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As Health Plans in Various States Prepare for Increasing Health Insurance Enrollments, Many Health Plan Members Consider Using Health Insurance Exchanges

2013-03-11

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WESTLAKE VILLAGE, Calif.: 11 March 2013 — The introduction of health insurance exchanges is generating interest among health plan members who purchase insurance directly, as well as those who have high deductibles and/or lower levels of overall satisfaction, according to the JD Power and Associates 2013 Member Health Plan Study^SM released today.

Key Findings

• A majority (59%) of health plan members say that they had only one health plan available to select at the time of enrollment.
• Slightly more than one-half (51%) of all members say that their premium cost has increased during the past year.
• Interest in exchanges is highest among health plan members in small companies (53%), followed by those in medium (48%) and large (43%) companies.

Now in its seventh year, the study measures satisfaction among members of 136 health plans in 17 regions throughout the United States by examining seven key factors: coverage and benefits; provider choice; information and communication; claims processing; statements; customer service; and approval process. In 2013, overall member satisfaction averages 701 (on a 1,000-point scale), compared with 702 in 2012.

Nearly three-fourths (73%) of members who purchase insurance on their own instead of through their employer say they “definitely will” or “probably will” shop for coverage using a state exchange, if available. The new insurance purchasing method intends to make it easier for members to access insurance and, ideally, at more competitive rates. The desire to reduce costs may also attract all types of members to the concept of exchange purchasing. A higher percentage of members in high-deductible health plans indicate they are interested in using exchanges, compared with those in low-deductible plans (59% vs. 45%, respectively). Service quality may also play a role in shaping demand, as members with the highest levels of interest in using exchanges are those who have contacted their health plan regarding a problem during the past year (60%), compared with those who have not had a problem with their health plan (45%).

“As healthcare costs continue to increase and members pay a higher percentage of the premium, health plan members are increasingly aware of exactly what they are getting for their premium,” said Rick Millard, senior director of the healthcare practice at JD Power and Associates. “If a member has experienced problems and perceives the possibility of having more control over costs through exchanges, this new purchasing method may become more appealing.”

Overall, 48 percent of health plan members (combining both group and individual markets) indicate they are interested in using a state exchange, if it were available to them. Among members with group coverage, interest in state exchanges is more prevalent when their employer has not offered a choice of health plans. Members who have a choice of health insurance brands are less interested in exchanges (36%) than do those who have no choice (50%).

“Income-eligible members with high out-of-pocket costs and less tenure with a health plan are most likely to try exchanges,” said Millard. “The exchange also appeals to those working at small companies who want to take more direct control over their healthcare expenses.”

Satisfaction is highest among health plan members in the Michigan, Texas and East South Central regions, and is lowest among those in the Mountain and Colorado regions.

Health plans ranking highest in their respective regions (in alphabetical order) are Anthem Health Plans of New Hampshire; AvMed Health Plans; Blue Cross and Blue Shield of Alabama; Blue Cross and Blue Shield of Illinois; Blue Cross and Blue Shield of Kansas City; Blue Cross and Blue Shield of Texas; Geisinger Health Plan; Health Alliance Plan (HAP) of Michigan; HealthPartners; Independent Health Association; Kaiser Foundation Health Plan (which ranks highest in the California, Colorado, South-Atlantic and Mid-Atlantic regions); PacificSource Health Plans; SelectHealth; and UnitedHealthcare.

JD Power offers the following tips to health plan members and consumers who are shopping for health insurance coverage:

• When shopping for a health insurance plan, consider the cost-to-benefit ratio. Generally speaking, the higher the cost, the higher the number of plan features and healthcare provider flexibility. Conversely, while lower-cost plans may provide lower premiums, they may also provide fewer choices of plan features or healthcare providers.
• If you purchase coverage on your own, research state-sponsored health insurance exchanges to learn how they work, and particularly how your state’s exchange will be offered. Beginning later this year, you may qualify for state exchanges if your income is within a certain range or if you work for a small company, which may mean the possibility of more choices of coverage at a lower cost.
• While some states are implementing exchange ratings programs based on health plan quality (e.g., did the doctor order the right tests), be sure to review JD Power and Associates health plan rankings, which are based on member satisfaction, to see how your plan compares in the rankings.
• Understand your coverage. Health insurance plans are sometimes difficult to understand, with complex rules for deductibles, co-payments and other expenses. If you don’t have a clear understanding of the coverage and you have a choice of plans, opt for the simpler approach. For example, you may be more satisfied with fewer choices of healthcare providers in order to have coverage with less complicated costs.

The 2013 Member Health Plan Study is based on responses from more than 33,000 members of 136 commercial health plans across 17 regions in the United States. The study was fielded in December 2012 and January 2013. For more comprehensive health plan rankings for all 17 U.S. regions, please visit www.jdpower.com.

About JD Power and Associates

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

About The McGraw-Hill Companies

The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at www.mcgraw-hill.com.

Media Relations Contacts:

Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; [email protected]
John Tews; Troy, Mich.; (248) 680-6215; [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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Wireless Service Spending Increases Dramatically among Customers Who Experience Faster Network Connections

2013-03-07

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WESTLAKE VILLAGE, Calif.: 7 March 2013 — Wireless customers who experience faster and more consistent network speeds spend considerably more on their wireless service plans, according to the JD Power and Associates 2013 U.S. Wireless Network Quality Performance Study^SM—Volume 1 released today.

Now in its 11th year, this semiannual study evaluates wireless customers’ most recent usage activities in three areas that impact network performance: calling, messaging and data. Overall network performance is based on 10 problem areas that affect the customer experience: dropped calls; calls not connected; audio issues; failed/late voicemails; lost calls; text transmission failures; late text message notifications; Web connection errors; slow downloads; and email connection errors. Network performance issues are measured as problems per 100 (PP100) network connections, with a lower score reflecting fewer problems and better network performance. Carrier performance is examined in six geographic regions: Northeast, Mid-Atlantic, Southeast, North Central, Southwest and West.

Key Findings

• Customers experience significantly fewer data problems with 4G LTE smartphones than with 3G phones.
• Customers with 4G-enabled smartphones are more loyal to their wireless carrier than owners of devices that use other technologies.

The study finds that the amount of monthly wireless spending is considerably higher among customers who experience fewer problems with slower connection speeds. For example, smartphone customers who experience between 1 PP100 and 10 PP100 with slow mobile web speeds spend an average of  $11 more per month than those who experience between 11 PP100 and 20 PP100 ($140 vs. $129, respectively). Customers experiencing more consistent network speeds are more likely to be brand advocates, as 31 percent of smartphone customers who experience between 1 PP100 and 10 PP100 “definitely will” recommend their carrier, compared with 24 percent among customers who experience between 11 PP100 and 20 PP100.

“It’s very interesting to see the dramatic financial difference between wireless customers who consistently experience a fast network connection and those who experience higher problem incidence in this area, especially when using Internet-based services,” said Kirk Parsons, senior director of telecom services at JD Power and Associates. “Added to this, the network advantages of using 4G LTE technology, in terms of spectrum efficiencies and increase in data connection speeds and reliability, it’s not unexpected that wireless carriers are rushing to expand and upgrade their networks to align with this latest generation of service.”

According to Parsons, the key is getting wireless customers to upgrade to 4G-enabled devices, including smartphones and tablets, as satisfaction and loyalty levels among these customers is much higher than among those using devices with other 3G/4G technology standards, such as WiMAX and HSPA+. Overall, satisfaction is significantly higher among smartphone customers using 4G networks than among those using previous-generation networks (7.3 vs. 7, respectively, on a 10-point scale). This satisfaction gap is due to the level of problems experienced with network quality. On average, 4G LTE smartphone customers experience significantly fewer issues with data than do 3G customers (16 PP100 vs. 19 PP100, respectively). This in turn translates to higher brand loyalty. Notably, 12 percent of smartphone customers using 4G LTE service indicate they are likely to switch their carrier within the next year, compared with 15 percent among those using 3G.

“Based on varying degrees of consistency with overall network performance, it is critical that wireless carriers continue to invest in improving both the voice quality and data connection-related issues that customers continue to experience,” said Parsons.

For a 17th consecutive reporting period, Verizon Wireless ranks highest in the Northeast region. Verizon Wireless achieves fewer customer-reported problems with dropped calls, initial connections, transmission failures and late text messages, compared with the regional average. Verizon Wireless also ranks highest in the Mid-Atlantic, Southeast, Southwest and West regions.

U.S. Cellular ranks highest in the North Central region for a 15th consecutive reporting period. Compared with the regional average, U.S. Cellular has fewer customer-reported problems with dropped calls, failed initial connections, audio problems, failed voice mails and lost calls.

The 2013 U.S. Wireless Network Quality Performance Study–Volume 1 is based on responses from 27,048 wireless customers. The study was fielded between July and December 2012.

About JD Power and Associates

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

About The McGraw-Hill Companies

The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at 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

Strong New-Vehicle Sales in February Drives Robust Selling Rate

2013-02-22

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WESTLAKE VILLAGE, Calif.: 22 February 2013 — The new-vehicle retail selling rate in February remains above 12 million units—stronger than it was a year ago—as the auto industry recovery continues, according to a monthly sales forecast developed by the Power Information Network® (PIN) from JD Power and LMC Automotive.

Retail Light-Vehicle Sales

“Demand is increasing, but the automakers deserve credit for doing a much better job of keeping alignment of production and demand.” said Humphrey. “This has led to new-vehicle transaction prices that are averaging nearly $1,000 more in February than the same period in 2012 while incentives have remained relatively flat year over year.” 

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

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

About The McGraw-Hill Companies

The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at 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

State Governments and Electric Utilities Provided More Effective Emergency Responsiveness During Hurricane Sandy than Did Local and Federal Governments

2013-02-21

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WESTLAKE VILLAGE, Calif: 21 February 2013 — Overall, state governments and electric utilities provided more effective responsiveness and handling of the 2012 Hurricane Sandy emergency than did local and federal governments, according to the JD Power and Associates 2013 Hurricane Sandy Responsiveness Study^SM released today.

Key Findings

• Nearly one-half (44%) of all customers used a mobile device (cellphone, smartphone or tablet) to gather information regarding their power outage.
• Two-thirds (66%) of all customers say that power lines should be buried; but only 37 percent say they would accept a rate increase of $12 per month to bury the power lines.
• The average outage among the customers surveyed was two days.

The study is based on interviews of more than 5,900 U.S. residential customers in 31 utility territories impacted by Hurricane Sandy. The online survey was conducted from January 4 to January 11, 2013. Overall responsiveness is measured by examining three areas across electric utilities and local, state, and federal governments: preparedness for the hurricane; efforts to support hurricane recovery; and effectiveness of communications.

The emergency responsiveness of state governments and electric utilities (611 and 610, respectively, on a 1,000-point scale) surpass local governments (598) and the federal government (539) in overall responsiveness to the emergency.

Hurricane Sandy’s damage is estimated at $50 billion and is considered the second-costliest hurricane in U.S. history.¹ During the October 2012 hurricane event, approximately 8.5 million customers lost power,² and 65,000 utility workers responded from 80 utilities from nearly every state and Canada, dispatching crews and equipment to impacted areas.³ During the hurricane, 43 percent of all customers surveyed experienced a power outage lasting 24 hours or longer. The average outage duration among all customers surveyed was 48 hours.

“Overall, the federal government does not receive high ratings from customers impacted by Hurricane Sandy. For utilities and local and state governments, the results are more mixed, with some receiving high ratings for their effectiveness of handling of the emergency and a few receiving low ratings,” said John Hazen, senior director of the energy utility practice at JD Power and Associates.

The Connecticut, Delaware and New Jersey state governments perform highest in the study in overall responsiveness to the hurricane emergency. Among the 15 states included in the study, Ohio, Pennsylvania and West Virginia perform lowest in responsiveness to the emergency. Customers in New Jersey, New York and West Virginia rate the federal government lowest in responsiveness to the emergency, while Maine and Maryland rate the federal government highest in responsiveness.  

Among customers with extensive outages (average length of 24 hours or longer), three electric utilities perform particularly well in the study: Atlantic City Electric, Central Hudson Gas & Electric and PPL Electric Utilities. Local governments that perform well overall include cities within the counties of Bronx New York, Burlington New Jersey and New Haven Connecticut.  

Obtaining timely outage information is critical to utility customers. Customers received most of their information regarding the outage by calling their utility directly (37%); listening to radio or watching TV (29%); and going directly to their utility’s website (17%). Nearly three-fourths (71%) of customers who made contact with their utility during the outage used their mobile cellphone or smartphone. Satisfaction is highest among customers who say they received proactive outbound communications, in which their utility sent emails, text messages or outbound phone calls.

The study finds that customers’ perceptions of work crews deployed during the storm recovery varied. One-half (50%) of all customers observed their utility’s crews working at their home or elsewhere in their area. Also, 18 percent of all customers observed work crews from other utilities assisting in restoration efforts. Satisfaction with efforts to support recovery increases when customers observe their local utility’s crew working. However, satisfaction declines when customers observe only crews from utilities other than their own out working. Fifty-four percent of customers agree other utilities’ work crews were more knowledgeable and courteous (52%) than local utilities’ work crews on knowledge (50%) and courtesy (44%).

“The study indicates the No. 1 lesson learned from experience during and after Hurricane Sandy among customers  hardest hit (power outage lasting longer than 24 hours) is to purchase survival gear, including flashlights and non-perishable food, ahead of a major storm,” said Hazen.  

Thirty-seven percent of customers indicate that they were very prepared for Hurricane Sandy; however, only 20 percent perceived that their local community was very prepared. Only 14 percent of customers used a portable generator, and three percent used a built-in back-up home generator during the hurricane. Among customers who did not use a generator, 49 percent say that they would now consider purchasing a generator.

As a preventive measure against storm-related power outages, 66 percent of all customers agree that “power lines should be buried underground in your area” (with 20% not having an opinion). However, only 37 percent of customers say they are “willing to accept a rate increase in order for power lines to be buried.” Among customers willing to accept a rate increase, $12 per month is the average bill increase they are willing to accept in order for power lines to be buried.

[1] Source: The National Hurricane Center, http://www.nhc.noaa.gov/data/tcr/AL182012_Sandy.pdf  (accessed 2/12/2013)
[2] Source: U.S. Department of Energy. Office of Electricity and Reliability Situation Reports
[3] Source: Edison Electric Institute, http://www.eei.org/newsroom/pressreleases/Releases/Pages/121101.aspx (accessed 2/19/13)

About JD Power and Associates

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

About The McGraw-Hill Companies

The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at 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

Satisfaction with the Wireless Purchase Experience Is Higher among Customers with 4G-Enabled Devices Than among Those with Less Technologically Advanced Devices

2013-02-21

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WESTLAKE VILLAGE, Calif: 21 February 2013 — Satisfaction with their purchase experience is higher among wireless customers who own a 4G-enabled device than among those who own a less technologically advanced device, according to the JD Power and Associates 2013 U.S. Wireless Full-Service Purchase Experience Study^SM—Volume 1 and the 2013 U.S. Wireless Non-Contract Purchase Experience Study^SM—Volume 1, both released today.

Now in their 10th year, the semiannual studies evaluate the wireless purchase experience of customers using any one of three contact channels: phone calls with sales representatives; visits to a retail wireless store; and online. Overall customer satisfaction with both full-service and non-contract branded carriers is based on six factors (in order of importance): store sales representative; website; phone sales representative; store facility; offerings and promotions; and cost of service.

Key Findings

• Satisfaction is higher when shopping on general store websites (772) than big box stores (752) and carrier websites (736).
• Satisfaction is higher among customers with a 4G phone than among those with a non-4G phone (774 vs. 753, respectively).
• Satisfaction among 4G retail customers is 821 when the technology is explained to them vs. 714 when no explanation is provided.
• On average, customers with a 4G phone spend $24 more per month than do those with a non-4G phone.

The study finds that among full-service wireless customers who own a 4G-enabled device, satisfaction with their most recent purchase experience is 774 (on a 1,000-point scale), considerably higher than among those who own a previous-generation network technology device (753), such as a 3G smartphone or feature phone. This gap in satisfaction is found across both retail and online contact channels.

Wireless Purchase Experience Study Results

• Non-contract carriers excel at satisfying customers who purchase a new phone online. Satisfaction with the overall purchase experience among non-contract customers who purchase their phone online is 789, compared with 768 among those who purchase their device over the phone and 742 among those who buy their device in a store. This trend is opposite that of full-service carriers.
• While the majority of customers who make their purchase online do so via their carrier’s website (76%), satisfaction with the experience is higher among those who make their purchase via such general shopping websites as amazon.com and sites for big box retailers, such as bestbuy.com. Satisfaction among customers who make their purchase via general shopping sites and big box store sites is 772 and 752, respectively, compared with 736 among those who purchase via their carrier’s site.
• Customer satisfaction with the overall purchase experience for other retailers, such as Apple, Best Buy, Costco, RadioShack and Wal-Mart, has improved relative to satisfaction with full-service carrier-branded stores. In 2013 Vol. 1, satisfaction is five points higher among customers purchasing from electronics and big box stores than carrier-branded stores, while it is 18 points lower in the 2012 Vol. 2 study.

The 2013 Wireless Full-Service Purchase Experience Study—Volume 1 is based on responses from 7,777 wireless customers. The 2013 Wireless Non-Contract Purchase Experience Study—Volume 1 is based on responses from 3,533 wireless customers. Both studies are among current wireless service customers who indicate having had a sales transaction with their current carrier within the past six months. The study was fielded from July through December 2012.

About JD Power

JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw-Hill Financial.

About McGraw Hill Financial

McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com. 

Media Relations Contacts:

John Tews; Troy, Mich.; (248) 680-6218; [email protected]
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. www.jdpower.com/corporate

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Poor Social Media Practices can Negatively Impact a Businesses’ Bottom Line and Brand Image

2013-02-14

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WESTLAKE VILLAGE, Calif.: 14 February 2013 — Businesses can no longer adopt a trial-and-error approach to social media as all-new research finds a link between social media and business metrics such as consumers’ likelihood to purchase or interact with companies through leading social channels, according to the JD Power and Associates 2013 Social Media Benchmark Study,^SM released today.

The inaugural study is based on responses from more than 23,200 U.S. online consumers who have interacted with a company via the companies’ social media channel. Fielded from November to December 2012, the study measures the overall consumer experience in engaging with companies through their social platforms for both marketing and servicing needs across more than 100 U.S. brands in six industries: airline, auto, banking, credit card, telecom and utility. The study establishes performance benchmarks and industry best practices that provide insights to companies to help them maximize their social media efforts.

Key Findings

• 67% of consumers have used a company’s social media site for servicing, compared with 33% for social marketing.
• Younger consumers (18-29 years old) are more likely to use brands’ social media sites for servicing interactions (43%) than for marketing (23%).
• The automotive industry balances marketing and servicing engagements better than any other industry included in the study.
• Consumer expectations for social interactions vary across industries, although quality content and responsive service representatives are keys to higher satisfaction levels.

“This is a unique, comprehensive consumer study that defines consumer expectations in the ever-changing social space and measures companies’ performances against those benchmarks,” said Jacqueline Anderson, director of social media and text analytics at JD Power and Associates. “This study provides companies with the framework they need to begin effectively integrating social media into their business strategies. It also illustrates the relationship between a positive social media experience and consumer purchase intent.”

Social Media Servicing vs. Social Media Marketing

The study focuses on two types of social media engagements, marketing and servicing, and provides best practices for each. Marketing engagements include connecting with consumers to build brand awareness and affinity, in addition to promoting coupons and deals. Servicing engagements include answering specific consumer questions or resolving problems.

The study finds that social marketing engagements vary by age group. Nearly one-third (39%) of consumers 30-49 years old and 38 percent of those 50 years and older interact with a company in a social marketing engagement context, while only 23 percent of consumers who are 18-29 years old interact with companies. In contrast, 43 percent of consumers who are 18-29 years old use social media for servicing interactions, while 39 percent of consumers who are 30-49 years old use social for servicing needs. Only 18 percent of consumers who are 50 years and older interact with a company via social for a service-related need.
 
“While there are vast differences among age groups in the frequency of servicing and marketing engagements, there is a consistency in the impact on brand perception and purchase intent through both types of engagement,” said Anderson. “Companies that are focused only on promoting their brand and deals, or only servicing existing customers, are excluding major groups of their online community, negatively impacting their satisfaction and influencing their future purchasing decision. A one-pronged approach to social is no longer an option.”

Companies need to understand how their consumers use social media and then develop a strategy that addresses their usage patterns.

“If your customers want service and you’re pushing discount coupons out to them while ignoring their attempts to connect with you, you’re going to end up with dissatisfied customers,” added Anderson.

The study finds a correlation between overall satisfaction with a company’s social marketing efforts and consumers’ likelihood to purchase and their overall perception of the company. Among highly-satisfied consumers (satisfaction scores of 951 and higher on a 1,000-point scale), 87 percent indicate that the online social interaction with the company “positively impacted” their likelihood to purchase from that company. Conversely, among consumers who are less satisfied (scores less than 500), one in 10 consumers indicate that the interaction “negatively impacted” their likelihood to purchase from the company.   

The study also finds that some industries are more successful than others at implementing best practices into their social media engagement strategies than others. When looking across industries,  the auto industry performs particularly well in both marketing and servicing social media interactions, the only industry to do so. Other industries performing well are wireless in social servicing interactions and utility in social marketing interactions.

Industry Performance

Listed below are the companies that perform particularly well in each of the industries included in the study. Companies are listed in alphabetical order.

About JD Power and Associates

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

About The McGraw-Hill Companies

The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at 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

Overall Business Customer Satisfaction with Electric Utility Companies Declines, Despite Improved Communications to Businesses during Power Outages

2013-02-13

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WESTLAKE VILLAGE, Calif.: 13 February 2013 — Business customer satisfaction with electric utility communications increases, while overall satisfaction declines, according to the JD Power and Associates 2013 Electric Utility Business Customer Satisfaction Study^SM released today.

Key Findings

• Utility blogs (772) and text messages (768) are the highest satisfaction-generating communications methods vs. other communication types (618).
• Customer service phone satisfaction is 750 for first call problem resolution compared with non-resolved issues (423).
• 17% of business customers accessed their utility website via a tablet/smartphone.

The study is based on interviews with representatives of more than 25,700 U.S. businesses that spend at least $250 monthly on electricity. More than 90 utility brands serving a total of more than 11.7 million business customers are included in the study. Overall customer satisfaction is measured by examining six factors: power quality and reliability; billing and payment; corporate citizenship; price; communications; and customer service.

Overall satisfaction among electric utility business customers averages 647 (on a 1,000-point scale), decreasing by 10 points from 2012. Satisfaction decreases in all factors except communications, which increases by four points year over year. The largest decreases in satisfaction are in customer service (down 18 points); corporate citizenship (down 18); and billing and payment (down 15).
 
“Even with the multiple weather events and an increase in the average outage time, satisfaction with power quality and reliability has decreased only three points,” said John Hazen, senior director of the energy utility practice at JD Power and Associates. “In addition to customer service, the area in which utilities are facing significant criticism is in corporate citizenship, where business customers are critical of utility efforts to develop energy supply plans for the future as well as utilities showing business leadership in local communities.”  

However, positively impacting satisfaction with power quality and reliability, electric utility companies are demonstrating new ways to ensure open lines of communication with their customers by offering service outage updates via text messaging, social media and email, which yield significantly higher satisfaction levels than any other outage communication type.

In addition to providing information through multiple channels, electric utility companies are also proactively communicating with their business customers during outages, which positively impacts satisfaction as well. Power quality and reliability satisfaction among the 11 percent of business customers who received proactive communications from their utility during an outage is 754, compared with 654 among those who received no communications from their utility.

Study Rankings

Within each of the four geographic regions included in the study, utility providers are classified into one of two segments: large (serving 85,000 or more business customers) and midsize (serving between 25,000 and 84,999 business customers). Rankings within each region and segment are as follows:

East Region
PPL Electric Utilities ranks highest among large electric utility providers in the East Region with a score of 664. Among midsize electric utilities in the East Region, Central Maine Power (654) ranks highest for the second consecutive year.

Midwest Region
In the Midwest Region, We Energies (669) ranks highest among large electric utilities, while Indianapolis Power & Light Company ranks highest among midsize brands with a score of 676.

South Region
Georgia Power (695) ranks highest among large utilities in the South Region. Among midsize electric utilities, Entergy Texas ranks highest with a score of 687.

West Region
Portland General Electric (694) ranks highest among large electric utilities in the West Region. Among midsize electric utility providers, Seattle City Light ranks highest (689).

The 2013 Electric Utility Business Customer Satisfaction Study is based on responses from more than 25,700 online interviews with business customers of the 95 largest utility brands throughout the United States. The study was fielded from April through June 2012 and September through December 2012.

About JD Power and Associates

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

About The McGraw-Hill Companies

The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education company, signed an agreement to sell its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC in November 2012. Following the sale closing, expected in early 2013, the Company will be renamed McGraw Hill Financial (subject to shareholder approval) and will be a powerhouse in benchmarks, content and analytics for the global capital and commodity markets. The Company’s leading brands will include: Standard & Poor’s, S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company will have approximately 17,000 employees in more than 30 countries.  Additional information is available at 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