Category: United States

Satisfaction with Home Insurance Faces Critical Test as Hurricane Losses Mount, JD Power Finds

2017-09-15

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COSTA MESA, Calif.: 18 Sept. 2017 — U.S. homeowners and renters insurance customer satisfaction has reached an all-time high following a multi-year run of declining catastrophic losses and relatively stable pricing, according to the JD Power 2017 U.S. Home Insurance Study,^SM released today. The ability of insurers to maintain these high levels of customer satisfaction will be tested in the coming months amid the historic property losses and profit strains created by Hurricanes Harvey and Irma.

“Although property insurers have made great strides in overall customer satisfaction over the past several years, the areas where they consistently see the lowest satisfaction scores are price and direct customer service,” said Greg Hoeg, Vice President of U.S. Insurance Operations at JD Power. “Those two areas in particular will be under enormous stress as insurers address losses from the recent hurricanes.”

These challenges are amplified by the threat of disruption from a new crop of emerging “insurtech” innovators coming to market with lower premiums and state-of-the-art self-service web and mobile customer service technologies. However, traditional service providers are fighting back by partnering with smart home assistants like Amazon Echo and Google Home. When used, these products increase customer engagement and lead to higher satisfaction by increasing awareness of best practices insurers execute but have low awareness due to limited interactions throughout the year.

“The risk to customer satisfaction in the wake of catastrophic events transcends those directly affected and expands to other insureds whose satisfaction with service is also affected by the image of their carrier,” said Robert Lajdziak, Business Consultant for the North American Insurance Practice at JD Power. “Further, if carriers need to raise rates they need to execute on several best practices that mitigate the potential negative effect associated with premium increases. Examples include ensuring customers understand their policy, explaining what the policy covers and discussing premium change options.”

Following are some key findings of the study:

• Record-high customer satisfaction among homeowners and renters: Overall customer satisfaction scores have reached an all-time high of 808 (on a 1,000-point scale) among homeowners and 834 among renters, driven by improvements in policy offerings.

• Price and direct customer service interactions remain problem spots: Despite overall rising customer satisfaction scores, the two lowest-performing factors in the customer experience are price and direct interactions with insurance companies via call center, website or assisted online channels. However, multichannel interactions that include direct and live channels throughout the year produce the highest levels of customer satisfaction.

• Many don’t completely understand policies and coverage: Overall satisfaction amonghome insurance customers who understand their policy and the details of what it covers is 92 points higher than among those who say they do not fully understand their coverage. Despite this huge effect on satisfaction, just 48% of customers say they completely understand their policy.

• Insurtech innovators pose growing threat: Start-up insurance industry innovators have raised more than $7.1 billion globally since 2012 in an attempt to carve out a slice of the home insurance marketplace by offering lower premiums and technologically advanced self-service interactions. While overall awareness of these innovators is still low at just 5% of all property customers, awareness among Millennial[1] customers is more than double that rate (11%). Among Millennials who are aware of these start-up businesses, 29% say they “definitely will” or “probably will” purchase from one in the future.

Study Rankings

Amica Mutual ranks highest in the homeowners insurance segment for a 16th consecutive year, with a score of 866. Shelter and COUNTRY Financial rank second and third with scores of 850 and 839, respectively.

Erie Insurance ranks highest in the renters insurance segment with a score of 862. American Family ranks second with a score of 844. State Farm ranks third with a score of 833.

The U.S. Home Insurance Study examines overall customer satisfaction with two distinct personal insurance product lines: homeowners and renters. Satisfaction in the homeowners and renters insurance segments is measured by examining five factors: interaction; policy offerings; price; billing process and policy information; and claims. Satisfaction is calculated on a 1,000-point scale.

The study is based on responses from 15,909 online interviews conducted in June-July 2017.

For more information about the 2017 U.S. Home Insurance Study, visit http://www.jdpower.com/resource/jd-power-us-household-insurance-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/about-us/press-release-info

 

North American Airports Effectively Navigating Construction, Capacity Challenges, JD Power Finds

2017-09-19

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COSTA MESA, Calif.: 21 Sept. 2017 — Overall passenger satisfaction with North American airports has reached an all-time high, as airports of every size have found creative ways to address the challenges of constant construction projects and increased passenger capacity demand. That’s the finding of the JD Power 2017 North America Airport Satisfaction Study,^SM released today.

“Capacity has become a huge challenge for North American airports, with many reporting 100% of available parking spots being filled and large airports, such as Orlando International, setting passenger volume records each month for more than three years straight,” said Michael Taylor, Travel Practice Lead at JD Power. “Despite these difficulties, airports are responding with new technology and old-fashioned personal skills to win over harried travelers. These range from smartphone apps that tell travelers where to find a parking spot to therapy dogs—and in one case, a therapy pig—mingling with travelers to relieve stress and improve the overall airport experience.”

Following are some of the key findings of the study:

• Overall satisfaction reaches all-time high: Overall customer satisfaction scores have reached an all-time high of 749 (on a 1,000-point scale), which is up 18 points from last year’s all-time high. Improvement is driven primarily by a 25-point increase in satisfaction with security check, thanks largely to fewer TSA staffing issues this year, and gains in two factors: check-in/baggage check (+19 points) and food, beverage, and retail (+15 points). Self-service bag-check kiosks and other bag-tagging technologies have played a significant role in improving the baggage check process.

• Tech investment helps overcome logistical hurdles: With nearly every airport in the country dealing with challenges of high passenger capacity and ongoing construction projects to address increased demand, technology is helping to directly address these issues. For example, Sacramento International Airport has developed a smartphone app that tells travelers where they can find a parking spot, and virtually every airport in the country has invested heavily in improving phone-charging stations and internet access in their terminals.

• Dogs, horses and pigs! Oh, my!: Many airports have also found success in improving customer satisfaction through creative use of high-touch traveler outreach initiatives. Phoenix Sky Harbor, for example, deploys a team of therapy dogs for passengers to pet while they wait to board; San Francisco International features a pet therapy pig that roams the terminal looking for pets and selfies; and Cincinnati/Northern Kentucky Airport has more than 30 stress-relieving ponies on staff with which travelers can interact. 

• Big city construction projects remain obstacle to satisfaction: Despite the most creative efforts to address traveler frustration, major city airports that are in the thick of massive construction efforts—notably Newark Liberty, LaGuardia, Los Angeles International and Chicago O’Hare—are still fighting the headwinds of traveler disruption and access challenges that are handicapping their overall satisfaction scores.

“The trifecta of a steadily improving economy, record passenger volume and billion-dollar renovation projects unfolding in airports across the country has created a challenging environment for customer satisfaction,” Taylor added. “The fact that many airports are overcoming those challenges is incredibly instructive for the industry as it remodels and improves airport infrastructure.”

Airport Satisfaction Rankings

Orlando International Airport ranks highest in satisfaction among mega airports, with a score of 778. Detroit Metropolitan Wayne County Airport (767) ranks second, and McCarran International Airport (765) ranks third.

John Wayne Airport (in Orange County, Calif.) ranks highest among large airports, with a score of 796. Tampa International Airport (795) ranks second, and Dallas Love Field (790) ranks third.

Sacramento International Airport ranks highest among medium airports, with a score of 810. Indianapolis International Airport (807) ranks second, and Ted Stevens Anchorage International Airport (806) ranks third.

The 2017 North America Airport Satisfaction Study measures overall traveler satisfaction with mega, large, and medium North American airports by examining six factors (in order of importance): terminal facilities; airport accessibility; security check; baggage claim; check-in/baggage check; food, beverage and retail.

Now in its 12^th year, the study is based on responses from 34,695 North American travelers who traveled through at least one domestic airport with both departure and arrival experiences (including connecting airports) during the past three months. Travelers evaluated either a departing or arriving airport from their round-trip experience. The study was fielded from January through August 2017.

For more information about the North America Airport Satisfaction Study, visit https://www.jdpower.com/resource/north-america-airport-satisfaction-study.

For more information about Dependability Ratings, visit https://www.jdpower.com/cars/ratings/dependability.

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/about-us/press-release-info

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Secret to Nationwide, Multiproduct Success in Retail Banking: Not Making Mistakes

2017-09-27

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COSTA MESA, Calif.: 28 Sept. 2017 — National retail banks have invested heavily in digital transformation and marketing initiatives designed to position themselves as the best one-stop shops for all consumer banking, credit card, loan and investment needs. When it comes to real-world customer satisfaction, though, the biggest drivers of success are low problem incidence and consistency across all lines of bank business, according to the inaugural JD Power 2017 National Bank Satisfaction Study,^SM released today.

The inaugural study is designed to provide a comprehensive view of customer experience with all bank product lines for the six national banks in the United States, which account for 45%^[1] of total in-market deposits nationwide. Evaluating bank customer experience across six factors—channel interactions; deposit accounts; credit accounts; investment accounts; convenience; and problem resolution—the study finds that PNC scores highest in overall customer satisfaction (855 on a 1,000-point scale), edging out Chase (854) by just one point. The two leaders far outperformed the national average customer satisfaction score of 835.

“The largest retail banks in the nation are playing a different game than smaller, regionally focused rivals, so they should be evaluated on their own scale,” said Bob Neuhaus, Financial Services Consultant at JD Power. “These banks offer a full line of products, including deposits, credit and investments, and to achieve high levels of customer satisfaction in every market, they must deliver consistently on all of these. Ultimately, our study shows that the ability to minimize customer problems and deliver consistently across all lines of business are among the keys to success in building that nationwide base of strong customer relationships.”

Following are key findings of the study:

• Banks cannot afford to make mistakes: The common denominator among the top-performing banks in the study is a lower number of reported problems, which can include such issues as incorrect fees and service charges; processing and transaction errors; unauthorized activity; and poor customer service. PNC and Chase tie for the lowest problem incidence in the study (10% of customers indicate having experienced a problem). On average, overall satisfaction among customers who did not experience problems is 845, which drops to 765 among those who experience just one problem.

• Consistency is critical to multiproduct strategy: Top-performing national banks excel in delivering consistent performance across all product lines, with PNC and Chase both outperforming the national average for overall satisfaction with deposit accounts, credit accounts, overall convenience and channel interactions. Importantly, overall satisfaction, loyalty and retention increase as the number of individual banking products used increases, with 71% of bank customer who use the bank for deposits, credit and investments saying they “definitely will” reuse the bank, compared with just 49% of customers who use the bank solely for deposits who say the same.

• Millennial money in motion: Younger customers in the Millennial[2] and Gen Z demographics are the most likely to have multiproduct relationships with their banks. Among Millennials, 22% maintain deposit, credit and investment accounts with their retail bank. That number increases to 24% of Gen Z customers, but falls to just 11% of Boomers and 15% of Gen X. This finding is noteworthy in light of the fact that 65% of Gen Y banking customers who have switched banks in the past year, have gone from a midsize bank to a big bank.

• Tailored financial advice, proactive contact drive trust: Among customers who indicate their bank provides financial advice that they trust, 86% say they received proactive contact from the bank tailored to their specific needs. Another 61% say the bank advice completely met their needs; 60% say they completely understand product features and benefits; and 58% say they are very satisfied with the fairness of fees.

Bank Rankings

PNC (855) performs highest in the study. The bank receives a rating of 6.33 on a 7-point scale for good reputation—the highest among the six national banks in the study—and ties with second-ranked Chase (854) for the lowest problem incidence in the study. U.S. Bank (842) ranks third in overall customer satisfaction.

The National Bank Satisfaction Study measures customer satisfaction for the six largest retail banks in the United States. The 2017 study is based on responses from more than 5,784 retail banking customers and was fielded in June-July 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 www.jdpower.com/about-us/press-release-info

 

Americans Love Streaming TV Services but Can’t Give Up ‘Destination Television,’ JD Power Finds

2017-09-27

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COSTA MESA, Calif.: 28 Sept. 2017 — Pay-TV subscribers in the United States are growing increasingly satisfied with over-the-top streaming TV services vs. traditional cable TV, but they also are spending nearly an hour more a week watching regularly scheduled television programming than they did two years ago. That increasingly complex consumer relationship with streaming and cable television is explored in detail in a trio of JD Power studies released today.

The related studies are the JD Power 2017 U.S. Residential Television Service Provider Satisfaction Study^SM; the JD Power 2017 U.S. Residential Internet Service Provider Satisfaction Study^SM; and the JD Power 2017 U.S. Residential Telephone Service Provider Satisfaction Study.^SM

“Although it seems like the world is consumed with the idea of cord-cutting in the wake of Hulu’s first Emmy and the proliferation of new shows on Netflix and Amazon, the number of current pay-TV customers who plan to cut the cord has actually declined, and the number of hours spent watching old-fashioned, time-slot television is growing,” said Peter Cunningham, Technology, Media, and Telecommunications Practice Lead at JD Power. “We’re seeing a trend toward the co-existence of traditional and alternative service providers, with each offering some lessons to the other on how best to drive an increase in customer satisfaction.”

Following are some of the key findings of the study:

• Streaming services make gains as traditional TV declines: Customer satisfaction with the overall streaming video service experience (7.91 on a 10-point scale) and performance and reliability (7.97) has slightly improved year over year. Conversely, overall satisfaction with traditional pay-TV services has fallen to 710 this year (on a 1,000-point scale) from 724 last year.
• Destination TV viewing reaches three-year high: Despite growing satisfaction with streaming video services and widespread use of DVR and video on-demand, the number of hours spent watching regularly scheduled television programs has increased by nearly an hour between 2015 and 2017. In a typical week, households have spent an average of 17.4 hours watching regularly schedule programming this year, up from 16.6 in 2015.
• Percentage of likely cord-cutters declines slightly: The percentage of customers who say they plan to cut the cord on pay-TV during the next 12 months has declined to 8% this year from 9% in 2016.
• Mobile app adoption low, but satisfaction high among early adopters: Nearly two-thirds (65%) of pay-TV customers never watch content from their provider via mobile app, and only 6% say they watch via mobile on a daily basis. However, overall satisfaction with pay-TV providers increases as the frequency that customers use a mobile app to watch their provider’s content increases.
• Billing errors present challenge and opportunity: Though the incidence of billing errors has steadily decreased over the past five years, hidden fees continue to be the most common billing error by a large margin. Provider efforts to address this have paid off. Billing satisfaction among customers who experienced a billing error and are given an automatic credit or refund slightly exceeds that among customers who did not experience any billing errors (768 vs. 760, respectively).

Provider Rankings

Residential Internet Service Provider Satisfaction Study

• Verizon ranks highest in the East region (737); AT&T/DIRECTV ranks highest in the North Central region (699); Charter Spectrum ranks highest in the South region (717); and Cox Communications ranks highest in the West region (706).

Residential Telephone Service Provider Satisfaction Study

• Verizon ranks highest in the East region (757); AT&T/DIRECTV ranks highest in the North Central region (733) and South region (742); and Cox Communications ranks highest in the West region (734).

Residential Television Service Provider Satisfaction Study

• AT&T/DIRECTV performs highest in overall satisfaction in the national segment with a score of 731.  Due to small market share, Verizon was not eligible for the national segment but does rank highest in the East region (755). DISH Network ranks highest in the North Central region (722) and South region (740). AT&T/DIRECTV ranks highest in the West region (726).

The annual wireline studies, now in their 16th year, evaluate residential customers’ experiences with TV, internet and phone services in four geographical regions: East, South, North Central and West. The ISP and telephone studies measure customer satisfaction across five factors: network performance and reliability; cost of service; billing; communication; and customer service. The TV study measures satisfaction in those same five factors plus a sixth: programming.

The 2017 U.S. wireline studies are based on responses from 27,415 customers nationwide who evaluated their cable/satellite TV, high-speed internet and telephone service providers. The studies were fielded in four waves: November 2016, January-February 2017, April-May 2017 and July 2017.

For more information about the 2017 U.S. wireline studies, visit http://www.jdpower.com/resource/us-residential-internet-service-provider-customer-satisfaction-study, http://www.jdpower.com/resource/jd-power-residential-telephone-customer-satisfaction-study or http://www.jdpower.com/resource/us-residential-television-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/about-us/press-release-info

 

September New Vehicle Retail Sales Pace to Rise to Highest Level of 2017 Amidst Disruption From Hurricanes

2017-09-28

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DETROIT: 29 Sept. 2017 — The new vehicle retail sales pace in September is expected to reach the highest level this year, 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 15.0 million units, flat from a year ago. Retail sales in September are anticipated to reach 1,213,102 units, a 2.6% decrease (selling day adjusted) compared with September 2016.

“Hurricanes Harvey and Irma have disrupted—and will continue to disrupt—new-vehicle retail sales in September and beyond,” said Thomas King, Senior Vice President of the Data and Analytics Division at JD Power.  “While, on a national basis, September month-to-date sales are down 0.8% from last year,  in the South Central region, which includes Houston, sales are up 14% as shoppers replace storm-damaged vehicles and complete purchases that were postponed during the storm.  In contrast, sales in the Southeast region, which includes Florida, are down 16% as the region and its vehicle retailers begin to return to normal operations.”

The sales decline in the Southeast will be reversed in the coming weeks as buyers completed delayed purchases, but the recovery will likely spill over into October.

Incentives have reached all-time highs as manufacturers continue with aggressive discounting to clear out record inventories of prior model year vehicles.  Average incentive spending per unit to date in September has set a new record at $4,050, surpassing the previous high of $4,024 in November 2016.  New model year vehicles account for just 17% of sales so far in September, compared with 28% last year.

“While the industry will benefit from additional replacement demand from storm damaged vehicles in the coming months, elevated incentives remain a threat to the overall health of the industry,” King said.

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

	September 20171	August 2017	September 2016
New-Vehicle Retail Sales	1,213,102 units (-2.6% lower than September 2016)2	1,264,453 units	1,197,020 units
Total Vehicle Sales	1,433,268 units (-4.0% lower than September 2016) 2	1,482,532 units	1,435,359 units
Retail SAAR	15.0 million units	12.8 million units	15.0 million units
Total SAAR	17.5 million units	16.1 million units	17.7 million units

¹Figures cited for September 2017 are forecasted based on the first 19 selling days of the month.
²September 2017 has 26 selling days, while September 2016 had 25 selling days in the month.

• The average new-vehicle retail transaction price to date in September is $31,058, a record for the month, surpassing the previous high for the month of $31,024 set in September 2016.
• Consumers are on pace to spend $37.7 billion on new vehicles in September, a record for the month and more than $0.5 billion than last year’s level.
• Average incentive spending per unit to date in September is $4,050 per unit, a record for the industry, and surpassing the previous high for the month of $3,939 set in September 2016. Spending on trucks and SUVs is $4,044, up $206 from last year. Spending on cars is $4,062, down $38.
• Incentives as a percentage of MSRP are at 11.1% so far in September, exceeding the 10% level for 14th time in the past 15 months.
• Trucks account for 65% of new-vehicle retail sales through Sept. 24—the highest level ever for the month of September—making it the 15th 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 75 through Sept. 24. This is the highest level since July 2009 (80 days).
• Fleet sales are expected to total 220,200 units in September, down 11.2% from September 2016 on a selling day adjusted basis. Fleet volume is expected to account for 15% of total light-vehicle sales, down from 17% in September 2016.

Jeff Schuster, Senior Vice President of Forecasting at LMC Automotive, said, “The effect of hurricanes Harvey and Irma is expected to boost retail light vehicle demand through the remainder of 2017 and into 2018, as recovery continues. With the need to replace 500,000 or more damaged or destroyed vehicles, the U.S. auto market slowdown will see some relief as demand over the next 6-9 months will likely be upwardly distorted. In addition, a short-term increase in fleet sales may also be an outcome as current shortages are replenished. However, this does not change the overall expectation of level to weaker demand in the U.S. over the next 2-3 years.”

Driven by vehicle replacement need, LMC’s outlook for 2017 total light-vehicle has been increased by 70,000 units to 17.1 million. The retail light-vehicle outlook has been increased to 13.9 million units from 13.8 million. As part of the increase in retail sales, we have made a minor adjustment the the retail/fleet pattern for the remainder of 2017. Retail sales are expected to be down 1.4% from 2016, while fleet volume is projected to contract by 8.0% this year.

U.S. Retail SAAR— September 2016 to September 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

 

 

JD Power Appoints Thomas King as Head of Data & Analytics

2017-09-29

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COSTA MESA, Calif.: 2 Oct. 2017 — Thomas King, a well-recognized industry leader in data and analytics, has been promoted to the new position of Senior Vice President of Data & Analytics at JD Power, the global leader in consumer data & analytics and advisory services. The appointment follows a comprehensive national search that included top external and internal candidates.

King, who has served in increasingly senior roles since joining JD Power in 2005, will lead the overall strategic direction of the company’s growing D&A segment, including oversight of revenue and profitability; business development initiatives; marketing; budget management; new product development and execution; and other general operational plans. King will join the executive committee and report directly to Finbarr O’Neill, Chief Executive Officer and President.

“Over the course of many years, Thomas has proven himself as an innovative, creative and analytical business leader at JD Power,” O’Neill said.  “Thomas is extremely qualified for this new role and we’re very confident that his vision and execution will be crucial components to help drive our Data & Analytics segment to new levels beyond our existing industry-leading position.  The growth of our Data & Analytics and advisory services further underscores the expansion initiatives underway at JD Power.”

Most recently, King served as Vice President, PIN OEM Operations, Digital Marketing Analytics, and Auto Finance. In this role, he led the company’s newly combined PIN, Digital Marketing Analytics and Auto Finance practices. Additionally, he played a key role in acquisition and integration of NADA Used Car Guide as well as the launch of JD Power Residual Values.

“It is a privilege to be selected for this important new role within JD Power,” King said. “I look forward to continuing to identify strategic opportunities to grow this business alongside a group of talented and dynamic professionals.”

Previously, he was the Senior Director of PIN Consulting & Analytics and was responsible for the ideation, creation and delivery of all PIN client-facing services including analytical reports and consulting services. He began his career as a market analyst at General Motors. King holds a Master of Materials Science, Economics and Management degree from Oxford University.

“Thomas has a proven ability to lead and transform high-performing business units to deliver sustained revenue and profit growth,” Joseph Pacini, Chief Executive Officer of XIO Group, said. “I am certain he will be a great leader for the Data & Analytics business as we build to fulfill the future needs of JD Power’s clients.  Thomas’ prior experience with the team is paramount to continue to drive strong results for JD Power’s fastest-growing segment and largest contributor to EBITDA at the firm.”

King’s appointment follows the appointment of Bernardo Rodriguez to the newly created position of Chief Digital Officer at JD Power, and is part of the company’s growth momentum in automotive advancement, innovation and further digitalization of its businesses.

JD Power is a global leader in consumer insights, advisory services and data and 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 global alternative investments firm headquartered in London with more than $3.2 billion of committed capital that 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; JD Power; 714-621-6224; [email protected]  
Brian Shiver; XIO Group; 212-850-5683; [email protected]

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

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Cash-Back Credit Cards Score Highest as Banks, Card Companies Wage Incentive War, JD Power Finds

2017-08-15

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COSTA MESA, Calif.: 17 Aug. 2017 — A perfect storm of increasing interest rates, deeper credit card penetration and persistently strong consumer spending has ratcheted up competition and created a customer incentive war among banks and credit card companies. According to the JD Power 2017 Credit Card Satisfaction Study,SM one incentive driving the high levels of overall satisfaction among credit card customers is cash-back rewards.

“It’s a really good time to be a credit card customer. Overall satisfaction is up across the board, and growing numbers of card companies and regional banks are coming to the market with new products that offer rich sign-up bonuses, increased cash-back rewards and new benefits,” said Jim Miller, Senior Director of the Banking Practice at JD Power. “The key for issuers in this highly competitive marketplace is to develop strategies that increase customer satisfaction, which, in turn, decrease attrition and promote higher levels of credit card spend.”

Following are some of the key findings of the study:

• Cash (back) is king: Overall customer satisfaction with credit card issuers reaches its highest level in the history of the study (802 on a 1,000-point scale), but scores are highest for cards that provide cash-back rewards programs. By contrast, airline cards and store-branded Visa/MasterCard rewards credit cards have the lowest levels of satisfaction among rewards cards.

• Regional banks getting competitive with large Visa/MasterCard issuers: Regional banks are focused on increasing credit card penetration among their customer base. The number of active regional bank credit card accounts has increased 24% since Q4 of 2014. Additionally, satisfaction scores for regional banks are holding their own against larger national brands. On average, there is just a 10-point difference in overall satisfaction between regional bank card issuers and national Visa/MasterCard issuers.

• Digital channel plays key role: Credit card issuer websites and mobile offerings are playing an increasingly important role in cardholder satisfaction. When customers do not use either digital channel, satisfaction is only 780.  Satisfaction rises to 807 when customers use online only and increases further to 827 among customers who use mobile only. Satisfaction is highest (834) when customers use a combination of online and mobile.

• Customer satisfaction diverging between older and younger customers: Although overall satisfaction scores are nearly identical among customers who are over 40 years old and those who are under 40, the trend line is diverging between the two age groups. Customers over 40 are becoming more satisfied, while satisfaction scores among customers under 40 are declining. Younger customers are more likely to spread spending across multiple cards and also indicate a greater propensity to switch their primary credit card. Among older customers who are likely to switch cards, the primary reason is for better rewards (44%), while younger customers are most likely to switch for better benefits (38%).

Study Rankings 

American Express (835) ranks highest in customer satisfaction with credit card issuers, followed by Discover (827) and Capital One (808).

The study, now in its 11th year, measures customer satisfaction with credit card issuers by examining six factors (in descending order of importance): interaction; credit card terms; billing and payment; rewards; benefits and services; and problem resolution.

The 2017 U.S. Credit Card Satisfaction Study includes responses from 22,896 credit card customers. The study was fielded from September 2016 through June 2017.

For more information about the 2017 U.S. Credit Card Satisfaction Study, visit http://www.jdpower.com/resource/us-credit-card-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/about-us/press-release-info

 

David Pieffer Joins JD Power as Property & Casualty Insurance Practice Lead

1970-01-01

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COSTA MESA, Calif.: 21 Aug. 2017 — David Pieffer, a 30-year insurance industry veteran, has been named to the newly created position of Property & Casualty Insurance Practice Lead at JD Power, the global leader in consumer insights, advisory services and data and analytics.

Pieffer will be responsible for advancing the growth of JD Power’s core P&C insurance practice. In this role, he will lead the ongoing development and expansion of JD Power’s syndicated studies and proprietary P&C insurance industry services in North America.

“David is a seasoned professional with deep experience across all aspects of the P&C insurance industry,” said Greg Hoeg, Vice President and General Manager, Insurance Operations, Americas, at JD Power. “His insights from both the underwriting and senior leadership vantage points will be critical as we continue to expand our insurance practice.”

Pieffer joins JD Power from Samsung Fire & Marine Management Corp., where he served as President and CEO, responsible for the development and leadership of a $150 million start-up insurance company. While there, he built the organization from the ground up, overseeing everything from securing state filings to write policies throughout the United States to developing an IT infrastructure to support underwriting, claims, reporting, reinsurance and accounting functions.

“The break-neck pace of change and the fierce level of competition in the P&C insurance business has made it more critical than ever for insurers to keep their fingers on the pulse of the consumer,” Pieffer said. “I have long admired JD Power’s voice of the customer insights as a single source of truth in an otherwise noisy marketplace and I look forward to being a part of the firm’s continued growth as we refine and expand our P&C offerings.”

Previously, Pieffer served as Vice President at Crum & Forster Insurance Co., where he built the firm’s commercial middle market package business. He also served as Senior Vice President and Chief Underwriting Officer at Tokio Marine & Nichido Fire Insurance Co. where he helped to expand the company’s domestic U.S. operations. He also held senior positions with American International Underwriters and Maryland Casualty/Zurich North America.

Pieffer holds a bachelor’s degree in political science from Miami University of Ohio.

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/about-us/press-release-info

 

JD Power 2017 Seat Quality and Satisfaction Study

2017-08-22

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COSTA MESA, Calif.: 24 Aug. 2017— The JD Power 2017 Seat Quality and Satisfaction Study^SM provides automotive manufacturers and suppliers with quality and satisfaction information related to seating systems. New-vehicle owners are asked to rate the quality of their vehicle’s seats and seat belts with respect to whether they have experienced defects/malfunctions or design problems during the first 90 days of ownership.

The study presents seven segment awards based on the JD Power vehicle segment designations: mass market compact car; mass market compact SUV/MPV; mass market midsize/large car; mass market midsize/large SUV; mass market truck/van; luxury car; and luxury SUV.

For each segment, the award for Highest Quality Seats is based exclusively on the total seat problems per 100 (PP100) score (seat quality within segment). Awards are presented to the seating system supplier.

The 2017 Seat Quality and Satisfaction Study is based on responses from more than 77,000 purchasers and lessees of new 2017 model-year cars and light trucks registered in November-December 2016 and January-February 2017. The study was fielded from February through May 2017.

Media Relations Contacts
Geno Effler; JD Power; 714-621-6224; [email protected]
Jillian Breska; JD Power; 714-481-9115; [email protected]

 

The Secret to Wireless Network Quality: An Unlimited Data Plan, According to JD Power Study

2017-08-22

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COSTA MESA, Calif.: 24 Aug. 2017 — In addition to bars, dropped calls, and other conventional measures of network performance, customer perception of wireless network quality is about access to unlimited amounts of data, according to the JD Power 2017 U.S. Wireless Network Quality Performance Study^SM—Volume 2, published today. The study finds that customers with unlimited data plans experience a lower incidence of overall network problems, data problems, messaging problems, and calling problems than those with data allowances.

“Whether a customer has unlimited data or a data allowance on their wireless plan should not really affect their overall network quality, but our data shows that—consistently—wireless customers who are not worried about data overages have a much more positive perception of their network’s quality,” said Peter Cunningham, technology, media, and telecommunications practice lead at JD Power. “This is a critical insight into wireless customer psychology for carriers who’ve been engaged in battle over unlimited data plans for the past several months.”

Following are some of the key findings of the study:

• Unlimited data emerges as great equalizer for wireless network quality: Customers with unlimited data plans experience an average of 11 overall network quality problems per 100 (PP100) connections vs. an average of 13 PP100 among customers with data allowances. They also have lower incidences of data problems (15 PP100 vs. 16PP100, respectively); messaging problems (5 PP100 vs. 6 PP100); and calling problems (12 PP100 vs. 15 PP100). This trend holds true among both power users (100 or more network connections in the previous 48 hours) and lighter users (fewer than 100 network connections in the previous 48 hours).

• Quality improves across the board: On a national basis, customers experience an average of 11 overall network quality PP100, a decrease of 2 PP100 from the 2017 Vol. 1 Study. Incidences of calling problems (13 PP100), messaging problems (5 PP100), and data problems (16 PP100) have decreased by 3 PP100, 2 PP100, and 1 PP100, respectively, from the Vol. 1 Study.

• Need for speed: Customers with unlimited data are impressed with data speeds, which likely contributes to their perception of fewer problems: 18% say speeds are “faster than expected” vs. 13% among those with data allowances and 70% say speeds are “as expected” vs. 75% among those with data allowances. In both groups, 12% say speeds are “slower than expected”.

• Number of unlimited data customers trending up: The number of customers with unlimited data plans has increased to 28% from 23% in the 2017 Vol. 1 Study. Among the four major carriers, Sprint has the highest percentage of unlimited data customers (59%), followed by T-Mobile (47%), AT&T (24%) and Verizon Wireless (14%).

Study Rankings 

Verizon Wireless ranks highest in all six regions covered in the study, with lower PP100 scores than the regional averages in call quality, messaging quality and data quality. U.S. Cellular ranks highest in a tie with Verizon Wireless in the North Central region.

Methodology

The 2017 U.S. Wireless Network Quality Performance Study—Volume 2 is based on responses from 35,105 wireless customers. Carrier performance is examined in six geographic regions: Northeast, Mid-Atlantic, Southeast, North Central, 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 January through June 2017.

For more information about the U.S. Wireless Network Quality Performance Study, visit http://www.jdpower.com/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 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/about-us/press-release-info