Category: United States

JD Power Hires Trusted Executive to Accelerate Company Growth in Healthcare Industry

2019-04-09

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COSTA MESA, Calif.: 10 April 2019— As healthcare is a dynamic and rapidly evolving industry that affects all consumers, corporations and governments, JD Power is building its global healthcare practice to bring greater transparency and insight of the consumer experience in this industry with the hiring of James Beem, an expert in healthcare firms and systems analytics.

“James brings a wealth of expertise in global healthcare and a deep appreciation for how the power of analytics can benefit our clients,” said Dave Habiger, CEO of JD Power. “He is a highly regarded expert to the world’s leading healthcare brands and will be incredibly valuable for not only JD Power, but also for customers and consumers alike.”

Global healthcare providers are quickly becoming consumer-centric and they, more than ever, have a need for intelligent insights and perspectives found in JD Power syndicated studies. Beem will spearhead the Global Healthcare Intelligence Division’s strategy by relying on his extensive industry knowledge to help healthcare providers increase their business growth and customer satisfaction levels.

Beem most recently worked as an Associate Partner at IBM Watson Health where he focused on delivering advanced technologies within the provider and payer segments. While at IBM, he was responsible for solutions and services leveraging professional deep industry and domain expertise with the IBM platform of analytics, artificial intelligence, blockchain and cloud technology to address the challenges navigating the value-based care environment.

Prior to IBM, he was Senior Vice President of Healthcare Analytics and Business Intelligence at Walgreens where he led a member health analytics and business intelligence team responsible for the establishment of an analytics advisory practice during the Walgreens and Water Street Health Partners merger of Take Care Health Systems and Comprehensive Health Services. He previously served as Market CFO at Humana, spearheading strategic, financial and operational accountability for financial reporting and medical cost management analytics. Before Humana, he was a Healthcare Financial Consultant at Mercer-Marsh and McLennan Companies, Inc.

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

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

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

UK Service Departments Must Improve to Meet Customers’ Technology Use Preferences, JD Power Finds

2019-04-11

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LONDON: 12 April 2019 — Sizable gaps exist between how customers prefer to schedule vehicle service appointments and receive service updates, and how dealers are actually scheduling and communicating with their customers, according to the JD Power 2019 UK Customer Service Index (CSI) Study,^SM released today. Closing these technology usage gaps will enable dealerships to increase service and sales revenue, while simultaneously increasing customer satisfaction.

“Customers in younger generations are certainly affecting industry-wide behaviors when it comes to service experience expectations, and this will become more notable as they begin to represent a larger portion of the service business,” said Josh Halliburton, Vice President and Head of European Operations at JD Power. “However, there is an increase in preference among those in all generations for text message updates. For example, in the five years this study has been conducted, there’s been an 8% increase in preference for this type of communication among Boomers, or customers born between 1946 and 1964. We expect text message updates will become the most preferred means of interaction among all generations within the next few years.”

While 26% of service customers prefer to schedule appointments via the internet, only 17% are currently doing so. Additionally, while 31% of service customers indicate a preference to receive text message updates, only 15% receive such updates.

The study, now in its fifth year, measures customer satisfaction with their service experience at a franchised dealer facility for maintenance or repair work among owners and lessees of 1- to 3-year-old vehicles. The study explores customer satisfaction with their service facility by examining five measures (listed in order of importance): service quality (26%); service initiation (23%); service advisor (19%); vehicle pick-up (17%); and service facility (16%).

Overall satisfaction among premium brand vehicles increases to 800 (on a 1,000-point scale) from 798 in 2018. Satisfaction among volume brand vehicles increases to 786 from 779 in 2018.

Following are key findings of the 2019 study:

• Satisfaction increases when service writers use a tablet: Satisfaction is higher when dealers incorporate tablet usage in their service process (+70 points), and is particularly pronounced in the service advisor (+74 points) and service facility (+81 points) measures. Overall satisfaction is highest when tablets are used to provide cost estimates (848); show a menu of options (847); and conduct multi-point inspections (847).
   
• Building trust can lead to additional service revenue: Customers who trust and ask service personnel to explain vehicle features and technology functions are more likely to accept additional recommended service work. When this work is accepted, average service revenue is £356 compared with an average of £198 when no recommendations are made. Factors that increase customer trust include: the vehicle was ready when promised; work was completed right the first time; the service advisor knew the vehicle’s history; and an explanation of the charges was provided.
   
• Satisfaction leads to brand loyalty: Among service customers when overall satisfaction scores are 901 or higher, 83% say they “definitely will” recommend their dealer for service; 82% say they “definitely will” return for paid service work; 78% say they “definitely will” purchase or lease again from the same dealer; and 70% say they “definitely will” purchase the same brand again. However, there is a large gap in loyalty and recommendations between this group and moderately satisfied customers (when satisfaction scores are 751-900). Among such customers, the percentages of “definitely will” recommendations in those four areas dip to 47%, 53%, 43% and 52%, respectively.)
   
• UK dealers lag behind U.S. in several key performance indicator (KPI) completion rates: KPIs are metrics utilized to identify the dealership processes that have the greatest effect on the service experience and overall satisfaction scores. Satisfaction with the service advisor improves (+41 points) when they speak to the customer immediately upon arrival; service quality improves (+39) when the customer is contacted by the dealership after service is completed; and vehicle pick-up improves (+34) when the time between finishing paperwork and retrieving the vehicle is five minutes or less. However, these three KPIs are met only 38%, 62% and 46% of the time, respectively, in the UK. Comparatively, U.S. dealers provide an experience that more often meets customers’ expectations. For example, according to the JD Power 2019 U.S. Customer Service Index (CSI) Study,SM service advisors speak to a customer immediately upon arrival 48% of the time, while finishing paperwork and vehicle retrieval in five minutes or less occurs 72% of the time.

“There are still areas where UK dealers can differentiate themselves by providing an exceptional service experience,” Halliburton said. “Top perfomers one year can end up below the industry average the next, so paying attention to the little things can make a huge difference in cultivating customer relationships.”

Highest-Ranked Brands

Audi ranks highest among premium brands, with a score of 815, a 23-point improvement from 2018. Mercedes-Benz ranks second (802), followed by BMW (798).

Suzuki ranks highest among volume brands, with a score of 813, a 22-point improvement from 2018. Toyota ranks second (800), followed by Honda (798). 

The 2019 UK CSI Study is based on data collected from 6,759 respondents who registered their new vehicle between November 2015 and January 2018. The study was fielded from November 2018 through January 2019.

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

Media Relations Contacts
Ricky Vazquez, RVi Communications; London; +44(0)7501 589612; [email protected]
Geno Effler, JD Power; 714-621-6224; [email protected]

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

Ten Years After Great Recession, Innovation Overcomes Reputation as Bank Switching Hits Record Low, JD Power Finds

2019-04-24

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COSTA MESA, Calif.: 25 April 2019 — A decade after the financial crisis, the banking industry’s reputation remains below pre-crisis levels, yet customers are shrugging off their concerns. Record high innovation and improving customer service result in high satisfaction—with only 4% of customers switching banks in the past year. The JD Power 2019 U.S. Retail Banking Satisfaction Study,^SM released today, includes a look back at trend data starting in 2009 to examine the evolution of the customer experience during a period of massive industry transformation.

According to customers under 40, big banks are not only bigger, they are better. Scale and technology innovation have been key drivers in the past decade. At the time of the 2009 study, the 10 largest U.S. retail banks managed 39% of industry deposits and 26% of branch bank offices. Currently, they manage 48% of deposits and 31% of branches.¹ In 2009, mobile banking customer adoption was minimal. In 2019, 53% of retail banking customers use mobile banking—with midsize banks experiencing significant declines in innovation and satisfaction scores among customers under 40.

“Looking at the 10-year trend in retail bank customer perceptions, the industry has improved in service quality and provided technology that has made it easier for customers to access and manage their money,” said Paul McAdam, Senior Director, Banking Intelligence at JD Power. “Customer satisfaction and convenience have improved, but far too many customers have not re-established the trust and developed the deeper levels of connection required to improve the industry’s reputation. Looking 10 years into the future, when digital banking will be the norm for nearly all customers, retail banks will be required to be unique by scale or unique by strategy. Personalization of important customer journeys—transactional, advisory and solving problems—will emerge as the ways to elevate customer trust.”

Following are some key findings of the 2019 study:

• In the 10 years since the financial crisis, bank reputations have declined:  Since 2009, overall retail bank customer satisfaction has improved, as have satisfaction scores with in-person branch service, online banking and ATMs. Also, since 2009, satisfaction with mobile banking has improved, as have customer knowledge of the features, benefits and fees structure associated with their banking products. Customers currently view their banks as being more innovative and financially stable. However, customer perceptions of retail banks having a good reputation and being customer driven are lower in 2019 than in 2009. The industry has improved convenience and driven increased levels of operating efficiency, but a trade-off for banks is a decline in easy interaction, providing advice and strengthening customer relationships.
   
• Growth in overall customer satisfaction hampered by unresolved problems: Overall customer satisfaction with retail banks is 807 (on a 1,000-point scale), up just one point from 2018. This increase is due to an improvement in customer satisfaction with products and fees, but declining satisfaction in the areas of problem resolution and telephone customer service offset the gain. Telephone is the most frequent servicing channel customers use to resolve problems. Customer satisfaction scores also decline in online assisted customer service (online chat, email or social media channels). Of all the delivery channels measured in the study, only ATM increases in customer satisfaction.
   
• Problem resolution is a lingering banking pain point: The 2019 decline in customer satisfaction with retail bank problem resolution and the timeliness of banks in solving problems are reminders that failing to execute on the basics have negative effects on reputation. Customers have long memories and their brand image ratings for bank reputation decline dramatically when they experience problems. Reputation declines further when customers perceive that problems are unresolved or resolved in a manner put the bank’s interests ahead of theirs.
   
• Big banks gird for battle for digital customers with midsize and regional banks: The Big 6² banks have benefited from improved customer satisfaction among customers under age 40 in recent years and, in 2019, attain higher satisfaction scores than regional and midsize banks. This demographic gives the Big 6 banks the highest scores for convenience; ATMs; mobile and online banking; innovation; and financial advice. However, the smaller banks recognize the strategic importance of remaining competitive in digital. Across all age groups included in the study, overall satisfaction increases more notably among digital-centric customers of midsize and regional banks than among customers of Big 6 banks.

“While this study identifies a mixed picture with both positive trends and opportunities for retail banks at an industry level, it also identifies a number of stand-out institutions that have developed strong reputations and loyalty by placing customers at the very center of their strategies,” McAdam added.

Study Rankings

The study measures customer satisfaction with banks in 11 geographic regions. Study results by region are as follows:

California Region: Chase (823)

Florida Region: Chase (847)

Mid-Atlantic Region: Union Bank & Trust (856)

Midwest Region: Wintrust Community Bank (845)

New England Region: Bangor Savings Bank (872)

North Central Region: City National Bank (WV) (842)

Northwest Region: Banner Bank (870)

South Central Region: Arvest Bank (841)

Southeast Region: TD Bank (858)

Southwest Region: MidFirst Bank (859)

Texas Region: Frost Bank (884)

The U.S. Retail Banking Satisfaction Study, now in its 14^th year, measures satisfaction in six factors (listed in alphabetical order): account opening; communication and advice; channel activities; convenience; problem resolution; and products and fees. Channel activities include seven subfactors (listed in alphabetical order): ATM; assisted online; branch; call center; IVR; mobile; and website.

The study is based on responses from more than 84,000 retail banking customers of more than 200 of the largest banks in the United States regarding their experiences with their retail bank. It was fielded in quarterly waves from April 2018 through February 2019.  Big Banks are defined as banks with more than $250 billion in domestic deposits; Regional Banks are those with $55 billion–$250 billion in domestic deposits; and Midsize Banks are those with less than $55 billion in domestic deposits.

For more information about the JD Power U.S. Retail Banking Satisfaction Study, visit https://www.jdpower.com/business/resource/us-retail-banking-satisfaction-study.

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

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

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

¹FDIC Summary of Deposits

²The Big 6 banks, in alphabetical order, are: Bank of America, Chase, Citibank, PNC Bank, U.S. Bank and Wells Fargo.

Direct and Independent Agent Sales Channels Become Ground Zero in Auto Insurers’ Battle to Win New Customers, JD Power Finds

2019-04-24

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COSTA MESA, Calif.: 25 April 2019 — With just 2-3% of new customers entering the personal lines auto insurance market each year, insurers have only one option when it comes to growing their business: taking market share from competitors. According to the JD Power 2019 U.S. Insurance Shopping Study,^SM success in driving new customer acquisition comes down to having a strong brand and meeting customer expectations of convenience and competitive price—for which direct and independent agents are best positioned. Meanwhile, insurers who are largely reliant on exclusive agents for new business growth are facing headwinds.

“We’re entering a new era of consumerism in the auto insurance marketplace, in which customers are in the driver’s seat when it comes to the shopping and servicing of their policies,” said Tom Super, Vice President of Insurance Intelligence at JD Power. “That trend is having a profound effect on the relationship between insurers and customers. A more empowered customer increases the importance of factors such as choice, personalization and maintaining a strong reputation to win and keep their business. That puts significant pressure on insurers to get their customer models just right with the proper mix of self-service tools, strong brand awareness and an engaged distribution network.”

Following are some key findings of the 2019 study:

• Shopping and switching rates put strain on loyalty: While very few new customers have entered the auto insurance marketplace this year, the number of existing customers shopping for new policies has increased by 4 percentage points to 33 shops per 100 policies. Likewise, the rate of switching among insurance shoppers has increased from 31% to 35% during the past year. These two factors have driven down overall insurance customer retention by 2 percentage points to 88%.

• Price and financial outlook related to shopping behavior: Price is the leading factor that triggers a customer to shop, with 64% of insurance shoppers citing price as their primary reason to look for new insurance and competitive pricing (33%) is the most influential driver of the decision to close with a brand. When customer satisfaction with price is lower, shopping rates are higher the following year. Conversely, when satisfaction with price is higher, shopping rates are lower the following year. Shopping rates are also higher when customers have a more positive personal financial outlook.

• Direct and independent agent models resonate with customers: The direct and independent agent channels continue to show increasingly higher levels of customer satisfaction, while the exclusive agent channel is falling behind. In the shopping process, top-performing insurers are operating as customer-facing brands. For instance, insurers that achieve the highest consideration and quote rates among profiled insurers also achieve strong unaided awareness and are perceived as having likeable advertising, competitive pricing and being innovative.

• Unaided brand awareness critical for attracting insurance shoppers: Insurance shoppers obtain an average of three to four quotes when shopping, making it critical for insurers to be top-of-mind to make it into the consideration set. Brands recalled on an unaided basis are twice as likely to be considered and quoted than brands that are only recognized on an aided basis.
   
• High-value customers become next frontier: High-value shoppers, a segment of the marketplace that represents preferred risk profiles, better credit scores, fewer traffic violations and more insurance products, account for 22% of all insurance shoppers identified in the study. Currently, very few insurers are gaining more high-value customers than they are losing, underscoring the importance of attracting and retaining this lucrative subset of the market. 

Study Rankings

Erie Insurance ranks highest among auto insurers in providing a satisfying purchase experience, with a score of 917 (on a 1,000-point scale). This marks the seventh consecutive year Erie Insurance has ranked highest in the study. Amica Mutual (885) ranks second and Auto-Owners Insurance (883) ranks third.

Now in its 13^th year, the U.S. Insurance Shopping Study measures auto insurance shopping, purchase behavior and purchase experience satisfaction among customers who recently purchased insurance. Satisfaction is measured in three factors (in order of importance): price; distribution channel; and policy offerings.

The study is based on responses from more than 14,400 insurance customers who requested an auto insurance price quote from at least one competitive insurer in the past nine months and includes more than 38,800 unique customer evaluations of insurers. The study was fielded in April, July and October 2018 and January 2019.

For more information about the U.S. Insurance Shopping Study, visit https://www.jdpower.com/business/resource/jd-power-us-insurance-shopping-study.

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

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

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

New Vehicle Retail Sales Continue to Decline, But Demand for Expensive Vehicles Rises

2019-04-25

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The Retail Sales Forecast

The Total Sales Forecast

Total sales in April are projected to reach 1,366,600 units, a 3.5% decrease compared with April 2018 (all results are selling day adjusted). The seasonally adjusted annualized rate (SAAR) for total sales is expected to be 16.9 million units, down 0.4 million from a year ago.

The Takeaway

Thomas King, Senior Vice President of the Data and Analytics Division at JD Power:
“From an overall volume perspective, the industry continues to show signs of softness with April representing the 10^th straight month of year-over-year retail sales declines. Yet, we continue to see strength in other key industry health metrics, with a large increase in average transaction prices and lower manufacturer incentives.”

New vehicle prices in April are on pace to reach $33,695—the highest ever for April—and are up nearly 4% (+$1,235) from last year. Incentive spending has also declined to $3,408 per unit, $300 less than the same period a year ago.

—–

The combination of higher prices, reduced incentives and rising interest rates has led to a deviation between the low and high end of the marketplace. Sales to-date in April for vehicles under $20,000 are down 25% from last year, but demand for vehicles costing $40,000 and higher are up 7%. Younger buyers have been affected most in the current environment. Among buyers 16-35 years old, sales are expected to fall 8% in April vs. a decline of only 4% for buyers over 55.

—– 

“With the volume contraction focused of the low end of the market, the dip in industry retail sales poses a smaller threat to OEM profitability than headline sales results suggest,” King added. Total OEM revenues in April are expected to reach more than $45 billion, up 4.8% from last year. This is due to a combination of strong prices, lower incentives and higher fleet volumes offsetting the decline in retail sales.

Sales & SAAR Comparison

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

¹Figures cited for April 2019 are forecasted based on the first 17 selling days of the month.
²April 2019 has 25 selling days, one more day than April 2018.

The Details

• The average new-vehicle retail transaction price to date in April is on pace to reach $33,695. The previous high for the month of April—$32,460—was set last year.
• The record prices reflect higher prices trending for both cars (up 1% to $27,477) and trucks/SUVs (up 4% to $36,338).
• Average incentive spending per unit to date in April is $3,408, down from $3,708 during the same period last year.
• Consumers are on pace to spend $35.1 billion on new vehicles in April, up $800 million from last year’s level.
• Truck/SUVs account for 69.7% of new-vehicle retail sales through April 21, the highest level ever for an April.
• Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 72 days through April 21, up 5 days from last year.
• Fleet sales are expected to total 325,000 units in April, up 2.6% from April 2018. Fleet volume is expected to account for 24% of total light-vehicle sales, up from 22% last year.

Outlook for the Year

Jeff Schuster, President, Americas Operations and Global Vehicle Forecasts, LMC Automotive:
“Despite the first four months exhibiting significant volatility, the overall market is tracking at a year-to-date selling rate of 16.8 million units. New-model launch activity should provide a boost in the second half, with nearly two-thirds of new models still yet to launch and the number of redesigned models expected to increase 13% from 2018. However, given the lack of topline growth this year, electrification and automated vehicle technology will continue to be key focus areas for capital investment.”

LMC’s forecast for 2019 total light-vehicle sales is holding at 16.9 million units, a decline of 2.2% from 2018. Continued strong performance from fleet is expected to offset retail softness, with the forecast for retail light-vehicle sales falling to 13.5 million units, a decline of 2.6%.

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

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

About LMC Automotive www.lmc-auto.com

Health Plan Customer Satisfaction Challenged by New Era of Empowered Healthcare Consumers, JD Power Finds

2019-05-07

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COSTA MESA, Calif.: 9 May 2019 — Customer satisfaction among commercial health plan members has improved nationwide, but health insurers are still confronting challenges when it comes to delivering on the financial and personal health expectations of their members. According to the JD Power 2019 Commercial Member Health Plan Study,^SM released today, the key challenges health plans must address are higher co-pays for physician visits and coordination of care between different providers and care settings.

“Health plans are doing a good job managing the operational aspects of their businesses, but they are having a harder time addressing the expectations members have based on their experiences in other industries where their service needs are more effectively addressed with better technology,” said James Beem, Managing Director, Global Healthcare Intelligence at JD Power. “Across the board, health plan members are satisfied with the coverage and benefits they have, but once they start looking to their health plans for guidance in areas like navigating issues related to cost or when to use primary care versus urgent care, many plans miss the mark on customer expectations.”

Following are some of the key findings of the 2019 study:

• Increased health plan satisfaction driven by coverage and benefits: Overall health plan member satisfaction is 713 (on a 1,000-point scale), up 7 points over the previous three years. The increase, in part, is driven by improved satisfaction with the coverage and benefits offered. Coverage and benefits—not cost—is the most important driver of customer satisfaction, now accounting for 25% of total health plan member satisfaction.

• High co-pays and lackluster mobile apps drag on customer satisfaction: Since 2017, satisfaction increases across nearly all factors in the study, except cost and mobile app. The decline in cost satisfaction is directly related to high co-pays for physician office visits. Overall satisfaction scores are 254 points higher when members perceive their plan actively keeps out-of-pocket costs low, helped coordinate care and that there was enough coverage, yet 54% or fewer of health plan members say their plan delivers on each of these criteria.

• Alternative treatment channels pose opportunity for health plans: Growing customer interest in telehealth, urgent care and retail clinics could help alleviate challenges posed by high co-pays. Among all health plan members, 48% say they are either very or somewhat likely to consider telehealth options. That number jumps to 51% among Gen Y¹ members. Additionally, 32% of all health plan members visited urgent care facilities. Digital access to personal health data and improved coordination of care could encourage further use of these lower-cost treatment channels.

Regional Study Rankings

Overall satisfaction is highest among health plan members in these six regions: Maryland (734); California (725); East South Central (725); Michigan (725); Illinois/Indiana (723); and Virginia (722).

Following are the top performers in each of the 22 regions included in the study:

• California: Kaiser Foundation Health Plan (792)
• Colorado: Kaiser Foundation Health Plan (741)
• Delaware/West Virginia/Washington, D.C.: Aetna (721)
• East South Central: Cigna (742)
• Florida: AvMed (774)
• Heartland: BlueCross BlueShield of Oklahoma (723)
• Illinois/Indiana: Health Alliance Medical Plans (734)
• Maryland: Kaiser Foundation Health Plan (799)
• Massachusetts: BlueCross BlueShield of Massachusetts (708)
• Michigan: Health Alliance Plan of Michigan (734)
• Minnesota/Wisconsin: HealthPartners (727)
• Mountain: SelectHealth (726)
• New Jersey: Cigna (714)
• New York: Capital District Physicians Health Plan (774)
• Northeast: Anthem BlueCross BlueShield of Connecticut (721)
• Northwest: Kaiser Foundation Health Plan (739)
• Ohio: Aetna (732)
• Pennsylvania: Capital BlueCross (722)
• South Atlantic: Kaiser Foundation Health Plan (805)
• Southwest: BlueCross BlueShield of New Mexico (708)
• Texas: BlueCross BlueShield of Texas (710)
• Virginia: Aetna (726)

The Commercial Member Health Plan Study, now in its 13^th year, measures satisfaction among members of 146 health plans in 22 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 28,809 commercial health plan members and was fielded from January through March 2019.

For more information about the 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, South America, Asia Pacific and Europe.

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

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

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)

Vacuum Brands’ Attempt to Differentiate Can Get Complicated, JD Power Finds

2019-05-15

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COSTA MESA, Calif.: 15 May 2019 — Vacuum brands are working to “clean up” in areas that influence customer satisfaction by using marketing tools to differentiate themselves, according to the JD Power 2019 Vacuum Satisfaction Study.^SM

“Vacuum brands are constantly working to improve messaging for product features and benefits, which, when effective, can be beneficial to customer satisfaction,” said Christina Cooley, Director of the At-Home Practice at JD Power. “Changing the messaging can be a tricky thing, but if a brand can find the sweet spot of being informative and descriptive—without being excessive—it will see happier and more loyal customers with a cleaner house.”

Study Results

Electrolux ranks highest in the canister segment with a score of 847, followed by Miele (846) and Dyson (835).

Dyson ranks highest in the stick segment with a score of 856, followed by Shark with a score of 845.

Dyson ranks highest in the upright segment with a score of 857, followed by Shark with a score of 848 and BISSELL with a score of 843.

The 2019 Vacuum Satisfaction Study is based on responses from 4,092 customers who purchased a canister, stick, or upright vacuum in the past 12 months. The study was fielded in January and February 2019.

For more information about the Vacuum Satisfaction Study, visit https://www.jdpower.com/business/resource/us-vacuum-customer-satisfaction-study.

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

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

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

JD Power and Reevoo Validate Vehicle-Owner Experiences Through JD Power Verified Reviews

2019-05-15

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COSTA MESA, Calif.: 16 May 2019 — JD Power, the global leader in data analytics and consumer intelligence, and Reevoo, a leader in customer-sourced review technology, today announced an alliance that will create JD Power Verified Reviews—an unparalleled way for U.S. automotive manufacturers to listen and showcase customer opinions.

Customer evaluations for brands, vehicles and dealerships will be collected through digital platforms, providing content for publishing online by an auto manufacturer.

“Given our shared philosophy that the customer is the focal point of every business, there is a natural synergy between JD Power and Reevoo,” said Chris Sutton, Vice President, U.S. Automotive Retail Practice at JD Power. “Our passion and pursuit of measuring customer feedback is strengthened with this alliance and provides brands with another channel to listen to what their customers are saying.”

Reevoo is a leading supplier of services enabling customer-sourced reviews for brands, products and services. JD Power Verified Reviews will provide insights into how customers are talking about brands and their experiences with vehicles, sales and service. With this insight, manufacturers can identify areas that can be improved, identify ways to attract and retain car buyers, as well as provide consumers with a trustworthy source for purchasing decisions.

“We are very excited at the prospect of working so closely with JD Power, given its 51-year history of being the voice of the customer,” said Lisa Ashworth, CEO at Reevoo. “Together we will be able to offer U.S. automotive companies an unrivaled source of data and tools to help them grow and develop their business. At the same time, car buyers will have a proven and trustworthy route to gain consumer insights and share their opinions.”

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

Reevoo was founded in 2005 and provides reviews and ratings for a range of products and services from a wide selection of companies around the globe. With a solid foundation built collecting and publishing reviews from verified purchasers only, Reevoo extends its trust and integrity to companies across 60+ countries and 30 languages. To learn more, visit www.reevoo.com.

Media Relations Contacts:
Geno Effler, JD Power; Costa Mesa, Calif., USA; 714-621-6224; [email protected]
Ian Dollimore, Reevoo; London, UK; +44-0-20-3195-7642; [email protected]

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

Mobile Gains Traction with Insurance Customers, But Digital Interactions Fall Short of Expectations,JD Power Finds

2019-05-20

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COSTA MESA, Calif.: 23 May 2019 — Property and casualty (P&C) insurance companies have shown marked improvement in many of their digital offerings—particularly mobile self-service functionality—but still have work to do to meet customers’ rising expectations. According to the JD Power 2019 Insurance Digital Experience Study,^SM released today, specific areas where insurers come up short when compared with mainstream digital consumer companies are with ease of shopping and servicing their policies, household-level policy management and inconsistent use of social media.

“Digital has become so important to the modern insurance company by delivering two essential characteristics consumers seek from carriers: ease and accessibility,” said Tom Super, Vice President Property and Casualty Insurance Intelligence at JD Power. “In many cases, mobile apps and insurer websites are the primary faces of these consumer brands. As consumer behavior continues to evolve, insurers must keep pace as part of their overall distribution strategy or run the risk of irrelevancy.”

The study, now in its 8^th 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 websites and mobile apps based on five factors (in order of importance): 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 includes Centric Digital’s DIMENSIONS^TM measurement of insurers’ digital strengths, weaknesses and overall digital maturity.

Following are key findings of the 2019 study:

• Mobile apps gain traction as preferred account servicing channel: Satisfaction with account servicing experience is higher among customers who use the mobile app channel than among those who use a desktop or smartphone website to interact with their insurance company. Overall satisfaction with mobile app service experience is 12 points higher (on a 1,000-point scale) than last year. Currently, 74% of insurance companies evaluated in the study offer the ability to access and manage policy and claims information via a mobile app.

• Insurers’ digital maturity stunted by lack of resourcefulness: While most companies’ websites are highly responsive and meet brand standards, they fall short on delivering the types of expanded self-service tools, integrated digital communications functionality and contextual insurance information that would put them on par with leading websites in other industries.

• Watch for insurtech partnerships in the months and years ahead: Insurtech start-ups are affecting the traditional insurance marketplace by providing customer-centric digital solutions and money-saving process efficiencies for insurers. Many traditional carriers, such as Nationwide, American Family and Allianz, have already partnered with insurtech start-ups—and more collaboration is expected.

“It cannot be overstated how important it is for brands to deliver digital experiences that meet or exceed cross-industry consumer expectations,” said Peter Smith, Chief Strategy Officer at Centric Digital. “This measurement and analysis show there are still many opportunities for P&C insurers to improve the consumer digital experience. While we’ve seen improvement over the past year, many insurers still have a long way to go when it comes to delivering world-class digital experiences.”

Study Rankings

GEICO ranks highest in the service segment with a score of 874. Allstate (862) ranks second and Farmers (857) ranks third.

MAPFRE Insurance ranks highest in the shopping segment with a score of 811. Progressive (803) ranks second and Erie Insurance (798) ranks third.

The 2019 Insurance Digital Experience Study is based on 11,151 evaluations and was fielded from January through March 2019.

For more on the Insurance Digital Experience Study, visit https://www.jdpower.com/business/resource/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, South America, Asia Pacific and Europe.

Centric Digital provides industry leading solutions to measure and navigate digital transformation. Powered by proprietary platform DIMENSIONS™, Centric Digital has benchmarked hundreds of brands, designed multi-year transformation strategies, unlocked and managed $2+ billion of investment roadmaps. Centric Digital is headquartered in New York City, with offices in Chicago and Mendoza, Argentina. Visit centricdigital.com to learn more.

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

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

Service Departments Lagging in Communication with Vehicle Owners, JD Power Finds

2019-03-13

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COSTA MESA, Calif.: 14 March 2019 — Satisfaction scores tend to increase when car dealership service departments use customers’ preferred methods of communication; however, dealerships are not regularly doing so, according to the JD Power 2019 Customer Service Index (CSI) Study.^SM

Satisfaction is 75 points higher (on a 1,000-point scale) among customers who have an all-digital experience compared with one that is all analog, preferring to schedule service via the internet and communicate with the dealer through text messages, rather than doing those tasks via phone. Satisfaction increases further when a service advisor uses a tablet during the service visit.

“Service customers want the convenience that technology offers them,” said Chris Sutton, Vice President, U.S. Automotive Retail Practice at JD Power. “For example, 34% of customers indicate they prefer to communicate via text message—but this only occurs 9% of the time! There’s no reason why this isn’t a more widely adopted practice across the industry. Dealers have easy access to these tools, so they don’t have to reinvent the wheel. Technology not only improves efficiency, but also the more satisfied a customer is with their overall service experience, the more likely they are to return to the dealership for service and to recommend the dealership to friends and family members. Customers now expect technology to enable more efficient interaction with businesses—and that includes dealers.”

The study measures satisfaction with service at a franchised dealer or independent service facility for maintenance or repair work among owners and lessees of 1- to 3-year-old vehicles. It also provides a numerical index ranking of the highest-performing U.S. automotive brands, which is based on the combined scores of five different measures that comprise the vehicle owner service experience. These measures are service quality (27%); service initiation (20%); service advisor (20%); service facility (17%); and vehicle pick-up (16%).

Following are key findings of the 2019 study:

• All generations[1] showing a preference for internet scheduling: Customers are slowly shifting their preferred method of scheduling service toward internet scheduling and away from scheduling via phone. In 2015, the industry average preference for these two methods was 20% and 64%, respectively. This year, preferences are 28% and 59%, respectively. While Gen Y customers have shifted their preference toward internet scheduling at a faster rate than have Boomers, every generation (with the exception of Pre-Boomers) has increased its preference for internet scheduling and decreased its preference for phone scheduling during the past five years of the study.
   
• In-store engagement remains important: The percentage of customers who feel their service advisor provides helpful advice is 70 points higher when the advisor was focused on them and their needs during the visit. This, along with informing customers about work performed on the vehicle (+44); knowing the vehicle’s service history (+37); keeping them informed of the vehicle’s status (+33); letting them know when the vehicle will be ready before service begins (+30); and performing a vehicle walk-around (+30), boosts a customer’s view of the service advisor’s perceived helpfulness.
   
• A large percentage of owners are also promoters: Net Promoter Score®^[2], a metric introduced in the 2018 study that measures customer loyalty and predicts business growth, continues to show that a large number of owners are promoters of their vehicle, although the percentage decreases slightly as vehicles age. Customers are asked their likelihood of recommending their vehicle model on a 0-10 scale and are grouped into either the detractor (0-6), passive (7-8) or promoter (9-10) categories. More than three-fourths (77%) of owners are promoters in year one of vehicle ownership; 75% are promoters in year two; and 73% are promoters in year three. Most notably, when an owner’s vehicle is not fixed right the first time, NPS scores drop approximately 50 points (on a 100-point scale).
   
• Satisfaction gap closing: Overall satisfaction with services performed by independent facilities has improved 22 points since 2017, compared with a 17-point improvement by franchised dealers. Similarly, satisfaction with service quality at independent facilities has improved 23 points since 2017, compared with a 17-point improvement by franchised dealers.

“This is an important area of opportunity for dealers,” Sutton said. “Seemingly simple things like completing service right the first time; returning settings to how they were when the customer brought the vehicle in for service; and washing the customer’s vehicle—all three of which are Key Performance Indicators (KPIs)—can affect their perception of service quality. While completing repairs right the first time is done 85% of the time, the other two KPIs are only being completed 81% and 45% of the time, respectively. These basics are really building blocks to cementing the customer’s relationship with their dealer.”

Highest-Ranked Brands

Porsche (893) ranks highest in satisfaction with dealer service among luxury brands for the first time in the study’s 38-year history. Lexus (881) ranks second, followed by Cadillac (880), Infiniti (878) and Mercedes-Benz (870).

Buick ranks highest in satisfaction with dealer service among mass market brands for a third consecutive year, with a score of 857. MINI ranks second (853), followed by Mitsubishi (846), Chevrolet (845), GMC (840) and Toyota (840).

The 2019 U.S. CSI Study is based on responses from 57,286 owners and lessees of 2016 to 2018 model-year vehicles. The study was fielded from October through December 2018.

For more information about the 2019 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, South 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

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

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