Category: United States

JD Power Offers New Perspective with Residual Values

2017-01-17

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COSTA MESA, Calif: 18 Jan. 2017 — Insightful analysis of its unmatched automotive retail and auction transactional data plus its customer survey data is the foundation of JD Power Residual Values, a benchmark product debuting today that will bring a new perspective to vehicle residual values.

Designed as an information resource for vehicle manufacturers, captive finance companies and lenders, Residual Values incorporates industry-leading sales transaction data gathered by the Power Information Network^® (PIN) from JD Power (representing more than 40% of franchised dealer retail sales transactions in America); the JD Power/National Auto Auction Association AuctionNet service (accounting for more than 80% of automotive auction transactions); and proprietary JD Power Voice of the Customer data.

The uniqueness of Residual Values is further complemented by data from JD Power’s Initial Quality Study (IQS); Vehicle Dependability Study (VDS); Automotive Performance, Execution and Layout (APEAL) Study; and Auto Avoider Study.

“We are launching this capability at a particularly important time for the industry as it deals with record levels of lease origination in an environment of declining used vehicle prices.  Automakers—and their lenders—are looking for ways to accurately forecast and enhance the residual value of their vehicles because of its direct impact on both sales and profitability” said Deirdre Borrego, senior vice president of data and analytics at JD Power.

Residual Values is the first all-new product introduced under the newly created Data & Analytics Division of JD Power. Under Borrego’s leadership, the division will include JD Power Valuation Services, formerly known as NADA Used Car Guide, joining the successfully established operations of PIN and Online-to-Offline (O2O) Digital Marketing Analytics.

JD Power Valuation Services will produce, manage and distribute residuals and related services. Mike Stanton, vice president of valuation services, will lead the team in McLean, Va., as it continues to market NADA Values until it fully transitions to the JD Power brand.

“Manufacturers rely on JD Power insights in so many other areas of their business, so it makes a lot of sense to support them in such a critically important function that has long-term financial implications,” said Jonathan Banks, vice president of vehicle valuation and analytics at JD Power. “What OEMs and captives will find unique is the transparency of the valuation. Our product will provide clients with a viable third-party source as a challenger model to current processes, with an opportunity to expand into more predictive and prescriptive analytical solutions.”

Media Relations Contacts

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

Ryan Morris; McLean, Va.; 202-826-4029; [email protected]

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

 

Consumers Prefer Live Chat over More Traditional Channels to Handle Customer Service Issues

2017-01-20

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COSTA MESA, Calif.: 19 Jan. 2017 — When it comes to dealing with service issues and questions, customers would much rather chat online with a customer service representative than speak to one live on the phone, according to the JD Power 2016 U.S. Chat and Email Benchmarking Study,^SM released today.

The inaugural study, which provides an objective measure of overall customer satisfaction with chat and email interactions across multiple industries, finds that chat is the highest-scoring channel by a wide margin. Chat earns an overall satisfaction index score of 819 on a 1,000-point scale, followed by email with a score of 795. Customers are least satisfied when speaking on the phone with a customer service representative (787), which falls behind automated phone self-service (792) and website (788).

“Interestingly, although Millennials[1] may be most comfortable using customer service channels like chat, we find that the older you are, the more satisfied you are with a chat interaction,” said Mark Miller, contact center practice leader at JD Power. “In fact, satisfaction with chat is highest among Boomers (831), followed by Gen X (826) and Millennials (811). Millennials use the channel, or proxies for the channel (text), far more than Gen Xers or Boomers, and their expectations are higher for a great interaction.”

About the Study

The study evaluates customer satisfaction with their support experience by examining five key factors: courtesy of the representative; promptness in communicating with the representative; timeliness of resolving a problem, question or request; representative’s concern for the customer’s needs; and knowledge of the representative. The study analyzes customer experiences with chat and email over a 12-month period, providing benchmarking across multiple industries, including financial services, insurance, online retailers, utilities and telecom.

“When comparing industry performance in terms of using chat, online shoe retailers perform particularly well and are setting the mark for what customers are beginning to expect everywhere,” said Miller. “If you receive prompt and courteous responses when checking an online shoe order through chat, you expect the same kind of response when chatting with your credit card company about your bill. So understanding the best practices across the customer experience is critical.”

Using Bots Saves Money, but Can Come with a Heavy Experience Price

Perception plays a key role in the customer experience with chat and email. Using bots and automated responses are cost effective, but when customers perceive that a response is not coming from a real person, satisfaction is significantly lower than when perceived as “real.” When customers perceive that a response is not coming from a real person, satisfaction drops from an average of 835 to 756 for chat and from 854 to 747 for email.

Other Key Findings:

• Importance Weights: Timeliness of resolving a customer’s problem, question or request is the most important factor for both chat and email. However, it is more impactful for chat users than email users. In contrast, courtesy of the representative is more impactful for email users than for chat users.
• Advocacy Rates: Among customers who use online chat, 60% say they “definitely will” recommend using the channel to friends/family/colleagues, while 53% of email users say the same.
• Overall Channel Usage: The study finds usage of chat and email to contact a company for customer service is about equal. Overall, 47% of customers indicate they used chat or email during the past 12 months.
• Chat Usage by Industry: Customers are most likely to use online chat to interact with companies in the telecom industry (26%), followed by financial services (17%), online retail (13%), insurance (7%) and utility (5%).

The 2016 U.S. Chat and Email Benchmarking Study is based on responses from 3,563 chat interactions and 3,573 email interactions across multiple industries.

Learn more about the study: http://www.jdpower.com/resource/us-chat-and-email-benchmarking-study

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

 

Tablets with Strong Brand Image Less Likely to be Cross-Shopped, JD Power Finds

2016-11-02

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COSTA MESA, Calif.: 3 Nov. 2016 — While the volume of comparison shopping grows as more brands offer new tablet devices, those customers who currently use a tablet made by a company with a strong brand image are less likely to comparison shop, according to the JD Power 2016 U.S. Tablet Satisfaction Study^SM—Volume 2.

The study, now in its fifth year, measures customer satisfaction with tablets across five factors (in order of importance): performance (28%); ease of operation (22%); features (22%); styling & design (17%); and cost (11%). Satisfaction is calculated on a 1,000-point scale.  

According to the study, 56% of customers considered a brand of tablet other than what they ultimately purchased. While overall satisfaction is not significantly different between customers who did and did not consider multiple brands (825 vs. 831, respectively), those who did not consider multiple brands rate their brand higher in most image attributes. Specifically, customers who did not consider multiple brands rate their brand 6.2 (on a 7-point scale) in Bad reputation vs. Good reputation, compared with 6.0 among those who considered multiple brands.

Winning the business of customers who consider multiple brands is particularly beneficial due to their relatively high level of advocacy. On average, these customers made 5.9 positive recommendations about their tablet brand during the previous six months, compared with only 4.7 positive recommendations among those who did not consider multiple tablet brands.

“Winning over customers who consider multiple brands requires appealing to their desire to get a good deal since they are especially price sensitive and tend to pay about $24 less for their tablet than those who do not consider multiple brands,” said Kirk Parsons, senior director and technology, media & telecom practice leader at JD Power. “However, brands with a strong lineup of tablet offerings are in a more favorable position to satisfy the needs of consumers interested in upgrading their existing tablet. Brands minimize the need to shop around when customers have a satisfying device experience, thereby leading to increased brand loyalty, recommendations and repurchase intent.”

More than one-third (37%) of customers who consider multiple brands are 18-34 years old, while that age group accounts for only 20% of those who do not consider multiple brands. Customers who consider multiple brands also are more interested in new technology: 26% “strongly agree” that they enjoy reading about new technology vs. 16% who say the same but do not consider other brands.

Study Rankings

• Apple (839) ranks highest in overall satisfaction and ranks highest in all factors except cost.
• Microsoft (825) ranks second, performing particularly well in the features and styling & design factors, followed by Samsung (823).

Following are some of the key findings of the 2016 Vol. 2 Study:

• Tablet Device Satisfaction Is Stable: Overall customer satisfaction with tablet devices is 820, an increase of 4 index points from the 2016 U.S. Tablet Satisfaction Study—Volume 1, released six months ago.
• Price & Past Experience Drive Selection Process: Lower price is the most commonly cited reason for tablet selection among customers who consider multiple brands (24% vs. 17% who do not consider multiple brands). In contrast, past experience is the most commonly cited reason for tablet selection among customers who do not consider multiple brands (30% vs. 22% who consider multiple brands who say the same).
• Operating System Incidence: Customers who consider multiple brands are more likely than those who do not to have multiple devices on the same operating system as the tablet they purchase (55% vs. 48%, respectively).
• Multiple Brand Consideration Varies by Brand: Apple has the lowest incidence of customers who considered another brand (43%). In comparison, Microsoft and Samsung, which are the other brands that perform above average in overall satisfaction, have sizable percentages of customers who considered another tablet brand (68% and 59%, respectively).

The 2016 U.S. Tablet Satisfaction Study—Volume 2 is based on experiences evaluated by 3,511 tablet owners who have owned their current device for less than one year. The study was fielded between March and August 2016.

For more information about the 2016 U.S. Tablet Satisfaction Study—Volume 2, visit http://www.jdpower.com/resource/us-wireless-smartphone-satisfaction-study.

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

 

Buyer’s Remorse Is Relatively High despite Rising Satisfaction, JD Power Finds

2016-11-07

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COSTA MESA, Calif.: 10 Nov. 2016 — Overall satisfaction scores have increased year over year, but a high percentage of home buyers are remorseful about their mortgage lender selection, according to the JD Power 2016 U.S. Primary Mortgage Origination Satisfaction Study,^SM released today.

The study shows that 21% of customers purchasing a home express regret over their choice of lender, and 27% of first-time home buyers regret their choice. Among customers who regret their decision, there are two distinct situations.

The first situation is customers having a poor experience (overall scores below 600 on a 1,000-point scale), which includes an above-average incidence of problems, lack of communication and unmet promises. While this group’s responses aren’t unexpected, they are often vocal about their displeasure, making an average of 9.0 negative comments, compared with the study average of 0.7.

The second situation is more unexpected because satisfaction among these customers is high. This group tends to be very price-focused and frequently obtains multiple quotes. Among customers who regret their lender selection, 72% indicate they were pressured to choose a particular mortgage product. Their final lender choice is often linked to financial reasons, such as getting a lower rate because they have a relationship with the firm (e.g., checking account with direct deposit).

“This ‘happy buyer’s remorse’ is in part due to customers feeling that circumstances out of their control drove them to a particular choice and that options weren’t totally clear,” said Craig Martin, director of the mortgage practice at JD Power. “Like a lot of consumers, they are happy with a good deal, but they can feel that they have to jump through hoops to get the deal. In the end, they may not fully understand exactly what they got, and the longer-term risk for lenders is that customers’ perceptions of the deal may change in the future.”

One potential contributing factor to this condition could be TRID (TILA RESPA Integrated Disclosure^[1]).  Over the past two years, much of lenders’ attention has been focused on complying with and minimizing the negative effects of these new requirements, which became effective in October 2015. Lenders have feared that the new requirements would extend an already lengthy process and negatively affect satisfaction. While various sources have reported increases in the total number of days for the lending process, findings of the 2016 U.S. Primary Mortgage Origination Satisfaction Study show little change in the perceived speed of the process. Improved communication and setting expectations appropriately have helped prevent negative perceptions.

“Whether it is a new regulation, shifting rates or new technology, lenders will continue to face challenges that require them to change,” Martin said. “Regardless of what comes, if lenders focus on the needs of the customer and execute on key best practices they can positively influence perceptions and minimize the negative effects on customers.”

Following are some of the key findings in this year’s study:

• A higher percentage of customers in 2016 indicate their loan representative always called back when promised, compared with last year (85% vs. 81%, respectively), and their loan closed on the desired date (81% vs. 79%).
• Satisfaction is significantly higher among customers buying a home (840) than among those refinancing (821). In the 2014 and 2015 studies, the levels of satisfaction in these groups were nearly identical.
• Technology is becoming increasingly important, with 28% of customers indicating they completed their detailed application online, up from 22% in 2015 and 18% in 2014.

 Study Rankings

• Quicken Loans ranks highest in primary mortgage origination satisfaction for a seventh consecutive year, with a score of 869. Quicken Loans performs particularly well in the application/approval process; interaction; loan closing; loan offerings; and onboarding factors.
• CitiMortgage moves up three positions from fifth in 2015 to second this year, with a score of 851.  Ditech Financial, new to the study in 2016, ranks third with a score of 849.
• Wells Fargo Home Mortgage (+52 points) and Nationstar Mortgage (+50 points) post the most significant year-over-year improvements in overall satisfaction.

Advice to Consumers

• Plan ahead when researching mortgage options. Satisfaction among customers who wait until they find a home to look into mortgage options is 92 points lower than among those who look into mortgage options before their home search.
• Take the time to obtain more than one quote. Among the 32% of customers who received just one quote, overall satisfaction is 19 points lower than those who get multiple quotes. Satisfaction is 38 points lower among first-time buyers only getting one quote vs. those who get multiple quotes.
• Choose a lender based on their merits, not just price or affiliation. Customers who say they chose their lender primarily because of price/rate or based on the recommendation of a realtor/builder are significantly less satisfied than those whose choice is based on other reasons.

About the Study

The 2016 U.S. Primary Mortgage Origination Satisfaction Study measures customer satisfaction with the mortgage origination experience in six factors (listed alphabetically): application/approval process; interaction; loan closing; loan offerings; onboarding; and problem resolution. Satisfaction is calculated on a 1,000-point scale.

The study is based on responses from 5,182 customers who originated a new mortgage or refinanced within the past 12 months, and was fielded in July–August 2016.

For more information about the 2016 U.S. Primary Mortgage Origination Satisfaction Study, visit

http://www.jdpower.com/resource/us-primary-mortgage-origination-satisfaction-study.

Media Relations Contacts

John Tews; Troy, Mich.; 248-868-0621; [email protected]

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

 

Product Specialists Help New-Vehicle Owners Understand Technology, Enhance Ownership Experience, Increase Future Demand, JD Power Finds

2016-11-09

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COSTA MESA, Calif.: 10 Nov. 2016 — With vehicles becoming increasingly complex, buyers are getting assistance from product specialists to help them learn how to use the technology in their new car, according to the JD Power 2016 U.S. Sales Satisfaction Index (SSI) Study,^SM released today. 

The study finds that 24% of owners of luxury vehicles and 16% of owners of mass market vehicles in 2016 worked with both a salesperson and a product specialist when buying or leasing their new car, up from 19% and 15%, respectively, just two years ago.

The product specialist’s primary role is to make the owner aware of the array of technology in their new vehicle and help them understand how to use it. For example, the product specialist helps the owner pair their smartphone to the vehicle’s Bluetooth system; shows how to operate the navigation system; and explains the vehicle’s audio and communication systems. Owners who work with both a salesperson and product specialist are overall more satisfied with the sales experience than those who work only with a salesperson (836 vs. 829, respectively, on a 1,000-point scale).

“Owners can be challenged with the complexity of today’s vehicles,” said Chris Sutton, vice president of the automotive retail practice at JD Power. “More dealerships are employing product specialistsand more brands, especially the luxury brands, are requiring that the dealers have them to help the customer have a more thorough ownership experience with their new car or truck. Having a product specialist show the technology to the owner can really ensure the customer gets the most benefit out of their vehicle.”

Sutton noted that explaining the technology or providing a demonstration at the time of the purchase not only makes the owner aware of all of the technologies within their vehicle, but also helps them understand how to use the technology, which means they are more likely to use them, continue to use them, and, because they see the value, want them in their next vehicle.  

Two other JD Power studiesthe JD Power 2016 U.S. Tech Experience Index (TXI) StudySM and the JD Power 2016 U.S. Initial Quality StudySM (IQS)share similar findings that point to the critical nature of assisting owners with the technology in their new vehicle. 

According to the TXI Study, owners who learn how to operate the technologies from their dealer have higher overall satisfaction than those who learn how to operate the technologies from another source or from prior experience. The TXI Study finds that across all technologies, there is, on average, a 98-point drop in satisfaction when owners have technologies they say are difficult to use (DTU). 

The product specialist can help minimize DTU issues with technology, which can improve satisfaction and positively affect the vehicle’s quality. Even though it may operate as intended, when a technology is difficult for an owner to use or understand, it is likely to be considered a quality issue. For example, navigation system difficult to use/poor location ties for the sixth most common problem in IQS. Owners who learn how to use their navigation system from the dealer report 2.0 problems per 100 vehicles (PP100) fewer navigation DTU problems than those who do not get a dealer explanation.

“Whether it’s taking a few minutes with repeat buyers to refresh their knowledge of the technology or a few hours with first-time buyers, it’s a small investment with long-term benefits,” said Sutton.  

Brand Sales Satisfaction Rankings

Buick ranks highest in sales satisfaction among mass market brands, with a score of 809. It is the first time Buick has topped the rankings since 2008. MINI, which had ranked highest from 2010 through 2015, ranks second (797) and Chevrolet ranks third (789). GMC ranks fourth (786), giving General Motors three of the four top spots among mass market brands.

Porsche ranks highest in sales satisfaction among luxury brands for a second consecutive year, with a score of 824. Infiniti ranks second (815); Mercedes-Benz third (809); and BMW and Cadillac tie for fourth (807).

Other key findings of the study include:

• Technology Trends in Sales Process: The use of technology, such as tablets and computer displays, by dealers during the sales process is increasing. Among premium owners, 27% say their salesperson used a tablet during the sales process, up from 24% in 2015, while 22% of non-premium owners say their salesperson used a tablet, up from 15%. A tablet is used most frequently to capture information about the buyer, demonstrate vehicle features and display price or payment information. 
• Telephone Remains a Viable Shopping Tool: Three-fourths of owners say they used the internet during the vehicle-shopping process, yet 42% of all owners say they also used the telephone to call dealers. The top two reasons for calling a dealership are to check vehicle inventory and pricing. Surprisingly, buyer satisfaction is lower among owners who use the internet to shop than among those who do not (823 vs. 843, respectively), while satisfaction is higher among those who call dealers than among those who do not (835 vs. 823).
• Younger Buyers Are Toughest Customers: Gen Y¹  buyers are the toughest to please, with sales satisfaction of 824. In contrast, Boomer and Pre-Boomer buyers are the most satisfied, each with sales satisfaction of 836. “Gen Y has high expectations and less experience than their older counterparts with the vehicle-buying process, which are likely contributing to their lower satisfaction,” said Sutton.
• The Deal Affects Satisfaction: The study identifies 10 dealership processes that have the greatest effect on sales satisfaction. Five of the processes are part of the working out the deal measure, including providing the customer with straight answers; not pressuring the customer; and not being too pushy to sell the customer additional products. When the dealer adheres to these processes, each can improve sales satisfaction by 35 points or more. 

The study, now in its 30th year, measures satisfaction with the sales experience among new-vehicle buyers and rejecters—those who shop a dealership and purchase elsewhere. Buyer satisfaction is based on four measures: working out the deal (25%); salesperson (19%); delivery process (16%); and facility (15%). Rejecter satisfaction is based on five measures: salesperson (10%); fairness of price (4%); experience negotiating (4%); facility (3%); and variety of inventory (3%). 

The 2016 U.S. Sales Satisfaction Index (SSI) Study is based on responses from 28,979 buyers who purchased or leased their new vehicle in April or May 2016. The study is a comprehensive analysis of the new-vehicle purchase experience and measures customer satisfaction with the selling dealer (satisfaction among buyers). The study also measures satisfaction with brands and dealerships that were shopped but ultimately rejected in favor of the selling brand and dealership (satisfaction among rejecters), and was fielded from July through September 2016.

Learn more about the 2016 U.S. Sales Satisfaction Index (SSI) Study at http://www.jdpower.com/resource/us-sales-satisfaction-index-ssi-study.

See the online press release at http://www.jdpower.com/pr-id/2016224.

Media Relations Contacts

John Tews; Troy, Mich.; 248-680-6218; [email protected]

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 

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

 

Leading the Trend of Mixing Business and Leisure Travel, ‘Bleisure’ Car Renters Are the Most Satisfied

2016-11-09

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COSTA MESA, Calif.: 10 Nov. 2016 — Travelers who rent a car and then combine business and leisure are by far the most satisfied with their rental car experience, according to the JD Power 2016 North America Rental Car Satisfaction Study,^SM released today.

The study finds that while overall satisfaction is higher among business travelers than among leisure travelers (with satisfaction index scores of 806 vs. 798 on a 1,000-point scale, respectively), satisfaction among “bleisure” travelers (836)—those whose travel is a combination of business and leisure—is the highest among the three groups.  The data show this practice to be more pronounced among Gen Y renters (those born from 1977-1994), who have a growing presence in the rental car market. Cost and fees satisfaction among bleisure car renters is 43 points higher than among exclusive business renters and 49 points higher than among exclusive leisure renters. 

“With such a big bump in satisfaction among ‘bleisure’ renters, it’s certainly worthwhile for rental car companies to take a closer look at ways to attract and accommodate these travelers, perhaps by providing an easy way to separate charges for the business days of the rental from the leisure days, making for easier expense reporting,” said Rick Garlick, global travel and hospitality practice lead at JD Power. “Appealing to bleisure travelers may help differentiate them from competitors, but it could also foster the growth amongst a new base of loyal customers.”

The study, now in its 21st year, measures overall customer satisfaction with rental cars at airport locations by examining six factors (listed in order of importance): cost and fees; pick-up process; return process; rental car; shuttle bus/van; and reservation process. 

Overall rental car satisfaction averages 804 index points, a 6-point improvement from 2015. All of the ranked brands post at least some improvement in the cost and fees factor, continuing a dramatic upward trend over the past two years.

“Seeing steady improvements in cost and fees demonstrates that rental car companies are creating greater value for their customers through a combination of improved products and service,” said Garlick. “Stellar customer service at all touch points of the experience makes a difference for travelers in terms of choice, experience and loyalty. While there is always a segment of renters that cares only about which company provides the lowest price, high service levels drive both value and satisfaction for many customers.”

Rental Car Satisfaction Rankings

For a third consecutive year, Enterprise ranks highest in satisfaction among rental car companies, achieving an overall satisfaction index score of 830. Enterprise performs particularly well in all six study factors. Enterprise is followed in the rankings by National (813), Alamo (809) and Hertz (804).

Other Key Findings

• Consolidated Centers: The growing trend to consolidate rental car facilities to a single site does not appear to be impacting the rental car experience. The study finds that 32% of customers rented from a consolidated facility. Although brands have the opportunity to differentiate their service through their own branded facilities, customer satisfaction with their rental car experience is approximately the same for a consolidated site as it is for a branded site.  However, shuttle bus/van satisfaction among renters who picked up from a consolidated site is 51 points higher than among those renting from a brand-operated site.
• Reported Problems on the Rise: The percentage of reported problems in the 2016 study is 21%, a substantial increase from just 14% in 2015. However, this high incidence is driven by many of the unranked brands included in the study. Among customers who experienced a problem, the highest increase in specific reported issues is related to optional equipment (e.g., GPS/navigation, satellite radio, and toll pass), in which the problem incidence increases to 16% this year from 10% in 2015. 
• Satisfaction by Airport: Among the busiest airports in the United States, Dallas/Ft. Worth International (DFW), Fort Lauderdale Hollywood International (FLL), New York John F. Kennedy (JFK), and Miami International (MIA) perform particularly well in rental car satisfaction. Both Fort Lauderdale and Miami post substantial increases in satisfaction scores among travelers who rented there.

The 2016 North America Rental Car Satisfaction Study is based on responses gathered between September 2015 through August 2016 from more than 11,300 business and leisure travelers who rented a vehicle at an airport location from August 2015 through August 2016.

For more information about the 2016 North America Rental Car Satisfaction Study, visit http://www.jdpower.com/resource/north-america-rental-car-satisfaction-study.

Media Relations Contact

John Tews; Troy, Mich.; 248-680-6218; [email protected]

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

 

DentaQuest Ranks Highest in Customer Satisfaction with Dental Plan Insurance

2016-11-22

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COSTA MESA, Calif.: 22 Nov. 2016 — DentaQuest ranks highest in customer satisfaction with dental plan insurers for the first time, performing particularly well in the cost and communications factors, according to the JD Power 2016 Dental Plan Satisfaction Report^SM released today.

The report measures customer satisfaction with dental plan insurance based on five factors (in order of importance): cost, coverage, communications, customer service and reimbursement. Satisfaction is calculated on a 1,000-point scale.

Overall satisfaction among dental plan members increases significantly to 774 in 2016, the highest level in the three years the study has been conducted (717 in 2015 and 723 in 2014). The increase in satisfaction is attributable to a significant 71-point gain in satisfaction in the communications factor (to 750 from 690 in 2015), as well as more modest gains in satisfaction with cost and coverage. 

“Dental plans have embraced the challenges that have come with our more consumer-centric healthcare environment,” said Rick Johnson, director of the Healthcare Practice at JD Power. “In addition to offering cost-efficient solutions, effectively communicating with members will need to be the norm if dental plans want to maintain or increase member satisfaction.” 

The report finds that satisfaction drives plan members’ intended loyalty. Among dental plan members who rate their overall experience outstanding (10 on a 10-point scale), 86% say they “definitely will” choose their current carrier in the future, compared with the report average of 50%. 

Dental Plan Rankings 

DentaQuest ranks highest customer satisfaction with dental plan insurers with a score of 801 points, a 65-point improvement from 2015.  Aetna ranks second (791) and UnitedHealthcare ranks third (782).

The 2016 Dental Plan Satisfaction Report is based on responses from 2,652 dental plan members.

The study was fielded in October 2016. The National Association of Dental Plans was used as the third-party market share source for the 2016 report.

For more information about the 2016 Dental Plan Satisfaction Report, visit http://www.jdpower.com/industry/healthcare

Media Relations Contacts

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

 

Combined Insurance/Chubb Ranks Highest in Customer Satisfaction with Vision Plan Providers

2016-11-22

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COSTA MESA Calif.: 22 Nov. 2016 — Combined Insurance/Chubb ranks highest in customer satisfaction with vision plan providers, performing highest in the cost, communication and reimbursement factors, according to the JD Power 2016 Vision Plan Satisfaction ReportSM released today.

The report measures customer satisfaction with vision plan providers based on five factors (in order of importance): coverage, cost, communications, customer service and reimbursement. Satisfaction is calculated on a 1,000-point scale.

“Improvements in communication are likely helping members better understand what they are getting for their money, and how to use their plans,” said Rick Johnson, director of the Healthcare Practice at 

JD Power. “As the entire healthcare ecosystem becomes more customer-focused, vision plans will need to continue to communicate their demonstrated value in order to keep pace.” 

Other key findings from the study include:

• Satisfaction Improves: Overall satisfaction among vision plan members increases significantly to 753 points in 2016, the highest level in the four years the study has been conducted (707 in 2015, 709 in 2014 and 673 in 2013).
• Satisfaction Drives Plan Member Loyalty, Advocacy: Among vision plan members who rate their overall satisfaction outstanding (10 on a 10-point scale), 84% say they “definitely will” choose their current provider in the future, compared with the report average of 45%. Additionally, members who rate their overall satisfaction outstanding make an average of 4.2 positive recommendations, compared with the study average of 1.9 positive recommendations.

Vision Plan Rankings: 

Combined Insurance/Chubb ranks highest customer satisfaction with vision plan insurers with 793 points.  EyeMed ranks second (775) and UnitedHealthcare/Optum ranks third (762).

The 2016 Vision Plan Satisfaction Report is based on responses from 2,000 vision plan members. 

The study was fielded October 2016. CRISIL GR&A and Pipal Research were used as the third-party market share source for the 2016 report.

For more information about the 2016 Vision Plan Satisfaction Report, visit http://www.jdpower.com/industry/healthcare

Media Relations Contacts

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

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

 

New-Vehicle Sales Slide Again; Sixth Monthly Decline of 2016 

2016-11-22

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DETROIT: 23 Nov.  2016 — For the second time in three months and the sixth time this year, new-vehicle retail sales in November are expected to slip from year-ago levels, according to a monthly sales forecast developed jointly by JD Power and LMC Automotive.

U.S. new-vehicle retail sales in November are projected to reach 1,128,900 units, a 2.0% decrease from November 2015 on a selling-day adjusted basis, while total new-vehicle sales are expected to drop 3.4% to 1,381,800.

While the presidential election had the potential to disrupt vehicle sales in the first half of the month, in reality, the impact was minimal. This is consistent with past elections when a small suppression of sales during the election was offset by gains post-election. 

Full-month performance will be heavily influenced by sales during the Thanksgiving weekend, which is one of the busiest selling periods of the year and is expected to account for one-fourth of November sales. A key driver of vehicle demand during the Thanksgiving weekend is the availability of year-end incentive programs, which improve vehicle affordability. Incentive spending thus far in November is $3,886 per unit, up 15% from $3,374 in November 2015 and the second-highest level ever behind the record $3,939 set in September.   

Deirdre Borrego, senior vice president and general manager of automotive data and analytics at JD Power, said: “The election had a minimal effect on vehicle sales. While sales volume was suppressed for a short period during the election, the declines were quickly recouped by the end of the election week. Although we are forecasting another decline in retail sales, it is important to note that in absolute terms vehicle sales remain close to record levels while transaction prices are at record highs. However, these results are being driven in part by elevated incentive levels, which represent a meaningful risk to the long-term health of the auto industry.”

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

                                                 November 2016¹                                       October 2016             November 2015

New-Vehicle Retail Sales        1,128,900 units                               1,120,052 units              1,060,147 units

                                        (2.0% lower than November 2015)²

Total Vehicle Sales                   1,381,800 units                              1,369,522 units               1,316,604 units

                                        (3.4% lower than November 2015)²

Retail SAAR                              13.9 million units                          14.6 million units           13.8 million units

Total SAAR                               17.9 million units                          18.0 million units            18.0 million units

¹Figures cited for November 2016 are forecasted based on the first 17 selling days of the month.

²The percentage change is adjusted based on the number of selling days in the month (25 days in November 2016 vs. 23 days in November 2015).

• The seasonally adjusted annualized rate (SAAR) for retail sales in November 2016 is projected to reach 13.9 million units, up from 13.8 million units in November 2015. The SAAR for total sales is projected at 17.9 million units in October 2016, down from 18.0 million units a year ago.
• Fleet sales are expected to total 252,900 units in November, down 9.3% on a selling-day adjusted basis from November 2015. Fleet volume is expected to account for 18.3% of total light-vehicle sales, down from 19.5% in November 2015.  
• The average new-vehicle retail transaction price thus far in November is $31,645, a record for the month surpassing the previous high of $31,397 set in November 2015. 
• With high absolute retail sales volumes and record transaction prices for the month, consumers are on pace to spend $35.7 billion on new vehicles in November, surpassing the record high of $33.7 billion for the month of November, set in 2014.  
• Trucks account for 62.7% of new-vehicle retail sales so far in November, matching the record set in October but up from 59.8% in November 2015.
• The model-year transition remains slower in 2016 than it was a year ago, with 50% of retail sales thus far in November being 2017 model-year vehicles. During the same period in November 2016, 54% of sales were 2016 model-year cars and light trucks.   
• Retail sales year to date through the end of October are expected to be down 1.0%, compared with the same period in 2015, while total sales remain positive with volume expected to be up 0.3%. 

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said: “The level of uncertainty in the market is high, but thus far the financial markets have shrugged off adverse policy risk related to trade and immigration under President-elect Trump and are expecting a fiscal stimulus boost that could spill over to autos. Stimulus watch, combined with the likelihood that incentives have pulled forward retail demand and will push 2016 to a near-record level, is making 2017 a pivotal year directionally for auto sales. The economy and industry could be facing a boom or bust depending on which policies are focused on and implemented.”

• LMC Automotive’s forecast for full-year total light-vehicle sales is 17.4 million units, but has increased slightly and now is on the cusp of topping 2015 by 10,000 units. The forecast for retail light-vehicle sales has increased slightly to 14.1 million units from the previous projection of 14.0 million units but down 1.5% from 2015.
• LMC is forecasting 17.4 million units for total light-vehicle sales in 2017, with retail light-vehicle sales expected to be down for a second year, to 14.0 million units.

U.S. Retail SAAR—November 2015 to November 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

John Tews; JD Power; Troy, Mich.; 248-680-6218; [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

 

Wireless Router Satisfaction Increases as Ease of Use, Performance Improves

2016-11-29

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COSTA MESA, Calif.: 30 Nov. 2016 — Overall customer satisfaction with wireless routers has risen considerably from 2015 due to improved ease of use and performance, according to the JD Power 2016 Wireless Router Satisfaction Report^SM released today.

The report finds that overall satisfaction with wireless routers has increased by a full 24 points from 2015, and is now 847 (on a 1,000-point scale).  While satisfaction has improved in all 10 factors, the largest increase is 30 points in ease of use (which includes the installation process). Another area related to ease of use with the product is restoration of service with minimal effort, in which overall satisfaction has increased 27 points from last year (to 854 from 827).

Product features related to the performance of wireless routers also have significantly improved. Reliability of service connection, range of Wi-Fi signal and download/upload speeds have generated increases in satisfaction of 24, 26 and 25 points, respectively.

“What’s critical to customers is the ability to easily establish a reliable online connection through their wireless router regardless of the type or number of wireless devices they are using, smartphone, laptop, smart TV or other wireless device,” said Kirk Parsons, senior director and telecom, media & technology practice leader at JD Power. “Router manufacturers providing a product that’s intuitive to set up and operate and that functions with few connection interruptions are well positioned to increase satisfaction, customer loyalty and repurchase intention.”

Key Findings

• Overall satisfaction among customers who say they “definitely will” or “probably will” purchase the same wireless router brand they currently own is 241 points higher than among those who say they “definitely will not” or “probably will not” repurchase the same brand in the future (615 vs. 856, respectively).
• Fewer than two in 10 (16%) customers experience problems with their wireless router. The most frequently experienced problems reported include frequency of resetting the router (42%); slow internet speeds (38%); initially connecting to the internet (31%); limited Wi-Fi range (26%); installation process (31%); and slow upload/download speeds (21%).
• The percentage of customers who access the internet via a wireless router in their home varies by type of device. Most customers use a wireless router to connect their laptop (82%), followed by smartphone (80%); tablet (71%); desktop (55%); gaming console (53%); printer (50%); smart TV (47%); and streaming device/media player such as Chromecast or Roku (42%). 
• Price is the primary reason for choosing a wireless router brand (45%), followed by range of signal strength (41%), brand reputation (37%) and ease of use (34%).
• The average price paid for a wireless router is $124—an increase of $16 from 2015.

About the Study

The report, in its second year, measures overall satisfaction with wireless router manufacturers among customers who purchased a router during the 12-month period prior to responding to the survey. Satisfaction is measured across 10 factors (listed in order of importance): Wi-Fi range; reliability; speed of upload/download; restore connection easily; security capabilities; price; ease of use; variety of features; intuitive user interface; and customer service.

Wireless Router Study Rankings

Apple ranks highest with a score of 876, followed by ASUS (860), D-Link (856) and TP-Link (854).

The 2016 Wireless Router Satisfaction Report is based on responses from 3,037 current owners of wireless routers who purchased their device during the 12-month period prior to report fielding in October 2016.

For more information about the 2016 Wireless Router Satisfaction Report, visit http://www.jdpower.com/resource/jd-power-wireless-router-satisfaction-report.

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