Category: United States

Despite Cheap Gas, Fuel Efficiency Still a Primary Concern

2015-01-13

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WESTLAKE VILLAGE, Calif.: 14 January 2015 — Despite gas prices falling to their lowest levels since 2010, fuel economy—for a fourth consecutive year—remains the most influential factor among the majority of new-vehicle buyers in determining which vehicle they select, according to the JD Power 2015 U.S. Avoider Study^SM released today. 

The study, now in its 12th year, examines the reasons consumers purchase, reject or do not consider—or avoid—particular models when shopping for a new vehicle.

According to the study, 14 percent of new-vehicle owners cite gas mileage as the most influential reason for selecting the vehicle they ultimately purchased. At the segment level, gas mileage is the primary purchase reason among buyers of compact, small and midsize cars and compact MPVs. Consequently, fuel economy is the second-most common reason why a model is rejected by shoppers at dealerships in favor of another model (16%).

“Consumers know that, although gas prices are low today, the cost of fuel will likely increase during the time they own their vehicle,” said Arianne Walker, senior director, automotive media & marketing at        JD Power. “Clearly, consumers are considering the total cost of ownership when selecting their new vehicle.”

Low gas prices are among the factors suppressing demand for hybrid/electric vehicle (EV) models.

• ŸHybrid/EVs currently account for only 3.5 percent of new-vehicle sales, down from 3.8 percent in 2013, with more than 70 hybrid/EV models vying for that small slice of the market.[1]
• ŸBuyers of traditional gasoline-engine vehicles avoid hybrid models due to cost at much higher rate (24%) than they avoid gasoline engines due to cost (16%).
• ŸGen Y consumers—born between 1977 and 1994 and a seemingly likely target market for hybrid vehicles because they are known to embrace eco-friendly practices—who buy gasoline engines avoid hybrid models at even greater rates for being too expensive (27%).

The U.S. government’s new Corporate Average Fuel Economy standards require automakers to obtain an average fuel efficiency of 54.5 miles per gallon across their new car and light truck fleet by 2025.

“Factors such as fuel prices and consumer demand may make these tough standards even harder to achieve, as you can’t mandate what people want to buy,” said Walker. “Gen Y, the largest demographic group in U.S. history, comprises approximately 26 percent of the market, and their demand for larger vehicles will increase as their income increases and their households grow, putting further pressure on the ability for automakers to meet the strict federal mandates on gas mileage.” 

KEY FINDINGS

• Exterior look/design is the top reason shoppers avoid a particular vehicle (30%), followed by cost and interior look/design (17% each).
• ŸVehicle technology is becoming increasingly important among consumers, as new-vehicle buyers indicate they avoided a model because it lacked the latest technological features at a rate of 15 percent in 2015, up from 4 percent in 2014.

The 2015 Avoider Study is based on responses from nearly 30,000 owners who registered a new vehicle in April and May 2014. The study was fielded between July and September 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 

 

New-Vehicle Sales in 2015 Off to a Strong Start; January Retail Sales Highest Since 2004

2015-01-23

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WESTLAKE VILLAGE, Calif.: 26 January 2015 — New-vehicle retail sales in January are expected to reach the highest levels for the month in a decade, both overall and on a seasonally adjusted annualized rate (SAAR) basis, according to a monthly sales forecast developed jointly by JD Power and LMC Automotive.

Retail Light-Vehicle Sales

New-vehicle retail sales in January 2015 are projected to reach 932,000 units, an 8.5 percent increase on a selling-day adjusted basis compared with January 2014 (January 2015 has one more selling day than January 2014). The retail SAAR in January is expected to be 13.9 million units, which is 1.0 million units stronger than January 2014, matching the levels reached in January 2004. Retail transactions are the most accurate measure of consumer demand for new vehicles.

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

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

“The year is off to a great start with exceptional growth in retail sales,” said John Humphrey, senior vice president of the global automotive practice at JD Power. “The sales momentum seen throughout 2014 is continuing into 2015 and, unlike last year, inclement weather has not slowed vehicle sales thus far. With an additional weekend in January this year, the industry is on a trajectory to post the second-largest year-over-year retail sales growth in the past 17 months.”

Humphrey also mentioned that with the continuation of low gas prices, consumers are purchasing more trucks. So far in January, trucks, vans and SUVs account for 55.4 percent of sales, the highest level for a January since 2004.

Total Light-Vehicle Sales

Total light-vehicle sales in January 2015 are expected to reach 1.1 million units, an 8 percent increase, compared with January 2014. Fleet volume in January is projected to come in at 204,000 units, which, at 18 percent of total sales, is on par with the fleet percentage in January 2014.

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

	January 20151	December 2014	January 2014
New-Vehicle Retail Sales	932,100 units (8% higher than January2013)2	1,232,022 units	826,177 units
Total Vehicle Sales	1,135,900 units (8% higher than January2013)	1,504,467 units	1,010,713 units
Retail SAAR	13.9 million units	13.8 million units	12.9 million units
Total SAAR	16.4 million units	16.8 million units	15.2 million units

¹Figures cited for January 2015 are forecasted based on the first 13 selling days of the month.

²The percentage change is adjusted based on the number of selling days in the month (26 days in January 2015 vs. 25 days in January 2014).

Sales Outlook

Auto sales in 2014 ended strongly, with total light-vehicle sales finishing at 16.5 million and retail light-vehicle sales tallying 13.6 million.

LMC Automotive is maintaining its 2015 retail sales forecast at 14.0 million and its total light-vehicle sales forecast at 17.0 million.

“The auto industry is starting 2015 on auto pilot with January tracking as expected after a vigorous December,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “Growth of 3 percent should be easy to achieve as the risk could be centered more with automakers and suppliers not being able to keep up with demand if growth were to be stronger than we project.”

North American Production

Vehicle production in North America ended 2014 at 16.9 million units, a 5 percent increase from 2013. Significantly outpacing the annual increase, production in December was at 1.2 million units, 16 percent stronger than December 2013.

Given the strong pace of sales in December, however, inventory levels dropped to a 61-day supply at the beginning of 2015 from 71 days at the beginning of December.

Vehicle output in North America is expected to continue to increase in 2015, but with a slowing growth rate. LMC Automotive is maintaining the current forecast for North American production at 17.4 million for 2015, a 3 percent increase compared with 2014. Production in the first quarter of 2015 is projected to reach 4.3 million units, a 4 percent increase compared with the same period in 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

 

Online Build and Price Tool Significantly Improves Satisfaction and Increases Dealership Visits

2015-01-27

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WESTLAKE VILLAGE, Calif.: 29 January 2015 — Build and price is the most frequently used tool among in-market shoppers on OEM websites (85%), and when used by shoppers, it can significantly improve satisfaction and increase the likelihood that they will visit a dealership to test drive, according to the
JD Power 2015 Manufacturer Website Evaluation Study^SM—Winter released today.

The semiannual study, now in its 16th year, measures the usefulness of automotive manufacturer websites during the new-vehicle shopping process by examining four key measures (in order of importance): information/content, appearance, navigation and speed. Satisfaction is measured on a 1,000-point scale.

The build and price tool is used for more than just building the desired vehicle. Shoppers use it most often to find a vehicle in their shopping area (59%); research vehicle information (50%); and research price-related information (49%) when evaluating manufacturer websites.

“There is fierce competition in the automotive industry and a manufacturer’s website is a key channel for OEMs to show in-market shoppers why they should purchase their vehicles,” said Arianne Walker, senior director, automotive media & marketing solutions at JD Power. “In fact, the build and price tool is a key differentiator in the online shopping experience for consumers, creating a more satisfying, useful experience when it is well designed. It is critical to help shoppers understand the value of a vehicle as well as the benefits of vehicle trims and accessories, and to help them identify where they can find the vehicle of interest to test drive.”

 KEY FINDINGS

• Two primary reasons drive shoppers’ use of the build and price tool: to determine whether a vehicle fits in their budget (35%) and to build an ideal vehicle with every feature and accessory they desire (29%).
• Among new-vehicle shoppers who are “delighted” with their experience on an OEM’s website (overall satisfaction scores of 901 or higher), 64 percent indicate they are more likely to test drive a vehicle after visiting the manufacturer’s site, compared with only 20 percent of those who are “disappointed” (satisfaction scores of 500 or below).
• Premium brand shoppers (33%) are more likely to use the build and price tool to build their ideal vehicle vs. non-premium shoppers (26%). Non-premium shoppers are more likely to use the tool for budget reasons (38%) than are premium shoppers (29%).
• Satisfaction is significantly higher among shoppers who use the build and price tool than among those who do not (801 vs. 770, respectively).

Study Rankings

Jeep (816) ranks highest overall, followed by Infiniti and Jaguar in a tie (815 each) and Cadillac and Porsche in a tie (814 each). Overall satisfaction with automotive brand websites averages 795.

The 2015 Manufacturer Website Evaluation Study—Winter is based on responses from more than 9,800 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study was fielded from November 5, 2014, through November 24, 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 

 

Online Chat Function Positively Impacts Wireless Customer Care Satisfaction

2015-02-03

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WESTLAKE VILLAGE, Calif.: February 5, 2015 — Satisfaction with wireless carrier customer care service is positively impacted by the increased use and improved performance of online channels, especially the chat function, according to the JD Power 2015 U.S. Wireless Customer Care Full-Service Performance Study^SM—Volume 1 and the JD Power 2015 U.S. Wireless Customer Care Non-Contract Performance Study^SM—Volume 1, both released today.

Now in their 13th year, the semiannual studies examine how well wireless carriers provide customer service via three main contact channels: phone (consisting of three sub-channels—automated response system (ARS) then customer service representative (CSR); CSR only; and ARS only); walk-in (retail store); and online. The studies measure satisfaction with each contact method and analyze processing issues, such as the efficiency of problem resolution and the duration of hold times. Satisfaction is calculated on a 1,000-point scale.

“For wireless customers, online chat is an efficient and immediate experience for problem resolution. This contributes to higher levels of satisfaction, especially pertaining to service issues or questions such as billing or service and device-related issues associated with upgrades,” said Kirk Parsons, senior director of the telecom services practice at JD Power. “As carriers release new products and services, such automated systems as online chat must continue to evolve to address harder-to-answer questions related to technology support.”

Overall satisfaction among wireless full-service customers is 773, and is 726 among non-contract wireless customers.

Overall satisfaction is higher among wireless full-service customers who contact their carrier via the online channel than among those who use the phone channel (778 vs. 763, respectively). Online, the chat experience has the greatest impact on satisfaction because customer care issues can be resolved on the first contact. For example, when wireless customers use the chat feature, the first-contact resolution rate is 68 percent, compared with 61 percent when they do not use chat. 

KEY FINDINGS

• Overall, online channel usage by wireless customers for their most recent care experience has risen to 18 percent in 2015 from 9 percent in 2011.
• Online satisfaction is highest among customers who use the chat feature (782), compared with among those who use other social media forums to find information (775) and email (764). Online chat is differentiated by personalized service and knowledgeable representatives.
• Among wireless full-service customers who solve their issue online, 55 percent indicate having used the chat function, up 12 percentage points from 2014 Vol. 1, followed by email (17%) and other social media forums (8%).  
• Online customer care satisfaction among full-service wireless customers is substantially higher (+134 points) when an online chat representative addresses the customer by name and when the rep has all the account information available.
• There are three core reasons full-service wireless customers contact their carrier—problems, questions and account changes. These reasons differ by channel. The phone channel is used primarily for questions (40%), followed by problems (38%) and account changes (18%). The walk-in channel is used primarily for problems (43%), questions (36%) and account changes (15). Contact via the online channel is use mainly for questions (53%), followed by problems (25%) and account changes (15%).

Study Rankings

AT&T ranks highest among wireless full-service carriers, with an overall score of 786. AT&T performs particularly well in the walk-in channel and ranks above the full-service average in four of the five service channels.

Virgin Mobile ranks highest among wireless non-contract carriers, scoring 775. The carrier performs above the non-contract average in the telephone and online channels.

The 2015 U.S. Wireless Customer Care Full-Service Performance Study—Volume 1 is based on responses from 6,499 full-service wireless customers. The 2015 U.S. Wireless Customer Care Non-Contract Performance Study—Volume 1 is based on responses from 2,635 non-contract wireless customers. Both semiannual studies are based on the experiences of current customers who contacted their carrier’s customer care department within the past six months. 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 

 

Risk Professionals Look For Commercial Insurers To Partner with Brokers to Meet Their Needs

2015-02-04

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AEGIS
ACE Limited
American International Group (AIG)
Allianz AG
CHUBB
FM Global
Liberty Mutual
Lloyd’s of London
Oil Insurance Limited
Swiss Re
Travelers
XL Group
Zurich Insurance Group

Workers’ Compensation Insurance

ACE Limited
American International Group (AIG)
AmTrust North America
Berkshire Hathaway Group
CHUBB
CNA Insurance
The Hartford
Liberty Mutual
Old Republic International
Travelers
W.R. Berkley Corporation 
Zurich Insurance Group

Auto Insurance

ACE Limited
American International Group (AIG)
Auto-Owners Insurance
CHUBB
The Hartford
Liberty Mutual
Nationwide
Old Republic International
Travelers
Zurich Insurance Group

Insurance Brokers

Alliant Insurance Service Inc.
Aon Corp.
Arthur J. Gallagher & Co.
BB&T Insurance Services
Brown & Brown Inc.
HUB International
Lockton Cos. LLC
Marsh & McLennan Cos. Inc.
USI Holdings Corp.
Wells Fargo Insurance Services USA Inc.
Willis Group Holdings P.L.C

 

Improvement Needed with Self-Directed Customer Service Channels at Natural Gas Utility Companies

2015-02-10

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WESTLAKE VILLAGE, Calif.: 11 February 2015 — Interaction with a customer service representative on the phone has driven satisfaction up significantly among gas utility business customers; however, self-directed service channels are less impactful, according to the JD Power 2015 Gas Utility Business Customer Satisfaction Study^SM released today.

Now in its 10th year, the study measures satisfaction among business customers with their gas utility company in four regions: East, Midwest, South and West. Each of the 52 brands included in the study serve at least 25,000 business customers, or 3.4 million in total. Overall satisfaction is measured by examining six factors: billing and payment; corporate citizenship; price; communications; customer service; and field service. Satisfaction is calculated on a 1,000-point scale.

Overall customer service satisfaction is 695, an 8-point improvement from 687 in 2014. Satisfaction with customer service when using the self-directed online channel remains relatively flat from 2014 (787 vs. 785, respectively). However, satisfaction among customers who use the live phone channel to interact with a representative has improved by 13 points to 758 from 745. Notably, satisfaction ratings improve for a majority of attributes that comprise the customer service factor, including courtesy of the representative (+0.15 point on a 10-point scale); the representative’s concern for customer needs (+0.14); the timeliness of resolving the problem, question, or request (+0.14); and promptness in speaking to a person (+0.12).

“It’s good to see that problem resolution and customer service satisfaction have improved among customers who speak with phone reps. While this may be a high-quality interaction, this can be an inefficient use of resources for gas utilities of all sizes,” said John Hazen, senior director of the energy practice at JD Power. “Gas utilities need to focus their attention on improving the self-directed customer service channels for their business customers. Providing a robust and effective IVR and website to business customers enables them to address issues on their own, which can help increase customer satisfaction and save time and money for the utility.”

KEY FINDINGS

• Satisfaction improves in each of the six factors year over year: billing and payment (+14 points); field service (+14); communications (+10); customer service (+8); corporate citizenship (+8); and price (+6).
• When billing statements contain useful information such as graphs or pictures, customer satisfaction with billing and payment is higher than when statements do not include such information (770 vs. 697, respectively).
• The percentage of business customers who say they recall a communication from their gas utility has increased this year to 56 percent, up 6 percentage points from 2014.

Study Rankings

East Region

PSE&G ranks highest in overall satisfaction in the East region with a score of 690, followed by BGE and National Fuel Gas in a tie with 688, and UGI with 682.

Midwest Region

DTE Energy (723) ranks highest in overall satisfaction in the Midwest region, followed by MidAmerican Energy (713) and Black Hills Energy (711).

South Region

Alagasco (736) ranks highest among gas utilities in the South region. Oklahoma Natural Gas (733) ranks second, followed by Atmos Energy (724).

West Region

Questar Gas ranks highest in satisfaction in the West region, with a score of 730. Following in the regional rankings are NW Natural (722) and Southwest Gas (716).

The 2015 Gas Utility Business Customer Satisfaction Study is based on responses from more than 9,200 online interviews with business customers who spend at least $150 monthly on gas. The study was fielded from April through July 2014 and August through December 2014.

Media Relations Contacts

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

About JD Power and Advertising/Promotional Rules http://www.jdpower.com/about/index.htm

About McGraw Hill Financial www.mhfi.com 

 

Wireless Carrier Sales Reps Play Key Role Delivering a Satisfying Purchase Experience to Tablet and Smartphone Shoppers

2015-02-17

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WESTLAKE VILLAGE, Calif.: February 19, 2015 — Satisfaction with the wireless purchase experience is higher among tablet customers than among smartphone customers primarily due to sales reps spending more time during the purchase process with tablet customers to gain a better understanding of their needs, according to the JD Power 2015 U.S. Wireless Purchase Experience Full-Service Performance Study^SM—Volume 1 and the JD Power 2015 U.S. Wireless Purchase Experience Non-Contract Performance Study^SM—Volume 1, both released today.

Now in their 12th year, the semiannual studies evaluate the wireless purchase experience of customers who use any one of three contact channels: phone calls with sales representatives; visits to a retail wireless store; and online. Overall purchase experience satisfaction with both full-service and non-contract carriers is measured across six factors (in order of importance): store sales representative; website; store facility; offerings and promotions; cost of service; and phone sales representative. Satisfaction is calculated on a 1,000-point scale.

“Wireless carriers need to understand the importance and value of the role sales reps play in providing product information to tablet and smartphone shoppers,” said Kirk Parsons, senior director of the telecom services practice at JD Power. “In particular, due to the high cost of tablets, shoppers take great care and time when assessing their options. When a sales rep helps a tablet shopper become familiar with the device’s features and addresses any of their concerns, it can improve the decision process and translate into a more satisfying purchase experience.”

Satisfaction with the purchase experience is higher among wireless customers who own a tablet than among those who own a smartphone (811 vs. 797, respectively).

Part of the reason for the higher level of satisfaction with the retail sales process among tablet customers, compared with among smartphone customers, is that sales reps take more time to understand a tablet shopper’s needs and address their questions and concerns, as well as demonstrate the features and functionality of devices. For example, the average amount of time spent going through the entire sales process is higher among full-service tablet customers than among smartphone customers (62 minutes vs. 59 minutes, respectively).

KEY FINDINGS

• Tablet purchase experience satisfaction among wireless customers is substantially higher (+149 points) when a retail store representative offers an explanation/demonstration of a device’s operation than when they do not (849 vs. 700, respectively).
• Nearly three-fourths (73%) of tablet customers indicate that the sales representative offered to explain how to operate the device, compared with 67 percent of smartphone customers who indicate the same. A larger gap exists between the two customer groups when a sales representative explains the extra service plan options available, such as a data plan (74% vs. 65%, respectively).
• Having a sales rep offer to demonstrate the operation of a tablet creates an opportunity for carriers to build loyalty among customers, as 36 percent of customers who are offered a demonstration say they “definitely will not” switch their carrier, compared with 24 percent of those who were not offered a demonstration.
• Overall, 66% of customers who purchase a tablet do so at a retail store, compared with 73 percent of those who purchase a smartphone.
• Overall purchase experience satisfaction is 28 points higher when customers purchase their tablet in a carrier-owned store vs. a non-carrier store (820 vs. 792, respectively).
• Among full-service customers, overall purchase experience satisfaction is 790. Among non-contract customers, satisfaction is 778.

Study Rankings

AT&T ranks highest among wireless full-service carriers, with an overall score of 802. AT&T performs particularly well in five of the six purchase experience factors, and also performs particularly well in the
in-store and phone sales factors.

Boost Mobile and Virgin Mobile rank highest (in a tie) among wireless non-contract carriers, scoring 795 each. Both carriers perform well in the telephone and online factors.

The 2015 U.S. Wireless Purchase Experience Full-Service Performance Study—Volume 1 is based on responses from 10,246 full-service wireless customers. The 2015 U.S. Wireless Purchase Experience Non-Contract Performance Study—Volume 1 is based on responses from 5,498 non-contract wireless customers. Both semiannual studies are based on the experiences of current wireless service customers who indicate having had a sales transaction with their current carrier within the past six months. 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 

 

Customers Paying More and Waiting Longer for Their Rental Car, Putting an End to the Four-Year Run of Increasing Customer Satisfaction

2014-11-10

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WESTLAKE VILLAGE, Calif.: 11 November 2014 — Higher costs and longer waiting times have leveled off the upward trend in rental car satisfaction the industry has experienced since 2009, according to the JD Power 2014 North America Rental Car Satisfaction Study^SM released today.

Now in its 19th year, the study measures overall customer satisfaction with rental cars at airport locations by examining six factors (listed in order of importance): cost and fees; pick-up process; return process; rental car; shuttle bus/van; and reservation process.

Overall customer satisfaction with their rental car experience averages 774 on a 1,000-point scale in 2014, a 1-point drop from 2013 when satisfaction was at its highest level since the study’s current methodology was adopted in 2006. The plateau in satisfaction follows consistent improvements since 2009 when satisfaction averaged 733.

The 2014 study finds that the price of a rental car has increased by an average of $5 per day from 2013.  Additionally, wait times are longer across all aspects of the rental process, from the shuttle bus or van ride to returning the vehicle, compared with 2013.

On average, customers wait 43.4 minutes in total for the vehicle pick-up and return process, and shuttle bus/van experiences. Business customers experience slightly shorter wait times than leisure/personal customers (41.5 minutes vs. 44.3 minutes, respectively). Timeliness of service, an important component of satisfaction, drops between 18 and 58 points when customers wait longer than five minutes during any of these steps in the rental process.

A simple smile from employees at the rental car agency makes the waiting period seem shorter for customers. On average, customers who are greeted with a smile from the rental car staff indicate they wait 16.8 minutes to pick up their vehicle, while those who are not greeted with a smile indicate they wait 25.7 minutes, on average.

“Customers have experienced cost increases for airlines and hotels, but hotels can demonstrate they’re adding value commensurate with the increased costs; customers aren’t able to see that added value with airlines and rental car agencies,” said Rick Garlick, global travel and hospitality practice lead at JD Power. “Time is always important, specifically for business customers who are under constraints to be somewhere at a certain time.”

Satisfaction among business customers, who wait an average of four minutes less to pick up their rental car than leisure/personal customers, improves to 772 in 2014 from 771 in 2013, while satisfaction among leisure/personal customers declines to 774 from 777. The decline in leisure/personal satisfaction, coupled with the increase in business satisfaction closes the gap between the two groups to 2 points from its greatest difference of 21 points in 2010.

KEY FINDINGS

• Overall satisfaction is highest among customers in Gen Y—those born between 1977 and 1994—at 780, compared with an average of 775 among all other generational groups combined. That finding counters the prevailing assumption that younger customers are more demanding and harder to satisfy than those who are older. 
• In the business segment, satisfaction is highest among Gen Y customers at 788. In the leisure/personal segment, satisfaction is highest among Boomer (born 1946-1964) and Gen X (1965-1976) customers at 778 each.
• Business customers demonstrate higher levels of both loyalty and advocacy, as 36 percent say they “definitely will” rent from the same brand again and 32 percent “definitely will” recommend the rental car brand. In comparison, 26 percent of leisure/personal customers say they “definitely will” rent from the same rental car brand and 27 percent “definitely will” recommend the brand to family and friends.
• When selecting a business rental car company, 15 percent of customers make their choice on price alone, while 10 percent indicate they don’t consider price at all.
• ŸOverall satisfaction among the 19 percent of customers who are “price buyers”—those who select their rental car brand primarily for a lower price—is 740, compared with 844 among those who choose their brand based on features and benefits.

2014 North America Rental Car Satisfaction Rankings

Enterprise ranks highest in satisfaction among rental car companies, with a score of 805, performing particularly well in all six factors. National ranks second with a score of 797, followed by Alamo and Hertz with 776 each.

The 2014 North America Rental Car Satisfaction Study is based on responses gathered between September 2013 and August 2014 from more than 12,308 evaluations from business and leisure/personal customers who rented a vehicle at an airport location between August 2013 and August 2014.

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

About McGraw Hill Financial www.mhfi.com

 

Product Specialist Role in Sales Process Grows as Vehicle Technology and Complexity Increase

2014-11-11

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WESTLAKE VILLAGE, Calif.: 13 November 2014 — In today’s marketplace, vehicles are more frequently equipped with advanced technology features which may be perceived by consumers as too complex to operate. To address that issue, dedicated product specialists are playing an increasingly larger role in the sales process at dealerships, according to the JD Power 2014 U.S. Sales Satisfaction Index (SSI) Study^SM released today.  

The study, now in its 28th year, measures satisfaction with the sales experience among new-vehicle buyers and rejecters—those who shop a dealership and purchase elsewhere. Buyer satisfaction is based on four factors (in order of importance): working out the deal (17%); salesperson (13%); delivery process (11%); and facility (10%). Rejecter satisfaction is based on five factors (in order of importance): salesperson (21%); fairness of price (8%); experience negotiating (8%); variety of inventory (7%); and facility (7%). Satisfaction is calculated on a 1,000-point scale. Overall sales satisfaction improves by 13 points year over year to 686 in 2014 from 673 in 2013.

Increasingly, dealers are employing product specialists to enhance the new-vehicle sales process by demonstrating vehicle features and technological innovations.  They may also conduct second or follow-up sessions with buyers to reinforce feature understanding. Industry-wide, 15 percent of customers indicate they worked with both a salesperson and a separate product specialist when shopping for their vehicle. This percentage is slightly higher among buyers of premium vehicles (19%) than among those purchasing non-premium vehicles (15%). Regardless of segment, overall sales satisfaction is slightly higher among buyers who work with a product specialist than among those who work only with a salesperson (856 vs. 853, respectively, for premium; 809 vs. 806, respectively, for non-premium).

“With such tech-heavy vehicles today, introducing product specialists into the sales process helps improve the delivery process and customer understanding of how to operate key features,” said Chris Sutton, vice president of the automotive retail practice at JD Power. “Dealerships need to be mindful when dividing a customer’s time between a salesperson, product specialist, and the finance and insurance representative. That’s a lot of customer touch points. Adding more time to the sales process usually has a negative effect on sales satisfaction; thus, dealers need to ensure an integrated approach that respects a customer’s time.”

KEY FINDINGS

• When a customer works with both a salesperson and a product specialist, satisfaction with thoroughness of feature explanation improves to 8.1 (on a 10-point scale) from 7.9.
• Working with both a salesperson and product specialist is becoming more commonplace among new-vehicle buyers. Additionally, when assisted by a salesperson and product specialist working together vs. only a salesperson, a higher percentage of customers indicate dealer staff connected their phone to Bluetooth (79% vs. 76%, respectively); explained how to operate the navigation system (84% vs. 82%, respectively); and explained the communications system (88% vs. 86%, respectively).
• The most important key performance indicator (KPI) in the sales process is the salesperson’s ability to completely understand the customer’s needs. This KPI is met 86 percent of the time and, when met, can positively impact overall satisfaction by up to 104 points.
• The use of a computer/tablet in communicating price/payment helps drive satisfaction for working out the deal (784 vs. 770 in 2013). Satisfaction among customers who are shown pricing/payment on a computer screen/tablet is higher (827) than among those who receive this information in printed form (805), by verbal quotes (774), or as handwritten figures (764).
• Computer/tablet use by dealer personnel while presenting price/payment options has increased to 22 percent from 18 percent in 2013.

Rankings

Mercedes-Benz ranks highest in sales satisfaction among luxury brands, with a score of 761, and also improves the most (+33 points) from 2013.

For a fifth consecutive year, MINI ranks highest among mass market brands, with a score of 727,  a 9-point increase from 2013. Among mass market brands, Buick improves the most (+32 points) year over year and ranks ninth in 2014, moving up from 13^th in 2013.

The 2014 U.S. Sales Satisfaction Index (SSI) Study is based on responses from 29,805 buyers who purchased or leased their new vehicle in April or May 2014. The study is a comprehensive analysis of the new-vehicle purchase experience and measures customer satisfaction with the selling dealer (satisfaction among buyers). The study also measures satisfaction with brands and dealerships that were shopped but ultimately rejected in favor of the selling brand and dealership (satisfaction among rejecters), and was fielded between July and September 2014.

Media Relations Contacts

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

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

About McGraw Hill Financial www.mhfi.com 

 

UnitedHealthcare Ranks Highest in Customer Satisfaction with Dental Plan Providers

2014-11-18

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WESTLAKE VILLAGE, Calif.: 20 November 2014 — UnitedHealthcare ranks highest in customer satisfaction with dental plan providers, performing particularly well in the coverage, cost, communications and customer service factors, according to the JD Power 2014 Dental Plan Satisfaction Report^SM released today.

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

KEY FINDINGS

• Among dental plan members who rate overall satisfaction with their dental provider outstanding (10 on a 10-point scale), 84 percent say they “definitely will” choose their current provider in the future, compared with the report average of 43 percent.
• Among members who rate their overall satisfaction outstanding, the average number of positive recommendations is 4.2, an increase from the report average of 1.7.
• The most common types of dental care services used in the past year include regular check-ups or cleaning (86%); X-rays (58%); fillings (32%); and crowns or bridges (18%).
• Communication is important to satisfaction. Across all dental plan providers, 41 percent of members indicate they have not received any information about their plan from their provider. Overall satisfaction among those members is 673, which is 50 points below the report average and 116 points below that among members who did receive some type of information from their provider.
• Overall satisfaction among dental plan members is 723.

“Dental plan members need to fully understand how their plan works,” said Rick Johnson, director of the healthcare practice at JD Power. “When dental plan providers clearly communicate plan details and benefits to their members, there is a deeper appreciation of the plan value, which fosters an increase in  satisfaction and loyalty metrics.”

Dental Plan Rankings:

UnitedHealthcare (753) ranks highest, followed by Aetna (734).

The 2014 Dental Plan Satisfaction Report is based on responses from 2,640 dental plan members. The study was fielded from October through November 2014.

Media Relations Contacts

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

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

About McGraw Hill Financial www.mhfi.com