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Category: United States

  • 2014 U.S. Automotive Media and Marketing ReportSM —Summer

    New-Vehicle Drivers Not Replacing Traditional Media; Digital Channels Coexist

    2014-07-25

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    WESTLAKE VILLAGE, Calif.: 30 July 2014 — Drivers of new vehicles are not replacing traditional media with the Internet, but they are accessing traditional media content through alternative digital channels, according to the recently released JD Power 2014 U.S. Automotive Media and Marketing ReportSM —Summer.

    The report has been conducted since 1987 and provides a comprehensive strategic perspective on the factors that influence new-vehicle purchases, as well as attitudinal, lifestyle, recreational and media consumption behaviors. This year, the report has been expanded to include digital media consumption habits, including using search engines, social media sites and music/video sites.

    “The Internet is often viewed as an alternative to traditional media, yet the Internet should be viewed as an additional medium on which to consume such traditional media as magazine, newspaper and television content, in addition to other digital content,” said Arianne Walker, senior director, automotive media & marketing at JD Power. “The proliferation of device usage to consume traditional media content means that automakers can take advantage of integrated marketing programs offered by media outlets in order to reach consumers across all modes of content.”

    While the vast majority (93%) of new-vehicle drivers still use a computer for accessing the Internet for personal use, many access the Internet on a smartphone (57%) or a tablet (45%). 

    KEY FINDINGS

    • Digital Consumption of Traditional Media
      • Four in ten (41%) new-vehicle drivers have read magazine content online in the past six months.
      • More than one-half (52%) of new-vehicle drivers have read newspaper content online.
      • One-third (33%) have watched a TV show online.
    • Readership via Mobile Apps
      • Twenty-five percent of new-vehicle drivers have either frequently or occasionally read a magazine through an app in the past six months.
      • Thirty-six percent of new-vehicle drivers have read a newspaper through an app and 29 percent have watched a TV show on an app in the past six months.
    • Social Media Website Visitation
      • New-vehicle drivers can also be reached with marketing messages through non-traditional online content, such as social media.
      • Nearly two-thirds (65%) of new-vehicle drivers visit a social networking media site in a given month.
      • Among the social media sites measured in the study, Facebook is the most popular among the top five social media sites, with 57 percent of new-vehicle drivers logging on to the site in a given month. Facebook is used by new-vehicle drivers of all age groups, with nearly one in five (19%) being 65 years or older.
      • Additionally, Instagram, LinkedIn, Pinterest and Twitter (listed in alphabetical order) are among the top five social media sites most often visited by new-vehicle drivers.
    • Exposure to Digital Place-Based Media
      • Nearly half (47%) of new-vehicle drivers have viewed digital place-based media that show customized programming and advertising outside their home in a given month.
      • The venues where digital place-based media are most often viewed by drivers are restaurants/bars (27%), retail stores (21%) and shopping malls (19%).

    The 2014 U.S. Automotive Media and Marketing Report—Summer is based on a nationwide survey of 31,200 principal drivers of recently purchased or leased new vehicles. The report is based on drivers who acquired their vehicle between November 2012 and October 2013.

    Media Relations Contacts

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

    Syvetril Perryman; Westlake Village, Calif.; 805-418-8103; [email protected]

    About JD Power and Advertising/Promotional Ruleswww.jdpower.com/about/index.htm

    About McGraw Hill Financial www.mhfi.com 

     

     

  • 2014 Canadian Manufacturer Website Evaluation Study

    JD Power Reports: Canadian Auto Shoppers Are Less Satisfied with their Manufacturer Website Experience Than U.S. Shoppers

    2014-05-06

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    WESTLAKE VILLAGE, Calif.: 7 May 2014 — Overall satisfaction with automotive brand websites in Canada averages 777 on a 1,000-point scale, which is significantly lower than U.S. manufacturer websites (814). Canadian manufacturer websites also perform significantly lower than U.S. OEMs across all study measures, according to the JD Power 2014 Canadian Manufacturer Website Evaluation StudySM (CA MWES) released today.

    The study measures the usefulness of automotive websites during the new-vehicle shopping process by examining four key measures (in order of importance): information/content, appearance, navigation and speed. While the content used by both Canadian and U.S. manufacturer websites tends to be similar, the differences in website execution impact appearance satisfaction by a significant 43 points.

    “Compared with U.S. consumers in general, Canadians tend to be more critical and have higher expectations for big-ticket purchases, such as houses and vehicles,” said JD Ney, manager, automotive research and consulting at JD Power. “As consumers’ expectations of OEM websites continue to grow, automakers must keep pace by constantly improving their websites. With the greatest opportunity for improvement occurring in the appearance measure, Canadian OEMs should look to other automotive and non-automotive websites their shoppers are visiting as a baseline for current expectations and trends in the market. What’s more, since all four measures are so strongly correlated, an improvement in appearance can also lead to improvements in a shopper’s impressions of speed, navigation, and information/content.”

    KEY FINDINGS

    • Among automotive shoppers on desktop computers who are “delighted” with their experience on a manufacturer’s website (overall satisfaction scores of 901 and higher), 72 percent are more likely to test drive a vehicle after visiting a manufacturer’s website, compared with only 20 percent of “disappointed” shoppers (scores of 550 and lower).
    • Only 25 percent of Canadian automotive shoppers use videos when evaluating websites; however, vehicle images satisfaction is significantly higher among shoppers who view videos along with other website imagery than among those who do not view videos (822 vs. 768, respectively).
    • While shoppers use videos less often (25%) than other tools, exterior images (89%), interior images (81%) and 360° vehicle viewer (46%), satisfaction with vehicle images is higher when shoppers use videos than when using any of the other imagery tools.
    • While commercials can serve as video content, shoppers who view videos want to see more videos that showcase vehicle features (31%) and videos that demonstrate real-life use (31%).
    • Within the information/content measure, the largest areas for improvement, compared with the U.S. market, are locate inventory (51-point gap) and vehicle images (44-point gap).

    Study Rankings

    Toyota ranks highest in the manufacturer rankings (829), followed by Buick (816) and Volvo (801).

    The JD Power 2014 Canadian Manufacturer Website Evaluation StudySM is based on responses from 3,120 new-vehicle shoppers who indicate they will be in the market for a new vehicle within the next 24 months. The study was fielded through February and March 2014.

    Media Relations Contacts

    Gal Wilder; Cohn & Wolfe; Toronto, Ontario; 416-924-5700; [email protected]

    Beth Daniher; Cohn & Wolfe; Toronto, Ontario 647-259-3290; [email protected]

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

    About McGraw Hill Financial www.mhfi.com

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  • 2014 Consumer Engagement Study

    Multiple Program Offerings, Awareness and High Customer Engagement Drive Utility Satisfaction

    2014-05-21

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    WESTLAKE VILLAGE, Calif.: 22 May 2014 — Satisfaction levels for utilities increase when customers are aware and engaged in multiple program offerings, according to the JD Power 2014 Consumer Engagement StudySM released today.

    The study, now in its second year, measures the level of residential customers’ engagement with their electric utility’s programs, products and services and is based on responses from customers of electric utilities throughout the United States and Canada. The study provides electric utilities with insights regarding customer awareness, familiarity and usage of their utility’s programs, products and services; ease of enrollment and participation in these offerings; and the impact these offerings have on the overall customer experience.

    “Offering a variety of programs is an important driver of customer satisfaction because one size does not fit all,” said Jeff Conklin, senior director of the energy utility practice at JD Power. “Utilities need to understand that while some programs are popular and satisfying in one demographic, various programs are necessary to address the needs across all customer segments.”

    KEY FINDINGS

    • Overall satisfaction climbs as utility program participation increases. Satisfaction among customers who are not aware of any program is 587 (on a 1,000-point scale), compared with 646 among those who are aware of program offerings but do not participate. Satisfaction increases to 655 among customers who participate in one program and increases dramatically, to 834, when customers are engaged in seven or more programs.
    • Engaged customers are oriented toward self-service and do not call their utility often, mitigating contact center call volumes by 21 percent, which helps reduce contact center costs.
    • A majority (60%) of customers review their energy usage on a monthly basis, up from 54 percent in 2013. Only 3 percent of all customers review their usage more frequently than monthly.
    • Among the highest-rated utility program offerings (on a 10-point scale) are social media tools that compare usage and old appliance/refrigerator recycling in a tie (8.1 points each), e-bill (7.9) and remote adjust thermostat (7.9). The least satisfying programs include a tool comparing usage to other households (6.9) and time-of-day electric usage price plan (6.8). 
    • Products and services with the highest participation rates include e-bill (21%), level or equal pay plan (6%) and thermostat control (3%).

    The following utility brands perform particularly well in overall customer engagement through participation in their products or services (in alphabetical order): Arizona Public Service, Baltimore Gas & Electric and Salt River Project. The following brands perform particularly well in overall product or service satisfaction (in alphabetical order): Dominion Virginia Power, FPL and SMUD.

    The 2014 Consumer Engagement Study is based on more than 27,000 responses from residential customers of 143 electric utilities that represent many of the industry’s leading electric utility brands. The study was fielded in January and February 2014.

    Media Relations Contacts

    Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070; [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 

     

     

     

     

     

  • JD Power and Nielsen Collaborate

    JD Power and Nielsen Link JD Power Automotive Purchase Information to Nielsen Consumer Segmentation

    2014-05-30

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    WESTLAKE VILLAGE, Calif.: 2 June 2014 — JD Power and Nielsen announced today a collaboration that will link auto purchase behavior to consumer insights, allowing automakers to study automotive purchasing behavior within Nielsen consumer segments. Nielsen assigns every U.S. household to one of 66 consumer segments based on demographics, lifestyle, media and consumption behavior. The collaboration will allow automakers and their advertisers to better understand their performance within various consumer segments.

    By linking auto purchase behavior from the Power Information Network® (PIN) from JD Power, which collects new- and used-vehicle retail transaction data daily from thousands of automotive franchises, to Nielsen PRIZM consumer segmentation, advertisers can tie together marketing activities across TV, radio, online and mobile channels and measure performance based on market share in near real-time.

    “This is a new way for OEMs and advertisers to better understand who is purchasing their products, learn more about consumers’ lifestyles and preferences, communicate with the right consumers and ultimately achieve better advertising ROI,” said Steve Mehnert, senior client director, Nielsen Automotive.

    Nielsen and JD Power’s collaboration will enable advertisers to promote the right product in the right place with the confidence they will be able to measure the success of their marketing and advertising campaigns within specific consumer groups.

    “Linking brand and model market share to consumer segments will enable marketers to gain deeper insights about their current performance and target their best opportunities for growth in the future,” said Deirdre Borrego, vice president and general manager of the U.S. automotive division at JD Power. “We are enthusiastic to bring together Nielsen’s consumer segmentation with JD Power’s timely market intelligence to provide our clients with a comprehensive view of the automotive consumer.”

    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 JDPower.com. JD Power is a business unit of McGraw Hill Financial.

    About McGraw Hill Financial 

    McGraw Hill Financial 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, JD Power and McGraw Hill Construction. The Company has approximately 17,000 employees in 29 countries. Additional information is available at www.mhfi.com.

    About Nielsen

    Nielsen N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence and mobile measurement. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. For more information, visit www.nielsen.com.

    Media Relations Contacts

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

    Syvetril Perryman; Westlake Village, Calif.; 805-418-8103; [email protected]

    Jennifer Frighetto, 847.605.5686; [email protected]

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

    About McGraw Hill Financial www.mhfi.com 

     

  • 2014 Home Improvement Retailer Satisfaction Study

    Ace Hardware Ranks Highest in Customer Satisfaction among Home Improvement Retailers for an Eighth Consecutive Year

    2014-06-02

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    WESTLAKE VILLAGE, Calif.: 4 June 2014 — While staff and service remains the most influential factor in satisfaction once customers are at a home improvement retail store, price is what drives customers to a retailer in the first place, underscoring the importance of competitive differentiation efforts via better price and value perception, according to the JD Power 2014 Home Improvement Retailer Satisfaction StudySM released today.

    “For local home improvement retailers to remain competitive with big box retailers, they need to differentiate themselves through promotions, sales and overall pricing to help get customers in the door and then reinforce their decision to visit that store by providing an exceptional staff and service experience once they are there,” said Christina Cooley, director of home improvement industries at JD Power. “Conveying price and the value-add story is best accomplished by leveraging communications channels that customers prefer to use. This critical combination of being price competitive and providing superior service may help increase share of wallet and new customer growth.”

    The study, now in its eighth year, measures customer satisfaction with home improvement retail stores based on performance in five factors (in alphabetical order): merchandise (including availability, selection of brands available, usefulness of product information displays, and variety of merchandise offered); price; sales and promotions; staff and service (including availability, courtesy, ease of checkout, ease of returning merchandise, and knowledge); and store facility (including availability of parking, cleanliness of store, convenience of store location, ease of finding merchandise, and store layout and design).

    KEY FINDINGS

    • Price is an important reason (47%) for choosing a primary home improvement retailer, an increase from 38 percent in 2013, while staff and service remains the most influential factor differentiating the customer experience once they are at a home improvement retailer.
    • More than one-half (53%) of customers look at the original price first, then sales and promotions, when considering which home improvement retailer to select as their primary store. Fewer customers indicate having received promotional flyers in 2014, compared with 2013 (43% vs. 56%, respectively), with the average number of flyers decreasing to 12 from 17 year over year.
    • Nearly one-fifth (17%) of customers purchase merchandise online from their primary home improvement retailer.
    • The average amount customers spend per year on home improvement merchandise is $1,780 in 2014, compared with $1,626 in 2013—an increase of $154.
    • Among home improvement retailer customers, 28 percent say they “definitely will” repurchase from their home improvement retailer again, and 33 percent “definitely will” recommend their home improvement retailer.
    • Overall customer satisfaction with home improvement retailers is 768 (on a 1,000-point scale), up   from 758 in 2013.

    Home Improvement Retailer Satisfaction Rankings

    For an eighth consecutive year, Ace Hardware ranks highest in satisfying home improvement retail store customers. Ace Hardware achieves a score of 791 and performs particularly well in the staff and service factor. Menards ranks second with a score of 787 and performs particularly well in the price and sales and promotions factors. 

    The 2014 Home Improvement Retailer Satisfaction Study is based on responses from more than 2,900 customers who purchased a home improvement product or service within the previous 12 months from a retail store that sells home improvement products. Customers evaluated their primary home improvement retailer. The study was fielded from January 2014 through March 2014.

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

    About McGraw Hill Financial www.mhfi.com 

     

     

  • JD Power Certified Contact Center Program:Global Experience Specialists

    Global Experience Specialists Contact Centers Recognized for Providing an Outstanding Live Phone Channel Customer Service Experience for a Sixth Consecutive Year

    2014-06-03

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    WESTLAKE VILLAGE, Calif.: 4 June — Global Experience Specialists (GES) has been recognized for contact center operation customer satisfaction excellence with its live phone channel for a sixth consecutive year under the JD Power Certified Contact Center Program.SM The Certified Contact Center Program distinction acknowledges a strong commitment by GES’ service contact center operations to provide “An Outstanding Customer Service Experience.”  GES achieved certification for the live phone channel, including interactive voice response (IVR) routing and customer service representative (CSR).

    To become certified, the contact centers successfully passed a detailed audit of more than 100 practices that encompass their recruiting; training; employee incentives; management roles and responsibilities; and quality assurance capabilities. As part of its evaluation, JD Power conducted a random survey of GES customers who recently contacted its contact center in Las Vegas, NV.

    “GES is to be congratulated for earning their sixth consecutive live phone channel certification, which demonstrates their dedication to providing an outstanding customer experience,” said Mark Miller, senior director, JD Power. “Our research indicated a very strong IVR routing experience and their customers reported that the agent experience in general was very solid, highlighted by their agents’ knowledge and concern.”

    For certification status, a contact center must also perform within the top 20 percent of customer service scores, which are based on benchmarks established in JD Power’s cross-industry customer satisfaction research. The evaluation criteria include the customer service representative’s courtesy, knowledge and concern for the customer; promptness in speaking to a person; and timely resolution of the problem or request. Additionally, the experience with the automated phone system is evaluated based on the clarity of the information provided, the ease of navigating the phone menu prompts and the ease of understanding the phone menu instructions.

    “GES is honored to achieve JD Power certification for a sixth year in a row,” said GES senior vice president of customer service, Chris Elam. “This achievement is a clear indication that a commitment to superior customer service is deeply ingrained in our culture. As a leader in the exhibition and events industry, GES consistently focuses on the customer experience, through the ease of conducting business with our company. Our employees are the focal point of achieving these milestones and, therefore, I extend my sincere appreciation to the National Servicenter® team on this well-deserved certification.”

    Launched by JD Power in 2004 to evaluate overall customer satisfaction with Live Phone interactions and to help organizations in various industries increase their efficiency and effectiveness by establishing and continually updating leading practices for handling service calls, the Certified Call Center Program is now called the Certified Contact Center Program, which certifies the live phone channel, the IVR self-service channel and the Web self-service channel.

    For more information on the Certified Contact Center Program, please visit JDPower.com.

    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 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, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com 

    Media Relations Contacts

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

    Detra Page; GES; Las Vegas; 702-515-5627; [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. www.jdpower.com

    Follow us on Twitter @jdpower

     

  • JD Certified Contact Center Program: Bank of America Merrill Lynch Corporate and Commercial Banking

    Bank of America Merrill Lynch Corporate and Commercial Banking Contact Centers Recognized for Providing an Outstanding Customer Service Experience for a Fifth Consecutive Year

    2014-06-11

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    WESTLAKE VILLAGE, Calif.: 16 June 2014 — Bank of America Merrill Lynch Corporate and Commercial Banking has been recognized for contact center operation customer satisfaction excellence in the Live Phone channel for a fifth consecutive year under the JD Power Certified Contact Center Program.SM The Certified Contact Center Program distinction acknowledges a strong commitment by the Bank of America Merrill Lynch Corporate and Commercial Banking contact center operations to provide “An Outstanding Customer Service Experience.”

    To become certified, the contact centers successfully passed a detailed audit of more than 100 practices that encompass their recruiting; training; employee incentives; management roles and responsibilities; and quality assurance capabilities. As part of its evaluation, JD Power conducted a random survey of Bank of America Merrill Lynch Corporate and Commercial Banking customers who recently contacted the company’s contact centers in Brea, CA; Jacksonville, FL; Charlotte, NC; and Norfolk, VA.

    “Congratulations to the Bank of America Merrill Lynch Corporate and Commercial Banking contact centers for earning certification for the fifth consecutive year,” said Mark Miller, senior director at JD Power. “Their commitment to delivering an excellent customer experience in the Live Phone channel is evident and indicates that putting their customers first is a priority.”   

    “Delivering outstanding service to our clients is an absolute differentiator. Our strategy revolves around every employee owning the client experience and using every interaction as an opportunity to delight and strengthen relationships,” said Bill Pappas, chief information officer of global wholesale banking technology and operations at Bank of America Merrill Lynch. “We’re excited to be recognized by JD Power for the fifth year in a row. It reinforces our commitment to deliver quality service, and helps us maintain our momentum as we continue to connect with clients in new and better ways.” 

    For certification status, a contact center must also perform within the top 20 percent of customer service scores, which are based on benchmarks established in JD Power’s cross-industry customer satisfaction research. The evaluation criteria include the customer service representative’s courtesy, knowledge and concern for the customer; promptness in speaking to a person; and timely resolution of the problem or request. Additionally, the experience with the automated phone system is evaluated based on the clarity of the information provided, the ease of navigating the phone menu prompts and the ease of understanding the phone menu instructions.

    “Delivering a world-class client experience is the cornerstone of building long-standing client relationships,” said Alastair Borthwick, head of global commercial banking at Bank of America Merrill Lynch. “We appreciate this recognition by JD Power as it speaks to our successful commitment to deliver the quality of service that our clients have come to expect.”

    The Certified Contact Center Program was launched by JD Power in 2004 to evaluate overall customer satisfaction with contact centers and to help contact centers in various industries increase their efficiency and effectiveness by establishing and continually updating leading practices for handling service calls.

    For more information on the Certified Contact Center Program, please visit JDPower.com.

    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 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, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com 

    Media Relations Contacts

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

    Mark Pipitone; Bank of America; Charlotte, N.C.; 980-387-4907; [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. www.jdpower.com

    Follow us on Twitter @jdpower

     

  • 2014 U.S. Auto Insurance Study

    Auto Insurance Satisfaction Reaches All-Time High, Fewer and Smaller Premium Increases Cited

    2014-06-19

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    WESTLAKE VILLAGE, Calif.: 20 June 2014 — Despite steady increases in premium prices during the past five years, auto owners’ satisfaction with auto insurers reaches record-high levels, according to the JD Power 2014 U.S. Auto Insurance StudySM released today. 

    The study measures customer satisfaction across five factors: interaction; price; policy offerings; billing and payment; and claims.

    Overall satisfaction with auto insurance companies increases by a significant 16 points (on a 1,000-point scale) to 810 in 2014, the highest since the study launched in 2000. The satisfaction milestone comes at a time when premiums have been trending up for the past few years. While the percent of customers experiencing an insurer-initiated premium increase is about even to last year, 19 percent vs. 20 percent in 2013, among those who  experienced a rate hike, the average increase is much lower than last year, $86 in 2014, compared with $153 in 2013.

    “A premium increase often triggers shopping behavior, but we’re seeing fewer people shopping,” said Jeremy Bowler, senior director of the insurance practice at JD Power. “This indicates that insurers are more effectively communicating with their customers, making them aware of the premium increases when they occur and why they’re necessary, and demonstrating the value of their coverage.”

    Findings of the JD Power 2014 U.S. Insurance Shopping Study,SM released in April 2014, show that 13 percent of customers who experience an increase in their premiums shop for a new provider.

    The auto insurance customer experience improves significantly across all factors in 2014, with the largest year-over-year increases in price (+20 points) and billing and payment (+19). Interaction, the factor with the largest impact on overall satisfaction, improves by 13 points.

    The increase in price satisfaction is attributed to a rise in the percentage of customers whose premiums have remained the same during the past 12 months, compared with 2013 (55% vs. 52%, respectively), and a slight decline in the proportion of those with insurer-initiated increases.

    In addition to smaller increases this year, insurers have more often notified customers of the rise in premiums through their preferred communication channel (57% in 2014 vs. 53% in 2013).

    KEY FINDINGS

    • Customer loyalty and advocacy are improving. More than half (51%) of customers say they “definitely will” renew their auto insurance policy with their current provider, up from 49 percent in 2013. Additionally, 49 percent of customers say they “definitely will” recommend their insurer to family and friends in 2014, an increase from 48 percent in 2013.
    • When analyzing insurance customers by attitudinal and preference-based segmentation, overall satisfaction is highest among Loyal Advice Seekers (867)—customers who are the least likely to both shop and switch carriers due to a strong relationship with their agent.  Satisfaction is lowest among Unengaged customers (742)—those who have little, if any, relationship with their insurer.
    • Among Technologists—customers who prefer to interact through technology—more than 60 percent have interacted with their insurer in the past 12 months through digital channels, such as their carrier’s website and social media, and 40 percent have communicated exclusively via digital.
    • Most of the improvement this year at the insurer level comes from the smaller insurers in the industry. In aggregate, the 20 largest insurers, based on the amount of written premiums, improve by 10 points in 2014, compared with 2013, while the smallest insurers, those outside of the largest 30, improve by 41 points.

    Regional Overview

    Satisfaction varies regionally from a high of 820 in the Texas and Central regions to a low of 795 in the California and New England regions. Ten of the 11 study regions post significant double-digit increases in insurer performance in 2014, with the largest improvements in the New York (+29 points) and New England (+26) regions.

    California: Wawanesa (852) ranks highest in the California region. Ameriprise ranks second at 824 and Auto Club of Southern California Insurance Group ranks third at 822.

    Central: Auto-Owners Insurance (853) ranks highest in the Central region, followed by Shelter (844) and State Farm (830).

    Florida: The Hartford (827) ranks highest in the Florida region. Auto-Owners Insurance (815) and Progressive (811) follow The Hartford in the rankings.

    Mid-Atlantic:  The Hartford (833) ranks highest in the Mid-Atlantic region. Erie Insurance (830) ranks second, and GEICO and State Farm rank third in a tie (809 each).

    New England: Amica Mutual (868) ranks highest in the New England region. State Farm (833) ranks second and Nationwide (814) third.

    New York: GEICO and State Farm rank highest in the New York region in a tie (822 each). New York Central Mutual (811) ranks third.

    North Central: Auto-Owners Insurance (840) ranks highest in the North Central region. State Farm (829) ranks second and Grange Insurance (826) third.

    Northwest: PEMCO Insurance (854) ranks highest in the Northwest region, followed by The Hartford (834) and State Farm (829).

    Southeast: Tennessee Farm Bureau (844) ranks highest in the Southeast region. North Carolina Farm Bureau (843) ranks second and Auto-Owners Insurance (839) third. 

    Southwest: State Farm (836) ranks highest in the Southwest region. Liberty Mutual and The Hartford rank second in a tie (820 each).

    Texas: Texas Farm Bureau Insurance (852) ranks highest in the Texas region.  Allstate (830) ranks second and State Farm (826) third.

    New Jersey Manufacturers Insurance Company (NJM) and USAA also achieve high levels of customer satisfaction in the study, although they are not included in the rankings due to the closed nature of their respective memberships. 

    The 2014 U.S. Auto Insurance Study is based on responses from 44,661 auto insurance customers. The survey data was collected in March and April 2014.

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

    AboutMcGraw Hill Financial www.mhfi.com











     

  • January 2014 Monthly Automotive Sales Forecast

    January Retail Light-Vehicle Sales Pace — A Favorable Start to 2014

    2014-01-24

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    WESTLAKE VILLAGE, Calif.: 24 January 2014 — Demand for new vehicles remains strong and sales growth continues, according to a monthly sales forecast developed jointly by JD Power and LMC Automotive.

    Retail Light-Vehicle Sales

    New-vehicle retail sales in January are expected to reach 847,400, a 3 percent increase from January 2013.

    The January 2014 seasonally adjusted annualized rate (SAAR) for retail sales is projected to reach 13.1 million, an increase of 400,000 units from December and 300,000 units ahead of the selling rate in January 2013.

    U.S. Retail SAAR–January 2013 to January 2014

    (in millions of units)

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

    Retail transaction prices in January are also on track to exceed $29,500K, up nearly $300 from January 2013, and consumer spending is expected to increase by $1 billion vs. January 2013, which is driven by both higher prices and higher sales volume.

    “We are forecasting January 2014 to have the strongest level of retail sales for a January since 2004, and transaction prices will be the highest on record for the month of January,” said John Humphrey, senior vice president of the global automotive practice at JD Power. “In combination, the strong sales rate and record transaction prices are expected to result in record levels of consumer spending for the sector.” 

    Other noteworthy trends include strong demand for vehicles in the compact CUV segment, which currently accounts for 16.3 percent of industry retail sales, up 3.5 percentage points from last January. 

    “The growth of the CUV segment reflects the confluence of several factors, but most notably the availability of recently redesigned products that offer new technology and improved fuel economy,” said Humphrey.  “However, gains in the compact CUV segment are coming at the expense of the midsize sedan segment, which has lost some momentum as products redesigned several years ago lose ground to newer CUV models.”

    Total Light-Vehicle Sales

    Total light-vehicle sales in January are expected to approach 1.1 million, a 1 percent increase from January 2013, as fleet sales are expected to remain below the level of a year ago and represent less than 20 percent of total light-vehicle sales for the month.

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

    1 Figures cited for January 2014 are forecasted based on the first 15 selling days of the month.

    Sales Outlook

    As projected, 2013 total light-vehicle sales finished at 15.6 million units, and January 2014 is also in line with initial expectations. Therefore, LMC Automotive is holding the forecast for 2014 at a modest increase of 600,000 units from 2013 to 16.2 million units for the total light-vehicle market. Retail light-vehicle sales are expected to reach 13.3 million units in 2014.

    “All systems are a go for a strong and stable U.S. auto market in 2014, with risk of not achieving modest growth diminished,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “We look for economic growth, a robust level of lease maturities, 70 percent more new model launches and an increase in consumers’ willingness to spend to be the major drivers of growth in 2014.”

    North American Production

    Vehicle production in North America ended 2013 at 16.1 million units, an increase of 5 percent from 2012, which represents 750,000 units of additional volume. The month of December kept pace with the annual 5 percent increase, with volume at 1.1 million units, 50,000 units stronger than in December 2012.

    Inventory levels retreated from the highs in the fourth quarter of 2013, with the overall industry beginning 2014 at a 63-day supply, down from the 77-day supply at the start of December. Every manufacturer across the industry experienced a decline in supply levels as we start 2014; however, the Detroit Three are collectively running with a higher supply than the other manufacturers (77 days vs. the industry average of 63 days), which is consistent with a higher truck mix and the ramp-up of several launches.

    “While inventory will need to be closely watched and managed, the concerns over excess inventory were likely overblown and it is not expected to be a problem in 2014,” said Schuster.

    Production in North America is expected to continue to increase in 2014, but with a slowdown in the rate of growth. LMC Automotive is maintaining the current forecast of 16.6 million units for the year, a 4 percent increase from 2013. First-quarter 2014 production is expected to grow to 4.2 million units, the highest level for a first quarter since 2000. 

    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 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, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

    About LMC Automotive

    LMC Automotive, formerly JD Power Automotive Forecasting, 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 offices in the United States, the UK, Germany, China 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

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  • 2014 U.S. Avoider Study

    New-Vehicle Buyers Cite Latest Technology as a Reason for Purchasing Domestic Vehicles More Often than as a Reason for Purchasing Imports

    2014-01-15

    jdp-root

    WESTLAKE VILLAGE, Calif.: 15 January 2014 — New technology offerings in vehicles are important to new-vehicle buyers who purchase domestic models, as 38 percent of those buying domestic vehicles cite the latest technology features as a reason for their purchase, compared with 33 percent of import vehicle buyers, according to the JD Power 2014 U.S. Avoider StudySM released today.

    Additionally, domestic vehicle buyers who previously owned an import model are even more likely to purchase a domestic model due to its new technology and features (40%).

    “Domestic brands in general are carving out a niche for themselves by offering vehicles with the latest technological features, and it appears to be getting the attention of consumers,” said Jon Osborn, research director at JD Power. “It’s important for automakers to understand what motivates new-vehicle buyers to shop and purchase a particular model and focus on promoting those top purchase influencers to differentiate themselves and gain market share.”

    KEY FINDINGS

    • Among both import and domestic new-vehicle buyers, latest technology is among the top 10 purchase reasons indicated at the industry level.
    • For a third consecutive year, gas mileage continues to be the most influential purchase reason at the industry level (15%) and is the second-most-frequently cited reason for rejecting a vehicle, behind price.
    • Exterior styling remains the most influential reason for new-vehicle buyers to avoid shopping other models in the segment in which they purchased (33%).
    • Slightly more than eight in 10 (81%) new-vehicle buyers who use the Internet for automotive shopping cite accessing online ratings and reviews prior to purchasing their vehicle. Fifteen percent of new-vehicle buyers cite online ratings and reviews as a reason they avoided a specific vehicle, up 4 percentage points from 2010.
    • Among new-vehicle buyers who purchased an electric vehicle, more buyers say that they did so due to environmental concerns (32%) than gas mileage (29%).

    The study also finds that the top five most influential purchase reasons among luxury and mass market new-vehicle buyers are:

    Luxury

    1. Performance (power, handling, etc.)
    2. Quality of workmanship (materials, fit and finish)
    3. Exterior styling (design)
    4. Like the image this vehicle portrays
    5. Reliability (freedom from breakdowns)

    
Mass Market

    1. Gas mileage (fuel economy)
    2. Reliability (freedom from breakdowns)
    3. The “Deal” (interest rates/rebates)
    4. Exterior styling (design)Performance (power, handling, etc.)

    The 2014 Avoider Study is based on responses from approximately 29,000 owners who registered a new vehicle in April and May 2013. The study was fielded between July and September 2013. The study, now in its 11th year, examines the reasons consumers purchase, reject and why they do not consider—or avoid—particular models when shopping for a new vehicle.

    Media Relations Contacts

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

    Syvetril Perryman; Westlake Village, Calif.; 805-418-8103; [email protected]

    About JD Power and Advertising/Promotional Rules

    About McGraw Hill Financial

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