Category: United States

Dave Habiger Appointed President and CEO of JD Power

2018-03-20

jdp-root

COSTA MESA, Calif.: 21 March 2018 — Dave Habiger is named the new President and CEO of JD Power, the global leader in consumer data & analytics, effective immediately. In October, the company announced the retirement of Finbarr O’Neill, its longtime President and CEO. JD Power is a portfolio company of the London-headquartered alternative investments firm XIO Group.

Habiger will oversee the global strategic direction and business strategy of JD Power, including the Americas, Europe and Asia Pacific. He will also lead the development of the company’s short-and long-term business strategy and execution, advancing the digitization of the business and furthering the company’s social and corporate mission. 

“JD Power is fortunate to have a leader and operator of Dave’s caliber to execute on this next phase of transition and growth,” O’Neill said. “I would like to thank employees for their commitment and dedication to driving our business forward, and remain highly confident in the future growth trajectory of the company with Dave at the helm.”

“As a technologist fascinated with data and analytics, I have long admired JD Power’s unrivaled consumer focus and advisory services,” Habiger said. “Now, as the company reaches key inflection points, I look forward to working with JD Power’s strong management team while bringing my prior experience to further maximize the potential of its digital strategy and push into the consumer market.”

Habiger, 49, is a seasoned technology sector visionary who has led several initial public offerings and served as CEO of multiple public companies listed on both the NASDAQ and New York Stock Exchange (NYSE). As part of his agreement to join JD Power, Habiger will make a significant investment in the company, underscoring his belief in the future growth potential of the business.

Previously, Habiger served as a Director and CEO of Textura (NYSE: TXTR), a global construction management software and payments company; CEO of NDS Group, a television software and security company; and President and CEO of Sonic Solutions (NASDAQ: SNIC), a consumer software firm. Habiger serves on several corporate boards, including GrubHub and Echo Global Logistics. 

“Dave Habiger is a world recognized leader with an extremely impressive track record and a deep understanding of technology and consumer analytics,” said Joseph Pacini, a JD Power Board Member and CEO of XIO Group. “Dave has the right vision and operational experience to lead JD Power to its next level of success during this period of disruptive innovation across all industries.”  

Habiger served as Chairman of a governmental Electric Vehicle Commission to design infrastructure for charging stations and he is a long-standing member of the Society of Automotive Engineers. He is also a member of the National Association of Corporate Directors and was named as an Entrepreneur of the Year award winner by EY (formerly Ernst & Young).

He received an MBA from The University of Chicago and a bachelor’s degree in business administration from St. Norbert College. 

JD Power is a global leader in consumer insights, advisory services and data & analytics. Those 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.

XIO Group is a multi-billion dollar global alternative investments firm headquartered in London. XIO Group’s strategy is to identify and invest in market-leading businesses located across North America and Western Europe and help these companies to capitalize on untapped opportunities in fast growing markets, particularly in Asia. XIO Group is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. For more information, visit: www.xiogroup.com.

Media Relations Contacts

JD Power
Geno Effler; 714-621-6224; [email protected]  

XIO Group
Dan Margolis; 213-452-6472; [email protected]

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

 

Electric Utilities Set New Benchmark for Business Customer Satisfaction, JD Power Finds

2017-12-08

jdp-root

COSTA MESA, Calif.: 13 Dec. 2017 — Electric utility providers have found the ideal combination in customer communications, ramping up engagement efforts through a multi-channel mix of phone, website, mobile, and even face-to-face visits, driving record high levels of satisfaction among business customers, according to the JD Power 2017 Electric Utility Business Customer Satisfaction Study.^SM

“Electric utilities are rapidly upping the ante on customer communications, setting an example for other service industries by demonstrating that it is possible to dramatically improve customer satisfaction by actively engaging across a number of channels,” said John Hazen, Director of Utility Practice at JD Power. “While there is no one-size-fits-all formula for success, electric utility leaders are finding that a steady combination of proactive outreach through a mix of digital, mobile, community events, and dedicated account representative touch points can drive a strong positive perception of their brands.”

Following are some key findings of the study:

• Record high customer satisfaction scores: Overall customer satisfaction among electric utility business customers improves for the fifth consecutive year to a record high of 765 (on a 1,000 point scale), a 10 point increase over last year’s results. Satisfaction improved in each of the six factors, with the largest year-over-year increases in billing & payment (+13), communications (+13).

• Customer satisfaction improving industry-wide: The top 5 brands in the study all earn overall customer satisfaction scores in the 800s, compared to only one brand in the previous year results. Moreover, the gap between the top performer and bottom performer in the study has narrowed to just 111 points, down from 118 last year.

• Fewer power outages and more proactive alerts: The average number of brief power outage (five minutes or less) falls from 1.9 in calendar year 2016 to 1.7 this year. The average number of lengthy outages (longer than five minutes) is unchanged at 1.2.  Utilities are doing a better job of communicating planned outages with 82% of customers being notified ahead of time, versus 78% last year.

• More customers interacting with utilities via mobile device: Business customers are increasingly relying on mobile devices to access their electric utility’s website, with 26% of respondents indicating that they accessed the utility via mobile in 2017, up from 18% the previous year.

• Dedicated account representatives play a key role in satisfaction equation: The average overall satisfaction score for business customers who have a dedicated account representative is 824, 9 points higher than 2016 (815) and 85 points higher than those without a dedicated account representative (739).

Study Rankings

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).

Among the eight providers that rank highest in their respective regions in this study, none were ranked highest in the previous study.

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

• East Large: BGE
• East Midsize: Duquesne Light
• Midwest Large: DTE Energy
• Midwest Midsize: WPS
• South Large: Alabama Power
• South Midsize: Entergy Mississippi
• West Large: Portland General Electric
• West Midsize: SMUD

The 2017 Electric Utility Business Customer Satisfaction Study, now in its 19th year, measures satisfaction among business customers of 87 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. Satisfaction is calculated on a 1,000-point scale.

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 2017 and July through October 2017.

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/resource/us-electric-utility-business-customer-satisfaction-study.

# # #

 

New Vehicle Retail Sales Pace in December Expected to Slow; Annual Sales to Dip Below 14 Million

2017-12-21

jdp-root

DETROIT: 22 Dec. 2017 — For the eighth time this year, the new vehicle retail sales pace in December is expected to fall from year-ago levels, according to a forecast developed jointly by JD Power and LMC Automotive.   The seasonally adjusted annualized rate (SAAR) for retail sales is expected to be 14.6 million units, down 350,000 from a year ago.  Retail sales are projected to reach 1,305,800 units, a -2.6% decrease on a selling day adjusted basis compared to December 2016.

“While 2017 retail sales will be below 14 million units, the year will still rank as the eighth-best retail sales year in history and only a modest 280,000 units below the 14.2 million sold in 2015,” said Thomas King, Senior Vice President of the Data and Analytics Division at JD Power. “The larger concern remains the elevated incentives being used to drive the current sales pace.” Month-to-date in December, average incentive spending per unit has reached an all-time high of $4,302, passing the record of $4,188 set in November and well above the $4,001 spent in December 2016.

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

	December 20171	November 2017	December 2016
New-Vehicle Retail Sales	1,305,800 units (-2.6% lower than December 2016)2	1,139,863 units	1,392,522 units
Total Vehicle Sales	1,591,900 units (-2.0% lower than December 2016) 2	1,396,438 units	1,687,154 units
Retail SAAR	14.6 million units	13.6 million units	15.0 million units
Total SAAR	17.8 million units	17.5 million units	18.1 million units

¹Figures cited for December 2017 are forecasted based on the first 14 selling days of the month.

²December 2017 has 26 selling days, while December 2016 had 27 selling days in the month.

• The average new-vehicle retail transaction price to date in December is $32,933, a record for the month, surpassing the previous high for the month of $32,082 set in December 2016.
• Consumers are on pace to spend $43.1 billion on new vehicles in December, down nearly $1.6 billion from last year’s level.
• Average incentive spending per unit to date in December is $4,302 per unit, surpassing the previous record of $4,188 set in November 2017. Spending on trucks and SUVs is $4,265, up $418 from last year. Spending on cars is $4,377, up $98.
• Incentives as a percentage of MSRP are at 11.2% so far in December, exceeding the 10% level for 17th time in the past 18 months.
• Trucks account for 68% of new-vehicle retail sales through Dec. 17—the highest level ever for the month of December—making it the 18th consecutive month above 60%.
• 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 through Dec. 17.
• Fleet sales are expected to total 286,000 units in December, up 0.8% from December 2016.  Fleet volume is expected to account for 18% of total light-vehicle sales, flat from last year.

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said, “As 2017 comes to a close, the pullback from the 2016 level is settling at 300,000 units, with more than half of that from the much smaller fleet market. Retail demand, propped up with high incentives, has been held to only a slight decline. However, SUV demand has been robust and is expected to finish up 5% in 2017 from 2016 and a market share of 43% of total light-vehicle sales. The SUV reign will continue for the forseeable future. SUVs are expected to  account for 50% of new model activity in 2018, which will help push the share of total sales to 45% and continue the segment’s volume growth, even as the total market is projected to contract further in 2018.”

LMC’s forecast for 2017 total light-vehicle sales is holding at 17.2 million units, a decrease of 1.9% from 2016. Retail light-vehicle are expected to finish the year just below 14.0 million units, down 1.1% from 2016. Looking forward to 2018, total light-vehicle sales forecast remains at just under 17.0 million unit a decline of 1.2%. The forecast for retail light-vehicles is at 13.8 million units for 2018, a decline of 1.4%.

U.S. Retail SAAR— December 2016 to December 2017

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

About JD Power and Advertising/Promotional Rules www.jdpower.com/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

# # #

 

Gas Utility Satisfaction Reaches All-Time High, JD Power Finds

2018-01-16

jdp-root

COSTA MESA, Calif.: 17 Jan. 2018 — Gas utility business customer satisfaction scores have reached their highest levels ever, as measured in the JD Power 2017 Gas Utility Business Customer Satisfaction Study.^SM With an overall satisfaction score of 792 (on a 1,000-point scale), gas utility business customers are now the most satisfied among all utility customers surveyed by JD Power.

“Gas utilities have put huge efforts into customer safety preparedness during the past few years, and those efforts are starting to pay off in the form of record-high levels of satisfaction among business customers,” said Carl Lepper, Director, Utility Practice at JD Power. “Since our 2015 study, we’ve seen 19% growth in customers’ perceptions of gas utilities being very helpful with safety preparation, and that has been the biggest single contributor to the significant industry-wide improvement in customer satisfaction.”

Following are some key findings of the study:

• Record-high customer satisfaction scores: Overall satisfaction among gas utility business customers reaches an all-time high of 792, the highest overall satisfaction score among all utility customers surveyed by JD Power. Among gas-only brands, that overall satisfaction score jumps to 801.

• Safety preparation efforts significantly affect customer satisfaction: Overall, 36% of business customers say their gas utility is “very helpful” when it comes to preparation for safety issues, up from just 17% in 2015. Perceived helpfulness of the gas utility with safety preparation is the most-influencing element in overall satisfaction, associated with a 168-point gain in satisfaction.

• Digital billing closes gap with paper statements: The gap between the number of gas utility business customers receiving their bills on paper and those receiving electronic statements has closed to just 6 percentage points, compared with 16 percentage points the previous year, with 53% of customers receiving digital bills and 59% receiving paper statements, remembering that some receive both.

• Media perceptions matter: Positive media stories about a gas utility have a significant effect on customer satisfaction. Communications satisfaction among customers who recall a positive media story about their utility is 872 vs. 653 among those who recall a negative story.

• Larger companies have higher levels of satisfaction: Business customer satisfaction scores increase along with the size of the company. For example, companies with 1,000+ employees have an average overall satisfaction score of 817, while those with four or fewer employees have a score of 742. This is likely in response to larger companies receiving dedicated account support and more proactive contacts from their gas utility.

Study Rankings

The industry results for the 2017 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: New Jersey Natural Gas
• Midwest: DTE Energy
• South: Alagasco
• West: NW Natural (for the second consecutive year)

Now in its 13th 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 10,000 online interviews with business customers who spend at least $150 monthly on gas. The study was fielded in two waves: February-June 2017 and July-November 2017.

To learn more about the Gas Utility Business Customer Satisfaction Study, visit http://www.jdpower.com/business/resource/us-gas-utility-business-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 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 www.jdpower.com/business/about-us/press-release-info

 

Social Media Emerges as Wireless Customer Service Channel of Choice, JD Power Finds

2018-01-16

jdp-root

COSTA MESA, Calif.: 18 Jan. 2018 — Could social media be realizing its true calling as the ultimate customer service channel? According to the JD Power 2018 U.S. Wireless Customer Care Full-Service Performance Study^SM—Volume 1 and the JD Power 2018 U.S. Wireless Customer Care Non-Contract Performance Study^SM—Volume 1, overall satisfaction is highest when customers ask questions or make requests of their wireless carriers via social media.

“Personalized feedback, rapid-fire response time and interaction with live humans are some of the primary factors driving the highest levels of customer satisfaction with wireless carrier customer service and, increasingly, customers appear to be finding that formula through alternative channels such as social media,” said Peter Cunningham, Technology, Media, and Telecommunications Practice Lead at JD Power. “That doesn’t mean call centers and brick-and-mortar stores are no longer relevant; in fact, personalized assistance via phone, app and face-to-face are still critical to customer satisfaction.”

Following are key findings of the 2018 studies:

• Social channels become front line for customer service: Among customers who ask a question or make a request of their wireless carrier, overall satisfaction is highest in the social media channel (838 on a 1,000-point scale) and the app channel (835). By contrast, overall satisfaction scores average just 797 among customers who handle these requests on the phone with a representative.

• The human touch still matters: Satisfaction tends to be much higher when customers use a channel that provides personalized feedback. For example, assisted care satisfaction is 26 points higher than unassisted care satisfaction (819 vs. 793, respectively), and satisfaction is 824 among customers who ask their question in the store channel vs. 797 among those who speak with a rep over the phone. Additionally, among customers who ask a question or make a request through their carrier’s app, overall satisfaction is 845 when they think they are interacting with an actual person vs. 800 when they think the system is automated.

• Video plays a key role: The channels with the highest first-contact resolution incidences are online videos (92%) and mobile app to research information (90%). Among customers who view an online video from their wireless carrier, 34% say they “definitely will not” switch to a new carrier in the next 12 months vs. 21% among those who use the phone automated response system.

• Not-so-immediate gratification via email: While social, app-based and face-to-face customer support are prized by consumers for their personalized, rapid response, the average customer service response time via email is 32 hours.

Study Rankings

For full-service carriers, T-Mobile ranks highest with a score of 828. Verizon Wireless (822) ranks second and AT&T (811) ranks third. The full-service segment average is 811.

For non-contract full-service carriers, MetroPCS ranks highest with a score of 828. Cricket (814) ranks second and Boost Mobile (804) ranks third. The segment average is 808.

For non-contract value carriers, Consumer Cellular ranks highest with a score of 880. Straight Talk (770) ranks second and Net10 (760) ranks third. The segment average is 779.

The 2018 U.S. Wireless Customer Care Full-Service Performance Study—Volume 1 and the 2018 U.S. Wireless Customer Care Non-Contract Performance Study—Volume 1 are redesigned this year to provide deeper insight into assisted care and unassisted care customer service channels. This allows a deeper understanding of customer interaction across 12 different customer service channels: phone customer service reps; in-store contact; online chat; email; social media post; carrier app question post; automated telephone systems; website search; social media search; user forum; video from carrier; and carrier app search.

Both studies collectively surveyed 15,668 customers who contacted their carrier’s customer care department within the past three months. The studies were fielded from July through December 2017.

For more information about the U.S. Wireless Customer Care Performance Studies, visit http://www.jdpower.com/business/resource/us-wireless-customer-care-performance-study.

JD Power is a global leader in consumer insights, advisory services and data and analytics. 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 www.jdpower.com/business/about-us/press-release-info

# # #

 

Dr. Seongjoon Koo Joins JD Power as Chief Data Officer

2018-01-23

jdp-root

COSTA MESA, Calif.: 24 Jan. 2018 — Dr. Seongjoon Koo, an accomplished technology innovator, has been named to the newly created position of Chief Data Officer at JD Power, the global leader in consumer data and analytics and advisory services. He will lead the creation of new capabilities in data engineering, data science, machine learning and artificial intelligence to support new as well as existing data products and services.

“Over the last 50 years JD Power has delivered value to users and clients through best-in-class market research and data analytics. As we enter a phase of expanded innovation, Dr. Koo will lead the creation of the team, infrastructure and operating model to make JD Power an AI-centered company,” said Bernardo Rodriquez, Chief Digital Officer.

Dr. Koo joins JD Power from Encore Capital Group, one of the largest global specialty finance companies with more than $1 billion in market capitalization, where he served as Director of Data Science. At Encore Capital Group, he led the development of numerous machine learning models that support the company’s investment valuation and servicing operations. He also helped develop multiple data science centers of excellence across the globe to support the company’s global expansion.

“JD Power has great data assets and broad and deep industry coverage through exceptional partnerships,” Dr. Koo said. “I am excited to join this great company and look forward to bringing my data and analytics expertise to contribute to the transformational growth of JD Power.”

Previously, Dr. Koo was a Principal Scientist at CoreLogic, a leading provider to businesses of consumer, financial and property data, analytics and services and which has a $4 billion market capitalization. At CoreLogic, he partnered with the largest global banking clients in the United States and United Kingdom and led the development of numerous machine learning and optimization solutions in the areas of fraud risk, credit risk and rental value estimation. Earlier, Dr. Koo led quantitative research efforts, including the development of machine learning-based trading algorithms and strategies, at a boutique hedge fund in Newport Beach, Calif.

Prior to his financial services career, Dr. Koo made significant contributions to the medical diagnostics and pharmaceuticals industry. He worked at Hologic Inc., a $12 billion medical diagnostics company, and Ionis Pharmaceuticals, a $6 billion pharmaceutical company. He led the development of data-driven quantitative methods leveraging genomics, pre-clinical and clinical information for highly accurate cancer diagnostics and faster drug discovery and development.

Dr. Koo holds four U.S. patents and has been published in 18 academic publications on the subjects of machine learning, physics, chemistry and biomedicine. He received a Ph.D. for his research on the nonlinear dynamics of turbulent air flows from the University of California, Los Angeles. He holds B.S. and M.S. degrees from the Seoul National University in South Korea, the most prestigious university in that country.

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.

XIO Group is a global alternative investments firm headquartered in London with more than $3.2 billion of committed capital and which employs an international team of more than 70 professionals. Representing more than 15 nationalities among its employees and its network of advisors, the firm has operations in the United Kingdom, Germany, Switzerland, Hong Kong and mainland China. With a seasoned international investment team that includes professionals with experience working at many of the world’s leading private equity firms, XIO Group seeks to deploy its capital for global transactions. XIO Group’s strategy is to identify and invest in market-leading businesses located across North America and Europe and help these companies to capitalize on untapped opportunities in fast growing markets, particularly in Asia. XIO Group is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.  For more information, visit: www.xiogroup.com.

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

# # #

 

JD Power 2018 Manufacturer Website Evaluation Study Cross-Device—Winter

2018-01-23

jdp-root

COSTA MESA, Calif.: 25 Jan. 2018 — The JD Power 2018 Manufacturer Website Evaluation Study Cross-Device^SM—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; speed; and navigation.

This year’s study finds that overall satisfaction averages 842 (on a 1,000-point scale) for the smartphone platform, significantly higher than 816 for desktop. This variation reflects the challenges manufacturers face as they work to deliver world-class shopping experiences across a variety of devices.

The JD Power Manufacturer Website Evaluation Study,^SM initially released in 1999, was fielded in November 2017.

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

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

 

Property & Casualty Insurers That Most Satisfy Independent Agents Have Best Overall Financial Performance and Profitability, JD Power Finds

2018-01-23

jdp-root

COSTA MESA, Calif.: 25 Jan. 2018 —
Despite the growth of both technology-based and direct-to-customer sales channels in the property and casualty (P&C) insurance industry, independent agents still control the lion’s share of P&C premiums and represent a significant growth engine for insurers that get the independent agent satisfaction formula right. That’s the key finding of the inaugural JD Power 2018 U.S. Independent Insurance Agent Satisfaction Study,^SM released today.

The new study, which was developed in alliance with the Independent Insurance Agents & Brokers of America (IIABA), evaluates the independent P&C insurance agent’s business outlook, management strategy and overall satisfaction with personal lines and commercial lines insurers in the United States.

“Independent agents have continually found ways to stay relevant to customers in spite of the push toward digital and direct channel solutions,” said Tom Super, Director, Property & Casualty Insurance Practice at JD Power. “Insurers that embrace the critical role independent agents play and work to find ways to partner with them have a significant opportunity to increase overall sales volume through improved customer acquisition and retention.”

Following are key findings of the study:

• Independent agents are trusted advisors of insurance customers yet face difficulty working with P&C insurers: Independent agents are the largest and most preferred channel for consumers, writing 35.5% of all personal P&C premiums and 83% of all commercial premiums, according to IIABA, yet many insurers miss the mark when it comes to delivering for this key constituency. Among agents, overall satisfaction with insurers is just 696 (on a 1,000-point scale) for personal lines and 686 for commercial lines, which are among the lowest scores for business-to-business relationships in JD Power satisfaction studies.

• Independent agents looking for P&C insurers with broader risk appetite: When it comes to policy coverage options, agent satisfaction is lowest when an insurer only offers standard options for policies (643 for personal lines and 634 for commercial lines). When insurers offer standard coverage but also accommodate specialty and unusual risks, overall satisfaction jumps to 756 for personal lines and 708 for commercial lines.

• Huge cross-sell opportunities exist for insurers that get agency formula right: Agents have an average of 8 different carrier relationships for personal lines and 11 relationships for commercial lines and indicate being able to provide bundled policies often to customers just 44% of the time for personal lines and 37% of the time for commercial lines. That missed bundling opportunity represents an enormous untapped premium opportunity for insurers.

• Personal lines insurers with highest commission ratios also have highest satisfaction among independent agents and maintain the most profitable operating ratios: Personal lines insurers that provide the most satisfying experience for agents, in addition to the most competitive compensation, are able to achieve the highest profitability levels. Fostering a trusted advisor relationship between agents and carriers leads to carriers gaining a relationship with the agent’s most valued customers and potential customers.

“The partnership between Trusted Choice independent insurance agents and insurers has never been more important,” said Bob Rusbuldt, president & CEO of the Independent Insurance Agents & Brokers of America. “Competition is keen and growing, and carriers need to work with their agents in new and innovative ways. Agents also recognize the need to ensure they are doing business the way consumers want to do business, now and in the future. Carriers that understand their independent agency distribution force, work with their agents as true partners and provide resources to help address their needs are going to be winners in the marketplace.”

Study Rankings

Auto-Owners Insurance earns the top score among personal lines, with an overall satisfaction score of 795. Auto-Owners Insurance is followed by Safeco (742) and Travelers (700). Liberty Mutual performs highest among commercial lines, with an overall satisfaction score of 714, followed by The Hartford with 710 and Travelers with 705.

The JD Power 2018 U.S. Independent Insurance Agent Satisfaction Study^SM was conducted in alliance with the Independent Insurance Agents & Brokers of America. The study surveyed 1,380 P&C insurance independent agents for a total of 1,424 evaluations of personal lines insurers and 1,217 evaluations of commercial lines insurers that they had placed policies with in the prior 12 months. The study was fielded from September through November 2017.

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.

Founded in 1896, the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of approximately a quarter of a million agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, health, employee benefit plans and retirement products. 

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]
Katie Butler; IIABA; Alexandria, Va.; 703-217-6791; [email protected]

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

 

JD Power Announces New Award Encompassing Key Aspects of Vehicle Ownership

2018-01-24

jdp-root

COSTA MESA, Calif.: [This release was originally published on Jan. 25, 2018, and updated on April 17, 2018.] — Creating the all-encompassing positive vehicle ownership experience—including appearance, sales, service, initial quality and long-term reliability—is the objective of every car company. For the first time, JD Power has analyzed its voluminous data and today announced that Buick (Mass Market) and Porsche (Luxury) are the brands that will receive the inaugural JD Power Overall Ownership Experience Award.

JD Power is using results from its five iconic automotive studies to determine recipients of the Overall Ownership Experience Award for both mass market and luxury brands that are doing the best job overall of satisfying customers throughout the stages of vehicles ownership. The five JD Power studies are Automotive Performance, Execution and Layout (APEAL); Customer Service Index (CSI); Initial Quality Study (IQS); Sales Satisfaction Index (SSI); and Vehicle Dependability Study (VDS).

“JD Power has prided itself on being the voice of the automotive consumer for 50 years and we continue to examine every aspect of customers’ opinions on vehicle sales, quality and dependability, as well as dealership customer service,” said Doug Betts, Senior Vice President of Global Automotive at JD Power. “Addressing these areas effectively creates repeat buyers and brand advocates, so it’s important for manufacturers and dealers to listen, learn and continue to evolve with the times.”

About the JD Power Studies
APEAL measures owners’ emotional attachment and level of excitement with their vehicle.
CSI measures customer satisfaction with service at a franchised dealer or independent service facility for maintenance or repair work among owners and lessees of 1- to 5-year-old vehicles.
IQS is organized into eight problem categories designed to provide manufacturers with information to facilitate the identification of problems and drive product improvement.
SSI measures satisfaction with the sales experience among new-vehicle buyers and rejecters (those who shop a dealership and purchase elsewhere). 
VDS examines problems experienced during the past 12 months by original owners of three-year-old vehicles. Overall dependability is determined by the number of problems experienced per 100 vehicles (PP100), with a lower score reflecting higher quality.

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]
Shane Smith; East Coast; 424-903-3665; [email protected]

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

 

New Vehicle Retail Sales Pace to Decline in January; Full Year Expected to Fall 1.5%

2018-01-26

jdp-root

DETROIT: 29 Jan. 2018 — For the second consecutive year, the new vehicle retail sales pace in January is expected to fall from year-ago levels, according to a forecast developed jointly by JD Power and LMC Automotive.   The seasonally adjusted annualized rate (SAAR) for retail sales is expected to be 13.7 million units, down 150,000 from a year ago.  Retail sales are projected to reach 893,900 units, a 2.7% decrease on a selling day adjusted basis compared to January 2017. (Note: January 2018 has an extra selling day compared with January 2017).

“Coming off a strong sales period to close out 2017, a slower start to the year was anticipated,” said Thomas King, Senior Vice President of the Data and Analytics Division at JD Power. “After the industry’s emphasis on the sell-down of old model-year vehicles in December, January is a transition month as manufacturers shift focus towards 2018 model-year vehicles.”

Through mid-January, 2018 model-year vehicles accounted for 73% of retail sales, an increase of more than 11 percentage points from December.  Average transaction prices so far in January have risen to $32,169, the highest level ever for the month of January.  This means that while sales will fall on a selling day adjusted basis, the total value of new vehicles purchased will increase by just over $1 billion from last year’s level.

“The challenge in 2018 will be maintaining incentive discipline, coming off a year when incentive spending per unit reached the highest level ever recorded,” King said. Average incentive spending through the first two weeks of January is $3,733, up $94 from the same period last year and on track to set a record high to start the year.

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

	January 20181	December 2017	January 2017
New-Vehicle Retail Sales	893,900 units (-2.7% lower than January 2017)2	1,323,906 units	882,402 units
Total Vehicle Sales	1,153,300 units (-2.9% lower than January 2017)2	1,601,853 units	1,140,659 units
Retail SAAR	13.7 million units	14.8 million units	13.9 million units
Total SAAR	17.1 million units	17.9 million units	17.4 million units

¹Figures cited for January 2018 are forecasted based on the first 16 selling days of the month.
²January 2018 has 25 selling days, while January 2017 had 24 selling days in the month.

• The average new-vehicle retail transaction price to date in January is $32,169, a record for the month, surpassing the previous high for the month of $31,422 set in January 2017.
• Consumers are on pace to spend $28.8 billion on new vehicles in January, an increase of just over $1 billion from last year’s level.
• Incentives as a percentage of MSRP are at 10% so far in January, exceeding the 10% level for 18th time in the past 19 months.
• Trucks account for 67% of new-vehicle retail sales through Jan. 21—the highest level ever for the month of January—making it the 19th consecutive month above 60%.
• 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 through Jan. 21.
• Fleet sales are expected to total 259,000 units in January, down 3.6% from January 2017.  Fleet volume is expected to account for 23% of total light-vehicle sales, flat from last year.

Jeff Schuster, Senior Vice President of Forecasting at LMC Automotive, said, “On the heels of a strong close in 2017 to 17.2 million units, optimism for a solid 2018 seems to be growing. Most variables are aligned favorably, with the majority of that positive weight being carried by an expected boost in the economy. The tax  cut is expected to help drive the economy toward the 3% growth level, which we haven’t seen since 2005. Pressure from the off-lease vehicles and the used vehicle market will remain, but is not expected to have a material effect on volume. The wildcard for the year is NAFTA. If the U.S. withdraws from NAFTA, economic growth will likely be reduced, the stock market volatility will increase and consumer goods, including vehicles will likely increase, causing a more pronounced pullback in vehicle demand in the second half of 2018 and into 2019.”

LMC’s forecast for 2018 total light-vehicle sales is at 17.0 million units, a decrease of 1.3% from 2017. Retail light-vehicle are expected at 13.8 million units, a decline of 1.5% from 2017. SUVs as a segment, are expected to grow another 3% in 2018 to a 45% market share while cars will remain under pressure with volume expected to drop 6% to a 33% share of market.

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

(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