Category: United States

Primary Mortgage Servicers Need to See Customer Satisfaction as Cost-Reduction Strategy

2016-07-27

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COSTA MESA, Calif.: 28 July 2016 — Mortgage servicers that invest strategically in the customer experience can not only recapture that investment, but also increase profits and raise customer satisfaction, according to the JD Power 2016 Primary Mortgage Servicer Satisfaction Study,℠ released today.

The study contradicts those in the mortgage servicing industry who believe customer experience investments are unnecessary and unprofitable.  That perception can come from knowing that customers don’t typically pick their mortgage servicer—48% of customers indicate they didn’t, according to study findings—and that there are a lot of barriers to changing mortgage providers.

“Servicers with a captive audience can often view taking measurable steps that improve the customer experience as an unnecessary investment,” said Craig Martin, senior director of the mortgage practice at JD Power. “They aren’t against improving satisfaction, but cost containment is their top priority. The study clearly shows, however, that interacting with customers more efficiently—and more effectively—can reduce costs and increase profit for servicers regardless of the business model, while having the added bonus of improving satisfaction.”

The study identifies four primary ROI benefitsfor servicers that invest in improving the customer experience:  

• Complaint reduction: Enabling customers to find answers to their own questions before making a call and resolving issues on the first contact reduce the number of repeated customer contacts and escalations, which can draw the attention of regulators and other agencies.
• Cost containment and reduction: Eliminating the need for any contact and increasing the use of self-service channels can reduce customers’ reliance on the live phone channel.
• Limiting portfolio loss: Delivering a satisfying experience dramatically improves the chances customers will consider the lender for future mortgage needs, which protects against undesired attrition and supports future revenue growth by reducing acquisition costs.
• Developing new business opportunities: Delivering a highly satisfying experience can promote increased cross-sell of existing customers or lead to more new business with partners.

Not surprisingly, customers experiencing a problem are highly likely to call their servicer (83%). But customers with a problem also increase the chance of public scrutiny, with 13% of such customers posting a comment on social media. Eliminating problems goes right to the bottom line by reducing call center costs and lowering the risk of receiving unwanted regulatory attention and its associated costs.

The study also finds that when servicers have an easy-to-navigate website with useful information, there is a substantial reduction in calls to live agents (from 42% to 30%). Just as important, customers want to use self-service options, with 40% saying they searched the servicer’s website before calling, thereby spotlighting the missed opportunity to solve issues in the customer’s preferred channel.

“Most servicers tend to focus on the complaints they receive, but the truly successful servicers get to the root causes of problems and take a more proactive approach,” Martin said. “They realize better communication and self-service options can help their bottom line by reducing unnecessary calls.”

There are business growth opportunities at stake, too. The study shows a clear link between satisfaction and customers’ willingness to work with a firm in the future. When overall satisfaction is below 600 points (on a 1,000-point scale), 63% of customers indicate they would switch mortgage servicers in order to find better/improved customer service. Conversely, when overall satisfaction is above 900 points, 66% say they would “definitely will” refinance with their current servicer.

Further, the mortgage servicing experience can affect the broader relationship for companies that offer other products and services. When overall satisfaction is below 600 points, 27% of customers say their servicing experience triggered them to close or consider closing other accounts at their mortgage servicer company.

Quicken Loans ranks highest in the study with a score of 850, followed by Huntington National Bank with a score of 828. Regions Mortgage ranks third with a score of 810, an improvement of 77 points from 2015.

The 2016 U.S. Primary Mortgage Servicer Satisfaction Study measures customer satisfaction with the mortgage servicing experience in six factors: new customer orientation; billing and payment process; escrow account administration; interaction; mortgage fees; and communications. Satisfaction is calculated on a 1,000-point scale. It is based on responses from 7,542 customers who have had a mortgage on their primary residence for at least one year. The study was fielded in March through April 2016.

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

 

Industry Ekes Out New-Vehicle Sales Gain in July, With Record Transaction Prices and Consumer Spending

2016-07-28

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DETROIT: 29 July 2016 — New-vehicle retail sales in July are expected to increase 2.1% from a year ago to 1,318,300, according to a monthly sales forecast developed jointly by JD Power and LMC Automotive.

Sales growth in July is supported in part by an extra weekend in 2016, compared with July 2015. Consumer spending is poised to surpass $40 billion for just the fifth time in history, even with modest sales growth, as new-vehicle retail transaction prices are at record levels for the month of July.

• New-vehicle retail transaction prices thus far in July are at $30,601. The previous record for the month was $30,041, set in July 2015. 
• With record transaction prices, consumers are on pace to spend $40.3 billion on new vehicles in July, surpassing the record high of $38.8 billion for the month of July set in 2015. The record for consumer spending on new vehicles in any month is $43.7 billion, set in December 2015. 
• Trucks are accounting for 60.8% of new-vehicle retail sales so far in July. Trucks have accounted for more than 60% of sales just four times on record.
• The seasonally adjusted annualized rate (SAAR) for retail sales in July 2016 is projected to reach 14.8 million units, up from 14.4 million units in July 2015. 
• Total new-vehicle sales in July 2016 are projected to hit 1,545,400, a 2.4% increase from July 2015. The SAAR for total sales is projected at 18.1 million units in July 2016, up from 17.5 million units a year ago.
• Fleet sales are expected to reach 227,000 in July, a 4.5% increase from July 2015, and account for 14.7% of total light-vehicle sales. 
• LMC Automotive’s full-year total light-vehicle sales forecast is 17.4 million units, a decline of 0.1%, or 15,000, from 2015.  

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

                                                              July 2016¹                             June 2016                              July 2015

New-Vehicle Retail Sales                 1,318,300 units                  1,184,280 units                        1,291,491 units

                                                   (2.1% higher than July 2015)¹

Total Vehicle Sales                             1,545,400 units                   1,512,626 units                       1,508,866 units

                                                    (2.4% higher than July 2015)

Retail SAAR                                          14.8 million units                13.1 million units                14.4 million units

Total SAAR                                            18.1 million units                16.6 million units                17.5 million units

¹ Note: Figures cited for July 2016 are forecasted based on the first 19 selling days of the month.

Deirdre Borrego, senior vice president and general manager of automotive data and analytics at JD Power, said: “Despite the modest sales gains, July is a strong month for the industry in terms of consumer spending. While incentive spending continues to rise and is at its highest level so far in 2016 ($3,680), strong truck mix continues to enable record-level transaction prices. Consumer spending in July will hit its highest level so far in 2016.”

Jeff Schuster, senior vice president of forecasting at LMC Automotive, said: “This is proving to be a dynamic year in terms of automotive demand volatility. The environment influencing volume remains variable as well, with continued low interest rates and higher incentives helping demand. This will be a historic year for U.S. autos, with 2016 either being the first decline since 2009 or a record sales year that nudges past 2015—it is that close at this stage and could go either way.” 

See the online press release at http://www.jdpower.com/pr-id/2016126.

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

About LMC Automotive www.lmc-auto.com.

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

 

Traditional Media Brands’ Expansion into Digital Creates New Auto Advertising Opportunities, JD Power Study Finds

2016-07-29

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DETROIT: 1 August 2016 — New-vehicle drivers in the United States spend an average of 11 hours a day watching TV, streaming video content, listening to radio programming or on the Internet—often engaged in more than one of these activities simultaneously—according to the JD Power 2016 U.S. Automotive Media and Marketing Report^SM—Summer, released today.

The report, which provides a comprehensive view of the factors that influence consumers’ new-vehicle purchases, as well as attitudinal, lifestyle, recreational and media consumption behaviors, finds that all new-vehicle drivers are spending a great deal of time reading, watching and listening on a daily basis. While Gen Y¹  and Gen X spend the most time engaged with various media (13 hours and 12 hours, respectively), Boomers and Pre-Boomers are not far behind at 11 hours and 10 hours, respectively.

The bigger difference is how they are using it. The younger generations spend a greater share of their media consumption on the Internet and streaming video, while Boomers and Pre-Boomers are more inclined to spend this time watching TV. Digitally based, streaming media continues to gain popularity, as many consumers are willing to pay to get the content they want, when they want it, often delivered with few, if any, advertisements. Seven in 10 (70%) new-vehicle drivers indicate having used streaming video/programming services such as Amazon, Hulu or Netflix in the past 30 days, and 64% have used a streaming music service such as Pandora or Spotify in the past 30 days.

“We are exposed to a massive amount of content each day, yet as many consumers are paying subscription fees that limit ads, it creates a challenge to get auto advertisements and messaging in front of consumers,” said Dave Sargent, vice president of global automotive at JD Power. “Astute advertisers will continually monitor their consumer base and adapt their advertising to the appropriate channels to reach their target audience.”  

While paid media streaming offers limited digital advertising opportunities, traditional media players are increasingly opening new avenues for digital placements.

Traditional media channels such as TV networks, magazines and newspapers are still largely being consumed in their “native” form, but have also been successful in attracting a digital audience. For example, among the 60 broadcast and cable networks measured in the report, 97% of viewers watched the networks on television, and 36% also viewed a network’s programming via website, app or gaming system/streaming box. 

Magazine publishers are making similar inroads with their digital footprint. In addition to the 86% of readers of the 92 magazines included in the report who read the publication via a traditional printed copy, 41% read the magazine digitally, either through a digital edition, website or app.

Publications with content focused on sports, news or business—such as The Atlantic, Bloomberg Markets, ESPN The Magazine and Harvard Business Review—have the largest proportions of digital audiences and are among the measured publications whose total digital readership surpasses their print edition readership.

Compared with magazines and television networks, newspapers attract the highest rates of users to digital content. For newspapers, readers are fairly evenly divided between print and digital, with 60% reading a measured newspaper in its print version and 58% accessing a newspaper via a website, app or digital edition.

“Traditional advertising isn’t going away, but automakers will have to continue to look at all channels, from digital advertising to product placement, to engage with their customers,” said Sargent. “Changing habits in media consumption creates challenges for advertisers, but it also creates new opportunities.” 

Since 1987, JD Power has been providing expertise to media companies, automakers and their agencies detailing media habits and behaviors of new-vehicle drivers through the Automotive Media and Marketing Report. As consumers increasingly spend more time online, the study was redesigned to address these changes. 

The 2016 U.S. Automotive Media and Marketing Report—Summer is based on a nationwide survey of 12,480 principal drivers of recently purchased or leased new vehicles. The report is based on owners reflecting vehicle registrations from May 2015 through October 2015.

For more information about the 2016 U.S. Automotive Media and Marketing Report,^SM—Summer visit http://www.jdpower.com/resource/jd-power-automotive-media-and-marketing-report-oem.

See the online press release at http://www.jdpower.com/pr-id/2016131.

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

1. JD Power defines the generations as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); and Gen Y (1977-1994)

 

Real Estate Brokerages Capitalizing on Stronger Market, with Higher Satisfaction Scores

2016-08-02

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COSTA MESA, Calif.: 3 Aug. 2016 — Real estate brokerages are capitalizing on an improving resale market by focusing on factors tied to customer satisfaction among both buyers and sellers, according to the JD Power 2016 Home Buyer/Seller Satisfaction Study,^SM released today.

Along with the study showing higher overall customer satisfaction in all segments, home sales have increased by 3% since June 2015 to a seasonally adjusted annual rate of 5.57 million.¹ Real estate companies meeting the expectations of the growing first-time home buyer and seller market are better positioned in a stronger market to achieve high levels of customer satisfaction, loyalty, advocacy and sales.

The study, now in its ninth year, measures customer satisfaction with the nation’s largest real estate companies in four segments: first-time buyers, repeat buyers, first-time sellers and repeat sellers. Overall satisfaction is measured across four factors of the home-buying experience: agent/salesperson; real estate office; closing process; and variety of additional services. In the home-selling experience, the same four factors are evaluated plus a fifth factor, marketing. Satisfaction is measured on a 1,000-point scale.

The study identifies three findings crucial to improving the customer experience:

• Agent/Salesperson Is Most Important to Buyers: For buyers, the most important element driving overall satisfaction is the agent/salesperson. There is a clear need to keep buyers—particularly first-time buyers—well informed throughout the purchase process. Among first-time buyers, satisfaction is significantly higher when they are kept informed at all key contact points vs. when they are not (879 vs. 797, respectively). However, satisfaction declines when a buyer is contacted more than twice per day.
• Real Estate Company Marketing Is Most Important to Sellers: For sellers, marketing is the most important factor. Strategic marketing can be a key differentiator and an influential tool for a seller to gauge how the agent/salesperson is driving the sales process. An open house and website listing are effective marketing tools; however, the study finds that the highest levels of satisfaction are associated with a listing package (876) and use of aerial/satellite photography (875) to market a home.
• Customer Advocacy Essential for First-Time Buyers and Sellers: First-time home buyers and sellers cite good reputation and recommendations from friends, family and colleagues as the two main reasons for selecting a real estate company. More than two-fifths (42%) of first-time buyers and 49% of first-time sellers say they chose their real estate company based on its reputation, and 22% of first-time buyers and 17% of first-time sellers selected based on recommendations.

“Satisfying the first-time buyer and seller market is essential for real estate firms to differentiate themselves and increase market share,” said Greg Truex, senior director of the at-home practice at JD Power. “To satisfy first-time buyers, agent communication must be transparent and informative at key points throughout the purchase process. For sellers, agents need to be proactive in providing premium marketing tools and services. Agents who are able provide a comprehensive and detailed listing package coupled with aerial photography capabilities to impress buyers can increase satisfaction and exceed customer expectations.

“After the purchase, the home buyer becomes the mortgage servicer customer described in the JD Power Primary Mortgage Servicer Study,” Truex added. “It’s not a coincidence that, when the level of satisfaction is comparable, the ratings in both studies reflect that similarity.”

First-Time Home-Buyer Satisfaction Ranking

• CENTURY 21 (876) ranks highest for a third consecutive year and performs particularly well in the agent/salesperson and variety of additional services factors.
• RE/MAX (874) ranks second and performs particularly well in the real estate office and closing process factors.
• Overall satisfaction among first-time home buyers is 865, compared with 827 in 2015.

Repeat Home-Buyer Satisfaction Ranking

• CENTURY 21 and Coldwell Banker (857 each)rank highest in a tie. CENTURY 21 ranks highest for a third consecutive year and performs particularly well in the real estate factor, while Coldwell Banker performs particularly well in the closing process factor.
• Berkshire Hathaway HomeServices (856) ranks third and performs particularly well in the agent/salesperson and variety of additional services factors.
• Overall satisfaction among repeat home buyers is 852, compared with 841 in 2015.

First-Time Home-Seller Satisfaction Ranking

• CENTURY 21 (864)ranks highest for a third consecutive year and performs particularly well in all five factors.
• Overall satisfaction among first-time home sellers is 847, compared with 827 in 2015.

Repeat Home-Seller Satisfaction Ranking

• CENTURY 21 (866)ranks highest for a third consecutive year and performs particularly well in all five factors.
• Berkshire Hathaway HomeServices (846) ranks second.
• Overall satisfaction among repeat home sellers is 846, compared with 814 in 2015.

Following are some of the loyalty findings related to delighted customers:

• Among delighted customers (overall satisfaction scores of 901 and above), 58% say they “definitely will” use the same real estate company again, compared with the study average of 38%.
• More than two-thirds (69%) of delighted customers say they “definitely will” recommend their real estate company to others, compared with the study average of 46%.
• Among delighted customers, the average number of positive recommendations is 7.2, compared with the study average of 6.0.

The 2016 Home Buyer/Seller Satisfaction Study includes 5,837 evaluations from 4,760 customers who bought and/or sold a home between March 2015 and April 2016. The study was fielded from February through April 2016. For more information about JD Power solutions for the home improvement industry, visit http://www.jdpower.com/industry/home-improvement.

Media Relations Contacts

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

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

 

Competitive Market Boosts Satisfaction with Small Commercial Insurance; Gen Y Satisfaction Spikes Well above Others, JD Power Study Finds

2016-08-05

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COSTA MESA, Calif.: 8 August 2016 — No longer able to compete primarily on price, insurance providers are now focusing their efforts on ways to please their customers, with the payoff being a significant increase in satisfaction among their small business commercial customers, according to the JD Power 2016 U.S. Small Commercial Insurance Study,^SM released today.

Three consecutive years of steadily declining insurance rates have carriers looking at other ways to differentiate themselves in a competitive market. Turning their attention to customer interactions and policy offerings has led to a 30-point improvement in overall satisfaction in 2016, to 823 on a 1,000-point scale, up from 793 in 2015.

“With few exceptions, insurers are dropping prices, so the best way for them to compete in a soft market is on customer satisfaction,” said Greg Hoeg, vice president of U.S. insurance operations at JD Power. “Small business owners are the beneficiaries of being in an attractive market segment of insurance where satisfaction is the key differentiator.”

The study, now in its fourth year, examines overall customer satisfaction and insurance shopping and purchasing behavior among small business commercial insurance customers with 50 or fewer employees. Overall satisfaction is comprised of five factors (in order of importance): interaction; policy offerings; price; billing and payment; and claims.

This marks the third consecutive year satisfaction has improved, with a 46-point increase since the study launched in 2013. Satisfaction increases across all factors in 2016, with interaction and policy offerings contributing most to the year-over-year gain.

Customer Interaction Is Critical

Insurer interaction with their customers is vital when price competition is neutralized due to the shift to a soft market. The study finds that interaction improves the most among all study factors, increasing 32 index points from 2015. Satisfaction in all three interaction subfactors improves significantly in 2016, with website performance showing the largest jump year over year (+36 points), followed by agent/broker (+34) and call center (+28).

While interaction is driving the overall increase in satisfaction, it is having the greatest impact on satisfaction of Gen Y¹  customers. Satisfaction among Gen Y customers improves 51 points—the largest rise among the generational groups—to 851. Overall satisfaction among Boomers is 820, followed by Gen X at 812 and Pre-Boomers at 809. This is the only JD Power insurance study in which Gen Y is the most satisfied generation.

“For young entrepreneurs, their business defines who they are, and they want to protect it,” said Hoeg. “Gen Y’s satisfaction with their insurance provider also reflects their social consciousness—they care about their business and their employees.”

Keeping Gen Y Business Owners Satisfied

The key reasons for higher satisfaction among Gen Y customers are largely driven by interactions with their agent/broker. Not only do more Gen Y customers indicate having at least two interactions on an annual basis, compared with Gen X and Boomer customers, but they also have more in-person interactions with their agent/broker. In addition, these in-person interactions are typically more meaningful, as the study finds agents/brokers are nearly twice as likely to provide advice or recommend changes to Gen Y customers when compared with older cohorts.

“Gen Y wants the traditional values from their business insurer: good service, financial protection and good price,” said Hoeg. “The insurers— especially commercial-focused insurers—are providing that.”

Hoeg noted that as competition continues to increase in the small commercial space, it is important for insurers to understand the types of business customers they are dealing with and what those customers value most. Younger business customers have different needs than their older counterparts. As expected, Gen Y businesses have been operating for a much shorter time, but they typically have higher revenues than the businesses of their Boomer counterparts (51% of Gen Y business customers report annual revenue of more than $500,000, compared with 42% of Boomers). 

Small Commercial Insurance Customer Satisfaction Rankings

American Family ranks highest among small commercial insurers, with a score of 839, a 73-point improvement from 2015. American Family performs particularly well in the policy offerings and billing and payment factors. Allied and Nationwide rank second in a tie with a score of 835.

The 2016 U.S. Small Commercial Insurance Study is based on 3,396 responses from insurance decision-makers in businesses with 50 or fewer employees that purchase general liability and/or property insurance. The study was fielded from March through May 2016.

For more information about the U.S. Small Commercial Insurance Study, visit http://www.jdpower.com/resource/jd-power-us-small-business-commercial-insurance-satisfaction-study.  

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

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

 

Residential Customers Resistant to Changing Retail Electric Providers as Price Gap Closes

2016-08-09

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COSTA MESA, Calif.: 10 Aug. 2016 — With the price/value gap narrowing between retail electric providers and regulated public utilities in deregulated states, fewer residential customers are switching providers, making customer satisfaction and retention more important than ever, according to the JD Power 2016 Retail Electric Provider Residential Customer Satisfaction Study,℠ released today.

Switching and renewal rates also are lower in the completely deregulated Texas retail markets.

In the nine states included in the study, half of delighted customers (overall satisfaction scores of 900 or higher) say they “definitely will not” switch providers, while 37% of pleased customers (750-899) and 25% of indifferent customers (550-749) say the same.

Additionally, indifferent customers indicate they would consider switching for a cost savings of $30 a month, and pleased customers cite a threshold of $35 a month. Delighted customers are most resistant to switching, citing a level of $46 a month to consider switching.

“Historically, the key differentiator between retail electric providers and regulated providers has been price, but that price gap has shrunk,” said Andrew Heath, senior director of the utility & infrastructure practice at JD Power. “So, despite the best efforts of those providers to persuade customers to switch, they’ve been unsuccessful because customers don’t feel incentivized to do so.”

The study also shows that, in the past 12 months, customers have been shopping less often. In Texas, only 16% signed up with a new provider (vs. 18% in 2015) and only 41% renewed their service (vs. 44%). In the other states, only 20% signed up with a new provider (vs. 23% in 2015) and only 25% renewed their service (vs. 27%).

Nonetheless, overall satisfaction with retail electric providers in Texas is 730, an increase of 15 points from 715 in 2015. Overall satisfaction in the other eight states averages 646, an improvement of 14 points from 632 in 2015. While Texas achieves the highest score overall, New York (680) performs highest among the other eight states.

The study measures retail electric providers in competitive markets by examining satisfaction among residential customers of the 91 ranked providers in nine states across five key factors: price; communications; corporate citizenship; enrollment/renewal; and customer service. An additional factor, billing and payment, is measured in Texas. Satisfaction is calculated in a 1,000-point scale.

Retail Electric Provider Study Rankings (by state)

Connecticut: Ambit Energy ranks highest in Connecticut for the second consecutive year with a score of 735 and performs particularly well in the factors of communications and enrollment/renewal. Town Square Energy (715) and Connecticut Gas & Electric (684) follow in the rankings, performing above the Connecticut average (671).

Illinois: Nordic Energy ranks highest in Illinois with a score of 686, performing particularly well in the factors of communications, corporate citizenship and enrollment/renewal. Following in the rankings are AEP Energy (682) and Ambit Energy (644), performing above the Illinois average (627).

Maryland: Maryland Gas & Electric ranks highest in Maryland with a score of 695 and performs particularly well in the factors of communications, corporate citizenship and customer service. Following in the rankings are Direct Energy (683) and WGL Energy (669), performing above the Maryland average (662).

Massachusetts: Green Mountain Energy ranks highest in Massachusetts with a score of 702 and performs particularly well in the factors of price, communications and corporate citizenship. Direct Energy (677) and Massachusetts Gas & Electric (672) follow in the rankings, performing above the Massachusetts average (656).

New Jersey: New Jersey Gas & Electric ranks highest in New Jersey for the second consecutive year with a score of 711 and performs particularly well in the factors of price, communications and corporate citizenship. Ambit Energy (687) follows in the rankings, performing above the New Jersey average (676).

New York: Agway Energy ranks highest in New York with a score of 769 and performs particularly well in the factors of price, communications, corporate citizenship, enrollment/renewal and customer service. Green Mountain Energy (709) and New York Gas & Electric (700) follow in the rankings, performing above the New York average (680).

Ohio: Dynegy Energy Services ranks highest in Ohio with a score of 638 and performs particularly well in the factors of price and communications. IGS Energy (628) and FirstEnergy Solutions (620) follow in the rankings, performing above or equal to the Ohio average (620).

Pennsylvania: Green Mountain Energy ranks highest in Pennsylvania with a score of 709 and performs particularly well in the corporate citizenship factor. AEP Energy (706) and IGS Energy (705) follow in the rankings, performing above the Pennsylvania average (669).

Texas: Champion Energy Services ranks highest in Texas for the second consecutive year with a score of 793 and performs particularly well in the factors of price, billing and payment, communications, enrollment/renewal and customer service. First Choice Power (770) and 4Change Energy (769) follow in the rankings, performing above the Texas average (730).

The 2016 Retail Electric Provider Residential Customer Satisfaction Study is based on responses from 20,000 electric retail residential customers of the 91 ranked retail electric providers in nine states regarding their experiences with their retail electric provider. Online interviews were conducted August 2015 through June 2016.

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

 

Wireless Purchase Experience Satisfaction Greatly Affected by Expected Length of Device Ownership; Age and Technology Early Adopters Are Key Influencers, JD Power Finds

2016-08-09

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COSTA MESA, Calif.: 11 Aug. 2016 — Overall satisfaction with the wireless purchase process increases as the expected duration of mobile device ownership decreases, which is heavily influenced by age and openness to new technology, according to the JD Power 2016 U.S. Wireless Purchase Experience Full-Service Performance Study^SM—Volume 2 and the JD Power 2016 U.S. Wireless Purchase Experience Non-Contract Performance Study^SM—Volume 2, both released today.

The studies find that overall satisfaction with the purchase experience is higher among wireless customers who purchase a mobile device and expect to use it less than one year than among those who purchase a phone and expect to use it longer. Among full-service customers who purchase or upgrade a wireless phone with their carrier, overall satisfaction is 853 (on a 1,000-point scale) among those who plan to use it for less than a year; 843 among those who plan to use it between one and two years; 809 among those who plan to use it between two and three years; and 817 among those who plan to use it three or more years.

Wireless full-service customers who expect to use their phone less than a year tend to be younger and early adopters of new technology. More than half (58%) of customers who expect to own their phone for less than one year are 18 to 34 years old. This compares to only 28% of all customers expecting to own their phone for three or more years. Further, 79% of customers who expect to own their phone for less than a year say they “strongly agree” or “somewhat agree” that they are among the first to try new technological products, compared with 37% who expect to own their phone for three or more years who say the same.

“It’s surprising to learn that the expected length of mobile device ownership can influence the purchase experience process,” said Kirk Parsons, senior director and technology, media & telecom practice leader at JD Power. “Part of the reason is demographics and willingness to own the latest smartphone with the latest technology and service capabilities. However, the study suggests that cost and service coupled with offerings, such as more data plan minutes or unlimited usage plans, are significant reasons overall satisfaction is above average among younger subscribers.”

The largest satisfaction gaps between customers who expect to own their mobile device less than one year and the overall average are in the cost of service (+65 points) and offerings and promotions (+31) factors. “This underscores the importance of catering to younger customers and early adopters by carrying and promoting phone brands that release new models more frequently,” Parsons said.

Following are key findings of the 2016 studies:

• Customer Satisfaction Improves: Overall purchase experience satisfaction is 834 among wireless full-service customers and 807 among non-contract customers. Satisfaction in the full-service segment has risen 31 points from the 2016 Vol. 1 Study, while satisfaction in the non-contract segment has risen 16 points.
• Incidence of Expected Mobile Device Ownership: More than one-third (34%) of full-service wireless customers expect to own their mobile device less than one year, compared with 13% of those who expect to own their device for three or more years.
• Mobile Device Cost of Ownership: Full-service wireless customers who purchase a phone and expect to use it less than one year pay an average of $188, compared with $279 for those who expect to use it between one and two years; $312 for those who expect to use it between two and three years; and $313 for those who expect to use it three or more years.
• Wireless Customers Prefer to Purchase Device in Retail Store: More than three-fourths (78%) of full-service customers indicate they made a purchase in a wireless retail store, while 54% purchased over the phone and 61% purchased online. In contrast, 62% of non-contract customers indicate their most recent purchase transaction occurred in a store and only 38% made the purchase via telephone.

Study Rankings

AT&T ranks highest among wireless full-service carriers, with an overall score of 845. AT&T performs particularly well in four of the six purchase experience factors, excelling in the store representative and offerings and promotions factors.

Consumer Cellular ranks highest for the first time among wireless non-contract carriers, scoring 899. Consumer Cellular performs particularly well across all six purchase experience factors, especially in offerings and promotions and cost of service.

About the Studies

Now in their 13th year, the semiannual studies evaluate the wireless purchase experience of customers who use any one of three purchase channels: phone calls with sales representatives; visits to a retail wireless store; or online/website. Overall purchase experience satisfaction with both full-service and non-contract carriers is measured in six factors (in order of importance): store sales representative; website; offerings and promotions; phone sales representative; store facility; and cost of service. Satisfaction is calculated on a 1,000-point scale.

The 2016 U.S. Wireless Purchase Experience Full-Service Performance Study—Volume 2 is based on responses from 7,481 full-service customers. The 2016 U.S. Wireless Purchase Experience Non-Contract Performance Study—Volume 2 is based on responses from 2,838 non-contract customers. Both semiannual studies are based on the experiences of current wireless service customers who made a sales transaction with their current carrier within the past three months. The study was fielded from January through June 2016.

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

 

Customer Experience Key Differentiator for Medicare Advantage Plans, JD Power Study Finds

2016-08-10

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COSTA MESA, Calif.: 11 August 2016 — Medicare Advantage is a competitive product because people have choices in which plan they select, and members frequently choose a plan they understand and perceive to be easy to work with. While providers are making some progress in becoming more customer-centric, for most there still is room for improvement, according to the JD Power 2016 Medicare Advantage Study,^SM released today.

Overall satisfaction among Medicare Advantage members improves to 790 on a 1,000-point scale in 2016 from 774 in 2015. Additionally, satisfaction with customer service, one of six factors comprising overall satisfaction, increases by 12 points from last year. 

“Health plans are more likely to achieve high satisfaction scores when they serve members from the medical provider’s perspective, such as the time spent with the patient, providing strong communications, developing relationships, and offering coaching regarding how to work with the plan,” said Valerie Monet, director of the insurance practice at JD Power. “A consistent product message and brand experience as well as control over the delivery of care are all drivers of satisfaction with Medicare Advantage plans—all areas in which Kaiser Permanente excels.”

Medicare Advantage enrollment continues to grow and now covers 31% of individuals eligible for Medicare—nearly 18 million of the 57 million Medicare lives across the United States¹. One of the greatest opportunities for health plans to improve Medicare Advantage member satisfaction is in communications with both new enrollees and longer tenured members of their plan. Information and communication is the only factor in the study in which satisfaction doesn’t improve significantly—up by a nominal 5 points year over year. 

“Many plans have a multitude of product design features and provide technical manuals of 20 pages or more,” said Monet. “Expecting members to become experts across the broad range of services and benefits offered is ultimately a losing battle for both the plan and the member.”

Monet noted that information and communication is particularly critical for members in terms of helping them know which product features they need while they are selecting a plan and in helping them interpret which benefits and services are covered by the plan they choose. “Members are looking for their plan to be a trusted partner, and that begins at enrollment,” Monet said. “They are expecting their plan to provide guidance, ranging from assistance in selecting a doctor to helping them understand costs for prescriptions.” 

Costs Shifting to Members

The study finds that in addition to members reporting a $117 increase, on average, in annual premiums to $1,497 in 2016, they are paying more in the way of out-of-pocket expenses². On average, member deductibles are $1,705 in 2016, a $310 jump from 2015. Many Medicare Advantage members are on fixed-incomes; thus, adding the cost of prescriptions to existing deductibles can deal a blow to their budget. Overall satisfaction is 136 points higher when members completely understand their out-of-pocket costs, compared with when they don’t.

“Costs are another area where communication is critical,” said Monet. “Members who have a greater understanding of the costs—how much they are paying and what those costs cover—see the value their plan provides and, thus, are more satisfied with their health plan provider.”

Other key findings of the study include:

• A Partner in Your Plan: Contributing to satisfaction with Medicare Advantage is that 48% of members say they “strongly agree” that their health plan is a trusted partner in their health and wellness, which increases overall satisfaction by 166 points.  
• The Doctor Is In: Overall satisfaction is 136 points higher among the 89% of members who completely understand how to find a doctor who is covered by the plan than among the 11% of members who don’t completely understand how to find a doctor in their plan. The doctors also can influence member satisfaction with their health plan. For example, overall satisfaction among the 88% of members who feel their doctor spends the right amount of time with them is 110 points higher than among those who do not.    
• Outstanding Customer Service Shows Concern for Member Needs: When members call their health plan provider, they expect to receive immediate attention or advice. Lack of concern or expertise from a plan’s customer service representatives affects satisfaction. Among members who have called their health plan, 85% indicate their questions were answered or problems solved on the first call, yet 41% say they had to provide the same info more than once for their issue to be resolved. Additionally, only 35% of members indicate that customer service provided all of the information needed regarding the costs of prescription medications.
• Satisfaction Improves Customer Loyalty and Advocacy: Among customers who are delighted (overall satisfaction scores of 901 or higher) with their Medicare Advantage plan, 91% say they “definitely will” renew their policy and 89% say they “definitely will” recommend their plan to family and friends. Loyalty drops to 71% and advocacy to 66% among members who are pleased (scores of 751-900) with their plan. 

Medicare Advantage Satisfaction 

Kaiser Permanente ranks highest in Medicare Advantage member satisfaction for a second consecutive year, with a score of 851. Kaiser Permanente performs particularly well in all six factors. Highmark ranks second with a score of 791.

The study, now in its second year, measures member satisfaction with Medicare Advantage plans—also called Medicare Part C or Part D—based on six factors (in order of importance): coverage and benefits (26%); customer service (20%); provider choice (15%); cost (14%); information and communication (13%); and claims processing (13%). 

The 2016 Medicare Advantage Study is based on the responses of 3,422 members of Medicare Advantage plans across the United States. There are 10 national health plans that are rank eligible in the study; these plans represent 67% of the nation’s Medicare Advantage market, according to industry data source Mark Farrah Associates.

For more information about the Medicare Advantage Study, visit

http://www.jdpower.com/resource/us-medicare-advantage-study.

See the online press release at http://www.jdpower.com/pr-id/2016209.

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

  1. Source: CMS.gov: https://www.cms.gov/Newsroom/MediaReleaseDatabase/Press-releases/2015-Press-releases-items/2015-07-28.html

  2. Data is only for members who report paying a premium. 

 

American Soccer Fans Score Big as MLS Teams Outperform Others in Fan Experience in Major Markets, JD Power Finds

2016-08-15

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NEW YORK: 16 Aug. 2016 — Major League Soccer teams rank no lower than second in each of America’s four largest markets included in the inaugural JD Power 2016 Fan Experience Study,^SM released today. The New York Red Bulls and Chicago Fire rank highest in their respective markets while the Los Angeles Galaxy and Houston Dynamo rank second in theirs.

The Fan Experience Study measures customer satisfaction of major pro sports teams in New York, Los Angeles, Chicago and Houston across seven factors. They are (in order of importance): seating area and game experience; security and ushers; leaving the game; arriving at the game; food and beverage; ticket purchase; and souvenirs and merchandise. Satisfaction is measured on a 1,000-point scale. Additional factors that were measured—but not included in the official ranking—were loyalty and future intentions; team performance (on-field); and team image.

The Red Bulls score highest among New York teams for security and ushers (835); seating area and game experience (833); ticket purchase (819); food and beverage (795); and leaving the game (791). The Chicago Fire score highest among Chicago teams for souvenirs and merchandise (875); security and ushers (838); ticket purchase (795); food and beverage (783); and leaving the game (758).

In the Los Angeles region, it is a National Hockey League team that ranks highest: the Anaheim Ducks. The Ducks eclipse their sun-drenched brethren in souvenirs and merchandise (862); seating area and game experience (841); security and ushers (834); and arrival at the game (795).

The Houston Rockets of the National Basketball Association rank highest in their region thanks to leading scores for seating area and game experience (848); souvenirs and merchandise (836); security and ushers (826); leaving the game (783); and food and beverage (777).

“Because media rights will soon exceed gate revenue in major pro sports leagues, fan experience is at risk of becoming an afterthought,” said Greg Truex, senior director at JD Power. “We know the food tastes a little better and drinks taste a little colder when the home team is winning, but we stripped away fan emotion and evaluated which teams excel in providing fans the best at-game experience, regardless of the final score.”

While the MLS’ Galaxy and Dynamo rank second in their respective regions, the Galaxy scores highest in ticket purchase (830) among L.A. teams and the Dynamo scores highest in arrival at the game (791) and ticket purchase (807) among Houston teams.

“It’s clear that forward-looking teams, like those in MLS, are harnessing their opportunity to create positive fan experiences across the full spectrum of touch points and are, in turn, shifting share of wallet,” said Truex. “Teams that add value by incorporating the voice of the fan into their decision-making process can command greater income for sponsorships and media rights.”

The study’s respondents also were asked to identify the Face of Professional Sports in their region. Carefully developed questions ask respondents to identify up to five players who best represent the Face of Professional Sports. Respondents were then asked to rank these players on a scale of 1 through 5. Each rank 1 through 5 was calculated by JD Power and the overall Face of Professional Sports score was calculated.

Key Findings by Market

Chicago

• The Windy City’s On Fire: The Chicago Fire is the highest-ranking Chicago franchise, a notable achievement given the long history and strong fan bases of other Chicago franchises. The Chicago Bulls are second in the region.
• Da Bears Are Da Worst: The Chicago Bears rank lowest in the market. The late George Halas—nicknamed Papa Bear—was not a man who liked to see his team lose. At anything.
• Toews Commands Respect: The Face of Professional Sports in the Chicago market is seven-time NHL All-Star Jonathan Toews of the Blackhawks. Toews, who is entering his ninth season as captain of the Blackhawks, has helped bring three Stanley Cups to the city.

Houston

• Liftoff: The Houston Rockets are the highest-ranking Houston franchise, perhaps an unexpected result in a state dominated by football and baseball.
• Clutch City: Founded in 2006, the Houston Dynamo is the newest of the pro sports teams in this port city, but ranks second in fan satisfaction. The Dynamo, which won MLS Cup in its first two years of existence, is the most recent team to bring a championship to Houston.
• One Watt Packs A Lot Of Power: J.J. Watt of the Houston Texans is the Face of Professional Sports in the Houston market, as the four-time All-Pro is the most popular athlete in the region by far. The Rockets’ James Harden ranks second.

Los Angeles

• Ducks—Not Kings—Reign in Southern California: The Anaheim Ducks rank highest in the Los Angeles region in fan experience, with the L.A. Galaxy ranking second. In a blow to the national pastime, the Los Angeles Angels of Anaheim rank fourth and the Dodgers rank lowest.
• L.A. Values Legacy Over Recent Dominance: L.A. sports fans are more enamored by Kobe Bryant and the five NBA titles he brought to Staples Center than the recent run of pitching dominance by three-time Cy Young Award winner Clayton Kershaw of the Dodgers, as fans rank the recently retired Bryant as the Face of Professional Sports in the L.A. market.
• L.A. Quickly Re-Embraces Rams: The first major pro sports team located west of the Mississippi River was the Los Angeles Rams. That happened in 1946. Though the Rams haven’t played a game in Los Angeles since 1994, the city now celebrates the return of its team and its young stars. Todd Gurley (12th), Case Keenum (17^th) and Tavon Austin (18^th) earn respectable rankings among the athletes in the city—and have yet to play a game there.

New York

• Red Bulls Followed By Nets: While the Red Bulls sit atop the New York rankings, the Brooklyn Nets rank second in the market. Interestingly, the New York Islanders, who share Barclays Center with the Nets and are run by the same business operations team, rank fifth in the market.
• Mets Not So Amazin’: The Mets’ highest ranking in the New York region is sixth for ticket purchase. All other factors rank below average, so it’s not a surprise the reigning National League champions rank lowest in fan satisfaction.
• OBJ Rising But The Quarterback Is King: Odell Beckham, Jr., is one of the NFL’s fastest-rising stars, but he’s not king of New York yet. That distinction belongs to two-time Super Bowl MVP Eli Manning, who is the Face of Professional Sports in the New York region. The Mets’ David Wright, despite chronic health problems stemming from his spinal stenosis, ranks second in Gotham.

About the Study

The 2016 Fan Experience Study is more comprehensive and representative of measuring the fan experience than internal team surveys since it is not limited to season ticket holders and single-game ticket buyers. Instead, the study significantly broadens the population to include not only the aforementioned fans, but also secondary-market ticket buyers and friends as well as relatives and colleagues who did not buy a ticket but attended with someone who did. 

The 2016 Fan Experience Study is based on more than 5,700 completed survey instruments from sports fans who attended a National Football League®, Major League Baseball®, National Hockey League®, Major League Soccer® or National Basketball Association® event in the past 12 months in the New York, Los Angeles, Houston or Chicago designated market areas. The study was fielded in June 2016.

The Los Angeles market includes the San Diego Padres and San Diego Chargers, but those teams were not ranked in the study. The Rams also were included in this market, but will not be ranked until the 2017 study is released. The New York City Football Club did not have enough sample size to be included in this year’s study but is expected to be included in the 2017 study.

The 2017 study will include these additional markets: San Francisco/Oakland, Denver, Detroit, Boston, Washington D.C./Baltimore, Dallas, Philadelphia and Miami.

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

 

Many Customers Are Carrying Wrong Credit Card, JD Power Study Finds

2016-08-17

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DETROIT: 18 August 2016 — At least one in five credit card customers are carrying the wrong card, according to the JD Power 2016 U.S. Credit Card Satisfaction Study,^SM released today.

More than 20% of customers have a card which has fees or rewards not aligned with their actual purchase habits. The study finds that while their levels of satisfaction are not dramatically different, customers who have a wrong card, compared with those with a card better suited to their needs, spend less per month on their primary card ($783 vs. $1,035), use their card for a smaller share of their total spend—cash and debit card spend—(37% vs. 45%) and are more likely to switch cards (21% vs. 9%).

“The percentage of people carrying the wrong card is alarming, and that doesn’t even include the 30-50% of people who have the right card, but could find a card that’s an even better fit for them if they looked at other options,” said Jim Miller, senior director of banking at JD Power. “Regardless of why customers have the wrong card, they are overall less satisfied with their card than those who have a card more appropriate for them. Carrying the right card is beneficial for both customers and card issuers.”

Rewards programs are the primary reason customers select a credit card, yet 20% of customers who have a rewards card would better benefit by having a different rewards card or a lower interest rate card without rewards.  These customers are either not spending enough to earn rewards to offset their annual fee, are creditworthy but paying a high interest rate or are not using the rewards and benefits associated with their current card. 

Miller notes that customers are carrying the wrong card for a variety of reasons, often because either their needs or financial situations have changed since they signed up for the card; they signed up for a rewards program they no longer use; or the card’s fees or rewards programs have changed and the card has become less attractive.  Customers may also have opened a new card because of a promotional offer, such as a balance transfer or bonus miles, but long term the card is not the best fit for their needs.

Airline co-branded cards, which usually charge an annual fee of $75 or more, are popular with credit card customers. However, the study finds that 44% of airline card customers appear to have the wrong card for the following reasons: they spend less than $500 per month on the card (the typical amount needed to earn enough rewards to cover the average annual fee); they haven’t used the airline benefits accrued in the past 12 months; or they have not redeemed rewards in the past 18 months. As a result, these customers have lower overall satisfaction than do those who have the right card (scores of 768 vs. 800, respectively, on a 1,000-point scale), spend less per month on their card ($1,150 vs. $1,851) and have a higher intent to switch cards (16% vs. 8%).

Miller says customers and card issuers share responsibility for finding the right card.  He says customers need to understand their card’s fee structure and rewards programs, and make sure it best meets their needs. Issuers should make sure customers are aware of the benefits of their card and how to use them, and should review their customers’ profile and spend history to recommend the right card for them.

“Credit card issuers should be more proactive in helping their customers understand and use their rewards and benefits, as well as make offers to switch customers to cards that better fit their needs. In the long term, it is in everyone’s best interest for cardholders to have the right card,” said Miller.  “For cardholders, switching cards to one that best meets your needs doesn’t have to mean switching providers. In many cases, the current provider may have a card that is better suited for you.”

Other key findings from the study include:

• Winning with Mobile: Customers who use their credit card issuer’s mobile app have overall satisfaction of 843, compared with 791 among those who do not use a mobile app. Furthermore, overall satisfaction jumps to 895 when the issuer provides a satisfying mobile experience (mobile interaction score of 800 or higher). In addition, as it has since 2013, mobile remains the most satisfying interaction channel for credit card customers.  Satisfaction when customers use their credit card issuers’ mobile app is 858 in 2016, compared with 845 when they use a call center and 835 when they use the issuer’s website.  
• Emerging Affluent Are Early Adopters: Customers in the Emerging Affluent category—those younger than 40 with an income of $80,000 or more—are quick to adopt digital service channels, showing a preference to avoid personal interactions when possible. Among Emerging Affluent customers, 28% have interacted with their issuer via mobile, 45% have resolved a problem via their issuer’s website and 43% have used a mobile payment app. In comparison, among all other customers, only 7% have interacted with their issuer via mobile, 22% have resolved a problem via their issuer’s website and 13% have used a mobile payment app.
• Limit Problems, Keep Customers: Problem rates have remained consistent during the past four years, with 11% of customers in 2016 indicating they have had a problem or complaint with their credit card. However, among customers who have experienced a problem, 13% say they “definitely will” or “probably will” switch cards, compared with 3% among those who did not experience a problem. 

Credit Card Customer Satisfaction Rankings 

Discover (827) ranks highest in customer satisfaction with credit card issuers for a third consecutive year. Discover performs particularly well across all six study factors. American Express (825) ranks second and Capital One (799) ranks third. 

The study, now in its 10th year, measures customer satisfaction with credit card issuers by examining six factors (in descending order of importance): interaction; credit card terms; billing and payment; rewards; benefits and services; and problem resolution. Overall satisfaction is at a record high of 796, surpassing the previous high of 790 in the 2015 study.

The 2016 U.S. Credit Card Satisfaction Study includes responses from 20,206 credit card customers. The study was fielded from September 2015 through May 2016.

For more information about the U.S. Credit Card Satisfaction Study, visit http://www.jdpower.com/resource/us-credit-card-satisfaction-study. See the online press release at http://www.jdpower.com/pr-id/2016153.

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