Category: United States

Consumers’ Ideal Automotive Salesperson Is a Negotiator to Help Get the Best Deal

2015-05-19

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WESTLAKE VILLAGE, Calif.: 20 May 2015 — Given the choices of negotiator, educator[1] and facilitator, 46 percent of U.S. new-vehicle buyers say the most important role that salespeople play in the purchase process is that of a negotiator to help them get the best deal, according to the May 2015 PowerRater Consumer Pulse.

Consumer Pulse is a monthly analysis developed jointly by JD Power and DealerRater. An alliance between JD Power and DealerRater integrates each company’s capabilities to gather comprehensive vehicle shopper feedback based on JD Power’s customer satisfaction research and DealerRater’s customer ratings and reviews of car dealerships.

As a negotiator, the salesperson’s role is to assist buyers in arriving at a mutually acceptable deal,[2] which includes coming to an agreement on the new vehicle’s price and the value of the buyer’s trade-in vehicle, if they have one.

KEY FINDINGS

• Another 42 percent of new-vehicle buyers prefer that salespeople take on the role of educator, while 12 percent prefer facilitator.
• Given a relative sensitivity to vehicle affordability, the percentage of U.S. buyers who want their salesperson to be a negotiator is slightly higher among mass market vehicle buyers (47%) than among luxury buyers (43%).
• At the brand level, buyers of Nissan (53%) and Kia (53%) vehicles are among the most likely to want their salesperson to be a negotiator; whereas buyers of Subaru (35%) and Audi (40%) are among the least likely to want their salesperson to be a negotiator.
• According to the JD Power 2014 U.S. Sales Satisfaction Index (SSI) Study,^SM 66 percent of new-vehicle buyers say they negotiated with their salesperson to get a better deal.
• Despite the strong desire to negotiate vehicle purchase terms, 45 percent of buyers indicate it took a moderate amount of effort to get a better deal.

 As shown in data collected by DealerRater, the art of negotiation is alive and well in the U.S. automotive market.

“Given that people so often turn to the Internet and smartphone apps to research vehicles—and can even see what others have paid for a similarly spec’d vehicle—the results of our analysis were somewhat surprising; but it’s clear that consumers still want salespeople to be part of the overall purchase process,” said Gary Tucker, chief executive officer of DealerRater. 

According to the 2014 U.S. Sales Satisfaction Index Study, negotiating can often lead to a positive outcome for buyers, as a significant percentage of new-vehicle buyers indicate they received a lower price (55%); a better trade-in value (32%); and/or another kind of purchase incentive, including cash, a preferred interest rate, free service or additional vehicle features (31%).[3]

“Among the generations,[4] Gen Y buyers negotiate the vehicle price 72 percent of the time, while Pre-Boomers negotiate only 61 percent of the time. Gen X negotiates 66 percent of the time and Boomers 64 percent of the time,” said Chris Sutton, vice president, U.S. automotive retail practice at JD Power. “In an increasingly digital world where everything’s at our fingertips, savvier consumers are armed with a lot more information to bring into a negotiation than was readily available in past generations.”

Study data also suggests that satisfaction with the overall purchase experience is lower among new-vehicle shoppers who attempt to negotiate a better deal than among those who don’t (793 vs. 844, respectively, on a 1,000-point scale).

“Dealers would do well to examine their approach to customer negotiations to close this satisfaction gap to avoid misconceptions and frustrations with in-store interactions, as well preserve loyalty and advocacy for the product being sold, person selling the product, the place where the consumer buys the product and its overall price,” said Tucker. “Employee review pages are a great example of how we’ve seen dealers achieve this. By making connections and establishing trust with the salesperson before going into the store, anxiety is lessened and the overall sales process goes faster and smoother.”

On average, new-vehicle shoppers spend 56 minutes negotiating with dealership staff, which has remained relatively unchanged during the past six years.

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

About McGraw Hill Financial www.mhfi.com 

About DealerRaterhttp://www.dealerrater.com/company/

Media Relations Contacts

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

Wendi McAden; DealerRater; 424-903-3644; [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 DealerRater. www.jdpower.com/corporate  www.DealerRater.com

 

New-Vehicle Retail Sales SAAR in May to Hit 14.1M Units, Highest Level So Far in 2015

2015-05-20

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WESTLAKE VILLAGE, Calif.: 21 May 2015 — U.S. new-vehicle retail sales, on a selling-day adjusted basis, in May 2015 are expected to reach their highest levels since August 2014, according to a monthly sales forecast from JD Power and LMC Automotive.

Retail Light-Vehicle Sales

The new-vehicle retail seasonally adjusted annualized selling rate (SAAR) in May is expected to be 14.1 million units, on par with the level reached in May 2014 and the first time the retail SAAR has reached 14.1 million units since August 2014.

New-vehicle retail sales in May 2015 are forecasted to reach 1,300,600 units, a 2 percent increase on a selling-day adjusted basis compared with May 2014. The sales pace of 50,000 units per day in May 2015 is the strongest daily selling rate in the month of May since 2004 when an average of nearly 53,000 vehicles were sold each day. Retail transactions are the most accurate measure of consumer demand for new vehicles.

U.S. Retail SAAR—May 2014 to May 2015
(in millions of units)

Source: Power Information Network^® (PIN) from JD Power

“The industry continues to outperform prior-year levels with respect to retail sales and transaction prices,” said John Humphrey, senior vice president of the global automotive practice at JD Power. “The average new-vehicle retail transaction price so far in May is $30,428, on pace to achieve a new record for the month.” The previous record was set in May 2014 when retail transaction prices averaged $29,400.

The combination of strong sales and high transaction prices positions May to set a new record for the month for consumer spending on new vehicles at approximately $39.6 billion, according to the Power Information Network (PIN) from JD Power.  It would become the third-highest level of new-vehicle consumer spending in a month following August 2014 ($40.3 billion) and July 2005 ($39.7 billion).

While average gas prices across the nation have slowly climbed from January’s low of $2.12 per gallon to $2.72 per gallon so far in May, refinery constraints in California have driven fuel prices in that state up at a much faster rate. Regular fuel prices in California averaged $3.77 per gallon so far in May^—up from $2.55 per gallon in January—their highest level since September 2014.

High gas prices are contributing to increased hybrid and electric vehicle (EV) sales, which have accounted for 9.8 percent of all retail new-vehicle sales in California in May, their highest level since August 2014. Hybrid and EV sales have also started to recover nationwide, representing 3.5 percent of all retail sales in May, up from a low of 2.9 percent in February. In August 2014, hybrid and EV sales made up 4.3 percent of nationwide sales and 10.5 percent of retail sales in California.

Total Light-Vehicle Sales

Total light-vehicle sales in May 2015 are projected to reach 1,591,100, a 3 percent increase on a selling day adjusted basis compared with May 2014. Fleet volume is expected to hit 290,500 units, accounting for 18.3 percent of total sales, up from 17.6 percent a year ago.

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

	May 20151	April 2015	May 2014
New-Vehicle Retail Sales	1,300,600 units (2% higher than May 2014)2	1,150,557 units	1,322,201 units
Total Vehicle Sales	1,591,100 units (3% higher than May 2014)2	1,452,241 units	1,605,373 units
Retail SAAR	14.1 million units	13.4 million units	14.1 million units
Total SAAR	17.3 million units	16.5 million units	16.7 million units

¹Figures cited for May 2015 are forecasted based on the first 14 selling days of the month.

²The percentage change is adjusted based on the number of selling days in the month (26 days in May 2015 vs. 27 days in May 2014).

Sales Outlook

LMC Automotive is maintaining its total light-vehicle sales forecast for the year at 17.0 million units and its retail forecast at 13.9 million units.

“May’s selling rate is making up for a slightly weaker April, and keeping the year on track to reach the elusive 17 million unit mark,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “Over the next several months, all eyes will be on the timing of the expected increase in interest rates by the Federal Reserve, as the rate increase could have a significant impact on auto sales volume by year-end.”

North American Production

North American production in April 2015 reached 1.49 million units, outpacing March and up 5 percent from April 2015. As a result, automakers built up some inventory as the industry heads into the summer selling season. May started with a 65-day supply, up from 59 days the previous month but still below the 69-day supply the industry was at during the same point last year.

LMC Automotive’s production forecast for 2015 also remains at 17.5 million units, a 500,000 unit increase compared with 2014. The continued popularity of SUVs is helping to drive up production numbers through April 2015, with SUV production in North America up 130,000 units, a 6 percent increase compared with the same period in 2014, with 70 percent of the increase in the midsize and large SUV segments.

About JD Power

JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Power Information Network (PIN) from JD Power has revolutionized the automotive industry by collecting and analyzing real-time transaction-level data for new and used vehicles. PIN’s data and analytics help automakers and dealers manage risk, monitor metric performance and improve business results. Headquartered in Westlake Village, Calif., JD Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit www.JDPower.com. JD Power is a business unit of McGraw Hill Financial.

About McGraw Hill Financial 

McGraw Hill Financial  (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL and JD Power. The Company has approximately 17,000 employees in 30 countries. Additional information is available at www.mhfi.com.

About LMC Automotive

LMC Automotive is the premier supplier of automotive forecasts and intelligence to an extensive client base of automotive manufacturer, component supplier, logistics and distribution companies, as well as financial and government institutions around the world. LMC’s global forecasting services encompass automotive sales, production and powertrain expertise, as well as advisory capability. LMC Automotive has locations in the United States, the UK, France, Germany, China, Japan and Thailand and is part of the Oxford, UK-based LMC group, the global leader in economic and business consultancy for the agribusiness sector.  For more information please visit 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

 

Insurers Struggle to Keep Pace with Customer Demand For Shopping and Self-Service Options on the Web

2015-05-21

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WESTLAKE VILLAGE, Calif.: 22 May 2015 —Insurers are struggling to keep pace with demand as website visits by insurance shoppers and customers servicing their accounts via smartphones and tablets has become more prevalent, according to the JD Power 2015 Insurance Website Evaluation Study^SM (IWES) released today.

The 2015 IWES measures online consumer experiences among shoppers seeking quotes and existing customers seeking typical policy servicing activities. The study examines the functional aspects of websites rather than such aesthetic aspects as look and feel. Consumers performed a number of tasks online and then rated the ease of performing them on a 5-point scale. Their ratings were used to compute an overall index for shopping and service experience based on a 500-point scale.

The percentage of consumers shopping an insurer via smartphones and tablets has increased; for smartphones (+14 percentage points) to 42 percent, and for tablets (+11 percentage points) to 43 percent.   While satisfaction with the online shopping experience has improved significantly (+17 points) to 369 from 2014, satisfaction with the service experience has declined (-5) to 420 from 2014.

“Insurance companies are particularly challenged when it comes to designing their websites. Not only do they have to keep up with the changing technology as more consumers use tablets and smartphones, but they also have to build a site that meets the demands of both shoppers and current customers,” said Valerie Monet, director of the insurance practice at JD Power. “While providing an easy quoting experience and making sure information on the website is easy to find will help bring shoppers through the door, customer service expectations for online and mobile servicing are being led by other industries, such as banking.”

In an effort to deliver a consistently superior online experience for both shoppers and customers, insurers have deployed websites with responsive design technology, enabling insurance shoppers and customers to view the same website content across a variety of devices and screen sizes, including desktop, smartphone and tablet. Although 10 of the 20 largest insurers offer responsive design, this is not nearly enough to meet shopper and customer demand.

Initial results show that responsive design is a similarly satisfying experience among both shoppers (373 responsive design vs. 365 traditional design) and current customers (421 responsive design vs. 420 traditional design), compared with a more traditionally designed website.

However, there are differences in that experience when performance is analyzed by device, with the responsive website servicing experience on a tablet not as satisfying as the traditionally designed website servicing experience on a tablet (410 vs. 425, respectively). Additionally, in other industries, responsive design websites struggle to provide an equally satisfying experience on smartphones and desktops, despite the site offering the same content/functionality.

According to Monet, “If the site doesn’t function well, regardless of the device being used, shoppers may turn to other sources for their insurance needs, while current customers will become frustrated trying to perform the tasks that are most important to them, driving them to contact their agent or a call center. These must be key considerations for insurers when making website enhancements.”

Among the 20 insurance companies included in the study (listed in alphabetical order) GEICO, Safeco and USAA perform particularly well in the service index, while Erie Insurance, Esurance and Liberty Mutual perform particularly well in the shopping index.

KEY FINDINGS

Self-Service Customers

• ŸThe overall service satisfaction index average is 420 (on a 500-point scale), down 5 points from 2014.
• ŸThe task declining the most year over year is pay your bill (-.06 point on a 5-point scale), which is the reason cited by most auto insurance customers for visiting their insurer’s website[1] (39%).
• ŸThe most difficult self-service tasks performed by customers include updating their customer profile; printing/requesting replacement ID cards; and viewing policy and related information.
• ŸFifteen of the 20 insurers in the study post annual declines, with some declining significantly in service satisfaction.

Shoppers

• ŸThe overall industry shopping satisfaction index has improved by a significant 17 points year over year.
• ŸWhile ratings for all the shopping tasks have improved from 2014, the most notable improvements are in request a quote (+0.17 point); compare prices and/or coverage (+0.17); and research policy information (+0.15).
• Researching policy information is the most difficult aspect of the shopping experience, while finding contact information is the easiest.
• ŸNineteen of the 20 insurers included in the study post year-over-year improvements, with 10 increasing significantly in shopping satisfaction.

The 2015 IWES is based on more than 3,700 service evaluations and more than 4,600 shopping evaluations. The study was fielded in February and March 2015.

Media Relations Contacts

Anthony Popiel; Brandware Public Relations; Atlanta, Ga.; 770-649-0880; [email protected]

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

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

About McGraw Hill Financial www.mhfi.com 

 

New-Vehicle Retail Sales in February Expected to Cross the Million Mark

2015-02-19

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WESTLAKE VILLAGE, Calif.: 20 February 2015 — New-vehicle retail and total sales in February 2015 are expected to reach their highest levels for the month since 2002, according to a monthly sales forecast developed jointly by JD Power and LMC Automotive.

Retail Light-Vehicle Sales

New-vehicle retail sales in February 2015 are projected to reach 1,033,100 units, which is a 9 percent increase compared with February 2014 and the highest retail sales volume for the month as well as the first time that February retail sales are expected to exceed 1 million units since February 2002, when sales hit 1.1 million. The retail seasonally adjusted annualized selling rate (SAAR) in February is expected to be 13.5 million units, 1.1 million units stronger than February 2014 and the highest retail SAAR for the  month since February 2004 (13.6 million). Retail transactions are the most accurate measure of consumer demand for new vehicles.

U.S. Retail SAAR—February 2014 to February 2015
(in millions of units)

 

Source: Power Information Network^® (PIN) from JD Power

“The industry had a great start to 2015 in January, and that sales momentum continues in February with exceptional growth in retail sales,” said John Humphrey, senior vice president of the global automotive practice at JD Power.

Humphrey noted that automakers continue to take advantage of strong residual values to provide attractive lease deals for consumers. Lease penetration through the first 11 selling days in February is 27.4 percent of retail, its highest level ever.

The compact SUV segment is leading the industry in retail sales for a fifth consecutive month, accounting for 15.2 percent of retail sales thus far in February, while the midsize car segment continues to struggle, slipping to fourth in sales volume behind the compact SUV, compact car and midsize SUV segments.   

Total Light-Vehicle Sales

Total new light-vehicle sales in February 2015 are expected to reach 1.3 million units, a 9 percent increase, compared with February 2014, and match the recent high for the month set in February 2002. Fleet volume in February is projected to hit 264,000 units, accounting for 20 percent of total sales.

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

	February 20151	January 2015	February 2014
New-Vehicle Retail Sales	1,033,100 units (9% higher than February 2014)	922,055 units	947,603 units
Total Vehicle Sales	1,296,800 units (9% higher than February 2014)	1,149,261 units	1,191,564 units
Retail SAAR	13.5 million units	13.8 million units	12.4 million units
Total SAAR	16.7 million units	16.6 million units	15.4 million units

¹Figures cited for February 2015 are forecasted based on the first 11 selling days of the month.

Sales Outlook

New-vehicle sales in early 2015 are continuing the robust pattern from the fourth quarter of 2014. As a result, LMC Automotive is increasing its 2015 forecast for both retail and total light vehicles by approximately 40,000 units, each still rounding to 14.0 million and 17.0 million, respectively.

“Strength at the start of 2015 is a key factor in keeping the industry on target to surpass annual vehicle sales of 17 million units for the first time since 2001,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “Given all the positive factors, including the economy, gas prices and fresh new products in showrooms, rain clouds are expected to stay out of the auto sales forecast for the duration of 2015.”

North American Production

Light-vehicle production in January increased 3 percent to 1.3 million units, compared with January 2014. While most automakers worked around the West Coast port strike by using air freight and reducing overtime, there are some cutbacks in production. February 2015 production is expected to drop to 1.3 million units, a 3 percent decline from February 2014. LMC Automotive forecasts that 2015 production will finish at 17.5 million, a 3 percent gain from 2014.

Ahead of the spring selling season, inventory levels increased to a 82-day supply at the beginning of February 2015, up from 61 days at the beginning of January and still below the 88-day supply at the start of February 2014.

About JD Power

JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit www.JDPower.com. JD Power is a business unit of McGraw Hill Financial.

About McGraw Hill Financial 

McGraw Hill Financial  (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL and JD Power. The Company has approximately 17,000 employees in 30 countries. Additional information is available at www.mhfi.com.

About LMC Automotive

LMC Automotive is the premier supplier of automotive forecasts and intelligence to an extensive client base of automotive manufacturer, component supplier, logistics and distribution companies, as well as financial and government institutions around the world. LMC’s global forecasting services encompass automotive sales, production and powertrain expertise, as well as advisory capability. LMC Automotive has locations in the United States, the UK, France, Germany, China Japan and Thailand and is part of the Oxford, UK-based LMC group, the global leader in economic and business consultancy for the agribusiness sector.  For more information please visit 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

 

Vehicle Dependability Heavily Impacted by Owner Experiences with Technology

2015-02-24

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Lessons Learned from Prior Catastrophic Storms Improve Claims Satisfaction for a Third Consecutive Year

2015-02-26

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WESTLAKE VILLAGE, Calif.: 2 March 2015 — With fewer catastrophic storms than prior years, insurance providers have been able to focus time on and apply lessons to managing non-catastrophic claims, which has resulted in a third consecutive year of higher overall satisfaction among homeowners who have filed a property claim, according to the JD Power 2015 Property Claims Satisfaction Study^SM released today.

The study, now in its eighth year, measures satisfaction with the property claims experience among insurance customers who have filed a claim for damages by examining five factors: settlement; first notice of loss; estimation process; service interaction; and repair process.

With a record 25 separate catastrophic (CAT) losses in 2011 and 2012 combined, insurers have welcomed the comparatively quiet period since, with eight events in 2013 and only five in 2014 within the primary fielding period of the 2015 study. By applying the lessons learned while handling CAT claims to non-CAT claims and by putting renewed focus on their property insurance business, insurers have been able to increase property claims satisfaction to 851 (on a 1,000 point scale) in 2015, up from 840 in 2014. 

“The study shows the significant gains insurers have made in customer satisfaction by applying the lessons learned while handling prior catastrophic losses to all claim processes,” said Jeremy Bowler, senior director of the insurance practice at JD Power. “The big storms masked the steady progress the industry has also been making in recent years on routine claims, but we’re really seeing that shine now. “

Bowler noted that while many insurers previously focused on managing their auto insurance claims, they are now increasing their investment of time and resources in their property insurance business. “They are getting serious about applying the knowledge from their auto business to property claims, and we’re seeing that reflected in higher customer satisfaction,” said Bowler.

Improving satisfaction is critical for insurers, as they often realize a return on their investment in customer satisfaction in the form of loyalty. Only 3 percent of customers who were delighted (satisfaction scores 900 or higher) and 7 percent of those who were pleased (scores 750-899) with their insurer during the claims process have switched carriers since their claim closed. In contrast, 9 percent of indifferent (scores 550-749) and 11 percent of displeased (scores 549 or lower) customers have switched to a different insurer. Additionally, 23 percent of indifferent customers and 42 percent of displeased customers say they “will shop” for a new provider during the next 12 months.

KEY FINDINGS

• Overall satisfaction improves in each of the five factors in 2015, with the greatest year-over-year improvements in settlement and service interaction.
• Satisfaction is highest when the insurance agent is the primary contact throughout the claims process (865) and lowest when the primary contact is the claims professional (793). The percentage of customers who say their agent is their primary contact has increased to 24 percent in 2015 from 18 percent in 2014. Only 7 percent of customers say the claims professional is their primary contact in 2015, down from 9 percent in 2014.
• The majority (90%) of full-service advice seekers—customers who value a personal relationship with their agent—contact their agent to report the first notice of loss and receive the majority of claims updates through phone calls (71%). On the other end of the spectrum are technologists—customers who opt to interact with their insurer through digital channels—who most often contact a call center or use their insurer’s website to begin their claims process and receive updates online or via email or texts.
• Claims satisfaction is highest among Pre-Boomers[1] (880) and is lowest among Gen Y (839) customers. Satisfaction among Boomers is 850 and 849 among Gen X customers.

Highest-Ranked Insurance Companies

Amica Mutual ranks highest in overall satisfaction with the property insurance claims experience for a fourth consecutive year, achieving a score of 888. Amica Mutual performs particularly well in nearly all study factors. Nationwide ranks second with a score of 886, followed by COUNTRY with 881.

USAA also achieves high levels of customer satisfaction, although the insurer is not included in the rankings due to the closed nature of its membership.

The 2015 Property Claims Satisfaction Study is based on more than 6,100 responses from homeowners insurance customers who filed a property claim between January 2013 and December 2014.

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

About McGraw Hill Financial www.mhfi.com 

 

Wireless Network Problem Incidence Increases as Texting and Web Use Grows

2015-03-03

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WESTLAKE VILLAGE, Calif.: March 5, 2015 — As the incidence of texting and Web use grows, so does the incidence of wireless network problems, with the year-over-year increase driven primarily by issues with data services, including phone and mobile broadband Web, according to the JD Power 2015 U.S. Wireless Network Quality Performance Study^SM—Volume 1 released today.

Now in its 13th 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 connection errors; slow downloads; and email connection errors. Network performance issues are measured as problems per 100 (PP100) network connections, with a lower score reflecting fewer problems and better network performance. 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.

According to the study, data-related issues, including phone and mobile Web problems, have steadily increased from 2014. The average number of problems with mobile Web connections, excessively slow mobile Web loading, and email connection errors has increased to 17 PP100 in 2015 Vol. 1 from 14 PP100 in 2014 Vol. 1. 

The volume of texting has also increased, with 47 texts sent/received over a 48-hour period, on average, compared with 42 texts in 2014 Vol. 1. Additionally, the average number of phone mobile Web interactions occurring over a 48-hour period is higher year over year (16 vs. 14, respectively).

“Smartphone users send a high volume of calls, text messages and emails, which strains carrier networks. As tablet ownership continues to rise, increased frequency of mobile video downloads further exacerbates network strain,” said Kirk Parsons, senior director and practice leader of telecommunications at
JD Power. “Given the increase in network connection problems, carriers providing faster and more reliable connections may have a competitive advantage, particularly for cellular tablet owners, who have a high propensity to switch carriers in pursuit of quality connections.”

KEY FINDINGS

• Overall wireless network quality problem incidence is 13 PP100 network connections vs. 12 PP100 in 2014 Vol. 1.
• On average, wireless customers experience the highest number of data quality problems on their mobile broadband device (27 PP100), followed by tablet (16 PP100) and phone (17 PP100).
• While 14 percent of wireless customers indicate having a tablet with a data plan from their wireless carrier, 9 percent have a mobile broadband device, such as an aircard or hotspot.
• When examining types of data problems, email connection errors occur more frequently on tablets than phones (7 PP100 vs. 6 PP100, respectively). In contrast, issues related to slow mobile Web connections are more likely to occur on phones (16 PP100) than on mobile broadband devices (14 PP100) and tablets (12 PP100).
• Cellular tablet owners are willing to switch carriers if a competitor can offer faster, more reliable connections at a comparable price. Although satisfaction among customers with cellular tablets is higher overall, 24 percent of those customers say they “definitely will” or “probably will” switch their carrier within the next year, compared with just 15 percent of customers without a cellular tablet.

Study Rankings

Verizon Wireless ranks highest in all six regions—Northeast; Mid-Atlantic; Southeast; North Central; Southwest; and West—with typically lower PP100 scores in call quality, messaging quality and data quality.

The 2015 U.S. Wireless Network Quality Performance Study—Volume 1 is based on responses from 27,065 wireless customers. The study was fielded from July 2014 through December 2014.

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

About McGraw Hill Financial www.mhfi.com 

 

Shark Ranks Highest in Customer Satisfaction with Upright Vacuums;
Dyson Ranks Highest in Satisfaction with Canister Vacuums

2015-03-04

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WESTLAKE VILLAGE, Calif.: 11 March 2015 — Shark ranks highest in the upright vacuum segment and Dyson ranks highest in the canister vacuum segment, with customer satisfaction for each brand driven primarily by performance and ease of use, according to the JD Power 2015 Vacuum Satisfaction Study^SM released today.

The study measures satisfaction with upright and canister vacuums by examining six key factors of the experience (in alphabetical order): ease of use, features, performance, price, styling/appearance and warranty. Satisfaction is calculated on a 1,000-point scale.

“Manufacturers that focus more on differentiating through design and features and not focusing on performance and ease of use are missing an opportunity to satisfy customers,” said Christina Cooley, director of home improvement industries at JD Power. “Customers are first and foremost looking for the vacuum to be easy to use, durable, and, most importantly, to have strong suction power. When considering these drivers, it is not surprising that upright vacuums achieve slightly higher levels of satisfaction than canister vacuums.”

Upright Vacuum Brand Satisfaction Rankings

• Shark (832) ranks highest in customer satisfaction with upright vacuum brands for a second consecutive year.
• Shark performs particularly well in three of the six factors: ease of use, features and performance.
• Dyson (820) follows Shark in the upright vacuum brand ranking.
• Overall customer satisfaction with upright vacuum brands is 794, with ease of use the highest-scoring factor at 823.

Canister Vacuum Brand Satisfaction Rankings

• Dyson (810) ranks highest in customer satisfaction with canister vacuum brands for the first time.
• Dyson performs particularly well in three of the six factors: ease of use, performance and styling/appearance.
• Miele and Shark tie (806 each) for second-highest ranked canister vacuum brand.
• Overall customer satisfaction with canister vacuum brands is 783, with ease of use the highest-scoring factor at 811.

The 2015 Vacuum Satisfaction Study is based on responses from 5,620 customers who purchased an upright or canister vacuum within the previous 12 months. The study was fielded in January and February 2015. For more information about JD Power solutions for the home improvement industry: 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

About McGraw Hill Financial www.mhfi.com 

 

Member Satisfaction Significantly Increases as Health Plans Take Customer-Centric Approach

2015-03-05

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WESTLAKE VILLAGE, Calif.: 9 March 2015 — Following a year filled with negative news coverage about health insurance, a bumpy start to the launch of the Affordable Care Act, and an atmosphere of fear, member satisfaction with health plans has increased significantly as plan administrators take a customer-centric approach, helping to build member trust and loyalty, according to the JD Power 2015 Member Health Plan Study^SM released today.

Now in its ninth year, the study measures satisfaction among members of 134 health plans in 18 regions throughout the United States by examining six key factors: coverage and benefits; provider choice; information and communication; claims processing; cost; and customer service. Satisfaction is calculated on a 1,000-point scale.

Overall member satisfaction averages 679, which is a 10 point improvement from 2014. The increase in satisfaction is driven by improved performance across all factors, most notably in information and communication (+17 points), which is primarily a result of efforts among many of the health plans to retool their approach by refining messaging, adjusting message frequency and upgrading their website. Satisfaction in the customer service factor has increased by 11 points, driven partially by matching communication methods to member preferences, such as mobile and text. Cost satisfaction increases by 13 points while fewer members indicate having experienced an increase in their monthly premium, as well as a decline in overall out-of-pocket expenses for individuals and families.

“Health plans have come a long way since last year as the focus has shifted toward better serving member needs and building trust. However, there is still a lot of work to do,” said Rick Johnson, senior director of the healthcare practice at JD Power. “Health plans need to take a more customer-centric approach and keep their members engaged through regular communications about programs and services available through their plan. When members perceive their plan as a trusted health partner, there is a positive impact on loyalty and advocacy.”

According to the study, overall satisfaction is significantly higher among the 19 percent of members who strongly agree their health plan is a trusted partner in managing their health. Among members who say they “strongly agree” that their health plan is a trusted partner, satisfaction increases by 201 points.

KEY FINDINGS

• Members who say they “strongly agree” that their health plan is a trusted advisor are less likely to switch health plan providers.
• Within information and communication, satisfaction ratings have improved from 2014 in the factor’s four attributes: ease of understanding your plan’s benefits and services (6.4 vs. 6.2, respectively, on a 10-point scale); frequency of communications (6.3 vs. 6.1, respectively); usefulness of information (6.4 vs. 6.2, respectively); and variety of communications (6.3 vs. 6.1, respectively).
• Similarly, satisfaction ratings have also improved year over year in the attributes within the cost factor: premiums (5.9 vs. 5.7, respectively); deductible amount (5.8 vs. 5.7, respectively); co-pays for prescription medication (6.4 vs. 6.2, respectively); and co-pays for doctor visits (6.3 vs. 6.2, respectively).
• Overall member satisfaction is 108 points higher among members who have contacted their plan via mobile app at least once in the past 12 months than among those who haven’t.  While members under 40 years old contact their plan via text and mobile app at a significantly higher rate than older members, the telephone is still the most frequently used contact method across all age cohorts.

Study Rankings

Satisfaction is highest among health plan members in the California (695), Northwest (693), Illinois–Indiana (689), Michigan (688) and Mountain (686) regions. Satisfaction is lowest among members in the New England (664) and the Southwest and Minnesota–Wisconsin regions at a tie (665).

WEST

• Kaiser Foundation Health Plan (778) ranks highest among health plans in the California region for an eighth consecutive year. No other plans in this region perform above the region average.
• Kaiser Foundation Health Plan (733) ranks highest among health plans in the Colorado region for an eighth consecutive year. No other plans in this region perform above the region average.
• SelectHealth (711) ranks highest among health plans in the Mountain region—which includes Idaho, Montana, Utah and Wyoming—for a sixth consecutive year, followed by Aetna (694).
• Kaiser Foundation Health Plan (736) ranks highest among health plans in the Northwest region—which includes Oregon and Washington—for a second consecutive year, followed by Group Health Cooperative (710) and Providence Health Plan (707).
• Cigna (676) ranks highest among health plans in the Southwest region—which includes Arizona, New Mexico and Nevada—followed by Aetna (674) and BlueCross BlueShield of Arizona (672).

MIDWEST

• BlueCross BlueShield of Kansas (701) ranks highest among health plans in the Heartland region—which includes Arkansas, Iowa, Kansas, Missouri, Nebraska and Oklahoma—followed by BlueCross BlueShield of Kansas City (698) and BlueCross BlueShield of Oklahoma (685).
• BlueCross BlueShield of Illinois (699) ranks highest among health plans in the Illinois–Indiana region. No other plans in this region perform above the regional average.
• Health Alliance Plan of Michigan (692) ranks highest among health plans in the Michigan region for an eighth consecutive year, followed by BlueCross BlueShield of Michigan and Priority Health in a tie (691).
• Dean Health Plan (698) ranks highest among health plans in the Minnesota–Wisconsin region, for a second consecutive year, followed by HealthPartners (684) and Medica Health Plans (671).
• Anthem BlueCross BlueShield of Ohio (686) ranks highest among health plans in the Ohio region, followed by Aetna (685).

EAST

• Kaiser Foundation Health Plan (762) ranks highest among health plans in the Mid–Atlantic region—which includes Maryland, Virginia and Washington, D.C.—for a seventh consecutive year, followed by Cigna (683) and CareFirst BlueCross BlueShield and UnitedHealthcare in a tie (676).
• Anthem Health Plans of New Hampshire (682) ranks highest among health plans in the New England region—which includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont—followed by Harvard Pilgrim Health Care (677) and BlueCross BlueShield of Massachusetts (676).
• Capital District Physicians’ Health Plan, Inc. (739) ranks highest among health plans in the New York–New Jersey region for a second consecutive year, followed by Independent Health Association (733) and BlueCross BlueShield of Western New YorkandBlueShield of Northeastern New York (692).
• Highmark BlueCross BlueShield (696) ranks highest among health plans in the Pennsylvania region, followed by Highmark BlueShield and Independence BlueCross in a tie (692) and Capital BlueCross (691).

SOUTH

• Humana (687) ranks highest among health plans in the East South Central region—which includes Alabama, Kentucky, Louisiana, Mississippi and Tennessee—followed by BlueCross BlueShield of Louisiana (684) and Cigna (683).
• AvMed (718) ranks highest among health plans in the Florida region for a fourth consecutive year, followed by Cigna (688) and Humana (682).
• Kaiser Foundation Health Plan (718) ranks highest among health plans in the South Atlantic region—which includes Georgia, North Carolina and South Carolina—for a sixth consecutive year, followed by Aetna (703) and Cigna (690).
• BlueCross BlueShield of Texas and UnitedHealthcare tie for the highest ranking among health plans in the Texas region (690). No other plans in this region perform above the region average.

JD Power plans to release a Health Insurance Marketplace Exchange Shopper and Re-enrollment Study (HIX), focused on member satisfaction with health plans purchased through public exchanges, as well as the shopping experience on those exchanges, in April, 2015. In October 2015, JD Power will also release a Medicare Advantage Study, focused on member satisfaction with Medicare Advantage plans.

The 2015 Member Health Plan Study is based on responses from more than 31,000 members of 134 commercial health plans across 18 regions in the United States. The study was fielded in November and December 2014. For more comprehensive health plan rankings for all 18 U.S. regions, please visit www.jdpower.com.

Media Relations Contacts

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

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

 

Despite Three-Year Increase in Recalls, Satisfaction among Recall Customers Continues to Climb

2015-03-17

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WESTLAKE VILLAGE, Calif.: 18 March 2015 — As the percentage of all dealer service visits related to automotive recalls reaches 16 percent—surpassing the recent peak of 15 percent in 2011—satisfaction among recall customers continues to improve, according to the JD Power 2015 U.S. Customer Service Index (CSI) Study^SM released today.

The study measures customer satisfaction with service at a franchised dealer facility for maintenance or repair work among owners and lessees of 1- to 5-year-old vehicles.

The study finds that the overall CSI among customers who take their vehicle to a dealer for recall-related work improved to 789 on a 1,000-point scale, up from 777 in 2014. This increase, combined with a slight decline in overall satisfaction, reduced the negative satisfaction gap between recall visits and overall CSI. There is an 11-point gap in satisfaction between customers with a recall visit and those with a non-recall visit, compared with a gap of 27 points in 2014 and 21 points in 2013. Furthermore, satisfaction is 8 points higher among customers with a recall visit than among those with a repair visit (781).

“Even though recalls can create a large influx of customers into the service department and really strain capacity, automakers are better prepared to handle recalls than they were a few years ago,” said Chris Sutton, vice president, U.S. automotive retail practice at JD Power. “Manufacturers have shown that it is possible to turn a potential negative into a positive when it comes to recalls if they’re done in a way that doesn’t inconvenience the customer.”

Highest-Ranked Nameplates

Jaguar ranks highest in satisfaction with dealer service among luxury brands, with a score of 877. Following Jaguar in the luxury ranking are Lexus (870), Audi (865), Lincoln (861) and Cadillac (858).

With a CSI score of 836, Buick ranks highest among mass market brands for a second consecutive year. Rounding out the top five mass market brands in the ranking are MINI (834), Volkswagen (818), GMC (811) and Chevrolet (807).

KEY FINDINGS

• Overall customer satisfaction with dealer service averages 852 among luxury brands and 792 among mass market brands.
• Dealers that offer some type of express lane for customers who do not schedule service appointments substantially outperform those that do not offer this option (819 vs. 764, respectively). Among customers servicing at a dealership with an express lane, 52 percent indicate speaking to a service advisor immediately, compared with 38 percent of those servicing at a non-express lane dealer.
• Despite widespread availability of Internet service appointment scheduling, only 9 percent of customers book appointments via the Internet, compared with 73 percent who call for an appointment. Forty-five percent of customers say they are unaware that Internet scheduling is available to them.
• Satisfaction is substantially higher among customers who work with the same service advisor they worked with in the past than among those who work with a new advisor (824 vs. 769, respectively). Nearly two-thirds (63%) of customers indicate having worked with the same service advisor in the past.
• While 29 percent of customers say that the service advisor recommended additional work, the success rate of those recommendations—or the proportion of customers who agree to have the work performed—is 47 percent. The average dollar total service spend for customers who have the additional recommended work done at the dealership is $277, compared with $171 for those who do not have the additional recommended work done.

The 2015 U.S. CSI Study is based on responses from more than 70,000 owners and lessees of 2010 to 2014 model-year vehicles. The study was fielded between November and December 2014.

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

About McGraw Hill Financial www.mhfi.com