Category: United States

As Low-Cost Airlines Continue to Improve Passenger Satisfaction, Traditional Carriers Lose Altitude

1970-01-01

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WESTLAKE VILLAGE, Calif.: 13 June 2012 — Although low-cost carriers continue to lead the way in improving passenger satisfaction, traditional carriers still struggle to meet travelers’ expectations, according to the JD Power and Associates 2012 North America Airline Satisfaction Study^SM released today.

The study finds that after two years of consecutive industry improvements, overall passenger satisfaction has declined slightly to 681 index points on a 1,000-point scale–down from 683 in 2011. Although satisfaction with low-cost carriers improves for a third consecutive year (increasing 3 index points from 2011 to average 754), satisfaction with traditional carriers declines 4 points to 647.

“The airline industry is caught between trying to satisfy customers who demand low prices, high-quality service and comfort, and contending with the economic challenges of profitably operating an airline,” said Stuart Greif, vice president and general manager of the global travel and hospitality practice at JD Power and Associates. “Passengers want it all, but they are not necessarily willing to pay for it all. Carriers often must make decisions for financial reasons that they know will negatively impact passenger satisfaction, and therein lies the conundrum.”

The study measures overall customer satisfaction based on performance in seven factors (in order of importance): cost and fees; in-flight services; boarding/deplaning/baggage; flight crew; aircraft; check-in; and reservation.

The cost and fees factor continues to play a key role. Checked baggage fees are a customer sore point and have a notable impact, with satisfaction averaging 85 points lower among passengers who pay to check bags. For example, two carriers with the highest satisfaction scores in the study–JetBlue Airways and Southwest Airlines–do not charge passengers to check the first bag¹. Additionally, Air Canada, which also does not charge for the first bag,  performs particularly well among the traditional network carriers in the cost and fees factor.  

While the cost and fees factor is important, more than 70 percent of passenger satisfaction is driven by other parts of the overall experience. The study finds that the attributes pertaining to a carrier’s process and people, rather than price, are more highly correlated with passengers’ intentions to fly with an airline again in the future.

“Despite the need for some carriers to charge unpopular fees, they can gain a competitive advantage by focusing their efforts on process efficiency and positive interactions with the staff and crew,” said Jessica McGregor, senior manager of the global travel and hospitality practice at JD Power and Associates. “Carriers that find innovative ways to provide passengers with greater control, save them time, reduce hassles and make the airline experience more enjoyable and comfortable will reap satisfaction benefits.”

For example, a large majority of travelers remark positively on their experience and use of mobile boarding passes.  The North America Airline Satisfaction Study finds that while online check-in rates remain relatively consistent year over year (34% in 2012 compared with 32% in 2011), the use of mobile devices to check in for a flight has more than doubled to 11 percent in 2012 from 5 percent in 2011. Overall satisfaction with the check-in process is highest when passengers check in using a mobile device (845), compared with curbside (840); using a traditional computer/laptop (825); kiosk (793); and main counter (778).

Traditional Network Carrier Rankings

Alaska Airlines ranks highest in the traditional network carrier segment for a fifth consecutive year, performing particularly well in four of the seven factors: boarding/deplaning/baggage; flight crew; check-in; and reservation. Air Canada follows just 1 index point behind Alaska Airlines in the segment, performing particularly well in the cost and fees, in-flight services and aircraft factors. Delta Air Lines, which moved up two rank positions to third, is the only traditional carrier to improve from 2011, by 9 index points.

Low-Cost Carrier Rankings

JetBlue Airways ranks highest among low-cost carriers for a seventh consecutive year, performing particularly well in two factors: in-flight services and aircraft. Southwest Airlines follows closely behind, performing particularly well in four factors: cost and fees; boarding/deplaning/baggage; check-in; and reservation. Despite Southwest performing higher in more factors than JetBlue this year, JetBlue’s strong performance, broadly combined with its large advantage in aircraft and in-flight services over Southwest, has enabled JetBlue to retain its highest ranking.

JD Power and Associates offers the following tips to consumers regarding mobile boarding passes:

• Some airports provide a separate security line for mobile boarding pass travelers, greatly reducing waiting time. However, not all airports are equipped to read them. Check with your carrier to determine rules, restrictions and access prior to foregoing a paper copy.
• If traveling in parties of two or more, test mobile boarding pass download and viewing options before leaving for the airport. If your party includes other travelers, sticking with paper copies may be the best option.

The 2012 North America Airline Satisfaction Study measures passenger satisfaction among both business and leisure passengers of major carriers in North America. The study is based on responses from more than 13,500 passengers who flew on a major North American airline between May 2011 and April 2012. The study was fielded between July 2011 and April 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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Highly Satisfied Customers of Window and Patio Door Brands Tend to Be Less Influenced by Price than Are Customers with Lower Satisfaction

1970-01-01

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WESTLAKE VILLAGE, Calif.: 13 June 2012 — Window and patio door customers of brands with high levels of customer satisfaction most frequently cite professional recommendations, quality and their own past experience with purchasing windows as the key drivers in their purchase decision.  This is a sharp contrast to brands with lower levels of satisfaction that are primarily selected based on price, according to the JD Power and Associates 2012 Windows and Patio Doors Satisfaction Study^SM released today.

Now in its sixth year, the study measures satisfaction among customers who purchased new windows or patio doors based on performance in six factors (listed in order of importance): ordering and delivery; operational performance and durability; price paid for products and services received; appearance and design features; warranty; and repair/replacement.

The study finds that while price is the primary driver of customers’ overall window purchase process (16%), there is relatively less focus on price among customers purchasing from brands with high levels of satisfaction. Highly satisfied customers (satisfaction scores of 795 and above) generally value the brand’s positive reputation or quality and recommendations from their contractors, family, friends and colleagues when shopping for windows.

“We see a strong relationship and influence between the satisfaction of professional trades with window brands and end customers’ ratings,” said Christina Cooley, senior manager of the home improvement practice at JD Power and Associates.  “The recommendations that a contractor, retailer or architect make not only have a strong influence on the purchase decision, but also builds on the brand’s value.”

Simonton ranks highest among customers in satisfaction with windows and patio doors, achieving a score of 831 (on a 1,000-point scale).  Simonton performs particularly well in the five of the six factors and has further differentiated itself in terms of year-over-year performance by expanding its lead in overall satisfaction to 36 points in 2012 from 11 points (818) in 2011.  Following Simonton in the ranking is Pella with a slight year-over-year improvement (795 in 2012 vs. 793 in 2011).

Overall satisfaction with windows and patio doors is 778, a decline of 8 index points from 2011, which is primarily driven by declines in four factors: ordering and delivery; operational performance and durability; price paid for products and services received; and repair/replacement.

The study also finds that the condition of the windows at the time of delivery has the most influence on the overall customer experience.  While 95 percent of customers indicate their windows were delivered exactly as ordered, 7 percent indicate d their windows were damaged upon delivery and an additional 3 percent indicate the windows were damaged during installation.  A large majority (91%) of customers indicate their windows were delivered on the date promised.

“If windows aren’t delivered on time or are damaged in the process, it is not surprising that customers will be less satisfied overall with the brand,” said Cooley.  “Manufacturers need to work closely with customers, either directly or through their distribution channels, to clearly communicate the ordering and delivery process.  Executing the delivery and installation process well and delivering on commitments is essential to achieving and maintaining high levels of customer satisfaction and will more likely result in positive recommendations for the brand.”

JD Power and Associates offers the following facts and tips to consumers shopping for windows and patio doors:

• Purchasing windows is a significant investment, as customers typically spend an average of $4,000 for approximately six to seven windows.  Make sure to get recommendations from a professional (contractor or architect) who is more experienced with different window and patio door brands.
• The study finds customers wait 19 days, on average, to receive their windows.  Make sure you ask your manufacturer or retailer questions to clearly understand the ordering, delivery and installation process.
• Inquire about different window offerings in terms of the benefits that different aspects, such as types of glass, frames, decorative accessories, among others, provide.

The 2012 Windows and Patio Doors Satisfaction Study is based on responses from more than 2,500 customers who purchased new windows or patio doors during the previous 12 months.  Customers may have installed the windows or patio doors themselves or with help from family and friends; hired an independent contractor, handyman or remodeler; used an installation service provided by a home improvement retailer; or used an installation service recommended or provided by the product manufacturer. 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]
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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Natural Gas Retailers in Georgia Achieve Satisfied and Committed Customers Due to Excellent Customer Service Practices

1970-01-01

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WESTLAKE VILLAGE, Calif.: 13 June 2012 — In Georgia, in which the retail natural gas market is deregulated, highly satisfied customers make more recommendations and are more committed to their retailer than do less satisfied customers, according to the JD Power and Associates 2012 Georgia Natural Gas Retailer Residential Customer Satisfaction Study^SM released today.

The study measures customer satisfaction with retail natural gas providers in Georgia by examining four key factors (listed in order of importance): price; billing and payment; communications; and customer service. Beginning in 1998, the natural gas utility market in the Georgia was deregulated and opened to retail competition. According to the Energy Information Administration, approximately 1.4 million Georgia households are served by retail natural gas providers.

“Through customer service excellence, gas retailers in Georgia have been able to differentiate their brands,” said Andrew Heath, senior director of the energy practice at JD Power and Associates. “By providing more accessible and helpful means of answering customer questions and addressing general concerns, some retailers have been able to achieve highly satisfied and committed customers, which contributes to their growth.”

The study finds a strong correlation between highly committed¹ customers and high overall customer satisfaction scores for natural gas retailers, among other measures. For example, 13 percent of natural gas customers in Georgia are highly committed to their provider, compared with 28 percent of low commitment customers. The following are examples of metrics regarding highly committed customers, compared with low committed customers.

• The average satisfaction score of highly committed customers is 892 vs. 568 among low committed customers
• Seven in 10 (70%) highly committed customers say they “definitely will” recommend their retailer to family and friends vs. 2% of low committed customers
• Highly committed customers make an average of 3.3 positive recommendations per year vs. 0.3 for low committed customers
• Slightly more than three-fourths (77%) of highly committed customers say they “definitely will” repurchase their gas service from the same retailer vs. 17% of low committed customers

Customer commitment is primarily driven by the customer experience, and comprises 64 percent of the overall impact on customers’ commitment level to their retailer.

Overall satisfaction among natural gas customers in Georgia averages 690, an increase of 23 points from 2011. All brands ranked in the 2011 study have experienced an increase in satisfaction. Satisfaction is particularly high in the customer service (777) and billing and payment (740) factors, and lowest in communications (626).

The study finds that 57 percent of natural gas customers in Georgia chose their current retailer because of price, followed by 13 percent who selected their retailer based on a recommendation. After selecting a retailer, natural gas customers are likely to stay with that retailer. A majority of customers (85%) have been a customer of their current natural gas retailer for more than one year.

Georgia Natural Gas Retailer Residential Results

Walton EMC ranks highest among natural gas retailers in Georgia, achieving a score of 742 and performing well in all four factors. Following in the rankings are SCANA Energy Regulated Division (703)² and Coweta-Fayette EMC (700).

“Contributing to Walton EMC’s high ranking are the communications best practices they employ,” said Heath. “The customer’s ability to remember a Walton EMC communication has increased significantly to 40 percent–up from 21 percent in 2011. The effort to communicate to their customers bodes well in building brand loyalty and developing commitment to the brand.”

The 2012 Georgia Natural Gas Retailer Residential Customer Satisfaction Study is based on responses from more than 3,550 customers of natural gas retailers in Georgia. The study was fielded quarterly between July 2011 and April 2012.

For more information, view Georgia retail gas provider ratings at 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:

Kelly Nichols; Brandware Public Relations; Atlanta, Ga.; (770)649-0880; [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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Riverbed Technology Recognized for Excellence in Certified Technology Service and Support Program

2012-06-12

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WESTLAKE VILLAGE, Calif.: 12 June 2012 — For the second consecutive year, Riverbed Technology has achieved certification under the JD Power and Associates Certified Technology Service and Support Program^SM. This distinction recognizes Riverbed(R) for delivering “An Outstanding Customer Service Experience” to customers globally.

Jointly developed by JD Power and Associates and the Technology Services Industry Association (TSIA), the program evaluates overall customer satisfaction and helps technology support organizations increase their efficiency and effectiveness in technical service and support. The certification also helps businesses identify those companies that have demonstrated service and support excellence before selecting which technology products to purchase.

“The path to sustainable growth for an organization begins with a satisfied customer base. By passing rigorous program standards that tie structure, process and application, Riverbed clearly demonstrates the ability to deliver the highest level of service and support to its customers for the second year in a row,” said Ritesh Kochhar, senior manager of the Certified Technology Service and Support Program at JD Power and Associates. “Customer interactions with technical service and support can have a deep and lasting impact on overall customer experience with the brand and drive increased loyalty.”

“Riverbed clearly recognizes the importance of offering world-class technical support to their customers,” said Joanne Weigel, senior director of certification programs at TSIA. “Customers can count on Riverbed to have the people, processes and technology in place necessary to provide quality support.”

To achieve certification, an organization must attain customer satisfaction scores among the top 20 percent of companies nationwide offering technology support, based on JD Power and Associates’ extensive technology industry benchmark customer satisfaction research. The organization must also pass a detailed audit of its support policies and procedures. Certification is valid for one year.

JD Power and Associates evaluated Riverbed on its assisted service over the phone, as well as its email-based support, its non-assisted website-based support, as well as depot support. For the certification, JD Power and Associates conducted a survey of Riverbed’s global customer base to establish an overall customer satisfaction index score and conducted onsite audits at Riverbed facilities.

“This recognition reflects our dedication to an exceptional service and support experience,” said Scott Downie, senior vice president of worldwide support at Riverbed. “The entire Riverbed organization is focused on the customer, and we believe this philosophy has been critical to our success in building long lasting client relationships. We continually strive to find innovative methods to provide fast, effective and value-added support that make our customers successful within their own organizations.”
JD Power and Associates and TSIA are currently evaluating technology service and support organizations across the industry to determine if they are eligible for certification.

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 TSIA

The Technology Services Industry Association (TSIA) is the world’s leading organization dedicated to advancing the business of technology services. Technology services organizations large and small look to TSIA for world-class business frameworks, best practices based on real-world results, detailed performance benchmarking, exceptional peer networking opportunities, and high-profile certification and awards programs. TSIA corporate members represent the world’s top technology companies as well as scores of innovative small and midsize businesses in four major markets: enterprise IT & telecom, consumer technology, healthcare & healthcare IT, and industrial equipment & technology. www.tsia.com

Media Relations Contacts:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Suzanne Hite; TSIA, San Diego, Calif.; (410) 774-5322; [email protected]
Kristalle Ware; Riverbed Technology; (650) 346-7810; [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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Vital Images Recognized for Excellence in Certified Technology Service and Support Program

2012-06-07

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WESTLAKE VILLAGE, Calif.: 7 June 2012 — For the third consecutive year, Vital Images, Inc., a Toshiba Medical Systems Group Company, has achieved certification under the JD Power and Associates Certified Technology Service and Support Program^SM. This distinction recognizes Vital Images, Inc. for delivering “An Outstanding Customer Service Experience” to customers globally.

Jointly developed by JD Power and Associates and the Technology Services Industry Association (TSIA), the program evaluates overall customer satisfaction and helps technology support organizations increase their efficiency and effectiveness in technical service and support. The certification also helps businesses identify those companies that have demonstrated service and support excellence before selecting which technology products to purchase.

“Vital Images continues to deliver an outstanding level of service and support to its customers and by passing this rigorous certification program for the third year in a row demonstrates sustained levels of high performance year over year”, said Ritesh Kochhar, senior manager of the Certified Technology Service and Support Program at JD Power and Associates. “The true mark of a world class organization is in its capacity to sustain excellence over time.”

“Vital Images has for the third year in a row shown both customers and the industry that providing high quality service is a crucial component of their business model,” said Joanne Weigel, senior director at TSIA. “Consistently placing the technical support organization in the forefront assures Vital Images customers that they are getting optimal service quality.”

To achieve certification, an organization must attain customer satisfaction scores among the top 20 percent of companies nationwide offering technology support, based on JD Power and Associates’ extensive technology industry benchmark customer satisfaction research. The organization must also pass a detailed audit of its support policies and procedures. Certification is valid for one year.

JD Power and Associates evaluated Vital Images on its assisted service over the phone, as well as its email-based support, its non-assisted website-based support, as well as depot support. For the certification, JD Power and Associates conducted a survey of Vital Image’s global customer base to establish an overall customer satisfaction index score and conducted onsite audits at Riverbed facilities.

“Providing a high standard of support for our customers is a top priority at Vital Images, so achieving this level of recognition directly based on customer input is exciting,” said Jim Litterer, vice president of operations at Vital Images. “This is a direct reflection of how our customers feel we are delivering on that commitment and allows us to continually raise the bar on what customers should expect from their enterprise solutions.”

JD Power and Associates and TSIA are currently evaluating technology service and support organizations across the industry to determine if they are eligible for certification.

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 TSIA

The Technology Services Industry Association (TSIA) is the world’s leading organization dedicated to advancing the business of technology services. Technology services organizations large and small look to TSIA for world-class business frameworks, best practices based on real-world results, detailed performance benchmarking, exceptional peer networking opportunities, and high-profile certification and awards programs. TSIA corporate members represent the world’s top technology companies as well as scores of innovative small and midsize businesses in four major markets: enterprise IT & telecom, consumer technology, healthcare & healthcare IT, and industrial equipment & technology. www.tsia.com

Media Relations Contacts:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Suzanne Hite; TSIA, San Diego, Calif.; (410) 774-5322; [email protected]
Nichole Gerszewski; Vital Images, Inc.; Minnetonka, Minn.; (952) 487-9647; [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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More Than 55 Percent of Auto Insurance Online Shoppers Are Less Likely to Shop an Insurer after a Disappointing Website Experience

1970-01-01

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WESTLAKE VILLAGE, Calif.: 24 May 2012 — As more than one-third (34%)¹ of auto insurance shoppers prefer to buy their policy online, the experience shoppers have on an insurance company’s website impacts their likelihood to shop and recommend the insurer, according to the JD Power and Associates 2012 Insurance Website Evaluation Study^SM released today.

The inaugural study measures online shoppers’ experiences with insurer websites during the auto insurance shopping process. Five factors contribute to shoppers’ overall satisfaction: ease of navigating the website; appearance of the website; clarity of information provided on the website; range of services that can be performed on the website; and speed of the website.

Among shoppers who indicate being delighted (satisfaction scores of 900 and above on a 1,000-point scale) with their website experience, 63 percent are more likely to shop the insurer after visiting their website, compared with 14 percent of shoppers who indicate being disappointed with the website (satisfaction scores of less than 550). Additionally, 50 percent of delighted shoppers say they “definitely will” recommend the insurer to others, while only two percent of disappointed shoppers say the same.

“The 2012 Insurance Shopping Study shows that nearly three-fourths of all shoppers visit at least one insurer’s website, often as the first point of contact with the insurance company,” said Jeremy Bowler, senior director of the insurance practice at JD Power and Associates. “Insurers have a fantastic opportunity to gain shoppers, and their referrals, by providing a website that is easy to use, has a professional and engaging appearance, and is a great resource for the shopping process.”

Make the Quote Process Fast and Simple

The process of requesting a quote is a key aspect of the online shopping experience. While many insurers streamline this process by minimizing the number of questions they ask a prospect and use of pre-filled information, not all insurers excel in providing a positive quote experience.  The study finds that only 72 percent of shoppers who requested a quote online were able to receive one immediately, compared with 18 percent who were required to wait for a follow-up response and an additional 10 percent who were unable to obtain a quote at all. 

“The insurance industry spent more than $5 billion² in 2011 on advertising to attract consumers to shop for insurance,” said Bowler. “For certain carriers, increasing marketing spend becomes increasingly inefficient, as up to 30 percent of the prospects they attract abandon their site with no quote in-hand and 15 percent of online shoppers report leaving an insurer’s website to verify or follow up on a web quote rather than bind online. An insurer that cannot provide a fast, simple quote via their website likely has a dramatically lower chance at winning that business.”
   
Overall satisfaction among shoppers who say their quote experience was faster than expected is 857, which is 245 points higher than among shoppers who say it took longer than expected. Pre-filling vehicle and personal information is important in improving the speed of obtaining a quote. Satisfaction among the 65 percent of shoppers who experienced accurate pre-filled information in their quote application is 790.  However, among the 8 percent of shoppers who say that some of the information provided was incorrect, satisfaction declines significantly to 706 index points.

Availability of Contact Information

Some of the more traditional shoppers use insurers’ websites simply to finalize their consideration set and to find contact information for the company or a local agent. This makes the availability of contact information extremely important in overall satisfaction with the website. Satisfaction among shoppers who indicate that finding contact information was “very easy” is 810, compared with industry average (702).

About the 2012 Insurance Website Evaluation Study

Allstate, Esurance, GEICO and Travelers perform particularly well in shopper satisfaction with their websites. Other insurers profiled in the 2012 Insurance Website Evaluation Study are 21st Century, American Family, Amica Mutual, Farmers, Liberty Mutual, Nationwide, Progressive, State Farm and The Hartford.

This year’s report management discussion is available for download, please click here.

The 2012 Insurance Website Evaluation Study is based on evaluations provided by 1,650 auto insurance shoppers. The study was fielded in March 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; 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

 
[1] Source: JD Power and Associates 2012 Insurance Shopping StudySM
[2] Dowling and Partners, LLC

New-Vehicle Retail Sales Expected to Post Biggest Year-Over-Year Gain since February 2011

1970-01-01

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WESTLAKE VILLAGE, Calif.: 24 May 2012 — The new-vehicle retail sales pace in May remains strong, consistent with the pace set early in 2012, according to a monthly sales forecast developed by JD Power and Associates’ Power Information Network(R) (PIN) and LMC Automotive.

Retail Light-Vehicle Sales

May new-vehicle retail sales are projected to come in at 1,087,000 units, which represents a seasonally adjusted annualized rate (SAAR) of 11.6 million units. Volume is expected to increase 20 percent compared with May 2011, after adjusting for the two additional selling days this month. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

“This is the largest year-over-year gain since February 2011, when sales increased 27 percent, compared with February 2010,” said John Humphrey, senior vice president of global automotive operations at JD Power and Associates. “The fact that we continue to see strong month-over-month results in retail sales points to the underlying strength of the recovery for the industry going forward. In light of the actions that many automakers took to lower their cost base during the recent downturn, this continued increase in volume certainly bodes well for sector profitability in the near term.”

Total Light-Vehicle Sales

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

Sales Outlook

North American Production

About JD Power and Associates

About The McGraw-Hill Companies

About LMC Automotive

Media Relations Contacts

Hosted and Cloud-Based Services Continue to Grow among Business Customers

1970-01-01

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WESTLAKE VILLAGE, Calif.: 17 May 2012 — Among business data customers, 18 percent are leveraging remote offerings, such as hosted and cloud-based services, up from 12 percent in 2011, according to the JD Power and Associates 2012 Business Data Satisfaction Study^SM released today.

Price is a differentiating factor in choosing a data service provider, particularly as more companies utilize cloud-based and hosted data services. Nearly forty percent (38%) of business customers that utilize cloud-based or hosted services cite “lower price” as the main reason for choosing their data service provider. Conversely, only 20 percent of business that do not use cloud-based or hosted services cited price as their main reason for selecting their data provider.

“While traditional data services offer a suite, or package of services, employing cloud-based services like SaaS provides businesses the opportunity to view data as a commoditized service, where the differentiation among providers is primarily based on price, bandwidth and reliability,” said Frank Perazzini, director of telecommunications at JD Power and Associates. “This commoditization does not imply that data service providers can abandon accurate billing and exemplary customer support.  In fact, the contrary is true.  As price and performance across providers converge, the account service and support, in many instances, becomes the differentiator.”

The study also finds that cloud-based services are more popular among larger companies. Twenty percent of large enterprise businesses and 14 percent of small/medium sized businesses use a cloud service, while only 5 percent of very small businesses leverage cloud services.

Cable Providers Surpass Telecommunication Providers in Satisfaction

Across all business segments as a group, cable providers rank higher in overall satisfaction than traditional telecommunications–or telco–providers. Cable providers hold significantly higher satisfaction scores in fairness of contract terms and ease of understanding pricing options.

“For many years, telco providers have ranked higher in customer satisfaction than cable providers, primarily due to performance and reliability,” said Perazzini. “Cable providers now rank higher in performance and reliability, due to their advantage in the area of data transfer speeds.  Additionally, they have closed the gap with their telco counterparts regarding the stability of their data connections.”

The Value of Customer Service and a Single Point of Contact

Business customers frequently cite customer service as a main reason for choosing their provider, as 26 percent of large enterprises and 17 percent of small/medium businesses chose their data provider because of its reputation for providing good customer service. Additionally, the study finds that providing a single point of contact (SPOC) increases customer service satisfaction. Across all segments, overall satisfaction is 68 index points (on a 1,000-point scale) higher among businesses with a SPOC than among those without.

Additionally, the study finds that providing business customers with a SPOC may reduce customer churn and build loyalty. Across all segments, only 16 percent of businesses with a SPOC indicate they are likely to switch providers in the next 12 months, compared with 20 percent of those without a SPOC.

Business Data Satisfaction Rankings

The study measures customer satisfaction with providers of telecommunications data services, such as cable modem, DSL, T1, T3/DS3, Ethernet and frame relay. Providers are ranked in three segments: very small businesses (companies with one to 19 employees); small/medium businesses (companies with 20 to 499 employees); and large enterprises (companies with 500 or more employees).

Six factors are used to measure satisfaction across all three segments: performance and reliability; cost of service; sales representatives and account executives; billing; offerings and promotions; and customer service.

Optimum Business ranks highest in the very small business segment with an index score of 670. Optimum Business performs particularly well in cost of service and offerings and promotions. Cox (659) and Verizon (635) follow in the segment rankings.

Cox ranks highest in the small and medium business segment with a score of 699, and performs particularly well in four of the six factors driving satisfaction: performance and reliability; cost of service; sales representatives and account executives and billing. Optimum Business (679) and Time Warner Cable (TWC) (668) follow in the segment rankings.

In the large enterprise segment, AT&T ranks highest in overall satisfaction with a score of 686, and performs particularly well in four of six factors: performance and reliability; sales representatives and account executives; cost of service; and offerings and promotions.

The 2012 Business Data Satisfaction Study is based on responses from 5,143 business customers of telecommunication data services at very small, small/medium and large enterprise businesses in the United States and includes evaluations of their data service providers. The study was fielded in October 2011 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]
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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Kitchen Cabinet Manufacturers that Highlight Brand Value Through Both Process and Appeal Are Best Positioned to Satisfy Customers

1970-01-01

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WESTLAKE VILLAGE, Calif.: 16 May 2012 — While aesthetics and functionality are important to consumers when choosing new kitchen cabinets, brands that differentiate themselves throughout the shopping and purchase process are best positioned to satisfy customers, according to the JD Power and Associates 2012 U.S. Kitchen Cabinet Satisfaction Study^SM released today.

The study, now in its fifth year, 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); ordering and delivery (including ease of ordering, condition of products at delivery and timeliness of delivery); price; operational performance (including smoothness of drawer slides and sturdiness of cabinet joinery); and warranty.

The study finds that one-third of customers rely mostly on the retailers when shopping for kitchen cabinets, placing heavy emphasis on the in-store product displays, sales staff recommendations, and retailer website.  

“While the majority of customers indicate purchasing their kitchen cabinets through a retailer and not directly from the manufacturer, a key opportunity for manufacturers to differentiate their brand is through their in-store displays,” said Christina Cooley, senior manager of the home improvement practice at JD Power and Associates. “Manufacturers have the opportunity to communicate their brand value to potential customers by showcasing the brand’s function and style offerings.”

For example, some brands have seized the opportunity to position themselves as “green,” according to Cooley.  The study finds that not only do the cabinet brands with the highest overall customer satisfaction have an image for being environmentally responsible and for being certified by a green accreditation program, but their customers are also willing to pay more for environmentally friendly products.  One-fourth (25%) of customers who purchased kitchen cabinets are aware of green accreditation programs for kitchen cabinet manufacturers.

IKEA ranks highest in overall customer satisfaction among cabinet manufacturers for the first time in the study with a score of 776 on a 1,000-point scale.  IKEA performs particularly well in three of the five factors: ordering and delivery, price, and warranty.  Following IKEA in the rankings are American Woodmark (767) and Thomasville (763).

The study also finds that the ordering and delivery factor remains the most influential factor contributing to overall satisfaction among kitchen cabinet customers.  Though 80 percent of customers indicate that the sales person informed them on how to go through the ordering process, customers of the highest-ranked brands more consistently received that information.  On average, it took 18 days for customers to receive all pieces/parts of their entire order.  In addition, 14 percent of customers indicate that their cabinets were damaged upon delivery.

“It is not surprising that brands with customers who indicate having a more difficult ordering process or issues with receiving their cabinets late or damaged end up being more negatively viewed by their customers, even if the manufacturer wasn’t directly involved in those processes,” said Cooley. “For this reason, it’s critical that the manufacturers work closely with their distribution channels to ensure a positive customer experience.”

For consumers who are shopping for kitchen cabinets, JD Power and Associates offers the following tips:

• Make sure the retailer/dealer clearly explains the ordering and delivery process with you so you know exactly what to expect. Don’t be afraid to ask questions to make sure you fully understand the process.
• Shop multiple brands so you’re aware of the various offerings available. During a remodel, consumers tend to spend an average of $4,400 on kitchen cabinets alone, which is a sizeable investment.  More than one-third of customers indicate that they did not consider other brands other than the one they purchased.
• Make sure to think about your practical needs, as well as what style best represents you and how you want your home to appear.  Some of customers’ most-frequently cited desired features include hidden door hinges; microwave shelf; pull-out waste and recycling containers; lazy Susan features; and crown/trim molding.

The 2012 U.S. Kitchen Cabinet Satisfaction Study is based on responses from more than 900 customers who purchased kitchen cabinets within the previous 12 months.  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]
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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July New-Vehicle Retail Sales Continue Strong Year-over-Year Growth

1970-01-01

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WESTLAKE VILLAGE, Calif.: 26 July 2012 — July’s new-vehicle retail sales are expected to post the second strongest year-over-year growth rates during the past 12 months, according to a monthly sales forecast developed by JD Power and Associates’ Power Information Network(R) (PIN) and LMC Automotive.

Retail Light-Vehicle Sales

July new-vehicle retail sales are projected to come in at 969,200 units, which represents a seasonally adjusted annualized rate (SAAR) of 11.5 million units. The selling rate is a decline from June, but is on pace with the expected level for 2012. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

“Retail sales got off to a fast start in July, and while they’ve slowed down a bit as the month has progressed, through the first 16 selling days, they’re still up 15.1 percent, compared to July 2011,” said John Humphrey, senior vice president of global automotive operations at JD Power and Associates.  “The positive growth has continued to build, as July is looking strong across most vehicle segments, as well as for many of the major manufacturers.”

All major segments are expected to show year-over-year sales gains in July, with the exception of the mid CUV segment. The sub-compact conventional, mid conventional and compact conventional segments are projected to show year-over-year increases of 28 percent or more.

PIN data shows that new-vehicle loans of 72 months or greater account for 30 percent of retail sales in July 2012, up from 26.7 percent in July 211.

“Long-term financing is a key driver in sales growth,” said Humphrey.  “Loan terms and credit availability are bringing consumers back into the market who have been shut out since the recession began in 2008.”   

Total Light-Vehicle Sales

Total light-vehicle sales remain stable, with the volume in July expected to come in at 1,168,000 units, a 20 percent increase from July 2011. July is typically a low fleet month, averaging 15 percent of total light-vehicle sales during the past five years.  July 2012 remains low at 17 percent, but stronger than the historical average.

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

¹ Figures cited for July 2012 are forecasted based on the first 16 selling days of the month.
² The percentage change is adjusted based on the number of selling days in the month (24 days in July 2012 vs. 26 days in 2011).

Sales Outlook

Risk of further economic slowdown continues to mount as the U.S. labor market weakens. However, construction is gaining traction, which is typically a leading indicator of recovery. Given the conflicting variables and a sustained level of pent-up demand, LMC Automotive is maintaining its 2012 forecast for light-vehicle sales at 14.5 million units, with retail sales at 11.6 million units.

“The Automotive industry is closely watching the sales performance over the next two months as the industry wrestles with a mixed bag of economic signals,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “Given the economic slowdown and the increasing likelihood that we see a second half boost in auto sales there is approximately 150,000 units of risk to the 2012 forecast.”

North American Production

Through the first half of 2012, the North American light-vehicle production volume increased 22 percent, compared with the same period in 2011. More than 1.4 million additional vehicles have been built in the first six months this year, relative to the first half of 2011, with inventory replenishment and stronger demand in the first quarter being the main factor for the higher production volume. Honda and Toyota’s production in the first half this year is up 75 percent and 65 percent, respectively, as both manufacturers continue to recover from the impact of the Japan earthquake/tsunami. U.S. manufacturing growth is outperforming the rest of North America, with a 26 percent year-to-date increase. Production in Mexico has increased 13 percent and Canadian manufacturing up 19 percent.

Vehicle inventory in early July slightly increased to a 58-day supply, compared with 52 days in June. Car inventory remains at a below-normal level with a 49-day supply, up from 43 days in June. Truck inventory levels are at normal levels with a 67-day supply, up from 61 days in June.

LMC Automotive’s production forecast for North American in 2012 stands at 14.9 million units and represents a 14 percent increase from the 13.1 million units assembled in 2011. LMC Automotive expects 2013 North American production to exceed the 15 million-unit threshold, to nearly 15.3 million units.

“Increases in North American production volume remain a bright spot in the automotive industry this year, as volume teeters at 15 million units and is at the highest level since 2007,” said Schuster. “Much like demand, there remains some risk of a cooling as the year progresses, but inventory is being well managed.”

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 supplier, logistics and distribution companies, as well as financial and government institutions around the world. LMC’s global forecasting services encompass automotive sales, production and powertrain expertise, as well as advisory capability. LMC Automotive has offices in the United States, the UK, Germany, China and Thailand and is part of the Oxford, UK-based LMC group, the global leader in economic and business consultancy for the agribusiness sector.  For more information please visit www.lmc-auto.com.

Media Relations Contacts:

John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Emmie Littlejohn; LMC Automotive; Troy, Mich.; (248) 817-2100; [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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