Category: United States

New-Vehicle Retail Sales in October Slip; Sixth Monthly Decline of 2016

2016-10-21

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DETROIT: 21 Oct. 2016 — U.S. new-vehicle retail sales continue their slide in October, falling 0.8% from a year ago on a selling-day adjusted basis, according to a monthly sales forecast developed jointly by JD Power and LMC Automotive.

Retail sales are projected to reach 1,099,200 units in October, the sixth time in the past eight months that sales have fallen on a year-over-year basis. Total new-vehicle sales are projected to fall 0.2% in October to 1,347,000.

John Humphrey, senior vice president of the global automotive practice at JD Power, said: “The decline in retail sales this month, compared with October 2015, is relatively modest, but the fact that this will be the sixth monthly decline in 2016 puts the industry in territory not seen since before the recession. We do not foresee a large pullback in sales in the near term, but the fact that retail sales are beginning to contract, despite high incentives and extremely low interest rates and gas prices, is a clear indicator that this cycle has reached its peak.”

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said: “Although automotive sales are expected to remain near the all-time high, they are still expected to contract slightly this year, as well as in 2017. During the same period, nearly 30% of all models in the market will be new entries or completely redesigned, creating challenging conditions for vehicle manufacturers and automotive suppliers that will test the discipline of the industry for the first time since 2009. So far, automakers are adjusting production levels to manage inventory.”

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

	October 20161	September 2016	October 2015
New-Vehicle Retail Sales	1,099,200 units (0.8% lower than October 2015)2	1,197,020 units	1,193,760 units
Total Vehicle Sales	1,347,000 units (0.2% lower than October 2015)2	1,433,406 units	1,453,574 units
Retail SAAR	14.3 million units	15.0 million units	14.8 million units
Total SAAR	17.7 million units	17.7 million units	18.1 million units

¹Figures cited for October 2016 are forecasted based on the first 13 selling days of the month.

²The percentage change is adjusted based on the number of selling days in the month (26 days in October 2016 vs. 28 days in October 2015).

• The seasonally adjusted annualized rate (SAAR) for retail sales in October 2016 is projected to reach 14.3 million units, down from 14.8 million units in October 2015. The SAAR for total sales is projected at 17.7 million units in October 2016, down from 18.1 million units a year ago.
• Fleet sales are expected to be 12,000 units lower than a year ago at 247,800 in October, but an increase of 2.7% on a selling-day adjusted basis from October 2015. Fleet volume is expected to account for 18.4% of total light-vehicle sales.
• The average new-vehicle retail transaction price thus far in October is $31,383, a record for the month surpassing the previous high of $30,921 set in October 2015. Incentive spending thus far in October is $3,726 per unit, below the record $3,921 set in September, but 12% above the $3,332 of October 2015.
• Trucks account for 62.2% of new-vehicle retail sales so far in October, poised to set a record for any month. The current record is 61.4% set in September.
• The model-year transition is slower in 2016 than it was a year ago, with 37% of retail sales thus far in October being 2017 model-year vehicles. During the same period in October 2016, 40% 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 1.1%, compared with the same period in 2015, while total sales remain positive with volume expected to be up 0.5%.
• LMC Automotive’s forecast for full-year total light-vehicle sales is holding stable at 17.4 million units, a 0.2% decline from 2015. The forecast for retail light-vehicle sales remains at 14.0 million units, down 1.5% from 2015.

 

U.S. Retail SAAR—October 2015 to October 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

 

Use of Digital Channels Increases, But Technology Can’t Fully Replace Human Connections during Auto Insurance Claims Process, JD Power Finds

2016-10-21

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COSTA MESA, Calif.: 25 Oct. 2016 — Gen Y¹ customer satisfaction with the auto insurance process, while still the lowest among all generations, is improving and carrying the rest of the industry with it, according to the JD Power 2016 U.S. Auto Claims Satisfaction Study,^SM released today.

Overall satisfaction among Gen Y averages 844 on a 1,000-point scale in 2016, up from 827 in 2015. The 17-point increase among Gen Y customers helps lift the overall industry average to 860, a modest 3-point boost. Pre-Boomers have the highest satisfaction at 912, followed by Boomers at 878 and Gen X at 847. Gen X is the only generation to experience a decline in satisfaction from a year ago, dropping 8 points.

Gen Y is the largest generational group of auto insurance claimants at 40%, up from 33% in 2015. Gen X remains stable at 20%, while the share of Boomers and Pre-Boomers is shrinking.

“Gen Y is a large and influential segment of the claims market, so it’s encouraging to see that insurance providers continue to focus on improving this generation’s satisfaction,” said Mark Garrett, director of insurance industry analytics at JD Power. 

Driving the increase in satisfaction overall, and specifically among Gen Y auto insurance claimants, is the offering of multiple communication options, such as email, online and telephone, during the claims process. The study finds that the use of technology to check the status of a claim has increased year over year by 5 percentage points to 42% of claimants. Email and online updates have each increased by 2 percentage points from last year to 27% and 17%, respectively. 

But technology cannot fully replace humans during the claims process. The study finds that overall satisfaction is highest among customers who first contact their agent when filing a claim at 882, compared with 848 among those who file a claim directly through the website. In fact, only 7% of customers overall prefer to use digital channels (web or app) to report their claim. Gen Y has the highest preference for digital channels to report a claim, at 10%.

“While technology offers a customer more options, what we find is that even when customers file a digital claim they still want to talk with someone to get an explanation of the process, what to expect along the claims pathway and the timing,” said Garrett. “Even the younger generations, which are most comfortable using digital channels, still want to talk with someone. We see the biggest gains in satisfaction when technology is used as a complementary channel for receiving status updates.”

The study measures customer satisfaction with their most recent automobile collision claim. Depending on the complexity of the claim, claimants may experience some or all of the following areas measured in the study: first notice of loss; service interaction; appraisal; repair process; rental experience; and settlement. Satisfaction is calculated on a 1,000-point scale. 

Other key findings of the study include:

• Changing Role of the Agent: While some insurance providers are reducing the agent’s role in the claims process, the study finds that 80% of customers who purchased their policy through a local agent still call their agent first to report or seek advice regarding a claim. Among customers who call their agent first, 64% say their agent reported their claim, while 20% are transferred by their agent to a call center and 16% are redirected. Overall customer satisfaction is 882 when the agent files the claim, but slips to 858 when the customer is transferred to a call center and falls even further to 824 when they are instructed to contact the call center.     
• Costs of a Claim: Among the two-thirds of customers who have renewed their auto insurance policy since filing a claim, 28% say their insurance premiums have increased.
• Satisfaction Affects Customer Loyalty, Advocacy: Satisfaction with the claims experience affects customer retention and referrals. Among delighted claimants (overall satisfaction scores of 900 or higher), 84% say they “definitely will” renew their policy and 83% “definitely will” recommend their insurer. Among displeased claimants (scores of 549 and below), only 12% say they “definitely will” renew and 7% “definitely will” recommend their current insurer.

Insurance Rankings

The Hartford ranks highest in auto claims satisfaction with an index score of 891, a 21-point improvement from 2015. The Hartford performs particularly well in the first notice of loss and service interaction factors.

Erie Insurance (886) ranks second, followed by Auto-Owners Insurance (885), American Family (874), Amica Mutual (874) and Nationwide (874).

The 2016 U.S. Auto Claims Satisfaction Study is based on responses from 12,228 auto insurance customers who settled a claim within the past six months prior to taking the survey. The study excludes claimants whose vehicle incurred only glass/windshield damage or was stolen, or who only filed a roadside assistance claim. Survey data was collected from November 2015 through August 2016.

For more information about the 2016 U.S. Auto Claims Satisfaction Study, visit http://www.jdpower.com/resource/jd-power-us-auto-claims-satisfaction-study.

See the online press release at http://www.jdpower.com/pr-id/2016211.

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).

 

Despite High Satisfaction, Many Fast-Growing Small Businesses Consider Switching Banks, JD Power Study Finds

2016-10-26

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COSTA MESA, Calif.: 27 Oct. 2016 — Fast-growing small businesses create both an opportunity and a threat for their banks, according to the JD Power 2016 U.S. Small Business Banking Satisfaction Study,^SM released today.

Small businesses that are growing sales 20% or more annually are considerably more satisfied overall with their banking experience than their counterparts at small businesses with lower or no annual growth (844 vs. 781, respectively, on a 1,000-point scale). 

Yet the study finds that 22% of the fast-growing small businesses have switched banks in the past 12 months, compared with only 5% of the other small businesses. Perhaps even more concerning to banks is that 25% of owners of fast-growing small businesses indicate they intend to switch within the next year, while only 7% of other small businesses indicate the same. 

“If the business is growing, the owner is more likely to need new loans and banking products, and that makes them look around at other options,” said Jim Miller, senior director of banking at JD Power.  “Once they start exploring, it often doesn’t take long to move from considering switching banks to actually switching. For the banks, that means the risk of potentially losing customers, but it also creates the opportunity to acquire new customers from competitors. It’s critical that the banks consistently communicate the other products and services they have to help businesses continue to grow.”

Fast-growing small businesses are very sensitive to problems: when they experience one or more problems, their likelihood to switch more than doubles, to 57% from 24%. Applying for a loan is also a critical “moment of truth” for these customers, with 61% of fast-growing businesses that applied for a loan in the past year considering switching, compared with 19% of those that have not applied for a loan considering the same. The need for loans opens the door to competition, with 73% of fast-growing businesses considering a non-bank alternative. To compete, banks need to offer an easy loan application process, which is an area of opportunity, as only 49% of loan applicants say that applying for a new loan was “very easy.” 

“Banks need to be proactive in order to retain fast-growing small businesses,” said Miller. “To retain their business, it is critical to develop a strong relationship before they need a loan or experience a problem. Banks can do this through proactive outreach, understanding their business and providing advice.”

Other key findings of the study include:

• First Impression Is Critical: Account initiation is the bank’s first interaction with a new customer. Among small business owners who recently opened a new account, 74% say the bank representative “completely” identified their needs before recommending a product; 62% say the representative explained fees and pricing; and 44% say the representative provided information on other products. 
• The Digital Edge: Big banks¹  lead the way in providing digital channel solutions for their small business customers. Big banks outpace regional and midsize banks in terms of having the highest percentages of small business banking customers using mobile banking, online expense tracking and online financial management tools. Additionally, big banks have higher customer satisfaction with both their online and mobile banking experiences, compared with regional and midsize banks. 
• Small Business Owner Diversity: Among the diverse groups of small business owners, Millennial² owners have the highest overall satisfaction (863), followed by minority owners (843) and female owners (803). Conversely, Millennial owners are the most likely to say they “definitely will” switch banks (26%), followed by minority owners (21%) and female owners (10%).   

The study, now in its 11th year, measures small business customer satisfaction with the overall banking experience by examining eight factors: product offerings; account manager; facility; account information; problem resolution; credit services; fees; and channel activities. Satisfaction is calculated on a 1,000-point scale. 

Small Business Banking Satisfaction Rankings

Chase ranks highest in small business banking satisfaction in the West region for a fourth consecutive year, with a score of 806, and in the South region with a score of 826. Chase is followed in the West region by U.S. Bank (801), and is followed in the South region by Wells Fargo (817). 

Capital One ranks highest in small business banking satisfaction in the Northeast region with a score of 819. Wells Fargo ranks second (807) and Chase third (805). Huntington ranks highest in the Midwest region with a score of 820, followed by PNC Bank with 812 and Chase with 805.

The 2016 U.S. Small Business Banking Satisfaction Study includes responses from 8,159 small business owners or financial decision-makers who use business banking services. The study was fielded from June 2016 through mid-August 2016.

For more information about the 2016 U.S. Small Business Banking Satisfaction Study, visit http://www.jdpower.com/resource/us-small-business-banking-satisfaction-study.

See the online press release at http://www.jdpower.com/pr-id/2016212.

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. Big banks are defined as the six largest financial institutions based on total deposits as reported by the FDIC, averaging $180 billion and above. Regional banks are defined as those with between $180 billion and $33 billion in deposits. Midsize banks are defined as those with between $33 billion and $2 billion in deposits.

2. JD Power defines Millennials as born in 1982 through 1994.  

 

Insurance Providers Focus on Customer Experience As Rates Remain Relatively Stable, JD Power Study Finds

2016-09-16

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COSTA MESA, Calif.: 19 Sept. 2016 — With homeowners and renters insurance premiums remaining stable, insurers are focusing on the customer experience to differentiate themselves from the competition, according to the JD Power 2016 U.S. Home Insurance Study,^SM released today.

Historically, price has been the leading basis of competition for many insurers. The industry is currently in what could best be described as a stagnant or soft cycle, with rates remaining relatively stable. On average, customers report an annual premium charge of $1,186 for homeowners insurance and $259 for renters insurance in 2016, with both remaining relatively unchanged over the past few years.

“Insurers have shifted their competitive focus to improving communication, process efficiency, and being easier to work with as a way to solidify and grow their business,” said Valerie Monet, director of the insurance practice at JD Power. “Improvements in processes and customer service benefit everyone—the customer and the insurer. When competing on price, it’s incredibly difficult to provide an outstanding customer experience.” 

The shift in insurers’ strategic priorities has resulted in a significant increase in satisfaction. Overall customer satisfaction with homeowners insurers is 804 (on a 1,000-point scale) and overall customer satisfaction with renters insurance companies is 825, each a 17-point increase from 2015. Monet noted that while in the homeowners and renters segments satisfaction with price is up (+16 points) because rates are stable, the increase in satisfaction with policy offerings (+25) is actually a much larger driver of the overall annual change in satisfaction. Improved communication is helping customers to see the value in the products they purchase. Among homeowners customers, satisfaction also improves significantly in claims (+19 points) and interaction (+10).¹  

“By pleasing their current customers, which builds loyalty and advocacy, insurers benefit financially,” said Monet. “Customers don’t often just pocket the savings that result from stable premiums. If they are happy with their current insurer, they will frequently modify their policy by increasing their coverage or purchasing additional insurance with the savings, such as adding riders for high-priced items like jewelry, artwork and family heirlooms.”

The Young and the Wealthy

Gen Y² —now the largest generation in the United States at 75 million or 31% of the population³  and the largest group of home buyers at 35%⁴ —is a sizable force in the U.S. economy today. Over the next decade, Gen Y will become even more influential as they enter their prime years of building assets and accumulating wealth, and, therefore, will likely represent a lucrative segment for insurers to target. 

“These young, affluent consumers create an opportunity for insurers looking to grow their business,” said Monet. “Gen Y, across all of its income levels, has the greatest affinity for using technology in all aspects of their lives, given they grew up using technology 24/7. Combining this with the fact that HNWIs typically have more complex risk and insurance needs than the average policyholder suggests it is important for insurers to understand how to meet the needs of HNWI Gen Y customers and modify their approach accordingly.”

While HNWI Gen Y customers are more satisfied overall with their homeowners insurance than are HNWI Boomers, they are less satisfied with interaction with their insurer, specifically with their agent experience. HNWI Gen Y has a greater number of contacts with their insurer vs. HNWI Boomers, resulting in the interaction factor having a heavier weight in the overall satisfaction index among HNWI Gen Y vs. Boomers (34% vs. 27%, respectively). Focusing on improving agent and broker interactions will be critical for insurers looking to attract and retain HNWI Gen Y customers.

“Although many insurers have made great strides in improving the customer experience, there is still significant opportunity to improve customer perceptions of both products and services,” said Monet. “New entrants into the market, such as on-demand insurance, will likely result in shifts in customer expectations. Customer satisfaction is going to be more important than ever before for competitive position and growth.”

On-demand insurance allows customers to insure items just when they need it, turning it on and off, frequently using their smartphone. Often called “just-in-time coverage,” consumers can insure, for example, their bike only while they’re riding it, their skis during a weekend trip or their laptop when used away from the home. 

“On-demand insurance is gaining popularity in markets outside the United States and is slowly growing in the United States,” said Monet. “It’s important that insurers know which segments of their customers would be interested in such insurance products and perhaps develop a similar product to compete in that space.”  

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

Insurance Rankings

Amica Mutual ranks highest in the homeowners insurance segment for a 15th consecutive year, with a score of 864. Amica Mutual performs particularly well in the billing process and policy information, interaction, policy offerings and price factors. Auto Club of Southern California Insurance Group ranks second (835), followed by Cincinnati Insurance (828), GEICO (826) and Auto-Owners Insurance (824).

The Hartford ranks highest in the renters insurance segment with a score of 841. The Hartford performs particularly well in the billing process and policy information, interaction and policy offerings factors. American Family ranks second (836), followed by Erie Insurance (834) and State Farm (832).

For more information about the 2016 U.S. Home Insurance Study, visit http://www.jdpower.com/resource/jd-power-us-household-insurance-study. 

See the online press release at http://www.jdpower.com/pr-id/2016179.

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

1. Satisfaction with billing process and policy information cannot be trended due to methodology changes

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

3. Source: Pew Research Center

4. Source: 2016 National Association of Realtors Home Buyer and Seller Generational Trends 

 

Ease of Use in Appliance Websites is Critical to Drive Retail Store Traffic

2016-09-22

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COSTA MESA, Calif.: 23 Sept. 2016 — Home appliance shoppers who find brand and retailer websites less complicated to use than expected are nearly three times as likely to visit a store location, according to the JD Power 2016 Appliance Shopper Website Evaluation Study,^SM released today.

While only 25% of shoppers who find brand websites to be more complicated or about what they expected, 63%—or nearly three times more—of those who find the brand websites less complicated are likely to visit an appliance retailer.

Shoppers perceiving a retailer website to be less complicated also are more likely to consider the same retailer for other purchases than those who perceive a retailer website to be more complicated or what they expected (71% vs. 53%, respectively).

“For shoppers who have an informative, uncomplicated website experience, it’s highly likely their next step is to grab their car keys and drive to a retail location,” said Greg Truex, senior director at JD Power. “Companies that grasp the relationship between their website’s usefulness and increased brand consideration are more apt to increase customer satisfaction.”

In addition to measuring website experiences via a desktop, the study also measures experiences on mobile devices this year. “While information is the most important factor for all shoppers, those using a mobile website tend to value ease of navigation and website speed more than desktop shoppers,” Truex said. “The volume of mobile shoppers will likely increase exponentially in the coming years, and companies need to constantly adapt to their customers’ shopping habits.”

Following are additional findings of the 2016 study:

• Opportunity for Consistency: Samsung and GE Appliances brands excel on both a desktop and mobile device, ranking among the top three in each segment, with the performance of other appliance brand websites varying. Among retailer websites, Lowe’s performs consistently in both desktop and mobile, ranking second in both segments.
• Retailer Sites Outperform Brand Sites: Across the device types, appliance retailer websites achieve higher scores than appliance brand websites (840 vs. 826 averages on desktop; 836 vs. 828 averages on mobile device).
• Appliances Beat Autos: On a desktop, appliance brand (826) and appliance retailer (840) websites score higher than automotive manufacturer websites (807).[1] The same is true on a mobile device, as appliance brand (828) and appliance retailer (836) websites score higher than automotive manufacturer websites (783).[2]

Study Rankings

Among appliance brand websites viewed on a desktop, GE Appliances (846) and LG (846) rank highest in a tie on a 1,000-point scale. GE Appliances performs particularly well in the information/content, navigation, speed and appearance measures, while LG performs particularly well in information/content and appearance. Samsung (839) ranks third and KitchenAid (834) ranks fourth.

Among appliance brand websites viewed on a mobile device, Samsung (863) ranks highest, performing particularly well in information/content, navigation, speed and appearance. Maytag (843) ranks second and GE Appliances (842) ranks third.

Among retailer websites viewed on a desktop, Best Buy (846) ranks highest. Lowe’s (845) ranks second and The Home Depot (842) ranks third.

Among retailer websites viewed on a mobile device, h.h. gregg (852) ranks highest, performing particularly well in information/content, navigation, speed and appearance. Lowe’s (842) ranks second.

About the Study

Now in its fourth year, the JD Power 2016 Appliance Shopper Website Evaluation Study evaluates the usefulness of desktop and mobile websites for appliance brands and retailers based on four measures that comprise the overall website experience: information/content; navigation; appearance; and speed.

The study is based on responses from more than 7,500 major appliance purchase intenders who evaluated both brand and retailer websites. The study was fielded in June and July 2016.

For more information about the 2016 Appliance Shopper Website Evaluation Study, visit

http://www.jdpower.com/resource/us-appliance-shopper-website-evaluation-study

See the online press release at http://www.jdpower.com/pr-id/2016274

Media Relations Contacts

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

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

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

 

September New-Vehicle Retail Sales Decline; Incentives Reach Highest Level Ever

2016-09-23

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DETROIT: 26 Sept. 2016 — For the fifth time in the past seven months, U.S. new-vehicle retail sales are expected to drop in September, falling 1.4% from a year ago, according to a monthly sales forecast developed jointly by JD Power and LMC Automotive.

Retail sales are on pace to reach 1,185,500 units in September, while total sales are projected to fall 0.8% to 1,429,100.

Labor Day weekend is typically one of the highest volume sales weekends in the year. The weekend’s sales this September were 199,493 units, a 1% decrease compared with 2015.   This decline was despite elevated incentive programs from manufacturers. In fact, incentive spending thus far in September is at a record level of $3,923 per unit, surpassing the previous high of $3,753 set in December 2008.

Deirdre Borrego, senior vice president and general manager of automotive data and analytics at JD Power, said: “The industry can be viewed through two competing perspectives. The first is that in absolute terms, the industry is performing at an exceptional level. While sales have fallen slightly, they are at near-record levels and transaction prices are at all-time highs. The second is less positive. With the rate of growth slowing, leading indicators are pointing to challenges ahead. Specifically in September, incentive spending is at an all-time high.

Retail sales year to date through September are expected to be down 1.3%, compared with the same period in 2015, while total sales are expected to be up 0.5%.

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said: “The U.S. automotive market continues to show signs of little growth, yet in our opinion the numbers do not reflect a significant weakness or risk. The expectation remains for steady volume levels at the topline, despite a pullback in the retail market and increased monthly performance volatility. However, group and brand performance is beginning to diverge as competitive pressure is at an all-time high.”

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

---

September 2016¹                      August 2016              September 2015

New-Vehicle Retail Sales                1,185,500 units                          1,260,562 units           1,201,909 units

                                                       (1.4% lower than September 2015)¹

Total Vehicle Sales                         1,429,100 units                           1,510,612 units            1,440,503 units

                                                       (0.8% lower than September 2015) 

Retail SAAR                                   14.9 million units 1                      3.1 million units            5.2 million units

Total SAAR                                    17.7 million units                         17.0 million units          18.0 million units

¹Figures cited for September 2016 are forecasted based on the first 14 selling days of the month.

• The seasonally adjusted annualized rate (SAAR) for retail sales in September 2016 is projected to reach 14.9 million units, down from 15.2 million units in September 2015. The SAAR for total sales is projected at 17.7 million units in September 2016, down from 18.0 million units a year ago.
• Fleet sales are expected to reach 243,600 in September, a 2.1% increase from September 2015, and account for 17.0% of total light-vehicle sales.
• LMC Automotive’s forecast for full-year total light-vehicle sales forecast remains at 17.4 million units, 0.3% decline from 2015. The forecast for retail light-vehicle sales is 14.0 million units, down 1.6% from 2015.
• The average new-vehicle retail transaction price thus far in September is $30,665, a record for the month— surpassing the previous high of $30,473 in September 2015.  
• Trucks account for 60.8% of new-vehicle retail sales so far in September, poised to match the record for any month set in July 2016. Pickups account for 15.9% of sales in the month.

U.S. Retail SAAR—September 2015 to September 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

 

“Social” Becomes Key Battleground for Streaming Music Providers

2016-09-27

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NEW YORK: 28 Sept. 2016 — Overall satisfaction with paid streaming music service is highest among fully engaged customers—listeners who consume others’ content (i.e., they follow other users and/or listen to their playlists) and who say they “always” or “sometimes” share their own playlists—according to the JD Power 2016 Streaming Music Satisfaction Study,^SM released today.

The inaugural study measures overall satisfaction among customers who have used a subscription-based streaming music service within the past six months. Customer satisfaction is examined across six key measures (listed in order of importance): performance and reliability; ease of use; cost of service; content; communication; and customer service. Scores for each measure are reflected in an index based on a 1,000-point scale.

The study finds that satisfaction with paid streaming music service is impacted by the level of engagement with listening to and sharing playlists and content with others. There are four distinct listener profiles. The largest segment is passive listeners (customers who neither share their own content/playlists nor consume other users’ content), representing 44% of the total music streaming universe; 29% are fully engaged listeners; 22% are followers (customers who consume other users’ content/playlists but do not share their own); and 5% are sharers (customers who say they “always” or “sometimes” share their own playlists but do not consume other users’ content).

“The streaming music customer experience appears to be affected by a number of dimensions, including paid vs. free streaming, device choice and content selection,” said Kirk Parsons, senior director and technology, media & telecom practice leader at JD Power. “The key to success, however, is increasingly becoming how well streaming music brands create a viable music ecosystem that can not only support multiple types of devices, but also facilitate listeners’ social sharing and following of playlists with others.”

Following are some of the study’s key findings: 

Paid Music Services Generate Higher Satisfaction than Free Streaming: Satisfaction is higher across all measures among customers who pay for their music service, with an overall satisfaction gap advantage of 19 points, compared with those who use free-based music services. The largest satisfaction gaps are in the customer service (68-point gap) and communication (45-point gap) measures.

Satisfaction Lowest among Passive Listeners: As levels of engagement and contribution to a streaming community rise, so does satisfaction. Overall satisfaction is lowest among passive listeners (801), followed closely by the followers (812), while satisfaction is highest among fully engaged listeners (860) and sharers (833). Satisfaction in all measures is lower among customers who are not engaged than among those who are, with an especially wide gap between the two segments in the communication (79-point gap) and cost of service (72-point gap) measures.

Exclusive Content Improves Customer Advocacy: Among customers who listen to content released exclusively on their streaming service, overall satisfaction is 52 points higher than among those who do not, and content satisfaction is 59 points higher. Nearly three-fourths (74%) of customers who listen to exclusive content say they “definitely will” recommend their provider vs. 54% of those who do not who say the same.

Peripheral Devices Enhance the Listening Experience: Overall satisfaction is higher among customers who use a peripheral device to stream music than among those who do not. Several devices that are not yet widely adopted have particularly high impacts on satisfaction: smartwatches (+57 points); home automation controllers (+50); and virtual reality viewers (+48). Bluetooth speakers, which are more widely used, also have a considerable effect (+23).

Study Rankings

Apple Music ranks highest among the streaming music brands included in the study, with an overall score of 834. Apple leads with the highest score in three of the six measures, performing particularly well in performance and reliability, content and ease of use. Rhapsody ranks second with an overall score of 826 and performs particularly well in the cost of service and communication measures.

About the Study
The 2016 Streaming Music Satisfaction Study is based on responses from 4,482 customers. The study was fielded in June and July 2016.

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

 

Higher Overall Satisfaction with Alternative Video Services Motivates Customers to Cut the Cord, JD Power Finds

2016-09-27

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NEW YORK: 29 Sept. 2016 — Overall satisfaction with alternative video services such as streaming and transactional-based OTT (over the top) offerings is considerably higher than it is with traditional pay television service, spurring an increase in cord-cutting from 2015, according to three JD Power studies released today.

The related studies are the JD Power 2016 U.S. Residential Television Service Provider Satisfaction Study^SM; the JD Power 2016 U.S. Residential Internet Service Provider Satisfaction Study^SM; and the JD Power 2016 U.S. Residential Telephone Service Provider Satisfaction Study.^SM

The annual wireline studies, now in their 15th year, evaluate residential customers’ experiences with TV, internet and phone services in four geographical regions: East, South, North Central and West. The ISP and telephone studies measure customer satisfaction across five factors: network performance and reliability; cost of service; billing; communication; and customer service. The TV study measures satisfaction in those same five factors plus a sixth: programming. Satisfaction is calculated on a 1,000-point scale.

The TV study finds that, compared with pay TV service providers, satisfaction is significantly higher with paid streaming video services like Netflix, Amazon and Hulu; skinny bundle offerings like SlingTV and PlayStation Vue; and programming apps like HBO Go.

For example, customers rate their primary alternative video service higher than their TV service for the overall experience (7.92 vs. 7.18, respectively, on a 10-point scale), which is largely driven by much higher ratings for the overall cost of service experience (7.99 vs. 6.42). Customers also rate their primary alternative video service higher than their TV service for the overall performance and reliability (7.98 vs. 7.82), programming (7.87 vs. 7.76) and billing (8.04 vs. 7.54) experiences.

Subsequently, with relatively low prices and increasing rates of adoption, alternative video services are helping drive the cord-cutting trend. Nearly two-thirds (63%) of customers have used an alternative video service in the previous year, up from 58% in 2015. Additionally, 73% of customers who plan to cut the cord on TV service in the next year indicate they will use an alternative video service.

“This finding partly reflects age demographics since younger customers are more likely to use alternative video services than older customers, and younger customers are more satisfied with alternative TV service than older customers,” said Kirk Parsons, senior director and technology, media & telecom practice leader at JD Power. “Despite their higher satisfaction, customers who have used an alternative video service in the previous year are much more likely than those who haven’t used one—14% vs. 4%—to cut the cord on TV in the next year.”

However, customers who cut the cord on TV are not necessarily lost for TV providers, and increasing their satisfaction raises the likelihood that they will reactivate TV service or upgrade their internet service in the future. Among customers who plan to drop TV service during the next 12 months, 44% say they expect to reactivate it during certain times of year. Overall satisfaction among customers in this group is 845, compared with 575 among those who do not plan to reactivate TV service and 561 among those who don’t know if they will reactivate it.

Key Study Findings

Residential Television Service Provider Satisfaction Study

• AT&T U-verse/DIRECTV ranks highest in TV customer satisfaction in the East (782) and South (764) regions; Verizon FiOS (776) ranks highest in the West region; and DISH Network (747) ranks highest in the North Central region.
• Among customers who switched providers in the previous 12 months, the most commonly cited reasons for switching are “cost was too high” (25%); “moved locations/previous provider not available at new location” (24%); “competitor offered a better deal” (17%); and “customer service was poor” (10%).

 Residential Internet Service Provider Satisfaction Study

• Verizon ranks highest in ISP customer satisfaction in the East (735), South (755) and West (755) regions; AT&T (717) ranks highest in the North Central region.
• Slightly more than one-third (34%) of customers purchase premium speed internet. This compares to 37% in 2015 and 27% in 2014. Performance and reliability satisfaction among customers with premium speed internet is 763, while satisfaction among those without premium speed internet is 694.
• Over a typical three-month period, 42% of customers experienced a website connection error or failure to load (vs. 45% in 2015); 48% experienced a website that was excessively slow to load (vs. 51%); and 36% experienced a general service outage (vs. 37%). The incidence of customers experiencing an email connection error—28%—is unchanged from 2015.

 Residential Telephone Service Provider Satisfaction Study

• Cincinnati Bell ranks highest for the first time in telephone customer satisfaction in the North Central region (765); Verizon ranks highest in the East (757), South (766) and West (770) regions.
• Nearly half (46%) of highly satisfied residential telephone customers (overall satisfaction scores of 900 or higher) say they “definitely will not” switch providers in the next 12 months, compared with only 12% of dissatisfied customers (scores below 550) who say the same.

The 2016 U.S. wireline studies are based on responses from 31,072 customers nationwide who evaluated their cable/satellite TV, high-speed internet and telephone service providers. The studies were fielded in four waves: November 2015, February 2016, April 2016 and July 2016.

For more information about these three JD Power studies, visit:

http://www.jdpower.com/resource/us-residential-television-customer-satisfaction-study

http://www.jdpower.com/resource/us-residential-internet-service-provider-customer-satisfaction-study

http://www.jdpower.com/resource/jd-power-residential-telephone-customer-satisfaction-study

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

 

Life Insurance Providers Focus Efforts on Interaction to Boost Customer Satisfaction, JD Power Study Finds

 

2016-09-29

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COSTA MESA, Calif.: 3 Oct. 2016 — Life insurers are focusing their efforts on interaction as a way to satisfy their existing life insurance customers and attract new ones, according to the JD Power 2016 U.S. Life Insurance Study,^SM released today.

While overall satisfaction makes a modest 1-point improvement to 771 on a 1,000-point scale in 2016, compared with 2015, customer satisfaction with their interactions with their insurer jumps 31 points year over year to 839.  

Insurance companies generally are increasingly turning to digital channels to interact with their customers, and life insurance is no exception. The study finds that 27% of life insurance customers are communicating with their insurer via digital channels in 2016, up from 21% in 2015. And it’s not just Gen Y¹  customers who are leading the digital charge. For example, 33% of Boomers submit their life insurance application online, compared with 25% of Gen Y applicants. In contrast, 60% of Gen Y customers have interacted with their insurer in person to submit an application, while only 43% of Boomers have done the same. 

“Life insurers are trying to compete in a stagnant pricing market by focusing on communicating with their customers,” said Greg Hoeg, vice president of U.S. insurance operations at JD Power. “They’re getting more engaged, which is much to the delight of their customers. The challenge for insurers is to understand what, and how often, to communicate. It’s not as easy as assuming the younger generations want to be self-sufficient and only use digital channels or that older generations only want to communicate by talking with another person.”

Most customers want a combination of personal and digital interactions with their insurer. Only 12% of both Boomers and Gen Y customers had exclusively digital contacts with their insurer in the past 12 months. Interaction satisfaction is highest among Gen Y customers (851) when they contact their insurer via both digital and non-digital channels. Boomers, who are most satisfied with non-digital contacts (816), also are highly satisfied with a combination of digital and personal interactions (804).  

Wearables: The New Frontier?

An increasing number of life insurance providers are engaging their customers through the use of wearable devicesfitness trackers that monitor the wearer’s activities, such as walking or jogging, heart rate and sleep patterns. The notion is to financially reward customers for healthy behaviors. The study finds that 3% of customers received a wearable device when they signed up for their policy and 5% of customers currently receive a discount from their insurer through the use of a wearable device.

That’s just scratching the surface, as 46% of customers, including 68% of Gen Y customers, say they would consider wearing a tracking device if their insurer offered rate incentives. Among those who say they would not want to participate, 66% indicate they are concerned about their privacy.

“Wearables are a great way for insurers to compete in the market,” said Hoeg. “Whether it’s through offering fitness trackers to new customers or rewarding those who already have one and live a healthy lifestyle, it’s an incentive that providers can offer and it encourages people to stay healthy or get healthy.”  

The study, now in its third year, measures individual life insurance customer satisfaction with their insurer based on performance in four factors (in order of importance): price; policy offerings; annual statement and billing; and interaction.

Insurance Rankings

State Farm ranks highest in life insurance customer satisfaction for a third consecutive year, with a score of 828. Nationwide ranks second with a score of 806 and Northwestern Mutual ranks third with a score of 799.

The 2016 U.S. Life Insurance Study is based on responses from 6,455 individual life insurance customers. The study was fielded in June and July 2016. 

For more information about the 2016 U.S. Life Insurance Study, visit http://www.jdpower.com/resource/us-individual-life-insurance-study.

See the online press release at http://www.jdpower.com/pr-id/2016183.

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).

 

Incidence of Wireless Network Problems Dramatically Higher in Urban Areas Driven by Young, High-Usage Customers

2016-08-19

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COSTA MESA, Calif.: 25 Aug. 2016 — Wireless customers living in urban areas experience the highest number of overall network problems and have lower tolerance of those problems, according to the JD Power 2016 U.S. Wireless Network Quality Performance Study^SM—Volume 2, released today. The finding underscores the importance of continued investment by carriers in urban areas as the use of 4G LTE compatible smartphones grows and customers expect faster data speeds.

Now in its 14th year, the semiannual study is based on 10 problem areas of the customer experience: dropped calls; calls not connected; audio issues; failed/late voicemails; lost calls; text transmission failures; late text message notifications; Web/app connection errors; slow downloads/apps; and email connection errors. Network performance issues are measured as problems per 100 (PP100) connections, with a lower score reflecting fewer problems and higher overall performance.

According to the study, customers living in urban areas experience the highest number of overall network problems, at 15 PP100 vs. 12 PP100 among those living in rural areas and 10 PP100 among those living in suburban areas. The high level of problems in urban locales exists across all network problem areas. For example, customers living in urban areas experience more calling problems than those living in rural or suburban areas (19 PP100 vs. 13 PP100, respectively); messaging problems (8 PP100 vs. 5 PP100); and data problems (20 PP100 vs. 15 PP100).

Also contributing to the high incidence level is that urban areas have a much higher proportion of younger wireless subscribers. The overall number of network quality problems is 17 PP100 among customers 18-34 years old vs. 10 PP100 among those 35 years and older. Younger customers experience higher rates of problems because they are heavy users of their devices. For example, customers 18-34 received, on average, 39 text messages during the previous 48 hours vs. 14 text messages among those 35 years and older. Similarly, customers 18-34 connected to an app on their phone 15 times, on average, during the previous 48 hours vs. seven times among those 35 and older.

“Enhancing network performance to ensure customers consistently experience a high-quality connection—especially those living in urban areas—can substantially improve loyalty for wireless carriers,” said Kirk Parsons, senior director and technology, media & telecom practice leader at JD Power. “This can be accomplished by improving bandwidth efficiency, data connection speeds and reliability. To retain customers, carriers need to proactively expand and upgrade networks to align with the latest generation of services and devices, particularly those that rely on data speed and consistent connections, such as broadband devices.”

This holds true knowing that urban customers are especially likely to defect when they experience a high number of network problems. More than one-third (37%) of customers in urban areas who experience overall network problems at a higher incidence than 12 PP100 say they “definitely will” switch carriers in the next 12 months, compared with 17% among suburban customers and 21% among rural customers.

Following are other key findings of the 2016 Volume 2 Study:

• Overall wireless network quality remains steady: Overall wireless network quality problem incidence is 12 PP100, which is on par with the incidence measured six months ago in the 2016 Volume 1 study.
   
• Data quality varies by device: On average, wireless customers experience the highest number of data quality problems when using a mobile broadband device (30 PP100), followed by a tablet (19 PP100) and phone (11 PP100).
   
• Incidence of 4G-enabled devices increasing: More than eight in 10 (81%) smartphone owners indicate using a 4G-enabled device, compared with 59% just two years ago.
   
• Customers becoming less tolerant: Nearly one-fourth (24%) of customers who experienced overall network problems at an incidence of more than 12 PP100 say they “definitely will” switch carriers vs. 21% last volume.

Study Rankings

Metropolitan service areas with the fewest network quality problems (8 PP100 each) are Charlotte, N.C.; Cincinnati, Ohio; St. Louis, Mo.; and Hartford, Conn. San Jose, Calif., has the highest number of reported network quality problems at 23 PP100.

Verizon Wireless ranks highest in five of the six regions, with typically lower PP100 scores than the regional averages in call quality, messaging quality and data quality. U.S. Cellular, absent from the study since 2014, ranks highest in the North Central region and excels in most network problem areas, especially call quality and data quality.

The 2016 U.S. Wireless Network Quality Performance Study—Volume 2 is based on responses from 43,300 wireless customers. Carrier performance is examined in six geographic regions: Northeast, Mid-Atlantic, Southeast, North Central, Southwest and West. In addition to evaluating the network quality experienced by customers with wireless phones, the study also measures the network performance of tablets and mobile broadband devices. The study was fielded January through June 2016.

Media Relations Contact

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

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