Category: United States

Bank Customer Switching Rates Rise Again, Fueled by Issues with Fees and Poor Service

1970-01-01

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WESTLAKE VILLAGE, Calif.: 27 February 2012 — Consumer backlash against bank fees, coupled with poor service and unmet customer expectations, has fueled increases in defection rates among customers of large, regional and midsize banks, according to the JD Power and Associates 2012 U.S. Bank Customer Switching and Acquisition Study^SM released today.

On the heels of “Bank Transfer Day” on November 5, 2011, the beneficiaries of the increased exodus from larger banks are primarily smaller banks and credit unions. Acquisition of new customers by smaller banks and credit unions has increased by 2.2 percentage points to an average of 10.3 percent in 2012 from 8.1 percent in 2011. Among big banks, regional banks and midsize banks[1], switching rates average between 10.0 and 11.3 percent, while the defection rate for small banks and credit unions averages 7.4 percent[2],  a significant drop from 8.8 percent in 2011.

The study, which examines the bank shopping and selection process, finds that 9.6 percent of customers in 2012 indicate they switched their primary banking institution during the past year to a new provider. This is up from 8.7 percent in 2011 and 7.7 percent in 2010.

The study finds that, not unexpectedly, fees are the main reason customers shop for a new primary bank. In particular, one-third of customers of big and large regional banks cite fees as the main shopping trigger.

“When banks announce the implementation of new fees, public reaction can be quite volatile and result in customers voting with their feet,” said Michael Beird, director of the banking services practice at JD Power and Associates.

However, according to Beird, customers weigh the price they pay against the value of their experience.

“It is apparent that new or increased fees are the proverbial straws that break the camel’s back,” said Beird. “Service experiences that fall below customer expectations are a powerful influencer that primes customers for switching once a subsequent event gives them a final reason to defect. Regardless of bank size, more than one-half of all customers who said fees were the main reason to shop for another bank also indicated that their prior bank provided poor service.”

In capturing customers who are shopping for a new bank, several of the more successful banks achieve higher acquisition rates through the use of promotions and cash incentives. At one of the highest-performing big banks, 19 percent of customers indicate these promotions were the reason they selected their new bank. However, according to Beird, doing a good job for customers is not just about dollars, but also about loyalty and retention.

“Only 32 percent of customers who selected a new bank because of promotional offerings said they definitely would not switch banks again in the next 12 months,” said Beird. “In comparison, 46 to 51 percent of customers who chose the new bank because of either good service experience or positive recommendations say they definitely will not leave within the next year.”

For customers thinking about switching banks to find one that is better aligned with their expectations and needs, JD Power and Associates offers the following tips:

• Shop around to compare terms and service before deciding on a bank, the same way you might before buying a vehicle. Don’t forget about direct online banks, as their competitive fees and rates may offset any inconvenience due to lack of physical branches.
• Don’t be swayed by promotion gifts/cash alone. It is more important to ensure the bank that you are selecting offers the right products to meet your needs and that the fees associated with the products are in line with what you are willing to pay.
• Read account brochures and disclosures carefully and don’t be afraid to ask questions about the products you are about to open. It is important to fully understand how fees are charged and how fees can be avoided.

The 2012 U.S. Bank Customer Switching and Acquisition Study is based on multiple evaluations from 5,062 customers who shopped for a new banking account or new primary financial institution during the past 12 months. The study was fielded in November and December 2011, and includes Bank of America; Bank of the West; BBVA Compass; BB&T; Capital One; Chase; Citibank; Comerica Bank; Fifth Third Bank; Harris National Bank; HSBC; Huntington National Bank; KeyBank; M&I Bank; M&T Bank; PNC Bank; RBS Citizens; Regions Bank; Sovereign Bank; SunTrust Bank; TD Bank; U.S. Bank; Union Bank; and Wells Fargo.

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 public 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 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]
John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [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

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Sporting Goods Retailer with Highest Overall Satisfaction Has 43 Percent Higher Repurchase Intent Among Its Customers

1970-01-01

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WESTLAKE VILLAGE, Calif.: 3 May 2012 — Customers who are highly satisfied with their sporting goods retail shopping experience are more likely to be loyal to the store brand, which may result in additional visits to the brand, sales and recommendations to others, according to the JD Power and Associates 2012 Sporting Goods Retailer Satisfaction Report^SM released today.

The inaugural report measures the overall sporting goods retailer customer satisfaction experience by examining five key factors: staff, cost, facility, merchandise and sales/promotions.

Among the eight retail brands included in the report, Academy Sports + Outdoors ranks highest with an overall score of 796 (on a 1,000-point scale) and performs particularly well in the cost, merchandise and sales/promotions factors.  Following Academy Sports + Outdoors in the rankings are Hibbett Sports (794) and Play It Again Sports (790), all outperforming the industry average of 780.

“Placing an emphasis on in-store interactions with customers will help create a successful experience and build brand loyalty–as well as helping to create advocates for the brand,” said Sara Wong Hilton, senior director, strategy and product management. “With such a competitive landscape among sporting goods retailers, every interaction counts toward building a strong, loyal customer base.”

According to the report, 51 percent of Academy Sports + Outdoors customers say they “definitely will” repurchase from the brand, which is significantly higher than industry average (42%). In addition, 51 percent of Academy Sports + Outdoors customers say they “definitely will” recommend the brand, which is significantly higher than the industry average and most of the brands included in the report.

Further illustrating the relationship between high customer satisfaction, loyalty and advocacy is the fact that Academy Sports + Outdoors customers make an average of 3.0 recommendations, nearly twice as many as less satisfied customers (1.6).

The report also finds that while cost is important, a helpful and knowledgeable sales staff is the key driver of customer satisfaction with a sporting goods brand. Among the five study factors, staff has the highest importance weight in determining overall satisfaction (30%), followed by cost (23.5%) and facility (18%).

“Interestingly, merchandise and sales/promotions are rated by sporting goods customers as the least important among the five factors, which may suggest that customers see the industry as commoditized,” said Wong Hilton. “What really differentiates one brand from the others is staff.  Customers want to be helped by someone who is knowledgeable about the products and who can assist them in making informed decisions when it comes to selecting sporting goods.”

The 2012 Sporting Goods Retailer Satisfaction Report is based on responses of more than 1,600 customers who purchased any product at a sporting goods retailer store in the previous 30 days.  The report was fielded in December 2011 and January 2012.  Retailers included in this report have at least 100 locations and are located in more than five states.

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 public 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 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:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [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

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Guardian’s Service Call Centers Recognized for Providing An Outstanding Customer Service Experience

2012-05-03

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WESTLAKE VILLAGE, Calif.: 3 May 2012 — The Guardian Insurance & Annuity Company, Inc. (GIAC), a wholly owned subsidiary of The Guardian Life Insurance Company of America (Guardian), has been recognized for call center operation customer satisfaction excellence under the JD Power and Associates Call Center Certification Program^SM. The Call Center Certification Program distinction acknowledges a strong commitment by Guardian’s service call center operations to provide “An Outstanding Customer Service Experience.”

To become certified, the call 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 and Associates conducted a random survey of Guardian Life Insurance Company of America customers who recently contacted its call centers in Washington, Colorado and Indiana.

“In achieving certification, Guardian Retirement Solutions has demonstrated its commitment to deliver outstanding service to customers contacting its call center,” said Mark Miller, senior director at JD Power and Associates. “Customer service representatives perform particularly well in being courteous and knowledgeable, as well as in resolving problems, questions or requests in a timely manner.”

For certification status, a call center must also perform within the top 20 percent of customer service scores, which are based on benchmarks established in JD Power and Associates’ 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.
 
“We are honored to receive the JD Power and Associates Call Center Certification for the second consecutive year which demonstrates Guardian Retirement Solutions’ commitment to consistently provide superior service to all of our customers,” said Michael Cefole, Senior Vice President, Guardian Retirement Solutions.
 
The Call Center Certification Program was launched by JD Power and Associates in 2004 to evaluate overall customer satisfaction with call centers and to help call 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 Call Center Certification Program, 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 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 public 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 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:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Kristin Meza; Guardian Life Insurance Company of America; (212) 919-2158; [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

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A Growing Number of Shoppers Are Switching Auto Insurance Providers

1970-01-01

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WESTLAKE VILLAGE, Calif.: 30 April 2012 — The auto insurance shopping rate has reached the lowest point in the past five years, with only 25 percent of insurance customers indicating they shopped for a new insurer in the past 12 months, down eight percentage points from 2011, according to the JD Power and Associates 2012 U.S. Insurance Shopping Study^SM released today.

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

While only one-fourth of auto insurance customers shopped for a new policy, 43 percent of those shoppers switched providers–the highest rate since the study first began measuring retention in 2008, and an increase of 3 percentage points from 2011. 

“Although fewer consumers are shopping for insurance, more current customers who do are willing to make a switch based on competitive quotes,” said Jeremy Bowler, senior director of the global insurance practice at JD Power and Associates. “The increase in the proportion of shoppers actually switching suggests that fewer price-checkers are gathering quotes they are less likely to act upon, perhaps a direct result of the lower typical savings derived from switching, which has decreased from an average of $412 in 2010 to only $359 in the past 12 months.”

Bowler notes that customer retention rates are increasing at a time when auto insurance companies are spending more money to entice customers to switch insurers. Industry-wide, advertising expenditures increased by 12 percent in 2011, compared with 2010, according to an analysis of statutory filings data for 2011 performed by Dowling and Partners, LLC. 

“The industry spent $5.7 billion on advertising and allowances in 2011, but this increased spend does not appear to have generated a commensurate increase in market churn,” said Bowler.

The study finds that 52 percent of auto insurance shoppers start their shopping process online, and 73 percent visit at least one insurer’s Web site at some point during their shopping experience.  More significantly, 32 percent of customers solely obtain quotes online, and today 34 percent of all recent shoppers state they would most prefer to purchase their new policy online.

“Shoppers now expect to be able to visit an insurer’s Web site and complete their purchase in the same visit,” said Bowler. “In most cases, shoppers can compare many policies online and narrow down their search field entirely via this self-service paradigm. From that point, they can then decide if they need to speak with an agent or to continue their online purchase process.”

Insurance Shopper Customer Satisfaction Rankings

The Hartford ranks highest among auto insurers in providing a satisfying shopping experience, and receives a score of 857 (on a 1,000-point scale). The Hartford performs particularly well in policy offerings and price. Rounding out the top three highest-ranked insurers are Liberty Mutual (850) and American Family (845).

This year’s report management discussion is available for download, please click here.  The management discussion examines the role of the Web in consumer shopping behavior, and highlights the strategic choices available to insurers as they strive to adapt their traditional sales models to better align with rapidly evolving customer preferences.

The 2012 U.S. Insurance Shopping Study is based on responses from more than 16,100 shoppers who requested an auto insurance price quote from at least one competitive insurer in the past 12 months and includes more than 50,000 unique insurer evaluations. The study was fielded from January to February 2012.

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 public 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 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]

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

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Vehicle Owners Show Willingness to Spend on Automotive Infotainment Features

1970-01-01

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WESTLAKE VILLAGE, Calif.: 26 April 2012 — Vehicle owners have come to expect additional safety features and are now turning their attention more to infotainment technologies in their vehicle, according to the JD Power and Associates 2012 U.S. Automotive Emerging Technologies Study^SM released today.

The study measures vehicle owner interest and purchase intent for emerging automotive technologies, both before and after market price is revealed. The top-five considered technologies–based on vehicle owners who indicate that they “definitely” or “probably” would purchase in their next vehicle–both pre-price and at market price are:

Pre-Price Feature Interest  
Light emitting diode (LED) headlights     70%   
Natural language voice-activation    69%   
Next-generation head-up display    69%   
Wireless connectivity system    68%   
Remote vehicle diagnostics    65%   

At Market Price Feature Interest
HD radio (at $100)    52%
Enhanced collision mitigation system (at $750)    46%
Wireless connectivity system (at $300)    45%
Surround-view rear-vision camera (at $550)    44%
Personal assistance safety services (at $15/month)    41%

Not unexpectedly, purchase interest declines across all features when a price is introduced.

“While vehicle owners remain very interested in technologies that make their vehicle safer, they are turning their attention more and more toward features and technologies that allow them to be productive, connected and entertained while in their vehicles,” said Mike VanNieuwkuyk, executive director of global automotive at JD Power and Associates. “Given the variety of interests from consumers, automakers will be challenged to pursue technologies that fit their consumer’s interests in order to attract them to their products.”

Autonomous Driving–Polarizing Views on Value

One of the newest, and the most expensive, technologies included in this study is autonomous driving mode–a feature that allows the vehicle to take control of acceleration, braking and steering, without any human interaction. While this technology is still being developed and tested, 20 percent of all vehicle owners say they “definitely would” or “probably would” purchase it in their next vehicle after learning the estimated market price of $3,000.  Prior to learning the price, interest for this technology was at 37 percent.

The study finds that vehicle owners are nearly as likely to select fully autonomous driving mode as they are to select semi-autonomous driving technologies such as emergency stop assist ($800), traffic jam assist ($800) or speed limit assist ($800).

“Consumers are still learning about how autonomous driving technology could be used in their vehicles,” said VanNieuwkuyk. “Many owners are skeptical about releasing control of their vehicle and would like to see the technology proved out before they adopt it.”

Vehicle owners with the highest interest in fully autonomous driving at market price are males (25%), those between the ages of 18 and 37 (30%), and those living in urban areas (30%).  The study also finds a high degree of interest (41%) in fully autonomous driving among vehicle owners who expressed interest in the automatic parallel parking feature, further illustrating similar interest in both semi-autonomous and fully autonomous driving modes.

Interest in autonomous driving mode differs among premium and non-premium vehicle owners. After learning the price, interest in the feature is at 18 percent among non-premium vehicle owners and at 31 percent among premium owners.

Research conducted   by JD Power’s Consumer Insight and Strategy Group to track social media activity regarding autonomous driving finds that online sentiment is generally positive. While some vehicle owners perceive the benefit of autonomous driving as taking the control away from careless, distracted drivers, others see it as an opportunity to be free and to enjoy the time while traveling. However, auto enthusiasts see autonomous driving as the loss of status and would not want to give up the pleasure of driving.

Other social media research findings include:

• Many drivers believe that autonomous driving is an emerging trend, but is still far off in daily use primarily due to legal barriers and real-life implementation hurdles.
• Drivers would want the option for autonomy during times of “boring” driving, such as commuting to and from work, highway driving, going to the store or finding a parking space, but want to take control for pleasure driving or manual maneuvering.
• Given consumer expectation that an autonomous vehicle will cost more upfront and also to maintain than a traditional vehicle, some consumers envision the potential for vehicle-sharing programs with neighbors or within families as a means to offset these costs.

The 2012 U.S. Automotive Emerging Technologies Study is based on responses from more than 17,400 vehicle owners. The study was fielded in March 2012. The study includes 23 primary technologies, each with related secondary technologies; analyses on device connectivity, navigation, safety and premium sound systems; a key emerging technologies packaging exercise; an emerging technologies adoption calculator; and expanded psychographic and lifestyle-driven content.

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 public 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 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:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [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

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Valley View Hospital Recognized for Providing Outstanding Inpatient And Emergency Department Experiences

1970-01-01

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WESTLAKE VILLAGE, Calif.: 26 April 2012 — Valley View Hospital has been recognized for service excellence under the JD Power and Associates Distinguished Hospital Program^SM. This distinction acknowledges a strong commitment by the hospital to provide “An Outstanding Inpatient Experience” and “An Outstanding Emergency Department Experience.” This is the second consecutive year the hospital has been recognized for its inpatient services, and the fourth consecutive year it has been recognized for its emergency department services.

“Earning this distinction for the emergency and inpatient services lines, speaks volumes about the commitment Valley View Hospital has made to deliver an outstanding patient experience,” said Scott Hawkins, director of the healthcare practice at JD Power and Associates. “Patients place a high value on the service aspects of their hospital stay, and consistently providing them with a positive experience is crucial.”

The service excellence distinction was determined by surveying recently discharged patients about their perceptions of their hospital visit and comparing the results to the national benchmarks established in the annual JD Power and Associates National Hospital Service Performance Study^SM.

The telephone-based research conducted among Valley View Hospital patients focuses on the five key drivers of patient satisfaction with their overall experience. The drivers, identified in the national study, are speed and efficiency; dignity and respect; comfort; information and communication; and emotional support.

Valley View Hospital exceeds the national benchmark study score for inpatient and emergency patient satisfaction. The hospital performs particularly well when compared with the national study in providing patients with dignity and respect and receives notably high ratings from inpatients for the courtesy of doctors, while emergency services patients indicate they are particularly pleased with the courtesy of radiology staff.

The hospital also performs well in providing patients with emotional support, receiving high ratings from inpatients for their treatment of family and friends. Among emergency patients, the hospital receives high ratings for the cleanliness of the registration and other waiting rooms.

More than three-fourths (79%) of inpatients and 67 percent of emergency service patients say they intend to return to the hospital. Of the patients who received both inpatient and emergency services, 35 percent indicate they have “much more” trust and confidence in the facility after their most recent stay.
 
“It is an honor to be recognized by JD Power and Associates for providing an exceptional experience to our patients,” said Gary Brewer, CEO of Valley View Hospital. “We are particularly proud that Valley View Hospital has been recognized four times in a row for Emergency Services.  Additionally, Valley View inpatient services received their third award in six years.  At Valley View, we recognize how important it is to provide our patients with an outstanding hospital experience.  It is this commitment that has allowed us to again be recognized in the JD Power and Associates Distinguished Hospital Program.”
 
Nongovernmental, acute-care hospitals throughout the nation are eligible for the JD Power and Associates Distinguished Hospital recognition for inpatient, maternity, cardiovascular, emergency and outpatient services. Distinction is valid for one year, after which time the hospital may reapply for this recognition.

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 public 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 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:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Alice Sundeen; Valley View Hospital; (970) 384-6654; [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

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Rising Network Quality Issues Prompt a Higher Number of Calls among Wireless Business Customers To Report Problems

1970-01-01

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WESTLAKE VILLAGE, Calif.: 26 April 2012 — Wireless network quality issues are causing more business customers to call their carrier to report problems and ask questions, according to the JD Power and Associates 2012 U.S. Business Wireless Satisfaction Study^SM released today.

Now in its eighth year, the study measures the overall satisfaction of very small segment business customers (companies with between one and 19 employees, with a corporate service plan) and small/medium segment business customers (companies with between 20 and 499 employees) with their wireless voice and data services across six key factors. In order of importance, they are: performance and reliability (29%); sales representatives/account executives (18%); cost of service (18%); offerings and promotions (14%); billing (12%); and customer service (8%).

In the past six-month period, 83 percent of all business wireless customers have contacted their current carrier with a problem or a question, an increase from 76 percent in 2011. The primary cause for the increase in problems or questions is due to a rise in the number of employee complaints regarding network quality issues, particularly connection issues such as dropped/disconnected calls and Internet/email failures.

Among customers contacting their carrier with a problem, 27 percent of small/medium segment business customers have reported problems with dropped/disconnected calls, compared with only 19 percent in 2011–a 30 percent increase, year over year. In addition, 18 percent of small/medium segment business customers have reported issues with Internet/email failure, which is nearly double the rate in 2011 (10%). One of the key differences in the increase in network quality issues is that business customers have higher numbers of employees using data-related services plans, especially high-speed broadband offerings. Overall, the rate of all business segments using data plans has increased to 82 percent in 2012 from 67percent in 2011. In fact, 27 percent of business customers indicate they have subscribed to mobile broadband data plans this year.  
 
“It’s clear that the need for business customers’ employees to stay connected for day-to-day business activities has risen considerably over the years,” said Kirk Parsons, senior director of wireless services at JD Power and Associates. “The ability for those employees to stay connected and productive while traveling, commuting or otherwise out of the office provides a competitive advantage over those businesses whose employees are not able to stay connected or otherwise be as productive.”

Meeting or exceeding the service expectations of business customers is critical. Among business customers who experience network connection issues, the percentage of those who will most likely switch providers in the next 12 months is nearly three times higher than the study average (34% vs. 12%, respectively).

“Due to varying degrees of consistency in overall network performance, it’s critical that wireless carriers continue to invest in addressing both the voice quality and data connection-related issues that business customers continue to experience,” said Parsons.

4G Is Making Inroads, but Performance and Reliability Hamper Impact

The 4G technology that allows faster download and upload connectivity speeds is making its way into businesses, with more than one-half (52%) of business customers having at least one device that operates on a 4G network. However, satisfaction with performance and reliability is lower among business customers with 4G connectivity (708 vs. 722 on a 1,000-point scale).

“As more business customers leverage a high-speed 4G network, more are reporting issues with its performance. These reported performance issues highlight that 4G networks are still new and being introduced in markets throughout the country. In some cases, the network is not even available in the business’ area,” said Parsons. “Carriers have a challenge in stabilizing and expanding the network to help improve the overall experience for their growing 4G customer base.”

Business Wireless Customer Satisfaction Results

In both the very small and small/medium business segments, Verizon Wireless ranks highest in customer satisfaction and performs particularly well in performance/reliability and offerings/promotions. Sprint and T-Mobile closely follow Verizon Wireless in both the very small business and small/medium business segments.

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

• In 2012, 33 percent of business customers have purchased handsets for their employees, but allow them to choose from a selected group of models, compared with 19 percent in 2010.
• Just 8 percent of business customers have experienced mobile security issues within the past six months. The study finds little additional negative impact on mobile security when businesses policies allow employees to use their personal device.

The 2012 U.S. Business Wireless Satisfaction Study is based on responses from wireless service decision-makers at more than 2,758 U.S. businesses. The study was fielded between October 2011 and February 2012.

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 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 public 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 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:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [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

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Home Improvement Retailers Continue to Differentiate Themselves Through Their Staff and Service

1970-01-01

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WESTLAKE VILLAGE, Calif.: 25 April 2012 — Having a helpful and knowledgeable sales staff and making the shopping process easy are key drivers of customer satisfaction, according to the JD Power and Associates 2012 U.S. Home Improvement Retailer Satisfaction Study^SM released today.

The study, now in its sixth year, measures customer satisfaction with home improvement retail stores based on performance in five factors: 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 sixth consecutive year, Ace Hardware ranks highest in satisfying home improvement retail store customers.  Ace Hardware achieves a score of 781 on a 1,000-point scale and performs particularly well in the two most influential factors: staff and service and store facility. Lowe’s ranks second in the study for the second consecutive year with a score of 769, and performs particularly well in the merchandise factor.

Overall customer satisfaction has declined slightly among all but one of the retailers included in the study.  However, high-ranking retailers continue to differentiate themselves through their knowledgeable and courteous staff and shopper-friendly processes (e.g., checkout and returns).

“While many retailers have struggled to right-size their staff with the down economy, Ace Hardware and Lowe’s clearly have kept the focus on their customers,” said Christina Cooley, senior manager of the home improvement industries practice at JD Power and Associates.  “To create delighted customers, home improvement retailers must assist customers quickly, help them find the items that they need, and do this with a customer-friendly attitude.”

The study finds that high customer satisfaction leads to store loyalty.  Approximately two-thirds (64%) of customers rating their retailer “outstanding” are likely to return to the store or the same chain of hardware stores the next time they shop for home improvement products, compared with just one-fifth of customers not rating their retailer “outstanding” who are likely to do the same.  

According to Cooley, the study also finds that high-ranking retailers not only have a lower merchandise return rate, but also receive higher satisfaction ratings for their return process.  Approximately one-half (45%) of customers indicate that they returned merchandise in the past 12 months.  

“If retailers’ staff are providing the helpful, informative assistance that customers require, there’s a less likely chance the customer will have to return the merchandise, which not only keeps the customer satisfied, but also helps to mitigate the inconvenience,” said Cooley.

JD Power and Associates’ social media research also reinforces the study findings, as the main conversations taking place online about home improvement retailers relate to:

• Consumer preference for knowledgeable and professional customer service
• Seeking interaction with sales staff who have professional or real-life experience (rather than seasonal employees)
• Retailer loyalty and willingness to travel farther for the right advice/service, materials and price

Not unexpectedly, online conversations peak during the summer and at the beginning of the year.

For consumers, JD Power and Associates offers the following shopping tips:  

• Convenience shouldn’t been judged only in the context of location.  You may find that it is actually more convenient to drive a few more miles to have helpful and knowledgeable staff ready to assist you, which, ultimately, will help limit your trips to the retailer, thus saving you time and money.
• Discuss your project and what you need with the staff and ask for advice and recommendations.  If the staff isn’t willing to take the time or doesn’t seem engaged, go to another retailer where the staff is eager to help you.

The 2012 U.S. Home Improvement Retailer Satisfaction Study is based on responses from more than 6,100 customers who purchased a home improvement product or service within the previous 12 months from a retail store that sells home improvement products. Customers were asked to evaluate their primary home improvement retailer. The study was fielded in January and February 2012.

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 public 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 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:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [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

# # #

TriWest Healthcare Alliance Recognized for Providing an Outstanding Customer Service Experience For a Fifth Consecutive Year

2012-04-23

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WESTLAKE VILLAGE, Calif.: 18 April 2012 — TriWest Healthcare Alliance has been recognized for call center operation customer satisfaction excellence for a fifth consecutive year under the JD Power and Associates Call Center Certification Program^SM. The Call Center Certification Program distinction acknowledges a strong commitment by TriWest call center operations to provide “An Outstanding Customer Service Experience.”

To become certified, the call center operations successfully passed a detailed audit of more than 100 practices that encompass the call center’s customer satisfaction measurement and analysis strategies, recruiting, training, employee incentives, quality assurance capabilities, and management roles and responsibilities. As part of its evaluation, JD Power and Associates also conducted a random survey of customers who recently contacted its call centers, located in Anchorage, Alaska; Colorado Springs, Colo.; Honolulu, Hawaii; Phoenix, Ariz.; San Diego, Calif.; Tacoma, Wash.; and Wausau, Wisc.

“TriWest has now earned our certification for five consecutive years and is to be congratulated on this significant achievement,” said Mark Miller, senior director at JD Power and Associates.  “Their long-standing certification reflects that TriWest has made the necessary cultural, strategic and operational commitments required to continually provide an outstanding customer experience.”
 
For certification status, a call center must also perform within the top 20 percent of customer service scores, which are based on benchmarks established in JD Power and Associates’ 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.
 
“Taking care of military families has been our sole mission for 16 years,” said TriWest President and CEO David J. McIntyre, Jr. “We work tirelessly and with the highest levels of respect to meet the health care needs of West Region military families, who have very much become our family.”

The Call Center Certification Program was launched by JD Power and Associates in 2004 to evaluate overall customer satisfaction with call centers and to help call 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 Call Center Certification Program, 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 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 public 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 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:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [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

# # #

New-Vehicle Retail Selling Rate Pulls Back in April, but Recovery Remains Ahead of Expected Pace

1970-01-01

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WESTLAKE VILLAGE, Calif.: 19 April 2012 — New-vehicle retail sales in April are expected to continue the year-over-year growth trend from the first quarter, as the market heads into the Spring selling season, according to a monthly sales forecast developed by JD Power and Associates’ Power Information Network(R) (PIN) and LMC Automotive.

Retail Light-Vehicle Sales

April new-vehicle retail sales are projected to come in at 894,100 units, which represents a seasonally adjusted annualized rate (SAAR) of 10.2 million units. Volume is expected to increase by 8 percent (selling day adjusted), which is consistent with the year-over-year increase of 8 percent in the first quarter. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

“The daily selling rate in April is projected at 37,000 units, which is higher than the 34,000-unit average in the first quarter,” said John Humphrey, senior vice president of global automotive operations at JD Power and Associates. “While April is typically a challenging month to draw comparisons with because the Easter holiday some years falls in April and other years in March, the signs of sustained growth are evident.”

Industry sales growth has been concentrated in non-luxury vehicle segments.  Luxury segments share of industry retail sales in April to date is 10.8 percent, down from 12.1 percent in April 2011.

“Despite the slip in market share for the luxury market, growth in overall sales is offsetting the risk to sales volumes,” said Humphrey. “That’s not to say there aren’t risks.  Improved content and features in non-luxury vehicles offer good value proposition for consumers returning to the marketplace.  In addition, there are a number of new and refreshed non-luxury models, and programs such as free maintenance provide consumers with a lower total cost of ownership.”

The decline in luxury share of retail sales is one of the reasons why lease penetration is down in April, as the luxury market typically has a higher lease penetration than the non-luxury market. Through the first 15 selling days in April, lease penetration overall is 17.7 percent–the lowest level since December 2009 and down from 20.2 percent in April 2011.

Total Light-Vehicle Sales

Total light-vehicle sales in April are expected to come in at 1,134,600 units, which is an 11 percent increase from April 2011. A higher fleet mix continues into April, with fleet volume expected to represent 21 percent of total sales.

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

¹Figures cited for April 2012 are forecasted based on the first 11 selling days of the month.
²The percentage change is adjusted based on the number of selling days in the month (24 days in April 2012 vs. 27 days in 2011).

Sales Outlook

Based on the robust first quarter 2012 selling pace, which was 14.5 million units total and 11.7 million units retail, LMC Automotive is raising the light-vehicle sales forecast for the full year. The current forecast is now at 14.3 million units total light vehicles (up from 14.1 million units) and 11.5 million units retail light vehicles (up from 11.4 million units). An increase in fleet sales to 20 percent of total sales for the year is expected to outpace the increase in retail volume for 2012.

“Despite the lower selling rate in April, which was expected, we have raised our overall outlook for 2012 based on the high first quarter pace, improving economic variables and credit availability, as well as consumers replacing aging vehicles at a higher rate,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “However, automotive sales remain vulnerable, as the market faces yet another potential shock due to a fuel and brake line resin shortage caused by a plant explosion in Germany in March.”

North American Production

North American light-vehicle production through the first quarter of 2012 is up nearly 17 percent, compared with the same quarter in 2011. Almost 570,000 additional vehicles were built this year through March, versus the same period last year, with increased volume in the United States driving the year-to-date growth (up 21 percent from 2011). North American production in the second quarter is expected to increase nearly 20 percent from last year, with more than 3.6 million units expected to be built (the second quarter of 2011 was affected by supply disruptions due to the Japan earthquake in March).

Vehicle inventory declined slightly to a 54-day supply at the beginning of April, compared with a 57-day supply at the beginning of March. Car inventory is at below-normal levels with a 44-day supply in early April, down from 48 days in March, as demand for cars has increased with the rise in fuel prices. Truck inventory levels remain unchanged at a 66-day supply.

With the stronger build to date to feed the higher demand pace, LMC Automotive has increased the outlook for 2012 to 14.3 million units (up from 14.2 million units). However, the level of impact caused by the resin shortage is not yet know, and is restraining any further increase in North American production levels.

“As a result of the resin plant explosion in March, real and substantial risk exists for future production and for automotive manufacturers may begin to slow the pace of build that has been in overdrive in recent months,” said Schuster. “More intensive production management in relation to product mix and inventory is expected to be a means to cope with the looming shortage.”

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 public 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 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/.

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 suppliers, logistics and distribution companies, as well as financial and government institutions around the world. Its global forecasting services encompass automotive sales, production and powertrain expertise, as well as advisory capability. LMC Automotive has offices in the U.S., the UK, Germany, China and Thailand. It is part of the Oxford, UK-based LMC group, the global leader in economic and business consultancy for the agribusiness sector.

Media Relations Contacts

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Jeff Schuster; 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 and Associates or LMC Automotive. www.jdpower.com/corporate  www.lmc-auto.com