Category: United States

Online Insurance Quote Applications Now Initiate A Majority of New Policy Sales

1970-01-01

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WESTLAKE VILLAGE, Calif.: 2 June 2011 — For the first time, a majority of new buyers of auto insurance initiated their policy purchase by applying for a rate quote online, according to the JD Power and Associates 2011 U.S. Insurance Shopping Study^SM released today. The importance of an insurer’s website in generating new business among new buyers has been steadily increasing for the past five years, at the expense of more traditional local agency or call center sales channels.

The study, now in its fifth year, examines consumer shopping and purchasing behaviors and overall satisfaction among buyers who recently purchased from an auto insurance provider across three factors (in order of importance): distribution channel; policy offerings; and price.

Within the distribution channel factor, the website now accounts for more than one-fourth of the importance weight, second to the local agent. In addition, more than one-half (54%) of insurance shoppers report getting their quote online.

“This transition to websites as the dominant lead-generation channel is an important shift for insurers to recognize and address in their marketing and sales strategies,” said Jeremy Bowler, senior director of the global insurance practice at JD Power and Associates. “While nearly one-half of all accepted Web quotes are closed by either an agent or call center representative, customers are clearly more often looking to insurers’ sites or third-party sites in the early stages of the shopping process, and this behavior is blurring the lines of how we traditionally think about the discrete sales channels.”

The study also finds that the rate of policy churn in the U.S. market has increased during the past two years, returning to levels not experienced since 2008. This is driven both by an increase in the rate of shopping among insurance customers, which averages 33 percent in 2011 (compared with 27% in 2009 and 30% in 2010), as well as a significant increase in the rate of switching companies among shoppers. Among insurance customers who indicate shopping for insurance in 2011, 40 percent switched to a new insurer—up from 33 percent in 2010.

“In 2010, the insurance industry spent $5 billion on marketing and advertising, with the top four companies alone spending more than $2.6 billion,” said Bowler. “As a result, the rate of shopping has increased significantly year over year, as has the policy defection rate. A majority of the customers shopping for a new insurer are doing so either because of a life event that has changed their insurance needs, or because they are looking for a better deal. However, no group is more interested in switching than customers who are displeased with the service provided by their incumbent insurance company.”

With a score of 864 on a 1,000-point scale, American Family Insurance ranks highest among auto insurance companies in satisfying new buyers with the purchase experience. American Family performs particularly well in the policy offerings and distribution channel factors, primarily driven by the performance of their exclusive agents. Rounding out the top three are Auto-Owners Insurance with an overall average satisfaction score of 860, and Erie Insurance with 857.

The study also includes a management discussion that takes a closer look at the recent use of humor by Allstate and its key competitors—State Farm, GEICO and Progressive—to try to differentiate themselves and appeal to younger consumers. While comedic advertising such as Allstate’s “Mayhem” campaign have generated tremendous buzz in the marketplace and have led to higher unaided awareness and consideration rates, quote rates for Allstate have increased by only 2 percentage points.

“Allstate is the only brand among these four that has achieved growth in its quote rate among the two younger age cohorts,” said Bowler. “In contrast, other insurers are quoting an average of 3 percentage points fewer Millenials and Gen X shoppers, compared with one year ago.”

To view the management discussion based on the study findings, titled “When Did Personal Auto Insurance Become A Laughing Matter?”, please click here.

The 2011 U.S. Insurance Shopping Study is based on responses from more than 15,500 shoppers who requested an auto insurance price quote from at least one competitive insurer in the past 12 months and includes more than 75,500 unique insurer evaluations. The study was fielded from March to April 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, 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. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. /corporate

 

Overall Customer Satisfaction with Kitchen Cabinet Brands Improves Considerably from 2010

2011-05-18

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WESTLAKE VILLAGE, Calif.: 18 May 2011 — Overall customer satisfaction with cabinet brands has increased notably from 2010, primarily due to improved satisfaction with cabinet design, performance and value, according to the JD Power and Associates 2011 U.S. Kitchen Cabinet Satisfaction Study^SM released today.

The study measures customer satisfaction with kitchen cabinets by measuring five factors: design features (such as the variety of cabinet colors/finishes and range of sizes and shapes available); operational performance (including smoothness of drawer slides and sturdiness of cabinet joinery); ordering and delivery (including ease of ordering, condition of products at delivery and timeliness); price; and warranty.

Overall satisfaction with kitchen cabinet brands has increased from an average of 742 on a 1,000-point scale in 2010 to 754 in 2011. Satisfaction with the design features, price and operational performance factors have improved in 2011, compared with 2010. Kitchen cabinet customers are particularly satisfied with the ordering and delivery factor in 2011, which is the most influential factor contributing to overall satisfaction.

KraftMaid ranks highest in customer satisfaction among cabinet manufacturers with a score of 771 and performs particularly well in three of the five factors: design features, operational performance and ordering and delivery.  Following KraftMaid in the rankings are Thomasville (767) and Merrillat (765). Thomasville performs particularly well in the warranty factor.

“While the majority of cabinet manufacturers have improved in 2011, KraftMaid’s considerable improvement from 2010 has helped differentiate it from the other high-performing brands in this highly competitive environment,” said Christina Cooley, senior manager of the real estate and construction industries practice at JD Power and Associates.

The study finds that a vast majority of cabinet purchasers–81 percent–personally made the decision of which brand to buy, rather than having an installer, contractor, retailer or architect decide. A sizable proportion of these customers relied on either their past experience with a brand or in-store product displays while shopping for kitchen cabinets. Cabinet purchasers cite price, quality and cabinet styling and feel as the primary reasons for selecting a particular brand.

In 2011, 59 percent of cabinet purchasers say they bought stock-sized units, rather than semi- or fully custom cabinets. In comparison, 46 percent of cabinet purchasers in 2010 said the same. According to Cooley, this shift suggests budgetary constraints are becoming increasingly influential in the cabinet selection process.  The study finds that 45 percent of purchasers are replacing their cabinets as part of a full kitchen remodel and are spending approximately $4,500, on average, for cabinets.

“Since customers are investing significantly in their kitchen remodeling projects and specifically in their cabinets, it is important that they balance price, quality, and design when making their brand selection to ensure that their specific needs are met for the long term,” said Cooley. “Customers should examine several cabinet brands, which may involve shopping at more than one retailer. They should also keep in mind that the service they receive during the ordering and delivery process is key to overall satisfaction, so selecting a cabinet retailer carefully is also important.”

The 2011 U.S. Kitchen Cabinet Satisfaction Study measures customer satisfaction based on responses from more than 1,200 consumers who purchased kitchen cabinets within the previous 12 months.  The study was fielded in March and April 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, 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. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy.  Leading brands include Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates.  The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries.  Sales in 2010 were $6.2 billion.  Additional information is available at http://www.mcgraw-hill.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. /corporate

 

Overall Customer Satisfaction with Interior Paint Improves Notably from 2010

2011-05-12

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WESTLAKE VILLAGE, Calif.: 12 May 2010 — Do-it-yourselfers indicate they are notably more satisfied with interior paint brands in 2011, compared with 2010, according to the JD Power and Associates 2011 U.S. Interior Paint Satisfaction Study^SM released today. 

The study, now in its fifth year, measures customer satisfaction among those who have purchased and applied interior paint during the past year and examines six key factors of the painting experience: application; product offerings; durability; price; design guides, and warranty/guarantee.   

Overall satisfaction with interior paint brands has increased considerably to an average of 770 on a 1,000 point scale in 2011 from 754 in 2010. Satisfaction has increased in five of the six factors included in the study–all except design guides. The most notable improvements have occurred in the warranty, product offerings, application, and durability factors.

Benjamin Moore ranks highest in customer satisfaction with interior paint with a score of 791 and performs particularly well in three of the six factors: application, product offerings and design guides. Following Benjamin Moore in the rankings are Porter (789) and Sherwin-Williams (778).

“The highest-performing brands in the study also benefit from the highest levels of customer loyalty,” said Christina Cooley, senior manager of the real estate and construction industries practice at JD Power and Associates. “Among customers of some of these brands, the proportion who say they definitely will purchase the brand of paint again averages as high as 50 percent, which is considerably greater than the industry average of 36 percent.”

The study finds that a majority of customers–54 percent–rely primarily on their past experience with paint brands when shopping for interior paint. More than one-fourth (26%) say they rely on recommendations from store salespersons, family and friends or a contractor or designer professional. An additional 10 percent of customers consider paint brands primarily based on the in-store product displays.

“It’s particularly important for consumers to do their research prior to purchasing paint at a retailer; with brands constantly introducing new product lines, customers may limit themselves if they don’t consider the new offerings available,” said Cooley. “Do-it-yourselfers are much more likely to be delighted with their painting experience if they first explore the brands available and narrow down their choices to the ones that will best meet the specific needs and specifications of their project.” 

The study also finds that paint customers choose a paint brand primarily based on past experience, quality and color and texture.

“Many manufacturers have mobile apps and websites that can help with product selection, and an increasing number are offering inexpensive paint samples that allow customers to test the paint on the actual surface and in actual lighting conditions,” said Cooley. “Paint shoppers should visit the retailers that carry those specific brands that will best meet their needs.  This may mean visiting a couple of different retailers, since many only carry a limited brand selection. In addition, shoppers will want to purchase from a retailer that provides helpful advice.”

The study findings also include the following key trends:

• A majority of customers in 2011 indicate they applied the paint themselves (82%). However, more customers in 2011 say they hired a painter or handyman to apply the paint for them (16%), compared with 2010 (11%).
• More than one-half of paint customers (53%) say they do not apply primer to their walls prior to applying the first coat of paint. However, the percentage of customers who purchase paint that includes primer has increased from 12 percent in 2010 to 17 percent in 2011.
• Forty-eight percent of customers say they painted a bedroom; 37 percent say they painted a living room and 33 percent painted a bathroom.

The 2011 U.S. Interior Paint Satisfaction Study is based on responses from more than 8,900 customers who purchased and applied interior paint within the previous 12 months. The study was fielded between March and April 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, 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. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy.  Leading brands include Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates.  The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries.  Sales in 2010 were $6.2 billion.  Additional information is available at http://www.mcgraw-hill.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. /corporate

 

Shoppers Indicate Higher Satisfaction with Store Facilities, Merchandise and Pricing at Home Improvement Stores

2011-05-04

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WESTLAKE VILLAGE, Calif.: 4 May 2011 — Home improvement store shoppers are more satisfied with store facilities, merchandise and pricing in 2011, compared with 2010, according to the JD Power and Associates 2011 U.S. Home Improvement Retailer Satisfaction Study^SM released today.

The study, now in its fifth year, measures customer satisfaction with home improvement retail stores, based on performance in five factors (listed in order of importance): staff and service (including availability, courtesy, knowledge); store facility (including ease of finding merchandise and cleanliness); merchandise (including availability and product information); price; and sales and promotions.

For a fifth consecutive year, Ace Hardware ranks highest in satisfying home improvement retail store customers.  Ace Hardware achieves a score of 786 on a 1,000-point scale and performs particularly well in the two most influential factors: staff and service and store facility. Lowe’s improves from fourth rank position in 2010 to rank second in 2011 with a score of 771, and performs particularly well in the merchandise factor. Menards retains its third rank position from 2010 with a score of 765 and performs particularly well in the sales/promotions and price factors.

Not only has satisfaction with store facilities improved, compared with 2010, but also home improvement store customers indicate that they are more satisfied with store facilities than any other aspect of the retail experience.

“Shoppers, whether novices to home improvement or those who are more experienced, need not be intimidated by the store,” said Christina Cooley, senior manager of the real estate and construction industries practice at JD Power and Associates. “Retailers have invested in improving their layouts and signage to help guide customers to the products that they are looking for.”

Within the store facility factor, ease of finding desired merchandise is of primary importance to shoppers at home improvement stores.

“When customers aren’t able to find the merchandise on their own, it’s critical that they receive assistance quickly–ideally within two minutes,” said Cooley. “The highest-performing retailers are typically able to meet this threshold. In contrast, the average customer-reported wait time for assistance is four minutes.  Customers should not hesitate to ask for assistance, as the study indicates that they can depend on retailers to help them when asked and that assistance comes relatively quickly.”

On average, customers shop at their primary home improvement retailer two to three times per month. Although most customers indicate they visit home improvement stores on weekends, there has been an increase in the percentage of shoppers who make weekday visits. In 2011, 41 percent of customers say they shop during the week, compared with 34 percent in 2010. According to Cooley, the increased incidence of weekday shopping means that retailers need to make sure they adjust their staffing levels accordingly during the week.

There has also been an increase in 2011 in the percentage of shoppers who say they used a self-checkout kiosk (53% in 2011 compared with 42% in 2010).  

“While self-checkout is meant to be more convenient for the customer, it is not uncommon that the customer still will require some intervention from store staff, so this is another area in which retailers need to ensure proper staffing,” said Cooley.  “To ensure a quick checkout, customers should limit using self-checkout to visits in which they are purchasing relatively few items and the bar codes are clearly identifiable on all products.”

The study also finds the following key trends:

• The average customer in 2011 has spent $1,650 at home improvement retailers within the past 12 months.


• In 2011, customers spent a greater percentage of their overall annual expenditure at their primary home improvement store (72%) than in 2010 (68%).

The 2011 U.S. Home Improvement Retailer Satisfaction Study is based on responses from more than 6,900 consumers who purchased a home improvement product or service within the previous 12 months from a store that sells home improvement products. Consumers were asked to evaluate their primary home improvement retailer. The study was fielded in March and April 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, 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. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy.  Leading brands include Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates.  The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries.  Sales in 2010 were $6.2 billion.  Additional information is available at http://www.mcgraw-hill.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. /corporate

 

Perceived Advantages in Customer Care and Sales Force Drive High Satisfaction Levels Among Mobile Broadband Small/Medium Size Business Customers

1970-01-01

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WESTLAKE VILLAGE, Calif.: 28 April 2011 — Small/medium business segment customers with mobile broadband connections are more satisfied with their wireless service overall than are customers without broadband connections, according to the JD Power and Associates 2011 U.S. Business Wireless Satisfaction Study^SM released today.

Now in its seventh year, the study measures the overall satisfaction of home-based business customers (companies with between one and five employees, and based in a residence) and small/medium segment business customers (companies with between two and 499 employees) with their wireless voice and data services across six key factors. In order of importance, they are: performance and reliability (28%); sales representatives/account executives (21%); cost of service (18%); billing (13%); offerings and promotions (12%); and customer service (7%).

The study finds that small/medium segment business customers with access to high-speed mobile broadband connections are more satisfied with their wireless service, on average, compared with those who do not have broadband connections. Satisfaction among small/medium segment mobile broadband customers averages 682 on a 1,000-point scale, compared with 643 among non-broadband users. The difference is primarily driven by satisfaction with customer service, sales representatives/account executives, and offerings and promotions—suggesting that wireless providers excel at offering incentives and are providing a variety of wireless plans to meet the business needs of their customers. In contrast, the home-based business customer segment also shows differences, but not to the degree of customers in the small/medium business customer segment.

“Clearly, there is a service advantage to offering mobile broadband capabilities to business customers, especially considering their need to be productive while traveling,” said Kirk Parsons, senior director of wireless services at JD Power and Associates. “Being able to meet or exceed service expectations among these customers—knowing that they pay a premium price to access data at higher speeds—is critical, and having customer touch points such as care and sales representatives that cater specifically to these needs is key. This scenario is even more critical for larger businesses that have hundreds of field or sales representatives that depend on quick and dependable mobile connections to conduct day-to-day activities.”

Another factor that influences satisfaction performance is having a single point of contact for sales and service issues. Small/medium segment business customers are more likely to have a dedicated sales representative to deal with sales and customer service issues, which tends to lead to higher levels of overall customer satisfaction. On average, 51 percent of the small/medium segment customers have a dedicated single point of contact, compared with only 19 percent of home-based businesses.

In both the home-based and small/medium business segments, Verizon Wireless ranks highest in customer satisfaction, and performs particularly well in four of six factors: performance/reliability; sales reps/account executives; billing; and offerings/promotions. T-Mobile follows Verizon Wireless closely in the home-based business segment, performing well in cost of service and customer service. In the small/medium business segment, Sprint follows Verizon Wireless and performs well in the cost of service and customer service.

“The fact that Verizon Wireless ranks highest in both business segments indicates the provider’s dedication to providing not only superior overall sales service, but also high-quality network performance and reliability,” said Parsons. “Network-related issues, such as call quality and network reliability, are critical elements that greatly impact daily decision-making processes for businesses, and Verizon Wireless has done well to effectively meet the needs of their customers.”

The study also finds the following key business wireless usage patterns:

 

• The average reported monthly cost among home-based customers is $81 for wireless voice service and $31 for data service. Companies in the small/medium segment report a much higher average monthly bill amount: $536 for voice service and $297 for data service.
• Overall, 51 percent of business decision-makers report that they currently subscribe to mobile broadband service. The incidence is higher among small/medium segment businesses, compared with home-based businesses (62% vs. 46%, respectively).
• Slightly more than one-third (38%) of business wireless customers say they contacted a customer service representative with a question or problem within the past six months. Among these customers, 42 percent report contacting their provider due to inquiries regarding product/service plans, while 26 percent say they had issues with phone equipment malfunctions or needed replacements.

The 2011 U.S. Business Wireless Satisfaction Study is based on responses from wireless service decision-makers at more than 3,172 U.S. businesses. The study was fielded between November 2010 and February 2011.

For more information on customer satisfaction with wireless service, wireless retail sales, cell phone handsets, customer care, prepaid wireless service and business wireless service, please visit JDPower.com.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, 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. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. Leading brands include Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates. The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. /corporate

 

Although Ease of Use Is of Primary Importance in Satisfaction with Lawn Mowers, Fewer than One in 10 Owners Factor It into Their Purchase Decision

2011-04-27

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WESTLAKE VILLAGE, Calif.: 27 April 2011 — Although lawn mower ease of use is the most important element contributing to overall satisfaction, more than 90 percent of owners indicate ease of use is not their primary consideration when making their purchase decision, according to the JD Power and Associates 2011 Walk-Behind Lawn Mower Study^SM released today.

The study, now in its fourth year, measures customer satisfaction with walk-behind lawn mowers by examining six key factors (listed in order of importance): ease of use, durability, performance, maintenance, price and warranty. The study is designed to provide information that helps customers with purchase decisions, as well as to assist lawn mower manufacturers in their efforts to improve customer satisfaction and brand loyalty.

The study finds that, in 2011, only 8 percent of walk-behind lawn mower owners say that they based their purchase decision on the mower’s ease of use, which includes how easy the mower is to start; push and propel; how well the mower maneuvers in difficult spaces; ease of bagging cut grass; and ease of adjusting controls. Price, past experience with a brand and brand reputation are cited most frequently as primary purchase considerations.

Honda ranks highest in satisfying customers with walk-behind lawn mowers for a third consecutive year, achieving a score of 796 on a 1,000-point scale. Honda performs particularly well in five of six factors: ease of use, durability, performance, maintenance and warranty. John Deere (772) and Husqvarna (751) follow Honda in the rankings. Husqvarna performs particularly well in the price factor.

“The lawn mower brands that perform highest in overall satisfaction are also those that are rated highest for ease of use,” said Christina Cooley, senior manager of the real estate and construction industries practice at JD Power and Associates. “Lawn mower shoppers basing their decision on past experience are indirectly factoring in ease of use into selecting a brand.  If the mower that the customer is replacing wasn’t easy to use, other manufacturers definitely have the opportunity to attract and capture that customer by touting the features that make their mowers easy to use.”

The study finds that lawn mower owners use their mowers approximately 15 times per year, on average.  Not unexpectedly, the study also finds that customers who are more satisfied with their mower’s ease of use are likely to use the mower on a more frequent basis.

JD Power and Associates offers the following lawn mower shopping and ownership tips to consumers:

• When selecting a lawn mower brand, consider the size of the yard and what you intend to do with the cut grass.  A mower that might be easy to use with a small yard may not meet the needs of an owner with a large yard.  Also, shoppers should be aware of the features of the lawn mower models they are considering and make sure the mower they select enables them to dispose of the cut grass in the easiest and preferred way, whether it be discharging, mulching or bagging.
• Proper maintenance is key to attaining long-term satisfaction with a lawn mower and ensuring continued ease of use.  Mowers should be serviced at least once a year, including performing an oil change, changing filters and spark plugs and sharpening the blade.

The 2011 Walk-Behind Lawn Mower Study is based on responses from more than 2,030 owners who purchased a new lawn mower within the past 24 months and who have used their lawn mower a minimum of four times. The study was fielded between March and April 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, 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. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy.  Leading brands include Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates.  The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries.  Sales in 2010 were $6.2 billion.  Additional information is available at http://www.mcgraw-hill.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. /corporate

 

Overall Satisfaction with Rental Cars Increases for a Second Year, Nearing 2006 Levels

2011-11-09

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WESTLAKE VILLAGE, Calif.: 15 November 2011 — Customer satisfaction with rental cars has increased for a second consecutive year, returning to nearly 2006 levels, according to the JD Power and Associates 2011 North America Rental Car Satisfaction Study^SM released today.

Now in its 16th year, the study measures overall customer satisfaction with renting cars at airports by examining six factors (listed in order of importance): costs and fees; pick-up process; return process; rental car; shuttle bus/van; and reservation process.

Overall satisfaction in 2011 averages 758 on a 1,000-point scale, up from 750 in 2010, driven by increases in satisfaction across all six factors compared to 2010.

“Rental car companies continue to build upon the improvements made in 2010 and are bouncing back from the lower satisfaction levels reported in 2008 and 2009,” said Stuart Greif, vice president of the travel practice at JD Power and Associates. “As positive as this increase in satisfaction is, there remains ample opportunity for rental car companies to further delight their customers in the future, particularly in leveraging technology.”

According to Greif, there are opportunities for rental car companies to enhance the rental car experience, save customers time, better inform and set customer expectations and create efficiencies for rental car company operations.  These include integrating customers’ mobile devices within rental cars for hands free communication, music or navigation; digitally measuring gas tank levels for more accurate charges; communicating mileage and gas information digitally from the vehicle as customers return cars; and providing real-time estimates of shuttle van or bus arrival times to customers.

The study finds that the average wait time to pick up a rental car is 17 minutes, which improves from 20.5 minutes in 2010. However, in one key area, the pick-up process, satisfaction drops considerably among customers who have to wait more than five minutes to receive their vehicle (An overall satisfaction score of 825 among customers who wait one to five minutes vs. 809 among customers who wait six to 10 minutes).

“The culture of immediacy creates expectations around timeliness of service that can be challenging to meet,” said Jessica McGregor, manager of the travel practice at JD Power and Associates. “While the improvement in wait time is certainly positive for the industry, rental car companies must continue to balance the need to serve their customers more quickly with the need to provide improved levels of service by their employees.”

ACE Rent A Car ranks highest in customer satisfaction among rental car companies for the first time with a score of 793, performing particularly well in the shuttle bus/van and costs and fees factors. This is also the first time the Indiana-based independent rental car company appears in the study rankings.

Enterprise follows in the rankings with 787, performing particularly well in the leisure/personal customer segment. National ranks third with 768.

The following tips may be helpful to consumers when renting a car:

• If a kiosk is available, use it instead of waiting in line at the counter. While very few customers currently use kiosks, those who do tend to be more satisfied with the experience overall.
• Understand the different options offered–such as insurance and fuel–before reserving or picking up a vehicle.
• Reserve a navigation system in advance if necessary and leverage smartphones if you are traveling with someone who can help you navigate.
• Bring a Bluetooth or other wireless hands-free device so you can use your phone safely while driving.
• If a problem with the rental car experience occurs, be sure to report it to the company. Many customers never report their problems, so the company doesn’t have the opportunity to resolve them.

The 2011 North America Rental Car Satisfaction Study is based on more than 12,500 evaluations from business and leisure travelers who rented a vehicle at an airport location within the previous 30 days to being surveyed. The study was fielded between January 2011 and September 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
McGraw-Hill is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. Leading brands include Standard & Poor’s, S&P Capital IQ, S&P Indices, Platts energy information services and McGraw-Hill Education. With sales of $6.2 billion in 2010, the Corporation has approximately 21,000 employees across more than 280 offices in 40 countries. On September 12, 2011, the Corporation announced its intention to separate into two public companies – McGraw-Hill Markets (working name), primarily focused on global capital and commodities markets and McGraw-Hill Education focused on digital learning and education services worldwide. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:
John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]

Follow us on Twitter: @JDPower

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

 

Satisfaction with Auto Claims is Considerably Lower among Total Loss Claimants

2011-10-27

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WESTLAKE VILLAGE, Calif.: 27 October 2011 — Auto insurance claimants who incur a total vehicle loss are notably less satisfied with the claims experience than are claimants who incur a repairable vehicle claim, according to the JD Power and Associates 2011 U.S. Auto Claims Satisfaction Study^SM released today.

Satisfaction averages 811 on a 1,000-point scale among claimants with a total loss–42 points lower than among those whose vehicle is repaired. This gap is largely due to a lack of satisfaction with the settlement among total loss claimants, with approximately one-half of these claimants citing the settlement they received wasn’t enough to replace their totaled vehicle with a similar make/model vehicle.

“Auto claims resulting in a total loss tend to be more complex, compared with vehicle repair claims, because in addition to filing a claim, claimants also have to purchase a replacement vehicle,” said Jeremy Bowler, senior director of the insurance practice at JD Power and Associates. “Ongoing communication and managing expectations are key throughout the entire claims process, as total loss claims take 18.2 days, on average, for claimants to receive payment, compared with just 12.5 days for the return of a repaired vehicle. Making the claimant aware of how quickly they’ll receive the settlement and providing a thorough explanation of how the settlement amount was calculated are crucial to improving the overall experience in those instances of total loss.”

Insurers can deliver a satisfying experience by addressing three primary needs throughout the claims process:

• Communication–Insurers must not only be available when claimants have questions, but must also make the effort to clearly explain the claims process, follow up in a timely manner and keep claimants informed throughout the claims process.


• Speed–Insurers must quickly move the claim along from first notice of loss, to the appraisal, to communicating settlement amounts and ultimately paying claimants. Currently, total loss claimants report having to wait an average of four days to receive a settlement offer following damage appraisal.


• Fairness–Claimants want to be treated fairly regarding the settlement and avoid surprises during the process, whether caused by unexpected out-of-pocket expenses or not fully understanding what their policy covers in a claims situation.

The study measures claimant satisfaction with the claims experience for auto physical damage loss. Depending on the complexity of a claim, the claimant may experience some or all of the following factors measured in the study: first notice of loss; service interaction; appraisal; repair process; rental experience; and settlement. Settlement is the most important factor in overall satisfaction among both total loss and repair claimants.

Auto-Owners Insurance ranks highest in overall satisfaction with the claims experience for a fourth consecutive year, achieving a score of 890. Auto-Owners Insurance performs particularly well in all six factors. State Farm follows in the rankings with a score of 878, improving considerably from 2010. Amica Mutual ranks third with 865. New Jersey Manufacturers Insurance Company and USAA also achieve high levels of customer satisfaction, although they are not included in the rankings due to the closed nature of their respective memberships.¹

Bowler offers the following tips for auto insurance customers during the claims process:

• Request a printed report detailing your settlement. Ensure the vehicle specifications your insurer uses are correct and factor in any vehicle upgrades, the condition of your vehicle and any after-market accessories.


• Check that the comparable vehicles used to determine the value of your vehicle are indeed similar.


• Ask the adjuster to look at your vehicle in person if you received a desk settlement that you believe isn’t accurate.

“It’s important for customers to examine the settlement offer and, in particular, verify the vehicle content and condition,” said Bowler. “The majority of customers who disputed their vehicle’s valuation most often cited differences concerning comparable vehicles (56%), vehicle condition (53%) and aftermarket accessories (18%).”

The management discussion based on the study, available for download here, provides an in-depth examination of total loss claims and the claims process.

The 2011 U.S. Auto Claims Satisfaction Study is based on more than 11,500 responses from auto insurance customers who filed a claim within the past 12 months. The study excludes claimants whose vehicle only incurred glass/windshield damage or was stolen, or who only filed roadside assistance claims. The study was fielded March through July 2011.

[1] New Jersey Manufacturers Insurance Co. is an insurance provider open only to New Jersey Business & Industry Association members, State of New Jersey employees, NJM’s previously insured drivers, and/or previous/current auto/homeowner policyholders. USAA is an insurance provider open only to U.S. military personnel and their families.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

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No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. www.jdpower.com/corporate

 

Small Business Banking Customer Satisfaction Increases Amid Mainly Negative Discourse Regarding Financial Institutions

2011-10-20

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WESTLAKE VILLAGE, Calif.: 20 October 2011 — Despite the doom and gloom in the banking news media, overall satisfaction among small business banking customers has increased from 2010, returning to 2009 levels, according to the JD Power and Associates 2011 U.S. Small Business Banking Satisfaction Study^SM released today.

Small business banking customer satisfaction in 2011 averages 717 on a 1,000-point scale, up from 711 in 2010. The study, now in its sixth year, measures small business customer satisfaction with the overall banking experience by examining eight factors: product offerings; account manager; facility; account information; problem resolution; credit services; fees; and account activities. Satisfaction in 2011 increases across all factors, except for fees.

“Contrary to popular belief that most customers are unhappy with their bank, small business banking customers are more satisfied than last year across nearly all aspects of the banking experience,” said Michael Beird, director of banking services at JD Power and Associates. “In addition, credit availability has increased, indicating greater stability and a return to some degree of normalcy within the small business banking environment.”

M&I Bank[1] ranks highest in small business customer satisfaction with an overall score of 768 and performs particularly well in account activities. Huntington National Bank follows in the rankings with a score of767, and Branch Banking & Trust (BB&T) and M&T Bank rank third in a tie with 764.

“Although M&I Bank has a higher incidence of maintenance fees than other banks ranked in the study, customers clearly perceive value for their money,” said Beird. “While much of the negative press surrounding banks focuses on fees, it’s more important to focus on what really matters—providing a highly satisfying banking experience and ensuring that customers are seeing the value in any fees they pay.”

Beird offers the following tips for small business customers when selecting a bank:

• Before opening a new account, look for a bank that conducts a needs assessment that explores current and future banking requirements. Make sure the bank explores both business and personal needs, if appropriate.


• Fully understand account fees and credit terms. Discuss any questions, concerns or changes with the assigned account representative. Shop around at other banks to compare terms and fees based on current activities.


• Test the bank’s contact center. See if the automated phone system offers clear and simple options for common account inquiries. Determine if live support is readily available 24/7 or during the times your company may need help.


• Verify that your bank has the online tools your company needs, including clearly presented information that is easily navigated, access to at least one year of account history and online images, and availability of online financial counseling, tips and advice.


• Ensure problems and complaints are handled efficiently and effectively. Identify the point of contact for follow up and/or resolution, and know the chain of command for escalation in the event you’re not satisfied with the answers or resolution you receive.

 

The 2011 U.S. Small Business Banking Satisfaction Study is based on nearly 7,000 responses from financial decision-makers at small businesses with sales volume from $100,000 to $10 million. The study was fielded between August and September 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, 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. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

 

[1] Effective July 2011, BMO Financial Group, the parent company of BMO Financial Corp., acquired Marshall & Ilsley Corporation (M&I). As a result, M&I Marshall Ilsley Bank, M&I Bank N.A. and The Harris Bank N.A. have since merged into Harris N.A.

 

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. /corporate

 

Cable and Satellite Television Growth Fueled by Uptick in Market Penetration of DVRs and Other Services

2011-10-13

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WESTLAKE VILLAGE, Calif.: 13 October 2011 — Growth in residential television service revenues is being fueled by increased penetration of DVR hardware and additional viewing services, according to the JD Power and Associates 2011 U.S. Residential Television Service Satisfaction Study^SM released today.

DVR subscriptions among residential TV customers with cable service have grown to 45 percent in 2011 from 38 percent in 2010. Among households with satellite TV service, 64 percent in 2011 have DVR boxes, compared with 59 percent in 2010. In addition, the proportion of households with more than one DVR box has notably increased. Among households with cable service, 35 percent have multiple DVR boxes in 2011, compared with 28 percent in 2010. Among households with satellite service, this figure has increased to 45 percent in 2011 from 40 percent in 2010.

“As prices continue to fall, penetration of HDTVs in homes has increased by 8 percentage points during the past year,” said Frank Perazzini, director of telecommunications at JD Power and Associates. “Increased integration of HDTVs with multi-room DVR setups has been key to driving additional revenue for service providers. In fact, average monthly billing for triple-play customers, those subscribing to telephone, television and Internet service, climbed to $149.52 in 2011 from $140.90 in 2010.”

The study finds that video-on-demand (VOD) was also a bright spot for service providers in 2011. VOD viewership rose to 39 percent from 35 percent in 2010 among cable subscribers and to 18 percent from 16 percent among satellite subscribers.

“Regular VOD viewing improves loyalty,” said Perazzini. “Thirty-nine percent of viewers who watch 10 or more hours of VOD per month consider themselves loyal to their provider, while the average among non-VOD users is 31 percent.”

The study measures customer satisfaction with cable, satellite and Internet protocol (IPTV) television providers in four regional segments: North Central, East, West and South. In each segment, six factors are measured to determine overall customer satisfaction: programming; performance and reliability; customer service; cost of service; billing; and offerings and promotions.

For a fourth consecutive year, AT&T U-verse ranks highest in the West (with an index score of 686 on a 1,000-point scale) and South (687) regions. For a second consecutive year, AT&T U-verse also ranks highest in the North Central region (699). In the East region, DIRECTV ranks highest with a score of 686.

The study also finds that speculation regarding the impending demise of premium channels such as HBO and Showtime may be premature. While penetration of premium channels in households with satellite service has declined to 29 percent in 2011 from 34 percent in 2010, penetration in households with cable service is up slightly to 30 percent from 29 percent during the same period.

The 2011 U.S. Residential Television Service Satisfaction Study is based on responses from 23,880 customers nationwide that evaluated their cable, satellite or telephone company-based provider. The study was fielded in four waves: November 2010, January 2011, April 2011 and July 2011.

About JD Power and Associates
Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, 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. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power and Associates. /corporate