mobile-first design: Finding the right balance when it comes to information density has been a challenge for insurers, with many providing too much complex and expansive information and others pushing heavily to a mobile-first approach. The ability to provide just the right amount of information is a key driver of customer satisfaction.
• Forming a clear digital identity becomes key: Facing growing competition from insurtech start-ups and traditional carriers, P&C insurers need to be selective about the information they provide and how they present it digitally, with the objective being to create a corporate identity that flows from their overall brand strategies.

Study Rankings

GEICO ranks highest in the service segment for a third consecutive year with a score of 885. Allstate (877) and Liberty Mutual (877) rank second in a tie, while American Family (867) ranks fourth.

National General ranks highest in the shopping segment with a score of 835, which is up 43 points from 2019. Kemper (820) ranks second and Erie Insurance (818) ranks third.

The 2020 U.S. Insurance Digital Experience Study is based on 12,867 evaluations and was fielded in February-March 2020.

For more on the U.S. Insurance Digital Experience Study, visit https://www.jdpower.com/business/insurance/us-insurance-digital-experience-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, Asia Pacific and Europe.

Corporate Insight (corporateinsight.com) is the recognized industry leader in competitive intelligence, user experience research and consulting services to the nation’s leading financial services and healthcare institutions for over 25 years. Its best-in-class research platform and unique approach of analyzing the actual customer experience help corporations advance their competitive position in the marketplace.

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

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

 

Importance of Trust, Transparency to Airline Satisfaction Grows as Industry Confronts Pandemic Fears, JD Power Finds

2020-05-22

jillian.breska

TROY, Mich.: 27 May 2020 — North American airlines were headed into 2020 with some of the highest customer satisfaction scores ever recorded, thanks to heavy investment in newer aircraft, better in-flight services and improved customer service. Then COVID-19 hit. According to the JD Power 2020 North America Airline Satisfaction Study,^SM released today, many of the core values that drove standout passenger experiences in the pre-pandemic environment will be even more important as the industry plots its recovery. Specifically, the industry will need to focus on restoring confidence, while continuing to improve on the operational side.

“Airline success in the post-COVID-19 era will hinge on a combination of building consumer confidence and operational flexibility with changing schedules and routes,” said Michael Taylor, travel intelligence lead at JD Power. “Airlines have a tremendous reputation for safety. That will be even more critical as passengers look to airlines for detailed and specific information about what’s being done to keep them safe.”

Following are some of the key findings of the 2020 study:

• Value is a key differentiator for highest-performing airlines: In the midst of the pandemic, many airlines have waived change and cancellation fees.  These fees have a notable effect on customer perception of ticket value.  When it comes to customer perception of value for money, the highest-performing airline rates 6.33 (on a 7-point scale) vs. an industry average of 5.68.
• Passengers seek transparency/details on how airlines will protect them: Based on additional JD Power research conducted April 17-19, leisure travelers list the following as the two most important actions that airlines and hotels can take to make them feel safer: informing travelers of specific cleaning/sanitization actions they are taking (38%) and provide daily updates on the state of the pandemic in the area they will be visiting (37%).
• Improving staff scores will play an important role in recovery: Passenger satisfaction scores related to courtesy/friendliness of crew and staff knowledge have been improving consistently during the past five years. As airline staff will play a key role in delivering passenger safety information and reassuring passengers of the steps the airline is taking to reduce exposure to COVID-19, airlines must strive to further improve these scores.
• Getting basics right still matters: While the travel industry is fixated on COVID-19-related issues, it remains important to get the basic operational details right. Currently, the most common reasons passengers cite for selecting an airline are that it offers a direct flight (55%); the passenger had a good past experience with that airline (47%); and the passenger is a rewards program member (42%). The most commonly cited reason given for not selecting a preferred airline is price (40%).

Study Rankings

For long-haul flights, Southwest Airlines ranks highest in customer satisfaction, with a score of 826 (on a 1,000-point scale). JetBlue Airways (823) ranks second and Delta Air Lines (810) ranks third.

For short-haul flights, Southwest Airlines rank highest in customer satisfaction, with a score of 839. JetBlue Airways (833) ranks second and Alaska Airlines (828) ranks third.

The North America Airline Satisfaction Study, now in its 16^th year, measures passenger satisfaction with airline carriers in North America based on performance in eight factors (in alphabetical order): aircraft; baggage; boarding; check-in; cost and fees; flight crew; in-flight services; and reservation. The study measures passenger satisfaction among both business and leisure travelers and is based on responses from 10,100 passengers across two segments: long-haul flights and short-haul flights. Passengers needed to have flown on a major North American airline within the past month. The study was fielded from April 2019 through March 2020.

For more information about the North America Airline Satisfaction Study, visit https://www.jdpower.com/business/resource/jd-power-north-america-airline-satisfaction-study.

Join the conversation on social media using #AirlineStudy and follow JD Power on Facebook, Twitter and LinkedIn.

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

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

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

 

Bank and Credit Card Provider Investments in Easy-to-Use Digital Tools Pay Off, JD Power Finds

2020-06-09

jillian.breska

During the height of the COVID-19 pandemic, 37% of retail bank customers said they were using their bank’s mobile app more frequently than ever before, and 48% said their preferred means of depositing a check during that period was via mobile phone. Years of digital investments are paying off as banks support homebound customers to continue their banking activities, based on a series of new studies of bank and credit card mobile app and online users, released today by JD Power. The studies find that ease-of-use, speed and accessibility of common features are the common variables shared by the best-performing digital platforms.

The studies—JD Power 2020 U.S. Banking Mobile App Satisfaction Study^SM, 2020 U.S. Online Banking Satisfaction Study^SM, 2020 U.S. Credit Card Mobile App Satisfaction Study^SM and 2020 U.S. Online Credit Card Satisfaction Study—track overall customer satisfaction with banking and credit card providers’ digital offerings.

“Banks have been investing heavily in digital over the last several years and those investments paid off over the last three months as the COVID-19 pandemic dramatically accelerated the shift to digital, forcing many remaining hold-outs to finally take the plunge,” said Jennifer White, senior consultant for banking and payment intelligence at JD Power. “It’s never been more important for banks and credit card companies to make their digital offerings easy to access and use. Across these studies, the common trait among top performers is clear, smooth functionality that loads quickly and puts the information that customers need front and center.”

Following are some key findings of the 2020 studies:

• Customers looking for the “Netflix of banking”: Bank and credit card customers have come to expect a seamless experience across all channels and contact methods, so if they are using the mobile app at lunch, they want to be able to pick up where they left off on their desktop after dinner. Accordingly, the most important indicators driving overall satisfaction with banking apps and credit cards focus on ease and speed of finding information that’s most important in the moment. When the customer’s most important information is displayed right on the overview page, overall satisfaction scores improve 57 points (on a 1,000-point scale).
• Mobile app expectations differ for national and regional bank customers: National bank customers tend to have higher expectations for their apps, with a higher expectation for proactive guidance and help and a higher expectation for advanced digital capabilities. Regional bank satisfaction scores, by contrast, are driven by ease of navigation, due to their simpler feature sets.
• Mobile apps outperform websites: Across the studies, customer experience with mobile apps is generally better than their online experience, due largely to greater levels of perceived visual appeal and streamlined layout on mobile apps.
• Focused functionality wins for credit card app users: Credit card apps continue to outperform banking apps in overall satisfaction. This is largely due to credit card apps being task-focused and easier to understand.

Study Rankings

BB&T now Truist ranks highest in U.S. banking mobile app satisfaction among national banks, with a score of 881. Capital One (875) ranks second and PNC (856) ranks third.

Chase ranks highest in U.S. online banking satisfaction among national banks, with a score of 854. BB&T now Truist (852) ranks second while SunTrust (851) and TD Bank (851) rank third in a tie.

American Express ranks highest in U.S. credit card app satisfaction, with a score of 886. Bank of America (874) ranks second. Chase (873) ranks third.

Discover ranks highest in U.S. online credit card satisfaction, with a score of 872. Barclays (867) ranks second and American Express (856) ranks third.

Huntington ranks highest in U.S. banking mobile app satisfaction among regional banks, with a score of 871. Regions Bank (860) ranks second and M&T Bank (856) ranks third.

Regions Bank ranks highest in U.S. online banking satisfaction among regional banks, with a score of 865. Huntington (861) ranks second and Union Bank (845) ranks third.

The 2020 U.S. Banking App Satisfaction, U.S. Online Banking Satisfaction, U.S. Credit Card App Satisfaction and U.S. Online Credit Card Satisfaction studies measure overall satisfaction with banking and credit card digital channels based on four factors: navigation; speed; visual appeal; and information/content. The studies are based on responses from 17,516 retail bank and credit card customers nationwide, and were fielded in March-April 2020.

To learn more about these studies, visit https://www.jdpower.com/business/resource/us-banking-and-us-credit-card-mobile-app-satisfaction-studies.

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

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

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

 

Servicing Customers Essential for Home Improvement Retailers to Differentiate, JD Power Finds

2020-06-10

jillian.breska

Having now been sequestered at home for several weeks, about half of U.S. consumers say they’ve considered starting a home improvement project. But what drives customers to select one retailer as their primary choice? According to the JD Power 2020 U.S. Home Improvement Retailer Satisfaction Study,^SM released today, the single factor with the greatest influence on that retail experience beyond inventory, prices or location is friendly, knowledgeable service with a smile—and provided in two minutes or less.

“The one-on-one engagement a customer has with the retail staff continues to be the largest driver of overall customer satisfaction with home improvement retailers,” said Christina Cooley, director of the @Home practice at JD Power. “Now, more than ever, customers are looking for the guidance they need—but they’re also looking to get in and out of the store quickly. When customers receive speedy, knowledgeable and friendly service, they are more likely to return and recommend that retailer. However, if they must wait five minutes or more to receive help, satisfaction scores tumble.”

Following are some key findings of the 2020 study:

• Staff and service is key differentiator: No single home improvement retailer outperforms the others across all measures of satisfaction, but those that are strongest in staff and service—the most heavily weighted driver of overall satisfaction—usually perform notably better in the study.
• Help in two minutes or less: Customer satisfaction with home improvement retailers is highest when they receive help from staff within two minutes or less. Just one-fourth of customers received help within this threshold. Waiting more than five minutes for help decreases satisfaction with staff and service by more than 70 points (on a 1,000-point scale).
• Online shoppers visit more brick-and-mortar retailers and spend more: Customers who shop and/or research online before making a purchase spend, on average, approximately $500 more per year on home improvement than those who do not research online. These shoppers are often more price-sensitive and are more likely to buy during a promotion or sale.
• COVID-19 as possible catalyst to home improvement projects: Based on additional JD Power research conducted April 2-3 of this year, 49% of U.S. consumers say they are considering a home improvement project within the next three months. Of those, 61% say they plan to do the project themselves. The top projects on the wish list include painting (15%), lawn and landscape projects (14%) and starting a garden (12%).
   

Study Rankings

Ace Hardware ranks highest in customer satisfaction among home improvement retailers for the 13^th time in 14 years, with a score of 844. Menards (841) ranks second and Lowe’s (838) ranks third.

The 2020 U.S. Home Improvement Retailer Satisfaction Study measures customer satisfaction with home improvement retailers by examining five factors (in alphabetical order): merchandise; price; sales and promotions; staff and service; and store facility. The study is based on responses from 2,626 customers who purchased home improvement-related products from a home improvement retailer within the previous 12 months. The study was fielded in January-February 2020.

For more information about the U.S. Home Improvement Retailer Satisfaction Study, visit https://www.jdpower.com/business/resource/us-home-improvement-retailer-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, Asia Pacific and Europe.

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

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

 

Auto Insurance Websites Surpass Agents in Importance to Customer Interaction, JD Power Finds

2020-06-11

jillian.breska

Remember all the talk that digital transformation would disrupt the auto insurance industry? Well, it’s real. According to the JD Power 2020 U.S. Auto Insurance Study,^SM released today, insurance company websites—for the first time in the study’s 21-year history—officially surpass agents in terms of importance to client interaction and service by providing higher customer satisfaction.

“We’ve seen this trend developing for several years, but this is the first time that the digital channel has become the preferred means of interacting with auto insurers, exceeding one-on-one communication with agents,” said Robert Lajdziak, senior consultant for insurance intelligence at JD Power. “This has huge implications for the industry because it puts the focus squarely on digital investment to notably expand creating seamless customer touch points. It’s an area in which the major national carriers excel, versus hyper-local, albeit knowledgeable, agent networks.”

Following are some of the key findings of the 2020 study:

• Digital investments pay dividends: Customer experience with auto insurer websites contributes more to satisfaction than agents, accounting for 34% of an insurer’s total interaction score. That’s one percentage point higher than in the agent channel, which accounts for 33% of total interaction satisfaction. This trend toward increased reliance on the digital channel and decreased reliance on the agent channel has been building steadily for more than a decade.
• Record high satisfaction driven in part by digital: Overall customer satisfaction with auto insurers improves in 2020 to a record high of 835 (on a 1,000-point scale). National carriers such as GEICO, State Farm and Allstate have earned some of the most significant gains, together ranking highest in six of the 11 regions in the study, aided by the growth of their digital channels.
• Trust is critical, but insurers have work to do: There is a strong correlation between scores for trust and those for overall satisfaction. On average, a one-point increase in trust (on a 5-point scale) would correlate with a 118-point increase in overall satisfaction. Despite the importance of trust, only 42% of all auto insurance customers say they “strongly agree” that they trust their insurer. By fulfilling service expectations and putting customers’ interests first, among other customer-centric initiatives, insurers can succeed in this critical-to-retention metric.
• Loyalty heavily influenced by claim history: Customers are least likely to renew their policies when part of an insurance claim is denied. Conversely, when customers have experienced a claim that was fully approved and settled, satisfaction is significantly higher and generates the greatest likelihood of renewal. What’s more, those customers who experienced sub-optimal claim outcomes and remained with their carrier were more diligent about understanding their policy and what it covers going forward.
   

Following are the highest-ranking auto insurance brands by region:

California: Wawanesa
Central: Auto-Owners Insurance
Florida: Allstate
Mid-Atlantic: State Farm
New England: Amica Mutual
New York: State Farm
North Central: GEICO
Northwest: GEICO
Southeast: Farm Bureau Insurance—Tennessee
Southwest: American Family and GEICO (in a tie)
Texas: Texas Farm Bureau

The 2020 U.S. Auto Insurance Study, now in its 21^st year, examines customer satisfaction in five factors (in alphabetical order): billing process and policy information; claims; interaction; policy offerings; and price. The study is based on responses from 40,123 auto insurance customers and was fielded in February-March 2020.

For more information about the U.S. Auto Insurance Study, visit https://www.jdpower.com/business/resource/jd-power-us-auto-insurance-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, Asia Pacific and Europe.

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

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

 

Coronavirus Fallout: Vehicle Service Customer Satisfaction Improves, but Dealers Should Prepare for Parts Shortages and Dissatisfied Owners, JD Power Finds

2020-04-22

TROY, Mich.: 12 March 2020 — As the coronavirus crisis continues to interrupt global supply chains, auto dealers are bracing for parts shortages that could undermine hard-fought gains made in customer satisfaction over the past few years. According to the JD Power 2020 Customer Service Index (CSI) Study,^SM released today, overall satisfaction increases to 837 (on a 1,000-point scale), marking the fifth consecutive year of increasing satisfaction. As the crisis unfolds, however, the ability to meet customer expectations for prompt service and repairs will be undermined.

“There’s no telling how widespread or long lasting the ripple effect of the coronavirus will be for the automotive industry, but it inevitably will have a financial effect on dealers’ service business,” said Chris Sutton, vice president of the U.S. automotive retail practice at JD Power. “Automakers and dealers need to prioritize securing sources for their parts supplies or face the consequences of losing business. Customers will be initially understanding of coronavirus consequences, but shortages will continue well beyond the current public health crisis. Customers will not understand in August, for example, why there are no parts to repair their vehicles.

“Performing work right the first time is the most critical activity for service satisfaction, and dealers now do a good job by successfully completing work 94% of the time,” Sutton said. “Under normal circumstances, 20% of the work that isn’t completed the first time is due to parts being unavailable, which is a source of frustration for customers. That 20% could dramatically increase due to parts suppliers’ extended shutdowns in China and other locations. When parts are unavailable, customer satisfaction and intended loyalty significantly decline.”

Overall satisfaction declines 155 points among luxury vehicle owners when parts are unavailable. There’s a 141-point drop in satisfaction among owners of mass market vehicles when parts are unavailable. What this decline means, in business terms, is a drop from 63% to 30% of owners in the luxury segment who say they “definitely will” return for service. That drop is down to 26% from 58% in the mass market segment.

The study measures satisfaction with service at a franchised dealer or independent service facility for maintenance or repair work among owners and lessees of one- to three-year-old vehicles. It also provides a numerical index ranking of the highest-performing automotive brands sold in the United States, which is based on the combined scores of five different measures that comprise the vehicle owner service experience. These measures are (in order of importance) service quality (27%); service initiation (20%); service advisor (20%); service facility (17%); and vehicle pick-up (16%).

Following are key findings of the 2020 study:

• Time is most important: Customers rate the total time to complete service on their vehicle and amenities offered by the dealership the lowest (in a tie) of 16 attributes analyzed in the study. The third-lowest attribute is fairness of charges. The highest-rated attributes are courtesy of service advisor; cleanliness of dealership; and knowledge of service advisor.
• Higher expectations for younger customers continue but gap is narrowing: Gen Y¹ customers range from ages 25 to 42 and represent a growing percentage of new-vehicle buyers. Historically, younger customers have lower satisfaction than older customers and this holds true for this year’s study: overall service satisfaction among Gen Y customers is 36 points lower than among customers who are older. However, when compared to similarly aged customers 15 years ago, overall satisfaction of those aged 25-44 was 57 points lower than among those aged 45 and older. Gen Y customers currently have higher intended dealer loyalty for paid service work than similarly aged customers did 15 years ago: 49% say they “definitely will” return in the future compared with 42% in the 2005 study.
• Fewer miles and longer service intervals decrease interactions between dealers and customers: After three years of vehicle ownership, Gen Y customers drive 13% fewer miles than similarly aged customers did 15 years ago in 2005. Coupled with the lengthening of service intervals, the average number of service visits Gen Y customers make annually is down to 2.4 visits vs. 3.0 visits in 2005. The good news for dealers is that now they capture a far higher percentage of service visits by Gen Y owners than they did for similarly aged customers 15 years ago. Dealers need to be aware of their limited access to this group of customers and identify ways to make a positive impression to drive repeat business before current vehicle warranties expire.
• Dealers capture a greater percentage of service visits: Dealers capture 88% of customers’ annual service visits in the first three years of ownership vs. non-dealers. This is up from 79% in 2015. It is critical that dealers retain customers throughout the warranty period as defection to the aftermarket occurs rapidly after the warranty expires. Additionally, the JD Power 2019 U.S. Aftermarket Service Index Study^SM finds that 21% of aftermarket service customers who own five-year-old vehicles serviced their vehicle at a new-vehicle dealership in the past year and only 8% of aftermarket service customers who own vehicles 10 years old or older visited a dealer for service in the past year.

“Several long-term challenges lie ahead for the service business aside from supply issues,” Sutton said. “With vehicles requiring less frequent maintenance and owners driving fewer miles—thus, stretching out the time between service visits—dealers need to do everything they can to keep satisfaction moving in a positive direction. Retaining customers as vehicles age and warranties expire is key for dealers, especially as the sales market slows. Simple things like returning a vehicle to the customer cleaner than when it was brought in can increase satisfaction scores by 31 points, and dealers do this less than half the time. There’s no time to slack on delivering what customers expect if service departments are to continue to comprise a large percentage of dealership profitability.”

Highest-Ranked Brands

Lexus ranks highest in satisfaction with dealer service among luxury brands, with a score of 889. Cadillac and Porsche rank second in a tie, each with a score of 882. Infiniti (875) ranks fourth and Lincoln (872) ranks fifth.

Buick ranks highest in satisfaction with dealer service among mass market brands for a fourth consecutive year, with a score of 861. Chevrolet (852) ranks second, followed by GMC (847), Mitsubishi (846) and Toyota (843).

The 2020 U.S. Customer Service Index Study is based on responses from 71,286 verified registered owners and lessees of 2017 to 2019 model-year vehicles. JD Power goes to great lengths to ensure that survey respondents are true owners of the brand they are representing. The study was fielded from August through December 2019.

For more information about the U.S. Customer Service Index Study, visit http://www.jdpower.com/resource/us-customer-service-index-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, Asia Pacific and Europe.

Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 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

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).

 

Original Equipment Tire Brands Finding Right Balance, JD Power Finds

2020-04-22

TROY, Mich.: 19 March 2020 — Overall customer satisfaction with original equipment tires reaches an all-time high in 2020, as tire manufacturers have found the right balance of performance characteristics—without making sacrifices that jeopardize the customer experience, according to the JD Power 2020 U.S. Original Equipment Tire Customer Satisfaction Study,^SM released today. In fact, tire brands have been steadily improving this balance over the last five years, as satisfaction has been on a steady incline.

The annual study measures tire owner satisfaction in four key areas (in order of importance): tire wear; tire ride; tire traction/handling; and tire appearance. Rankings are included for three vehicle segments: luxury; passenger car; and truck/utility.

“As the technology behind tires improves, we see manufacturers becoming very adept at incorporating those advancements in a way that maximizes overall tire performance,” said Brent Gruber, senior director of automotive quality practice at JD Power. “It wasn’t very long ago that we saw considerable trade-offs in tire performance where, for example, tires optimized for wear were not particularly good with characteristics such as traction and handling. There was more give and take with tire performance. Now, our data shows many manufacturers are producing tires capable of excelling in all areas.”

Michelin ranks highest in two vehicle segments, scoring 778 in luxury and 746 in truck/utility (on a 1,000-point scale). Pirelli ranks highest in passenger car with a score of 788.

The 2020 U.S. Original Equipment Tire Customer Satisfaction Study is based on responses from 26,131 owners of 2018 and 2019 model-year vehicles and was fielded from October through December 2019.

For more information about the Original Equipment Tire Customer Satisfaction Study visit https://www.jdpower.com/business/resource/us-original-equipment-tire-customer-satisfaction-study.

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

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

 

Recapturing Lease Customers Will Be Critical as Auto Dealers and Lenders Navigate Downturn, JD Power Finds

2020-04-22

TROY, Mich.: 2 April 2020 — New-vehicle leases accounted for 31% of the new retail vehicle market in 2019, while lease transactions this year account for 52% of captive lenders’ new retail business. These percentages underscore how important it is for dealers and lenders to work together to retain lease customers as the market heads into a downturn. According to the JD Power 2020 U.S. End of Lease Satisfaction Study,^SM released today, effective communication and marketing efforts that factor in key decision-making timeframes can play a significant role in improving lease retention rates.

“Retaining lease customers is crucial for dealer and lender profitability as they navigate a constricting market and economic downturn,” said Patrick Roosenberg, director of automotive finance intelligence at JD Power. “Communication through customer-preferred channels is paramount as dealerships temporarily close and lease customers navigate an unprecedented event, uncertain of their available options to defer payments, extend or terminate their leases.

“The market will recover and competition from banks and captive lenders will be fierce for the 1.8 million returning lease customers scheduled to turn in their vehicles in the next five months. Aggressive retail programs, some of which have already launched with 0% financing and deferred payments up to 120 days on extended term loans, will create more obstacles for lease retention.”

Following are key findings of the 2020 study:

• First-time lessees are less loyal to leasing than returning lessees: More than half (53%) of first-time lessees in the mass market segment indicate they leased another vehicle, with 58% of those returning to the same brand. More than two-thirds (68%) of returning lessees say they leased again. For the highest-scoring lender in the mass market segment, 79% first-time lessees leased again with the same brand. Understanding the different lease-end journeys is crucial to recapturing lease customers in both the luxury and mass market segments.
   
• Customer satisfaction is key to retention: The average overall satisfaction score among returning mass market lease customers who leased again with the same brand is 862 (on a 1,000-point scale). By contrast, overall satisfaction among returning mass market lease customers who switched to a different brand is just 778. The trend is even more pronounced in the luxury segment, in which overall satisfaction among brand loyal lessees is 876 and among non-brand loyal lessees is 795.
   
• Moments of truth: Specific timeframes, communication channels and identified actions taken during critical moments in the lease process can set the tone for the entire experience. In the mass market segment, the greatest differentiation of lease satisfaction among those that leased again are ease of inspection process; ease of scheduling vehicle return; ease of turning in vehicle; and ease of lease termination. In the luxury segment, the greatest differentiation of lease satisfaction among those that leased again are ease of lease termination; ease of turning in vehicle; and ease of obtaining details about lease end.
   
• Buyers are beginning consideration process sooner: In 2017, when JD Power last conducted the U.S. End of Lease Study, only 3% of customers began to think about their next vehicle more than 12 months before the end of their lease. In 2020, that percentage has risen to 14%. “Understanding and executing on the next steps drawn out in the study are key to securing retention,” Roosenberg said.
   
• More customers are researching options: Lease customers are doing their own research and due diligence by visiting dealership, OEM and provider websites. Lenders and OEMs must quickly move to assure their websites provide the actionable information lease customers are seeking. Lease customers have identified the specific information they’re looking for at the end of their lease, providing lenders with valuable feedback as to their websites.

The 2020 U.S. End of Lease Satisfaction Study identifies lease-end practices and timely marketing opportunities that optimize lease retention for the same brand and at the same dealer. The study is based on responses from 2,848 mass market and luxury vehicle lease customers who are within six months of lease end. It was fielded from November 2019 through January 2020.

Mass market lenders included in the study are Ally, Chrysler Capital, Ford Credit, GM Financial, Honda Financial Services, Hyundai Motor Finance, Kia Motors Finance, Mazda Capital Services, MINI Financial Services, NMAC, SE Toyota, Subaru Motors Finance, Toyota Financial Services, US Bank and VW Credit.

Luxury lenders included in the study are Acura Financial Services, Audi Financial Services, BMW Financial Services, GM Financial, Infiniti Financial Services, Jaguar Land Rover Financial Group, Lexus Financial Services, Lincoln Automotive Financial Services, Mercedes-Benz Financial Services, Porsche Financial Services, US Bank and Volvo Car Financial Services.

To request more information about the 2020 U.S. End of Lease Satisfaction Study, visit https://share.hsforms.com/4239280/b4ac9ade-3f7f-4fa3-a4f7-3811cb80176e.

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

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

 

Reality Check: Consumer Sentiment on Future Mobility Technologies Declines Even Before the New Normal Hits

2020-04-22

TROY, Mich.: 21 April 2020 — Consumer confidence in future mobility technologies lags far behind automakers’ plans to bring self-driving and battery-electric vehicles to the marketplace, according to the JD Power 2020 Q1 Mobility Confidence Index Study fueled by SurveyMonkey Audience,^SM released today. The Mobility Confidence Index for self-driving vehicles decreases for the first time—to 35 from 36 on a 100-point scale—for American consumers and to 36 from 39 for Canadian consumers. For battery-electric vehicles, the index remains at 55 in the U.S. for the fourth consecutive quarter, while decreasing to 57 from 59 in Canada.

“Frankly, we’re concerned for automakers,” said Kristin Kolodge, executive director of driver interaction & human machine interface research at JD Power. “They’re pushing forward with technology that consumers seem to have little interest in. Nor are they making the strides needed to change people’s minds. Especially now, automakers need to reevaluate where they’re spending money. They are investing billions in these technologies but they need to also invest in educating consumers. Lack of knowledge is a huge roadblock for future adoption.”

The quarterly study is the pulse of market readiness and acceptance for self-driving and battery-electric vehicles, as seen through the eyes of consumers and industry experts. The 2020 Q1 study includes insights from the United States and Canada. JD Power is joined by global survey software company SurveyMonkey to conduct the study in which more than 8,500 consumers and industry experts gave their opinions about self-driving vehicles and more than 8,000 about battery-electric vehicles. The survey was fielded in March 2020 before most stay-at-home orders went into effect.

Following are key findings about self-driving vehicles:

• Consumers don’t believe the technology is ready—or that society is ready: Technology failure or error remains the top concern about self-driving technology in both countries, with Canadians being even more worried about it (75% compared with 67% in the U.S.). Canada’s climate and mountainous terrain present a significant challenge as one consumer said of self-driving technology: “Not practical in Canada where there is snow and messy roads. The cameras required cannot see clearly at all times as would be necessary for them to work properly and safely in this climate. I’m basing my statements on the automation in our own car that only works occasionally when the roads are dirty due to camera filth.” American and Canadian consumers also are worried about the law of unintended consequences that will come about as a result of self-driving vehicles. Concerns about creating a lazy society dependent on technology and with diminished driving skills is a heightened concern.
   
• Uncertainty about timeframe for public availability: Experts anticipate self-driving delivery services will be available in the next four years. However, their predictions for self-driving vehicles available for consumer purchase has jumped out to 18 years; five years later than predicted in the 2019 Q4 study.
   
• Changing needs post COVID-19: Experts anticipate that consumer needs for mobility may shift even after life returns closer to normal. Said one, “Coronavirus outbreak may steer some people away from shared transportation toward more private vehicle ownership, and some of these private vehicles may evolve from sophisticated ADAS to higher levels of automation.” Also, self-driving delivery services may arrive at an optimal time when consumers are looking to minimize social contact.

“The National Highway Transportation Safety Administration recently approved Nuro to test its driverless delivery vehicles on public roads in California, which accelerates the feasibility of self-driving delivery coming to market,” Kolodge said. “However, automakers continue to encounter technical hurdles in their quest to achieve reliable self-driving personal vehicles. Coupled with consumer sentiment about the technology, there’s still a very long road ahead.”

Following are key findings about battery-electric vehicles:

• Few consumers have any experience with battery-electric vehicles: The majority (70%) of American respondents have never been in a battery-electric vehicle, and 30% say they know nothing about them. Canadians are only slightly more experienced with battery-electric vehicles (67% have never been in one) but are more knowledgeable, with 19% saying they know nothing about them. One consumer said, “I like the idea of an electric powered vehicle, but at what cost? Once the batteries need replacement, how expensive are they? How do old electric car batteries affect the environment? Are they able to be recycled, or will they make the landfills even more toxic? Would I get an electric solar powered car? Yes. But wouldn’t they also need batteries and then be in the same situation?”
   
• Previous ownership doesn’t guarantee future purchases: While 29% of American consumers and 31% of Canadian consumers express some likelihood to purchase an EV in the next four years, almost the same amount have no intention to purchase one. Some who have previously owned a battery-electric vehicle won’t buy again due to high maintenance costs, purchase price, limited range and performance in extreme weather. One consumer noted, “Absolute hoax, does not provide enough heat to clear windows in cold weather. Car is cold to ride in in the winter.”
   
• Perpetual barriers remain: Charging station availability, driving range and purchase price are the top 3 barriers to battery-electric vehicles as perceived by American and Canadian consumers today. These were also the top 3 barriers in 1997 when JD Power studied consumer interest in electric vehicles when the GM EV1 was launching. Vehicle technology and infrastructure availability have progressed dramatically in 23 years, but consumers have not budged in their perception. Even those who have owned a battery-electric vehicle previously have these items as their top 3 barriers.

“The marginal short-term shifts in consumer sentiment toward self-driving vehicles only show we’re yet to see the lasting implications of the current crisis on consumer preferences”, said Jon Cohen, chief research officer at SurveyMonkey. “But we know big changes are ahead, as physical distancing will shake virtually every major industry, including automotive and how we get around. These surveys will give us a glimpse of that future as new consumer preferences form and stick.”

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

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 more than 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