Category: United States

Health Plan Satisfaction Driven by Coordination of Care with Providers, JD Power Finds

2017-05-24

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COSTA MESA, Calif.: 25 May 2017 — Coordination of care among healthcare providers is the single most important criteria influencing member satisfaction with their health plan, according to the JD Power 2017 Member Health Plan Study,^SM released today.

 “Amidst sweeping changes in healthcare delivery and payment models, our data is showing that the one thing consumers value most is clear-cut, easy access to doctors and other healthcare providers,” said Valerie Monet, senior director of U.S. insurance operations at JD Power. “This puts health insurers in a unique positon because so much of their perceived value is reliant upon positive interactions with providers. These findings set the stage for the future of healthcare in which close coordination among health plans and providers that reduces friction points for members will be the key to success.”

 Key Findings

• Close coordination is lacking among health plans and providers: The single most effective lever of health plan member satisfaction is helpful coordination of care among doctors and other healthcare providers. The ability to help members successfully navigate among providers is associated with a 136-index point (on a 1,000-point scale) increase in overall customer satisfaction.  Yet, just 25% of health plan members report receiving this service from their health plan.

• Integrated delivery systems dominate rankings: Health plans that utilize an integrated delivery system (IDS)—a network of healthcare and health insurance organizations presented to members as a single delivery organization—outperform traditional health plans on every factor measured in the study.

• Presenting low-cost narrow network options improves satisfaction: Although having access to a limited network of care providers can potentially become a friction point for members, health plans that have a narrow or tiered network also have the potential to reduce costs for commercial health plan members. Regardless of product choice, members who were presented with lower-cost narrow network options were significantly more satisfied with their health plan versus those who were not offered such an option or did not know whether it was offered. However, just 33% of respondents say they were offered a narrow network option.

• The effect of payer-provider alliances is mixed: Aetna, Cigna, Anthem, and many other providers have begun to offer commercial products in collaboration with specific providers in the past few years. Partnerships vary from less integrated contractual agreements to highly integrated health system purchases. JD Power found mixed results when it examined member satisfaction with the plans in instances when members are being served by providers that are a part of a collaborative care model. Expected improvements in satisfaction related to relationship with the physician were seen in some areas but not in others. Regardless of the satisfaction associated with the plans/products at a high level, there is significant opportunity to improve member understanding of how a plan works and what is covered in advance of enrollment.

Study Rankings

Satisfaction is highest among health plan members in the five regions: Maryland (723); East South Central (722); California (716); Michigan (716); and Ohio (714). Satisfaction is lowest among members in the Colorado (676) and Northeast (682) regions.

Kaiser Foundation Health Plan ranks highest in six regions: Maryland, South Atlantic, California, Virginia, Northwest and Colorado. The following plans rank highest in at least one region: Highmark BlueCross BlueShield of Delaware; BlueCross BlueShield of Tennessee; AvMed; Wellmark BlueCross BlueShield of Iowa; Health Alliance Medical Plans; BlueCross BlueShield of Massachusetts; Health Alliance Plan of Michigan; Unity Health Plans; SelectHealth; Horizon BlueCross BlueShield; Capital District Physicians Health Plan; BlueCross BlueShield of Vermont; Medical Mutual of Ohio; UPMC Health Plan; BlueCross BlueShield of Arizona; and Humana.

The Member Health Plan Study, now in its 11^th year, measures satisfaction among members of 168 health plans in 22 regions throughout the United States by examining six key factors: coverage and benefits; provider network; communication; claims processing; premiums; and customer service. The study also touches on several other key aspects of the experience including plan enrollment and member engagement.

The study is based on responses from 33,624 commercial health plan members and was fielded in January-March 2017. To see comprehensive health plan rankings for all 22 U.S. regions, visit www.jdpower.com.

For more on the study, visit http://www.jdpower.com/resource/us-member-health-plan-study.

See the online press release at http://www.jdpower.com/pr-id/2017065.

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.

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

 

New Vehicle Sales Pace to Drop Again in May, Lowering 2017 Outlook

2017-05-24

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DETROIT: 25 May 2017 — The new vehicle retail sales pace in 2017 is expected to be lowest for the month of May since 2013, according to a forecast developed jointly by JD Power and LMC Automotive.

With one additional selling day in 2017, retail sales in May are anticipated to reach 1,222,000 units, a 2.9% decrease compared with May 2016 on a selling-day-adjusted basis.  The seasonally adjusted annualized rate (SAAR) for retail sales in May is expected to be 13.4 million units, a decrease of 212,000 units from a year ago. With the slowdown expected to continue in the second half of the year, LMC Automotive is reducing its retail light-vehicle sales forecast for 2017 to 13.9 million units.

Incentive spending for the industry continues to rise, and through the first 11 days of May was $3,583 per unit, the highest level ever for the month of May and up $241 from May 2016 ($3,342). Incentives as a percentage of MSRP were at 9.9%, and on pace to exceed the 10% level for 10th time in the past 11 months.

“While consumers will see substantial discounts this Memorial Day weekend, they are not expected to overcome the slowing demand in auto sales,” said Deirdre Borrego, senior vice president of automotive data and analytics at JD Power. “The holiday weekend is one of the heaviest trafficked car-buying periods and, in 2016, the Friday-Monday selling period accounted for more than 20% of May retail sales.”

Despite maintaining record incentive levels, the average days to turn for the industry is above 70 days for the first time since 2009. More than 27% of vehicles sold so far in May sat on dealer lots for more than 90 days, up from 25% last year. “Continued elevated incentives reflect the challenges of balancing record levels of inventory and are likely to remain elevated unless production is adjusted to meet consumer demand,” Borrego said.

• The average new-vehicle retail transaction price to date in May is $31,419, a record for the month, surpassing the previous high for the month of $30,886 set in May 2016.
• With record transaction prices for the month, consumers are on pace to spend $38.4 billion on new vehicles in May, about $1 billion more than last year’s level and a record for the month.
• Average incentive spending per unit to date in May is $3,583 per unit, a record for the month, and surpassing the previous high for the month of $3,342, set in May 2016. Spending on trucks and SUVs is $3,358, up $187 from last year, while on spending on cars is $3,942, up $344.
• Trucks account for 61.7% of new-vehicle retail sales so far in May—the highest level ever for the month of May—making it the 11th consecutive month above 60%.  
• Days to turn, the average number of days a new vehicle sit on a dealer lot before being sold to a retail customer, reached 71 through May 14. This is the highest level for any month since July 2009 (80).
• Fleet sales are expected to total 320,300 units in May, down 5.8% from May 2016 on a selling day adjusted basis. Fleet volume is expected to account for 20.8% of total light-vehicle sales, a decrease from 21.3% in May 2016.

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said: “On the surface, continued downward pressure on auto sales since the beginning of the year is troubling. However, we believe some of the weakness year-to-date has been exaggerated by jitters over policy risk with the Trump administration. If uncertainty dissipates and tax cuts are initiated—or OEMs engage higher incentives—stronger demand could return for an encore performance in the second half of the year. However, the industry still must deal with negative effect of a growing used car market and the notion of rising interest rates, both of which are real risks to future volume and potential growth.”

A reassessment of market indicators and uncertainty risk has led to a reduction in the outlook for this year. LMC’s forecast for 2017 total light-vehicle sales has been cut to 17.2 million units, down from 17.5 million previously and a decline of -2.0% from 2016. The retail light-vehicle outlook has also been cut from 14.2 million units to 13.9 million units, a decline of -1.4% from 2016. The reduction in fleet volume has outpaced that of retail with fleet volume expected to be down -4.5% from 2016.

U.S. Retail SAAR—May 2016 to May 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; 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

 

Customer Satisfaction Improves among Home Improvement Retailers, JD Power Finds

2017-06-06

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COSTA MESA, Calif.: 7 June 2017 — In the growing home improvement market that is expected to reach $360 billion in consumer spending this year, overall customer satisfaction with home improvement retailers is increasing right along with it, according to the JD Power 2017 Home Improvement Retailer Satisfaction Study,^SM released today. On a 1,000-point scale, overall customer satisfaction increases to 816, up from 795 in 2016.

“Even in a large market like home improvement, it’s the attention to detail that can affect customer satisfaction,” said Greg Truex, senior director of the at-home practice at JD Power. “Home improvement retailers understand that customers with higher levels of satisfaction are more likely to repurchase and more likely to recommend to their friends and family.”

The three key performance indicators (KPIs) that have the highest effect on satisfaction are (in order of importance): number of times received sale/promotional flyers/brochures (received more than once in past 12 months); quality of merchandise (above expected); and length of time waited for greeting (waited less than 5 minutes).

There is a significant association with the number of top KPIs met and the likelihood to repurchase and recommend. When each of the top three KPIs are met, 72% of customers say they “definitely will” repurchase from the retailer. When two KPIs are met, that percentage drops to 47%. When one or no KPI is met, the percentages drop further to 36% and 24%, respectively.

Following are some findings of the 2017 study.

• Satisfaction drives loyalty: Among delighted customers (overall satisfaction scores of 901 and above), 73% say they “definitely will” repurchase from the retailer, compared with the study average of 41%. Additionally, 78% of delighted home improvement retailer customers say they “definitely will” recommend the retailer to others, compared with the study average of 43%.

• Expressing the loyalty: Nearly three-fourths (72%) of delighted customers say they “strongly agree” that they are loyal to their retailer, compared with the study average of 40%. A similar percentage (70%) of delighted customers say they “strongly agree” that if they were unable to be a customer of their primary retailer, they would be disappointed, compared with the study average of 41%. Additionally, 82% of delighted customers say they “strongly agree” they are proud to be a customer of their primary retailer, compared with the study average of 47%.

• Delightful experience influences recommendations: Among delighted customers, the average number of positive recommendations is 4.3, compared with the study average of 2.7.

Home Improvement Retailer Satisfaction Rankings

Ace Hardware (835) ranks highest in customer satisfaction among home improvement retailers for an 11th consecutive year. Ace Hardwarescores significantly higher than the study average in the staff and service factor (+53 points) as well as store facility (+16 points), driven by strong attribute ratings for availability and knowledge of sales staff; availability of desired merchandise; and availability of product information.

Menards (824) ranks second and Lowe’s (817) ranks third.

The 2017 Home Improvement Retailer Satisfaction Study measures customer satisfaction with home improvement retailers by examining five factors (in alphabetical order): merchandise; price; sales and promotions; staff and service; and store facility.

The study is based on responses from 2,751 customers who purchased home improvement-related products from a home improvement retailer within the previous 12 months, and was fielded in February-March 2017.

For more information about the JD Power Home Improvement Retailer Satisfaction Study, visit http://www.jdpower.com/resource/us-home-improvement-retailer-satisfaction-study.

See the online press release at http://www.jdpower.com/pr-id/2017078.

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.

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

 

Ease of Use, Data Security Are Priorities for Bank and Credit Card Mobile App Users, JD Power Finds

2017-06-12

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COSTA MESA, Calif.: 13 June 2017 — While retail bank and credit card customers now prefer mobile to all other channels for interaction, not all mobile apps are created equal, according to the JD Power 2017 U.S. Banking App and U.S. Credit Card App Satisfaction Studies,^SM released today. The studies find that ease of use is the key differentiator among top-performing mobile apps and data security remains a hurdle to new customer adoption.

These inaugural studies measure overall satisfaction with mobile banking and credit card applications based on five factors (in order of importance): ease of navigation; appearance; clarity of information; range of services; and availability of key information.

“Even with the mobile channel having the highest satisfaction and consistency of all channels, adoption is stubbornly low—particularly when compared with overall smartphone penetration,” said Bob Neuhaus, director, financial services at JD Power. “The challenge for both retail banks and credit card companies is to establish accessible entry points that ease resistant customers onto the mobile channel where they will, in all likelihood, quickly find that they are very satisfied with the experience.”

Key Findings

• Making it look easy: Ease of use/navigation is the most heavily weighted driver of satisfaction among mobile banking and credit card app users. The studies show that the specific features most commonly associated with ease of use are login process; access to account information; and overall ease of managing the account. These make functionality such as fingerprint login, streamlined access to account balances and account transfer incredibly important variables in a successful banking or credit card app.
• Trust still a hurdle: With just 31% of retail bank customers and 17% of credit card customers currently utilizing mobile apps, banks and credit card companies still have a long way to go to win over those customers who are holdouts. One obstacle to overcome is trust, with less than half of respondents (44% for bank customers, 46% for credit card customers) saying they perceive their online information to be “very secure.” Additional research from JD Power has found that just 32% of bank customers say they trust mobile banking.

• Younger customers embrace mobile payment: More than two-thirds (69%) of study respondents indicate they have used a mobile payment service in the past 30 days.  That number jumps to 76% among Millennials and Gen Z.¹ This evidence suggests that efforts to integrate mobile payments with the mobile banking and credit card app experience would be beneficial.

Study Rankings

Capital One ranks highest in overall satisfaction in the retail bank category with a score of 870 (on a 1,000-point scale).  Bank of America follows with a score of 865, and TD Bank ranks third with a score of 860. Illustrating the tight competition in the mobile app space, just 32 index points separates the highest-ranked and lowest-ranked performers in the study.

Discover ranks highest in overall satisfaction in the credit card category with a score of 895. Capital One follows with a score of 888 and Barclaycard ranks third with a score of 886.

The 2017 U.S. Banking App and U.S. Credit Card App Satisfaction Studies are based on responses from 5,564 retail bank and credit card customers nationwide. Both studies were fielded in April-May 2017.

To learn more about the U.S. Banking App Satisfaction Study and U.S. Credit Card App Satisfaction Studies, visit http://www.jdpower.com/resource/us-banking-and-us-credit-card-mobile-app-satisfaction-studies.

See the online press release at http://www.jdpower.com/pr-id/2017080.

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.

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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¹ JD Power defines the generations as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); Gen Z (1995-2004). Millennials are defined as those born between 1982-1994.

 

It’s Clear: Salesperson Interaction Key to Increased Customer Satisfaction with Windows, Patio Doors

2017-06-13

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COSTA MESA, Calif.: 14 June 2017 — When a salesperson spends time talking with a consumer about the qualities of windows and patio doors, satisfaction increases significantly, according to the JD Power 2017 Windows and Patio Doors Satisfaction Study,^SM released today. Surprisingly, though, fewer than two-thirds (61%) of customers indicate they spoke with a sales associate at length about these products.

“There’s a clear connection between a customer’s level of product knowledge and level of satisfaction,” said Greg Truex, senior director of the at-home practice at JD Power. “Satisfaction is crucial because it leads to more recommendations and increased brand loyalty, which are important in a $4 billion-a-year industry.”

The study shows that satisfaction is significantly higher among customers who spoke with a sales associate at length rather than briefly or not at all (858 vs. 830, respectively, on a 1,000-point scale). Additionally, satisfaction is higher among customers whose salesperson explained the ordering process than among those who did not receive an explanation (853 vs. 813, respectively).

Timeliness is crucial, too, as satisfaction is significantly higher among customers whose windows and/or patio doors were delivered on the date promised than among those whose delivery did not arrive on the promised date (852 vs. 752, respectively).

From a customer advocacy and loyalty perspective, 79% of delighted windows and patio doors customers say they “definitely will” recommend the brand to others, compared with the study average of 45%.  Also, among delighted customers (overall satisfaction scores of 901 and above), 73% say they “definitely will” repurchase the brand, compared with the study average of 41%.

Among delighted customers, the average number of positive recommendations is 5.1, compared with the study average of 3.4.

Window and Patio Door Satisfaction Rankings

American Craftsman (855) ranks highest in customer satisfaction among window and patio door brands and performs particularly well in price. Andersen (854) ranks second, followed by Renewal by Andersen and Window World (both 849). Overall satisfaction with windows and patio doors is 840, up from 811 in 2016.

Now in its 11th year, the JD Power Windows and Patio Doors Satisfaction Study measures satisfaction among customers based on performance in five factors (in alphabetical order): appearance and design features; operational performance and durability; ordering and delivery; price paid for products and services received; and warranty.

The study is based on survey responses from 1,904 customers who purchased windows or patio doors within the previous 12 months. The study was fielded in February-March 2017.

For more information about the JD Power Windows and Patio Doors Satisfaction Study, visit http://www.jdpower.com/resource/jd-power-windows-and-patio-doors-satisfaction-study.

See the online press release at http://www.jdpower.com/pr-id/2017081.

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.

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

 

Original Equipment Tire Fitments Have Brand Loyalty Traction with New Vehicle Owners, JD Power Finds

2017-03-23

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COSTA MESA, Calif.: 23 March 2017 — Vehicle owners that need to replace their tires are likely to purchase the same brand that was originally fitted on their new vehicle, according to the JD Power 2017 U.S. Original Equipment Tire Customer Satisfaction Study,^SM released today.

The study finds that 37% of owners who replaced two or more tires on their vehicle selected the same tire brand that was fitted on their new vehicle when they first drove it off the dealership lot. This gives the original equipment (OE) tire brands the inside track in the highly competitive replacement market. Original equipment tire brands have the highest market share when vehicle owners replace at least two tires in their first two years of ownership: 62% of these owners purchased either Michelin (21%), Goodyear (12%), Continental (11%), Bridgestone (11%) or Pirelli (7%), while 38% purchased other brands.

“Tire manufacturers who have their products fitted to new vehicles have a great advantage over their competitors,” said Brent Gruber, senior director, automotive quality practice at JD Power. “A large number of vehicle owners do not even consider other brands when buying replacement tires. As long as they have a positive experience with their OE tires, there is a natural tendency for consumers to select the same brand for their first replacement.”

The study further reports that luxury vehicle owners more frequently purchase the OE tire brand for their vehicle (58% stay loyal) than mass market vehicle owners (31%). Additionally, luxury vehicle owners have a higher intent to return to a car dealership (46%) for new tires as compared to mass market vehicle owners returning to a dealership (33%) for tire replacement.

“New vehicle dealerships can put themselves in a great position to increase service department revenues through tire-related business,” Gruber added. “The key is to ensure that dealership tire inventories remain stocked with options that include OE tires and that the service personnel are properly trained about how those tires were specifically engineered to maximize vehicle performance, particularly for luxury vehicle owners.”

Study Rankings

Michelin ranks highest in all four segments: luxury (764); passenger car (743); performance sport (746); and truck/utility (712).

In the luxury segment, Pirelli ranks second (722) and Bridgestone ranks third (712). In the passenger car segment, Pirelli ranks second (710) and Goodyear ranks third (702). In the performance sport segment, Goodyear ranks second (728) and Bridgestone ranks third (711). In the truck/utility segment, Goodyear ranks second (687) and BFGoodrich ranks third (667).

Additional key findings of the 2017 study include:

• New vehicles need flat tire solutions: More than half of tire replacements in the first two years of ownership are a result of road hazard damage, flats or blowouts. A significant proportion of luxury owners reported that their vehicle does not come with a flat tire solution—including either a temporary spare, full-size spare, sealant kit, inflation kit or collapsible spare. However, many luxury vehicles do include run-flat tires, yet owners may not be aware of this.
• Lease rates increase: According to the Power Information Network® (PIN) from JD Power, U.S. new light-vehicle sales reached an all-time record of 17.53 million units in 2016 while lease rates increased to 30% of retail sales, up from 24% in 2013.  The rise in leasing rates is important for tire manufacturers because the 2017 U.S. Original Equipment Tire Customer Satisfaction Study,^SM finds that 44% of lessees who replaced two or more tires selected the same tire brand as opposed to 35% of those who purchased their vehicles.
• Poor weather traction improvement: Across the four vehicle tire segments, customer satisfaction with poor weather traction has increased and the number of wet road traction problems decreased between the 2015 and 2017 studies.

About the Study

The 2017 U.S. Original Equipment Tire Customer Satisfaction Study measures tire owner satisfaction in four vehicle segments: luxury; passenger car; performance sport; and truck/utility. Satisfaction is examined in four measures: tire wear; tire ride; tire appearance; and tire traction/handling. Study rankings are based solely on owner experiences with their tires after two years of vehicle ownership.

The study is based on responses from 29,622 owners of 2015 and 2016 model-year vehicles, and was fielded between October and December 2016.

For more information about the 2017 O.E. Tire Customer Satisfaction Study, visit http://www.jdpower.com/resource/us-original-equipment-tire-customer-satisfaction-study.

See the press release online at http://www.jdpower.com/pr-id/2017032.

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.

Media Relations Contacts

Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]
Shane Smith; Okatie, S.C.; 424-903-3665; [email protected]

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

 

Auto Sales Expected to Increase Slightly in March, Helped by Rising Incentives

2017-03-23

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DETROIT: 24 March 2017 — The auto industry will see its first year-over-year monthly increase of 2017 as March retail sales are expected to increase 2.4%, according to a forecast developed jointly by JD Power and LMC Automotive. Total sales are expected to increase 1.6%.

U.S. new-vehicle retail sales in March are expected to reach 1,245,700 units, a 2.4% increase compared with March 2016, while total light-vehicle sales are expected to reach 1,620,300 units, a 1.6% increase. March will be only the second month in the last 13 in which the retail market has grown by more than 2%.

“The sales growth in March will enable 2017 to move slightly ahead of 2016 on a year-to-date basis,” said Deirdre Borrego, senior vice president of automotive data and analytics at JD Power. “However, the competitiveness of the industry continues to be evident in ever-rising incentive levels. Incentives will reach a new high for the month of March and will exceed the 10%-of-MSRP threshold for the ninth consecutive month.”

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

	March 20171	February 2017	March 2016
New-Vehicle Retail Sales	1,245,700 units (2.4% higher than March 2016)	1,028,393 units	1,215,906 units
Total Vehicle Sales	1,620,300 units (1.6% higher than March 2016)	1,331,524 units	1,594,946 units
Retail SAAR	13.2 million units	13.8 million units	12.8 million units
Total SAAR	17.3 million units	17.5 million units	16.8 million units

¹ Figures cited for March 2017 are forecasted based on the first 16 selling days of the month.

• The average new-vehicle retail transaction price to date in March is $31,074, a record for the month, and surpassing the previous high of $31,049 set in March 2016.
• Average incentive spending per unit through March 12 is $3,768, a record for the month, and surpassing the previous high of $3,609 set in March 2009. Incentives as a percentage of MSRP are 10.4%, exceeding the 10% level in March for the first time since 2009. Then, it reached 11.3% as the industry was navigating the financial collapse of 2008/2009.
• With record transaction prices for the month and slightly higher retail sales volumes, consumers are on pace to spend $38.7 billion on new vehicles in March, about $1 billion more than last year’s level and a record for the month.
• Trucks account for 61.5% of new-vehicle retail sales so far in March—the highest level ever for the month of March—making it the ninth consecutive month over 60%.  However, truck sales mix is down slightly from December’s all-time record level of 64.4%.
• Days to turn, the average number of days a new vehicle sit on a dealer lot before being sold to a retail customer, reached 70 in the first 19 days of March—the highest level for any month since July 2009 (80).
• Fleet sales are expected to total 374,600 units in March, down 1.2% from March 2016. Fleet volume is expected to account for 23.1% of total light-vehicle sales, a slight decline from 23.8% in March 2016.

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said: “As the first quarter comes to a close, light-vehicle demand in the United States remains stable and is expected to average 17.4 million units year-to-date. The President’s policy direction is taking center stage as potential positive and negative drivers of auto sales over the next 18 months. A border tax could have massive negative implications with more than 2 million units of new-vehicle demand at risk if imported vehicles and parts are taxed at 20%. Such a tax would increase the average price of all vehicles by 11% and could set off a trade war pulling the country into a recession.”

Despite the policy uncertainty, LMC is maintaining its forecast of total light-vehicle sales in 2017 at 17.6 million units, an increase of 0.2% from 2016. The forecast for retail light-vehicle sales is now expected to round up to 14.2 million units from 14.1 million units in 2016.

(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; 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

 

Delivering Great Content is Key No Matter What Device Consumers Use, JD Power Finds

2017-03-29

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COSTA MESA, Calif.: 29 March 2017 — Each automotive third-party website has its own individual strengths and weaknesses when delivering content across device platforms, according to the JD Power 2017 U.S. Automotive Website Evaluation Study Cross-Device.^SM

The redesigned study concurrently evaluates automotive third-party websites from two perspectives across multiple platforms (desktop/mobile): overall site function and the importance of various site features to online shoppers. This study examines which current site functions and designs are most effective in helping shoppers narrow their consideration set and increasing their likelihood to recommend and return to the website.

“Over the past five years, we’ve seen an explosion of innovation that has been employed by third-party automotive sites, among others, to guide automotive shoppers through the process,” said Thomas King, vice president of PIN OEM operations, media & marketing at JD Power. “However, in the end, it always comes back to content and we have found that the top-performing sites are better at delivering key information on different devices.”

In order to maximize website update efforts and reduce development costs, automotive brands need an understanding of what drives satisfaction with third-party sites and ultimately increases return visits and advocacy, and must look to the top performers to understand what sets them apart.  Cars.com and Kelley Blue Book, which are the top-ranking brands in desktop and mobile satisfaction, offer a great experience in key ways.

Cars.com offers shoppers very detailed vehicle feature and specification information in an intuitive way to access information. Additionally, Cars.com offers a wealth of other tools to help shoppers choose the right vehicle, including multiple financial calculators, inventory search and consumer/expert and dealer reviews.

Kelley Blue Book consistently offers intuitive dealer locator and inventory search tools that are critical to mobile shoppers, particularly those who are actively shopping.  Furthermore, the site offers platform-appropriate content such as 360 exterior/interior viewers to help shoppers understand the vehicles inside and out.

Study Rankings

Desktop and mobile rankings (separately awarded) are based on the combined index scores of the four measures that comprise the overall website experience: navigation; appearance; information/content; and speed. Satisfaction is based on a 1,000-point scale.

Cars.com ranks highest in overall satisfaction with automotive third-party desktop websites (798), followed by Edmunds.com (797) and Carfax (785).

Kelly Blue Book ranks highest in overall satisfaction with automotive third-party mobile websites (794), followed by CarGurus (790), The Car Connection (782) and U.S. News Best Cars (782).

Additional key findings of the 2017 study include:

• The study finds that 76% of highly satisfied shoppers (overall satisfaction scores of 901 or higher) using third-party websites say they “definitely will” return to the website in the future, and 75% say they “definitely will” recommend the site, while only 3% of displeased shoppers (scores of 500 or less) say they “definitely will” return and only 2% say they “definitely will” recommend.
• Among the four main measures (navigation, appearance, information/content, speed), website satisfaction is lowest for navigation. Shoppers using a desktop computer (762) have a significantly better experience when navigating automotive websites, compared to mobile users (754)
• Across all measure and attributes, those shopping for new vehicles have a more satisfying experience than used/certified pre-owned vehicle shoppers (773 vs. 755, respectively). The largest gap is for vehicle pricing information (754 vs. 726, respectively).

About the Study

The 2017 Automotive Website Evaluation Study Cross-Device is based on 8,525 evaluations of automotive manufacturer websites by new- and used-vehicle shoppers who indicate they will be in the market for a vehicle within the next 24 months, with 4,259 being desktop evaluations and 4,266 being mobile evaluations. The study was fielded in January 2017.

Websites evaluated in the study were selected based on meeting the following criteria: must be an automotive third-party site; have the ability for consumers to shop for both new and used vehicles; and be among the most frequently visited sites based on behavioral data.

For more information about the 2017 U.S. Automotive Website Evaluation Study Cross-Device, visit http://www.jdpower.com/resource/us-automotive-website-evaluation-study-cross-device.

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

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/about-us/press-release-info

 

Microsoft Ranks Highest in Tablet Satisfaction as Features, Design Shine

2017-04-05

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COSTA MESA, Calif.: 6 April 2017 — Microsoft ranks highest in overall satisfaction in the JD Power 2017 U.S. Tablet Satisfaction Study,^SM doing so for the first time since the study’s inception. With an overall satisfaction score among tablet owners of 855 (on a 1,000-point scale), Microsoft’s achievement is largely due to its top rankings in the features and styling & design factors.

“The Microsoft Surface platform has expanded what tablets can do, and it sets the bar for customer satisfaction,” said Jeff Conklin, vice president of service industries at JD Power. “These tablet devices are just as capable as many laptops, yet they can still function as standard tablets. This versatility is central to their appeal and success.”

In features, Microsoft is the highest performer in three areas: variety of pre-loaded applications; internet connectivity; and availability of manufacturer-supported accessories. Microsoft Surface users have the highest incidences of accessory use, which underscores the device’s versatility. These accessories include a stylus (48% vs. 27% industry average); physical keyboard (51% vs. 14%); and mouse (27% vs. 6%), all of which have higher satisfaction. Microsoft also achieves the highest ratings in these features attributes: variety of input/output connectivity and amount of internal storage available.

Additionally, Microsoft has the highest performance in three styling & design attributes: size of tablet; quality of materials used; and attractiveness of tablet design. Microsoft continues to achieve the highest rating in the remaining styling & design attribute of location of non-display buttons/controls.

Customers using Microsoft tablets are more likely to be early adopters of technology. More than half (51%) of Microsoft customers say they “somewhat agree” or “strongly agree” that they are among the first of their friends and colleagues to try new technology products. This is relevant because early adopters tend to have higher overall satisfaction (879 among those who “somewhat agree” or “strongly agree” with this statement vs. 816 among those who do not).

Microsoft also has a higher proportion of younger customers than their competitors. Microsoft customers are notably more likely to consider productivity features as important.  For example, when customers are asked the importance of their tablet to perform certain jobs well, Microsoft owners have the highest incidence of saying “very important” for jobs related to productivity. These include browsing the internet (90% vs. 75% industry average); emailing (76% vs. 61%); word processing (63% vs. 30%); and mobile payments/banking (53% vs. 40%).

Following are some of the key findings of the 2017 Study:

• Satisfaction is rising: Overall customer satisfaction with tablet devices is 841, an increase of 21 index points from the 2016 U.S. Tablet Satisfaction Study—Volume 2, released six months ago.
• Driving the selection process: Lower price and past experience are the most commonly cited reasons for tablet selection among customers (22% each).  Reputation is next at 19%.
• Size matters: The average screen diagonal among Microsoft customers is highest, at 11.8 inches. Satisfaction is 869 among customers whose screen diagonal is 10 inches or more vs. 850 among those whose screen diagonal is 8-10 inches and 824 among those whose screen diagonal is less than 8 inches.
• Data plans increase satisfaction: Nearly one-third (32%) of customers have a data plan with their tablet. Overall satisfaction among customers with a data plan is 863 vs. 834 among those without such a plan.

The U.S. Tablet Satisfaction Study, now in its sixth year, measures customer satisfaction with tablets across five factors (in order of importance): performance (28%); ease of operation (22%); features (22%); styling and design (17%); and cost (11%). The 2017 study is based on experiences evaluated by 2,238 tablet owners who have owned their current device for less than one year. The study was fielded between October and December 2016.

See the online press release at http://www.jdpower.com/pr-id/2017038.

To learn more about ratings by industry, visit https://www.jdpower.com/business/ratings-and-awards.

To learn more 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.

Media Relations Contact
Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected]

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

 

Kitchen Cabinet Manufacturers Show Significant Improvement in Customer Satisfaction, JD Power Finds

2017-04-17

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COSTA MESA, Calif.: 18 April 2017 — Kitchen cabinet manufacturers have achieved significant year-over-year improvements in customer satisfaction, according to the JD Power 2017 Kitchen Cabinets Satisfaction Study^SM released today. Overall satisfaction among kitchen cabinet customers increases to 817 (on a 1,000-point scale) from 797 in 2016.

“Consumers see and use their kitchen cabinets probably more than most other purchases for the home,”said Greg Truex, senior director of the at-home practice at JD Power. “The pressure to make ‘the right decision’ can be relieved somewhat by salespeople who spend the proper amount of time with customers during the selection process. Combine that with getting the order right and delivering it on time will elevate customer satisfaction.”

The study measures customer satisfaction with kitchen cabinets by examining five factors (in alphabetical order): design features; operational performance; ordering and delivery; price; and warranty.

Study Rankings

American Woodmark ranks highest in overall customer satisfaction (838), performing highest in three of the five factors: design features; ordering and delivery; and warranty. SEKTION (IKEA) ranks second (830), performing highest in the price factor. Thomasville ranks third (821), performing highest in the operational performance factor.

Following are some of the findings of the 2017 study.

• Ordering and delivery most important to satisfaction: Satisfaction is significantly higher among customers whose salesperson explained the ordering process than among those who did not receive an explanation (834 vs. 773, respectively). Additionally, satisfaction is significantly higher among customers whose kitchen cabinets were delivered as ordered than among those whose delivery was not received as ordered (826 vs. 750, respectively). Further, satisfaction is significantly higher among those whose kitchen cabinets were delivered on the date promised than among customers whose cabinets were not delivered on the promised date (828 vs. 756, respectively).
• Satisfaction drives loyalty: Among delighted customers (overall satisfaction scores above of 901 and above), 72% say they “definitely will” repurchase the brand, compared with the study average of 35%. Additionally, 77% of delighted customers say they “definitely will” recommend the brand to others, compared with the study average of 42%.
• Delightful experience influences recommendations: Among delighted customers, the average number of positive recommendations is 7.0, compared with the study average of 4.9.
• Retail and sales associate engagement: More than three-fourths (76%) of purchasers visited a retail store after deciding to purchase new kitchen cabinets. Of those purchasers, 62% spoke with a sales associate at length. Satisfaction is significantly higher among purchasers who spoke with a sales associate at length rather than briefly or not at all (830 vs. 779, respectively).

The 2017 Kitchen Cabinet Satisfaction Study is based on responses from 2,645 customers who purchased kitchen cabinets within the previous 12 months. The study was fielded in February-March 2017.

For more information about the JD Power Kitchen Cabinet Satisfaction Study, visit http://www.jdpower.com/resource/us-kitchen-cabinet-satisfaction-study

See the online press release at http://www.jdpower.com/pr-id/2017040.

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

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.

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