Category: United States

Overall Property Claims Satisfaction Solid for Insurers, But Many Still Fall Short on Managing Customer Expectations during Servicing and Settlement, JD Power Finds

2019-02-27

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COSTA MESA, Calif.: 28 Feb. 2019 — Against a backdrop of deteriorating property loss ratios and low premium growth, property insurers are earning high marks for overall customer satisfaction, but there are still some components of the claims process that are falling short. According to the JD Power 2019 U.S. Property Claims Satisfaction Study,^SM the three most important components of the claims process—how well customers are kept informed on the progress of their claim; time to settle the claim; and fairness of the claim settlement—earn among the lowest ratings of all study attributes.

“Overall customer satisfaction remains high and the leading providers continue to outperform their peers by a comfortable margin,” said David Pieffer, Property & Casualty Lead for JD Power Insurance Intelligence. “However, there also are obvious areas for improvement where insurers could do a better job of managing customer expectations. As the industry keeps shifting toward more personalized, usage-based and on-demand insurance options, the ability to communicate effectively and make claimants feel at ease along the way will be a key differentiator for top-performing insurers.”

Following are some key findings of the 2019 study:

• Many insurers miss the mark on customer communications: The three components of the claims process that have the highest importance weights in overall satisfaction metrics are among those rated lowest by claimants: fairness of the claim settlement (settlement); how well you were kept informed on the progress of the claim (claim servicing); and time to settle the claim (settlement). This shines a spotlight for insurers on effective communications as an area for improvement.
   
• Setting accurate claim length expectations is critical: Overall customer satisfaction among claimants who receive accurate claim length estimates is 151 points higher, on average, than among those whose claim takes longer than expected (905 vs. 754, on a 1,000-point scale). Satisfaction is even lower (753) when no expectation is set at all.
   
• Concierge-type services provided at first notice of loss (FNOL) boost customer satisfaction and advocacy: When insurers make a hotel reservation for a claimant immediately upon FNOL, satisfaction increases by 42 points and results in a significant increase in Net Promoter Score®[1]. Other ancillary services driving satisfaction and advocacy include discussing repair options (+44 points); notifying a repair company (+38); and scheduling an estimate (+33).
   
• Insurance customers experience considerable variation in claims service: The gap in property claims satisfaction between the highest- and lowest-performing insurers is 76 points, underscoring the importance for customers shopping for insurance to select a P&C insurer that can deliver a superior claims service.

Study Rankings

Amica Mutual ranks highest in property insurance claims experience for an eighth consecutive year, achieving a score of 901. COUNTRY Financial ranks second with a score of 893, followed by The Hartford with a score of 888.

The U.S. Property Claims Satisfaction Study measures satisfaction with the property claims experience among insurance customers who have filed a claim for damages by examining five factors (listed in order of importance): settlement; claim servicing; first notice of loss; estimation process; and repair process. The 2019 study is based on responses from 6,374 homeowners insurance customers and was fielded between April and November 2018.

For more information about the U.S. Property Claims Satisfaction Study, visit 

https://www.jdpower.com/business/resource/us-property-claims-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

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

 

 

New Vehicle Retail Sales in November to Fall; Transaction Price to Reach Highest Level Ever

2018-11-21

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DETROIT: 26 Nov. 2018 — New-vehicle retail sales in November are expected to fall from a year ago, according to a forecast developed jointly by JD Power and LMC Automotive. Retail sales are projected to reach 1,096,500 units, a 3.8% decrease compared with November 2017 on a selling day adjusted basis.

“While the continued decline in retail sales is disappointing, record transaction prices remain an encouraging indicator for the long-term health of the industry,” said Thomas King, Senior Vice President of the Data and Analytics Division at JD Power. The average transaction price in November is on pace to reach $33,697, the highest level ever recorded. The record prices reflect higher prices trending for both cars (up 4% to $27,407) and trucks/SUVs (up 1% to $36,123), coupled with the ongoing shift in sales from cars to trucks. So far this month, trucks/SUVs account for 71.2% of retail sales, compared with 66.6% in November 2017.

Incentive spending also is on pace to decline on a year-over-year basis for the fifth consecutive month.  November to-date spending is $3,783 per unit, down $285 from the same time last year. Spending on cars is down $784, while spending on trucks/SUVs is down $48.

“Strong transaction prices and lower incentives are helping maintain manufacturer profitability despite the decline in sales,” King said.

Thanksgiving weekend is one of the busiest selling periods of the year and is expected to account for nearly 20% of November sales. The long weekend also coincides with the launch of incremental incentives tied to year-end sales events, which present manufacturers with the challenge of maintaining incentive discipline exhibited over the past five months. All indications are that incentive spending will remain below year-ago levels, although in absolute terms, incentives remain high. “With average discounts equal to 9.6% of MSRP in November, consumers still have plenty of opportunity to purchase a new vehicle at a significant discount,” King said.

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

	November 20181	October 2018	November 2017
New-Vehicle Retail Sales	1,096,500 units (-3.8% lower than November 2017)2	1,062,881 units	1,139,863 units
Total Vehicle Sales	1,359,800 units (-2.5% lower than November 2017)2	1,358,202 units	1,394,377 units
Retail SAAR	13.2 million units	13.6 million units	13.7 million units
Total SAAR	17.2 million units	17.6 million units	17.6 million units

¹Figures cited for November 2018 are forecasted based on the first 15 selling days of the month.
²November 2018 has 25 selling days and November 2017 had 25 selling days.

• The average new-vehicle retail transaction price to date in November is on pace to reach $33,697, an all-time record. The previous high for the month of November—$32,609—was set last year.
• Average incentive spending per unit to date in November is $3,783 down from $4,068 during the same period last year.
• Consumers are on pace to spend $36.9 billion on new vehicles in November, down $220 million from last year’s level.
• Truck/SUVs account for 71.2% of new-vehicle retail sales through Nov. 18—the highest level ever for the industry—marking the second consecutive month above 70%.
• Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 70 days through Nov. 11, down 4 days from last year.
• Fleet sales are expected to total 263,300 units in November, up 3.5% from November 2017. Fleet volume is expected to account for 19% of total light-vehicle sales, up from 18% last year.

Jeff Schuster, President, Americas Operations and Global Vehicle Forecasts at LMC Automotive, said, “Volume for the year is holding consistent with 2017 but, as the industry plans for a prolonged and significant investment period in future mobility without a return, cutbacks are being made that could affect near-term planning and future programs. Next year will bring a new challenge for the industry and some familiar ones like trade and rising interest rates.”

LMC’s forecast for 2018 total light-vehicle sales remains at 17.2 million units, but has slipped to just 22,000 units higher than 2017. The retail light-vehicle forecast remains at 13.8 million units, a decline of 1.0% from 2017. Fleet volume remains the growth engine with volume expected to be 5% higher and representing 20% of total light-vehicle sales. For 2019, the forecast for total light-vehicles is at 17.0 million units and retail light-vehicle sales is at 13.7 million units, each declining 1.3% from 2018.

U.S. Retail SAAR— November 2017 to November 2018

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(in millions of units)
Source: Power Information Network^® (PIN) from JD Power

 

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

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]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power or LMC Automotive. www.jdpower.com/corporate  www.lmc-auto.com

 

Large Commercial Insurers Notch Slight Improvements in Customer Satisfaction but Many Customers Remain ‘Indifferent,’ JD Power Finds

2018-11-28

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COSTA MESA, Calif.: 29 Nov. 2018 — Overall customer satisfaction with large commercial insurers has increased slightly in 2018, according to the JD Power 2018 Large Commercial Insurance Study.^SM Despite the modest improvement, customer satisfaction with large commercial insurers is still notably lower than that of other industries, with many customers identifying as “indifferent” to their insurer.

“As the industry contends with heavy catastrophic losses and strained profitability, keeping high value large commercial customers is more critical than ever,” said David Pieffer, P&C Insurance Practice Lead at JD Power. “The key is to deliver services and customer experiences that increase overall satisfaction. Currently, 30% of large commercial insurance customers rate their relationship with their provider as ‘indifferent,’ and 45% say they are ‘pleased’ with their relationship. The group that is ‘pleased’ is 139% more likely to renew with their existing provider and 83% likely to indicate that they will not switch insurers even if a broker recommends it.”

Study Rankings

XL Catlin ranks highest among large commercial insurers for the third straight year with a score of 796. Berkshire Hathaway ranks second with a score of 784, and Chubb ranks third with a score of 782.

The 2018 Large Commercial Insurance Study provides an independent and objective measure of overall satisfaction among large commercial insurance risk professionals in the United States and Canada. The study is based on 1,659 evaluations from risk professionals or employees who provide oversight for their organization or are members of their organization’s risk management team. Organizations included in the study have at least $100 million in annual revenue or operating budget and have purchased a commercial insurance policy from one of the profiled insurers or brokers.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. JD Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.

Media Relations Contacts
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

 

2018 Electric Utility Business Customer Satisfaction Study

2018-12-11

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COSTA MESA, Calif.: 12 Dec. 2018 — Beyond reliability, a focus on convenience and citizenship separates top-performing electric utilities from competitors regarding business customer satisfaction. That’s the central finding of the JD Power 2018 Electric Utility Business Customer Satisfaction Study,SM released today, which recognizes regional electric utilities that are setting the standard for the most satisfying customer experience.

“While the top-performing electric utilities have developed a strong formula for business customer satisfaction, performance can vary considerably from one provider to the next,” said Adrian Chung, Director, Utilities Practice at JD Power. “The highest-ranking electric utilities make it easier to do business with them by offering customers online account management tools and products that drive cost savings. This service execution, along with a strong commitment to supporting local communities, plays a critical role in gaining satisfaction and building customer trust.”

Following are some key findings of the 2018 study:

• Digital presence for account management improves satisfaction: Customers have higher satisfaction when they have an online account and choose to receive an electronic bill. On average, offering these options leads to a 47-point increase (on a 1,000-point scale) in overall satisfaction. Customers of award-recipient utilities are 7 percentage points more likely to receive monthly statements electronically and 6 percentage points more likely to access their accounts online when compared with customers of other utilities.

• Community presence is a differentiator: Among the highest-ranking utilities, 75% of customers say their utility supports the economic development of the local community, which is 7 percentage points higher than for non-recipient utilities. A similar gap exists in customer awareness of utility employees volunteering in the community.

• Utilities can support business customers with product and service offerings: Electric utilities that proactively communicate outage information, product offerings and other utility messages enjoy customer satisfaction scores that are 50 points higher than those that do not provide proactive communications. Overall, satisfaction is 11 points lower among customers who need to contact their utility to get information than among those who receive proactive communications.

• It pays to be proactive: Customers of the highest-ranking utilities are more likely to be aware of peak-time savings programs and real-time energy monitoring tools, both of which stand to offer sizeable cost benefits.

• Dedicated account representatives positioned to build strong relationships: Businesses with an assigned key account representative receive significantly higher image ratings of being “customer-focused” and “trustworthy” compared with businesses that typically contact their utility through a business-specific services center or a general utility customer service telephone number.

Within each of the four geographic regions included in the study, utility providers are classified into one of two segments: large (serving 85,000 or more business customers) and midsize (serving 40,000-84,999 business customers).

The following utilities rank highest in business customer satisfaction in their respective regions:

• East Large: BGE
• East Midsize: Duquesne Light
• Midwest Large: MidAmerican Energy
• Midwest Midsize: Indianapolis Power & Light
• South Large: Georgia Power
• South Midsize: Entergy Texas
• West Large: SRP
• West Midsize: SMUD

The 2018 Electric Utility Business Customer Satisfaction Study, now in its 20th year, measures satisfaction among business customers of 88 targeted U.S. electric utilities, each of which serves more than 40,000 business customers. In aggregate, these utilities provide electricity to more than 12 million customers. Overall satisfaction is examined across six factors (listed in order of importance): power quality and reliability; corporate citizenship; price; billing and payment; communications; and customer service.

The study is based on responses from more 19,000 online interviews with business customers who spend at least $200 a month on electricity. The study was fielded from February through June 2018 and July through October 2018.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power 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 

 

An Increase in Corporate Citizenship Communication Boosts Satisfaction, JD Power Finds

2018-12-18

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COSTA MESA, Calif.: 19 Dec. 2018 — Overall customer satisfaction with gas utility business customers increases slightly in 2018, according to the JD Power 2018 Gas Utility Business Satisfaction Study.^SM The increase in satisfaction is due to an increase in communication from utilities regarding community involvement and social responsibility, in addition to increasing satisfaction with the billing and payment process.

“Although gas utility companies have made an effort to increase communication within their communities, it is imperative they do not forget about other areas of communication such as products and services available especially for the more tenured customers,” said Carl Lepper, Director of the Utility Practice at JD Power. “The study finds that 55% of customers that have been with a utility for up to two years participate in new product and service offerings. However, only 38% of customers that have been with a utility for 20 years or more sign up for new products or services. There’s potentially lost revenue with long-time, stable customers. At the same time, the level of satisfaction among those long-time customers is declining.”

Study Rankings

The industry results for the 2018 study are reported across four U.S. geographic regions: East, Midwest, South and West. The following utilities rank highest in customer satisfaction in their respective region:

• East: BGE
• Midwest: DTE Energy (for second consecutive year) / Xcel Energy
• South: Spire (for second consecutive year)
• West: NW Natural (for third consecutive year)

Now in its 14th year, the Gas Utility Business Customer Satisfaction Study measures business customer satisfaction with gas utility companies in four regions: East, Midwest, South and West. Each of the 61 brands included in the study serve more than 25,000 business customers, representing more than 4 million business customers in total. Overall satisfaction is measured by examining six factors (listed in order of importance): safety and reliability (25%); billing and payment (17%); corporate citizenship (15%); customer service (15%); price (15%); and communications (13%).

The study is based on responses from more than 9,500 online interviews with business customers who spend at least $150 monthly on natural gas. The study was fielded in two waves: February-June 2018 and July-November 2018.

JD Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable JD Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, JD Power 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

 

Annual Retail Sales Fall for Second Consecutive Year but Consumer Expenditure Reaches Highest Level Ever

2018-12-21

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DETROIT: 21 Dec. 2018 — New-vehicle retail sales in December are expected to fall from a year ago, according to a forecast developed jointly by JD Power and LMC Automotive. Retail sales are projected to reach 1,310,700 units, a 1.0% decrease compared with December 2017.

“Despite retail sales falling for the sixth consecutive month, the continued growth in transaction prices is allowing manufacturers to offset lower sales with higher revenue,” said Thomas King, Senior Vice President of the Data and Analytics Division at JD Power. “Consumers are on pace to spend nearly $45 billion on autos in December, up 1% from last year and the highest level ever recorded.”

The average transaction price in December is on pace to reach $34,292, another industry record. This reflects growth in prices for cars (up $591 to $27,754) and trucks/SUVs ($173 to $36,548). 

Incentive discipline has continued into December, as spending is expected to decline year over year for the sixth consecutive month.  December to-date spending is $4,098 per unit, down $164 from the same time last year. Spending on cars is down $663, while spending on trucks/SUVs is up $42.

Retail sales for the calendar year are expected to reach 13.9 million, a decline of 1.3% from last year.

“While 2018 marks the second consecutive year of sales declines, strong revenue and lower spending are helping to maintain profitability,” King said. “Looking ahead to 2019, a record number of truck and SUV launches will help manufacturers better align portfolios with overall demand.” Nearly 45 all-new or major re-designed vehicles are expected to launch next year, with 28 being a truck or SUV.

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

	December 20181	November 2018	December 2017
New-Vehicle Retail Sales	1,310,700 units (-1.0% lower than December 2017)2	1,099,708 units	1,323,906 units
Total Vehicle Sales	1,596,000 units (-0.4% lower than December 2017)2	1,380,939 units	1,601,630 units
Retail SAAR	14.3 million units	13.2 million units	14.4 million units
Total SAAR	17.3 million units	17.4 million units	17.4 million units

¹Figures cited for December 2018 are forecasted based on the first 13 selling days of the months.
²December 2018 has 26 selling days and December 2017 had 26 selling days.

• The average new-vehicle retail transaction price to date in December is on pace to reach $34,292, an all-time monthly record. The previous high for the month of December—$33,524—was set last year.
   
• Average incentive spending per unit to date in December is $4,098, down from $4,261 during the same period last year.
   
• Consumers are on pace to spend $44.9 billion on new vehicles in December, which is up $600 million from last year’s level.
   
• Truck/SUVs account for 72.3% of new-vehicle retail sales through Dec. 16—the highest level ever for December—making it the third consecutive month above 70%.
   
• Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 71 days through Dec. 13, down 1 day from last year.
   
• Fleet sales are expected to total 285,200 units in December, up 2.7% from December 2017. Fleet volume is expected to account for 18% of total light-vehicle sales, up from 17% last year.

Jeff Schuster, President, Americas Operations and Global Vehicle Forecasts at LMC Automotive, said, “The combination of strong fleet volume and stable retail demand is expected to push 2018 U.S. light vehicle sales up to 17.3 million units. Next year, the auto industry will continue to face heightened uncertainty and intense competitive challenges due to conflicting macro factors, the continuing SUV/car shift and the growing number of new electic vehicles joining the market.”

LMC’s forecast for 2018 total light-vehicle sales is up slightly to 17.3 million units on a robust November performance and solid projection in December. The forecast is expected to exceed 2017 by 60,000 units. The retail light-vehicle forecast also now rounds up to 13.9 million units, but still represents a decline of  1% from 2017. The fleet volume forecast remains 5% higher than 2017 and represents 20% of total light-vehicle sales. For 2019, the forecast for total light-vehicles is expected to finish between 16.9-17.0 million unts, a decline of 1.5% from 2018. Retail light-vehicle sales is projected at 13.6-13.7 million units, a decline of 1.7% from 2018.

U.S. Retail SAAR— December 2017 to December 2018

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(in millions of units)
Source: Power Information Network^® (PIN) from JD Power 

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

About LMC Automotive www.lmc-auto.com.

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]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power or LMC Automotive. www.jdpower.com/corporate  www.lmc-auto.com

 

2019 Manufacturer Website Evaluation Study Cross-Device—Winter

2019-01-16

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COSTA MESA, Calif.: 17 Jan. 2019 — The JD Power 2019 Manufacturer Website Evaluation Study Cross-DeviceSM—Winter is a semiannual study that measures the usefulness of automotive manufacturer websites during the process of shopping for a new vehicle by examining four key measures (in order of importance): information/content; appearance; navigation; and speed.

This year’s study finds that overall satisfaction averages 830 (on a 1,000-point scale) for the luxury segment, while the mass market segment averages 823. Land Rover (857) is the highest-ranked luxury brand and Ram (842) is the highest-ranked mass market brand. Both Land Rover and Ram were ranked highest in the 2018 Manufacturer Website Evaluation Study Cross-DeviceSM—Summer.

The Manufacturer Website Evaluation Study Cross-Device, initially released in 1999, is based on responses from 13,572 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study fielded in October-November 2018.

For more information about the Manufacturer Website Evaluation Study Cross-DeviceSM, visit http://www.jdpower.com/resource/us-manufacturer-website-evaluation-study-cross-device.

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: http://www.jdpower.com/business/about-us/press-release-info 

 

Wireless Network Quality Varies Across America, JD Power Finds

2019-01-16

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COSTA MESA, Calif.: 17 Jan. 2019 —While wireless network problems are rising among customers in the Northeast, Mid-Atlantic and North Central regions, problems have decreased in the Southeast region. Additionally, the least amount of problems experienced are in suburban areas, while the rural and urban areas experience the most, according to the JD Power 2019 U.S. Wireless Network Quality Performance Study^SM—Volume 1.

“As consumers anxiously await the availability of 5G outside of urban areas, providers that have invested in current 4G LTE infrastructure to improve network quality in the rural areas they serve have seen the fewest amount of network problems,” said Ian Greenblatt, Managing Director at JD Power. “It is no secret that the ROI on investing in rural areas is quite low, but as more rural customers shift to unlimited data plans, the notable incremental demand on the system necessitates investment to maintain the reliable network quality those customers have come to expect and enjoy.”

Study Results

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

The 2019 U.S. Wireless Network Quality Performance Study—Volume 1 is based on responses from 32,159 wireless customers. Carrier performance is examined in six regions: Mid-Atlantic, North Central, Northeast, Southeast, Southwest and West. In addition to evaluating the network quality experienced by customers with wireless phones, the study also measures the network performance of tablets and mobile broadband devices. The study was fielded from July through December 2018.

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

JD Power is a global leader in consumer insights, advisory services and data and analytics. 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-LMC Automotive Forecast January 2019

2019-01-28

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The Retail Forecast

New vehicle retail sales in January are expected to fall from a year ago, according to a forecast developed jointly by JD Power and LMC Automotive. Retail sales are projected to reach 864,300 units, a 2.4% decrease compared with January 2018. The seasonally adjusted annualized rate (SAAR) for retail sales is expected to be 13.2 million units, down 451,100 from a year ago.

The Takeaway

Thomas King, Senior Vice President of the Data and Analytics Division at JD Power:
“This marks the third consecutive year where retail sales are expected to show declines at the start of the year. In addition to the disruption from inclement weather, the uncertainty of the government shutdown also caused some customers to delay their purchases.”

Retail sales to-date are down 3.8% nationally, but in the North Central region, which includes the Midwest states that were hampered by a snow storm, retail sales were down 6.2%.

—–

“Despite the lower retail sales, elevated transaction prices continue to help manufacturers maintain profitability. The average transaction price in January is on pace to reach $33,285, the highest level ever for the month.”

The record prices reflect higher prices trending for both cars (up 5% to $27,708) and trucks/SUVs (up 2% to $35,659). Incentive discipline is also helping, as spending is expected to decline year-over-year for the seventh consecutive month. January to-date spending is $3,720 per unit, down $136 from the same time last year.

—–

“While rising interest rates pose a risk to overall pricing and affordability for the industry, the continued growth in transaction prices is a good sign of its sustainability.  This is paramount for helping manufacturers achieve success in 2019.”

Consumers are on pace to spend nearly $29 billion in autos in January, which is up slightly from last year.

Sales & SAAR Comparison

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

	January 20191	December 2018	January 2018
New-Vehicle Retail Sales	864,300 units (-2.4% lower than January 2018)2	1,316,304 units	885,604 units
Total Vehicle Sales	1,141,300 units (-1.0% lower than January 2018)2	1,624,477 units	1,153,650 units
Retail SAAR	13.2 million units	14.3 million units	13.6 million units
Total SAAR	16.8 million units	17.6 million units	17.2 million units

¹Figures cited for January 2019 are forecasted based on the first 15 selling days of the month.
²January 2019 has 25 selling days, the same as January 2018.

The Details

• January is typically the lowest volume sales month of the year, as evidenced by January 2018 accounting for only 6.5% of annual sales. Temporary disruptive factors such as inclement weather can have a much larger impact to the sales pace than in higher volume months.
• The average new-vehicle retail transaction price to date in January is on pace to reach $33,285. The previous high for the month of January—$32,313—was set last year.
• Average incentive spending per unit to date in January is $3,720, down from $3,856 during the same period last year.
• Consumers are on pace to spend $28.8 billion on new vehicles in January, up slightly from last year’s level.
• Truck/SUVs account for 69.6% of new-vehicle retail sales through Jan. 20, the highest level ever for a January.
• Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 71 days through Jan. 20, flat from last year.
• Fleet sales are expected to total 277,100 units in January, up 3.4% from January 2018.  Fleet volume is expected to account for 24% of total light-vehicle sales, up from 23% last year.

Outlook for the Year

Jeff Schuster, President, Americas Operations and Global Vehicle Forecasts, LMC Automotive:
“The sky isn’t falling but, coming off a solid 2018, the auto industry faces headwinds that are likely to pull down demand this year and into 2020. U.S. auto sales will remain healthy in large part because of nearly 70 redesigns and new-model launches in 2019. But there will be more pressure on new-vehicle sales because of rising interest rates and a robust used-vehicle market. The key thing to watch is production. If manufacturers over-produce, it will drive up inventory levels, and that can drive up incentives. The industry has to be careful.”

LMC’s forecast for 2019 total light-vehicle sales rounds up to 17.0 million units, a decline of 1.9% from 2018. Retail light-vehicle sales is projected at 13.7 million units, a decline of 1.5% from 2018. SUV launches are robust and will drive continued growth in the segment as SUV share of total light vehicles is expected to near the 50% level this year.

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

 

Led by Bank of America, Big Banks Sweep Top 5 Spots in Satisfaction with Financial Advice

2019-01-29

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COSTA MESA, Calif.: 31 Jan. 2019 — As routine branch transactions decline, financial advice is becoming a key battleground in which big banks are outpacing regional banks. Satisfaction with advice is highest at Bank of America, while PNC, Wells Fargo, Citibank and Chase round out the top five. Among the six largest banks, only U.S. Bank finished below average, according to the JD Power 2019 U.S. Retail Banking Advice Study.^SM

More than three-fourths (78%) of U.S. retail bank customers say they are interested in receiving financial advice or guidance from their bank. Nearly six of 10 customers (58%) say their preferred means of receiving advice is digital content delivered through a bank website or mobile app.

The study, now in its second year, measures retail banking customer satisfaction with retail bank-provided advice and account-opening processes of six big U.S. banks and 17 regional banks.

“Retail banks that get the financial advice formula right are scoring major points with their customers in the current marketplace,” said Paul McAdam, Senior Director of the Banking Practice at JD Power. “Overall, we’re seeing both the consumer desire for financial advice and the satisfaction levels with the advice provided increase. Successful banks are moving from a sales focus to an advice culture. When that happens, there’s a considerable increase in new account openings, trust and advocacy. But, with wide variance in customer satisfaction scores between top and bottom performers, there is still a great deal of room for banks to up their advice games.”

Following are key findings of the 2019 study:

• Customer satisfaction with retail bank advice rises, driven by big banks: Overall customer satisfaction with the advice provided by a primary retail bank increases by 15 points to 819 (on a 1,000-point scale) in 2019 from last year. The increase is driven by big banks, which see an 18-point gain, compared with a 6-point gain among regional banks. Satisfaction with advice at big banks now stands at 826 compared to 800 at regional banks. Big banks not only lead in satisfaction with digitally delivered advice (e.g., website, mobile app and email), but also with face-to-face advice.

• Digital advice in focus: A majority of bank customers (58%) say they would like to receive financial advice digitally. Accordingly, advice delivered digitally (via website or mobile app) had the largest satisfaction point gain over the past year (+21 points) and the improvement was most profound among consumers under 40 years old (+30 points).

• Investment-related advice resonates most: Among the most common types of advice retail bank customers seek are investment-related advice (41%); quick tips to help improve their financial situation (39%); retirement-related advice (38%); advice to help keep track of spending and household budgets (33%); and saving for a large purchase (27%).

• Advice satisfaction directly linked to trust, retention and advocacy: Overall, 58% of customers who have received advice say they have acted on it. Among retail bank customers who are highly satisfied with the advice provided by their institution, (overall advice satisfaction score of 850 or higher), 86% say they “definitely will” reuse their bank for another product; 86% are identified as Net Promoters®[1]; and 44% say they have opened a new account based on the advice received.

• Transparency is critical in new account opening, a common venue for delivering advice: When new accounts are opened, transparency about customer benefits and fees is critical. Overall satisfaction with the account opening process increases 161 points when benefits and features are explained completely and 144 points when fees are clearly explained.

“Individual bank performance on financial advice varies considerably, with a 67-point spread between top and bottom performers, indicating that some banks have recognized the potential and have put programs in place to capitalize on their role as trusted advisor,” said Bob Neuhaus, Vice President of Financial Services at JD Power. “One clear example of that approach is on clear display in Bank of America’s 26-point improvement in 2019, which can be traced back to its ‘Life Priorities Model’ that tailors financial advice for customers at different life stages.”

Study Rankings

Bank of America ranks highest in customer satisfaction with retail banking advice with a score of 839. PNC ranks second with a score of 833 and Wells Fargo ranks third with a score of 828.

The 2019 U.S. Retail Banking Advice Study surveyed 3,719 retail bank customers in the United States who received any advice/guidance from their primary bank regarding relevant products and services or other financial needs in the past 12 months. The study also surveyed 3,405 retail bank customers in the United States who opened a new account within the past 12 months. It was fielded in October 2018.

For more information about the U.S. Retail Banking Advice Study, visit https://www.jdpower.com/business/resource/us-banking-advice-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

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