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  • EMD Serono—Certified Call Center Program

    EMD Serono Call Centers Recognized for Providing An Outstanding Customer Service Experience

    2013-05-28

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    WESTLAKE VILLAGE, Calif.: 28 May 2013 — EMD Serono has been recognized for call center operation customer satisfaction excellence under the JD Power & Associates Certified Call Center ProgramSM. The Certified Call Center Program distinction acknowledges a strong commitment by EMD Serono’s service call center operations to provide “An Outstanding Customer Service Experience.”



    To become certified, the call centers successfully passed a detailed audit of more than 100 practices that encompass their recruiting, training, employee incentives, management roles and responsibilities, and quality assurance capabilities. As part of its evaluation, JD Power & Associates conducted a random survey of EMD Serono customers who recently contacted its call centers in Rockland, Mass.


    “EMD Serono MS LifeLines has shown a commitment to providing outstanding customer service, and are to be congratulated for earning their second consecutive certification,” said Mark Miller, senior director, JD Power & Associates. “Our research indicated that in particular, customers were very pleased with the level of courtesy and concern provided by the EMD Serono MS LifeLines Representatives which is so critical when helping people cope with health-related issues.”


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

     

    “We are honored to receive JD Power & Associates Call Center Certification program recognition for the MS LifeLines call center for a second straight year,” said James Hoyes, president of EMD Serono, Inc. “We are proud to provide support to the MS community through MS LifeLines and are pleased that the customer service excellence provided by our call center specialists continues to be recognized.”


    “The MS LifeLines’ call center is central in our being able to provide individualized support and resources to the MS community, which also include our Nurse Support Network, MS LifeLines Ambassadors and patient education programs,” said Liz Barrett, president, North America, Pfizer Specialty Care.  “We look forward to continuing our commitment to excellence in the services we provide to the MS community.” 


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


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


    About JD Power & Associates


    Headquartered in Westlake Village, Calif., JD Power & 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 & Associates is a business unit of McGraw-Hill Financial.


    About McGraw Hill Financial


    McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power & Associates, McGraw Hill Construction and Aviation Week. 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]  
    Erin-Marie Beals; EMD Serono, Inc.; Rockland, Mass.; (781) 681-2850; [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 & Associates. www.jdpower.com/corporate


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  • 2013 UK Vehicle Ownership Satisfaction Study (VOSS)

    British Automakers, Led by Highest-Ranked Jaguar, Make Key Inroads toward Vehicle Ownership Satisfaction in the UK

    2013-05-23

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    MUNICH: 24 May 2013 — With new-vehicle sales expected to increase significantly in the coming years, British automakers, led by highest-ranked Jaguar, are making key inroads toward satisfying customers with the ownership experience, according to the JD Power & Associates/What Car? 2013 UK Vehicle Ownership Satisfaction StudySM (VOSS) released today. 

    Key Findings

    • Overall satisfaction among vehicle owners in the UK averages 776 on a 1,000-point scale.

    • Vehicle appeal (31%) and ownership costs (25%) are the two key drivers of overall satisfaction.

    • Jaguar ranks highest in vehicle ownership satisfaction for a second consecutive year.

    • The Škoda Superb (830) and Škoda Yeti (828) achieve the two highest scores in the study.

    The study examines customer satisfaction with their vehicle and dealer service, based on evaluations of four key measures that comprise the overall ownership experience (in order of importance): vehicle appeal (31%), which includes performance, design, comfort and features; ownership costs (25%), which includes fuel consumption, insurance and costs of service/repair; service satisfaction (22%); and vehicle quality and reliability (22%). Overall satisfaction among vehicle owners in the UK averages 776 on a 1,000-point scale.

    With an overall score of 827, Jaguar ranks highest in vehicle owner satisfaction for a second consecutive year. Jaguar performs particularly well in the service satisfaction, vehicle appeal, and vehicle quality and reliability measures. Following Jaguar in the rankings are Lexus (818), Honda (810), Škoda (809) and Mercedes-Benz (804).

    Ranking sixth is Land Rover (790), which improves six rank positions from 2012. 

    “British automakers have made great strides in the past few years in terms of offering appealing product lines and improved service, which is something they’ve often struggled with in the past,” said Mark Lendrich, senior research manager of vehicle management in Europe at JD Power & Associates. “Current forecasts predict that new-vehicle sales will increase nearly 18 percent in the UK in the next five years1.  This puts British brands in a positive position to both retain current customers and attract new buyers.”

    At the segment level, two models from Škoda achieve the highest scores in the study. The Škoda Superb (830) ranks highest in the mid-size segment, and the Yeti (828) ranks highest in the compact SUV segment.

    Two Volkswagen models also receive segment awards. The Fox ranks highest in the city car segment and the Scirocco ranks highest in the sporty segment.

    Other models ranking highest in their respective segments include Citroën DS3 (small); Toyota Prius (compact); Jaguar XF (large and luxury); Honda Jazz (small MPV); and Mercedes-Benz B-Class (MPV).

    The study finds that vehicle owners’ perceived cost of ownership is the most significant driver of loyalty to both the brand and the dealer. Among owners who provide a rating of 10 on a 10-point scale for ownership costs, 63 percent say they “definitely will” repurchase the same vehicle make again. In comparison, loyalty rates fall to 57 percent among owners who provide a rating of 10 for vehicle appeal; 49 percent for service; and 45 percent for quality and reliability. 

    Satisfaction with service from an authorised dealer plays a key role in whether new-vehicle owners will return for paid service after the warranty has expired. The likelihood to return for paid service is 88 percent among owners who indicate that they had an outstanding (rating it 10 on a 10-point scale) service experience. However, that percentage drops dramatically to just 7 percent among owners who indicate their experience was just average (rating it 5). 

    “Owners of 1- to 3-year-old vehicles spent an average of £181 on their most recent service experience, so an 81-percentage-point gap may translate into millions of pounds of lost revenue for OEMs and dealers that fail to deliver an outstanding experience,” said Lendrich.

    The study also finds a correlation between overall satisfaction and incurring the fewest and least severe problems. Seven of the 10 brands ranked highest in the overall index are also among the top 10 brands with the fewest number of problems per 100 vehicles, as well as among the lowest problem counts for the fewest occurrences of the most severe quality problems. The top five problems impacting quality and reliability scores are:

    1. Windows fog up excessively/don’t clear as expected
    2. Heater doesn’t heat up quickly enough
    3. Engine starting problem
    4. Excessive fuel consumption
    5. Other engine/transmission problem

    The 2013 UK Vehicle Ownership Satisfaction Study is based on 16,104 online evaluations by vehicle owners in the UK after an average of two years of ownership. The study was fielded between December 2012 and February 2013.

    This annual JD Power & Associates study provides consumers with reliable and accurate information regarding many vehicle models, and helps manufacturers provide highly satisfying experiences to their customers. Additional study results are published exclusively in What Car?, which will be on sale May 30, 2013.

    1Based on a forecast from LMC Automotive. 

    About JD Power & Associates

    Headquartered in Westlake Village, Calif., JD Power & 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 & Associates is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

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

    About What Car?

    What Car?, the UK’s biggest car-buying brand and includes a perfect bound print magazine, an all new iPad magazine, a market-leading website, a number of apps and several established brand extensions. Its flagship magazine has helped Britain’s car buyers make purchasing decisions for almost 40 years, and its tests are widely regarded as the most trusted source of new-car advice. What Car? is owned by Haymarket Media Group – the UK’s largest independently owned publishing company, with a portfolio of more than 150 titles, ranging from specialist consumer magazines to business titles and customer publications, published via wholly owned subsidiaries, joint ventures and under licence worldwide. www.Whatcar.com

    Media Relations Contacts:

    John Tews; Troy, Mich. USA; Tel: +1 (248) 680-6218; [email protected]
    Mark Lendrich, Munich, Germany; Tel: +49 (0)89-288 03 66-11; [email protected]
    Karen Parry: What Car? Magazine; Tel: +44 (0)1784 456 526; Mob: +44 (0)7903 955 696; [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 of JD Power & Associates. www.jdpower.com/corporate

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  • May 2013 Automotive Forecasting Release

    May New-Vehicle Retail Selling Rate Expected to be 1 Million Units Stronger than a Year Ago

    2013-05-23

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    WESTLAKE VILLAGE, Calif.: 23 May 2013 — Robust new-vehicle retail sales in May are the driving factor of returning total sales above the 15-million unit selling level for the month, according to a monthly sales forecast developed by the Power Information Network® (PIN) from JD Power and LMC Automotive.

     Retail Light-Vehicle Sales

    New-vehicle retail sales in May are projected to come in at 1,157,900 vehicles, which represent a seasonally adjusted annualized rate (SAAR) of 12.5 million units, the highest level since January, and will be the third consecutive month with retail sales in excess of 1 million units. Retail transactions are the most accurate measure of true underlying consumer demand for new vehicles.
    The full-size pickup segment is contributing to the overall strong sales pace in May, accounting for 11.4 percent of industry retail sales, an increase from 11 percent in April and up from 9.7 percent in May 2012.

    U.S. Retail SAAR—May 2012 to May 2013
    (in millions of units)

    Strong demand for full-size pickups is also helping to keep industry average transaction prices at record levels. The average transaction price for all new vehicles thus far in May is $28,921, the highest ever for the month of May and 3 percent higher than May 2012. Several components are contributing to strong industry transaction price performance, including: low interest rates, which help keep monthly payments low; the use of extended-term vehicle loans—72 months or longer—which also help reduce monthly payments;  strong used vehicle values, which equate to more trade-in equity; and strong new-vehicle residual values, which lower new-vehicle lease payments. 
    “Collectively, these components mean that while industry new-vehicle transaction prices have risen by 19 percent during the past six years ($28,921 in May 2013 from $24,404 in May 2008), the average monthly payment for new-car buyers and lessees has increased only 3 percent ($455 in May 2013 vs. $443 in May 2008),” said John Humphrey, senior vice president of the global automotive practice at JD Power & Associates. “This market dynamic is enabling consumers to purchase new vehicles with improved fuel economy, safety and technology at an affordable monthly payment.”
    Total Light-Vehicle Sales
    Total light-vehicle sales in May 2013 are expected to increase to 1,439,400, up 8 percent from May 2012. Fleet sales have generally been weaker than expected in 2013, but continue to average nearly 21 percent of total sales. Fleet sales in May 2013 are projected to reach 281,000 units, representing less than 20 percent of total sales. 
    JD Power and LMC Automotive U.S. Sales and SAAR Comparisons


    1Figures cited for May 2013 are forecasted based on the first 10 selling days of the month.

    Sales Outlook 
    LMC Automotive is holding the total light-vehicle sales outlook for 2013 at 15.4 million units. The 2013 outlook for retail light-vehicle sales also remains the same, at 12.5 million units.
     
    “This is the time of year when the automotive industry holds its collective breath as the recent past has dealt with a spring slowdown in demand; however, the current pace suggests full steam ahead for the second half of 2013,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “Economic and market headwinds have been minimized, while demand continues to build momentum.”
     
    North American Production
    North American light-vehicle production year to date through mid-May is up 4 percent, compared with the same period in 2012. Most major manufacturer volumes are either flat or up slightly, with the exception of General Motors, which is down 4 percent on the transition of the Impala and weaker large SUV sales ahead of the new models for 2014. 
    Vehicle inventory levels in early May are at 3.2 million units—a 63-day supply—and consistent with the current level of demand. Inventory was at a 55-day supply in May 2012. 
    LMC Automotive is increasing its forecast for 2013 North American production to 16.0 million from 15.9 million units. With this increase, 2013 will mark the first time production in the region has been at the 16 million-unit level since 2002.
    “With several manufacturers at or near capacity, it becomes a balancing act to plan production for the remainder of the year,” said Schuster. “An effective way to manage the near-term demand and increase production levels is to reduce planned summer shutdowns, as the Detroit automakers recently announced.”
     

    About JD Power & Associates

    Headquartered in Westlake Village, Calif., JD Power & 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 & Associates is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

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

    About LMC Automotive

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

    Media Relations Contacts:

    John Tews; JD Power & 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 of JD Power & Associates or LMC Automotive. www.jdpower.com/corporate  www.lmc-auto.com

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  • 2013 Insurance Website Evaluation Study (IWES)

    Insurance Websites Perform Better in Policy Servicing Than Policy Shopping

    2013-05-22

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    WESTLAKE VILLAGE, Calif.: 22 May 2013 — Automotive insurance customers indicate that using insurance company websites to service an existing policy is generally easier than using them to shop for a policy, according to the JD Power & Associates 2013 Insurance Website Evaluation StudySM (IWES) released today.
    Key Findings
    • Industry average for the overall servicing index is 414, which is 67 points higher than the overall shopping index.
    • Requesting a quote and finding policy information are the two most difficult tasks among online shoppers.
    • Only 16 percent of customers with a negative website experience say they would recommend the company’s website to others.

    The study measures online customer experiences while performing shopping and servicing tasks based on a scale of 1-5, with 1 being “very difficult”; 3 being “neither difficult nor easy”; and 5 being “very easy.” The study examines functional aspects of websites rather than aesthetic aspects, such as look and feel. Task ratings are used to compute an overall experience index for shopping and servicing based on a 500-point scale. The industry average for the overall shopping index is 347, and 414 for the average overall servicing index.  

    “More than one-half of all insurance shoppers today use the Web to scout their options, and many further seek to obtain quotes online,” said Jeremy Bowler, senior director of the global insurance practice at JD Power & Associates. “Since policy shopping frequently includes the tasks of finding policy information and requesting a quote, it is understandable that customers who did not find those tasks to be particularly easy tend to abandon one brand in favor of others, often providing a low rating for that site.”
    Similarly, when customers find it easy to perform such servicing tasks as viewing their policies and changing contact information, they are much more likely to return to the site and recommend both the website and their insurer to friends and colleagues.
    Website Experience Influences Customer Preference
    The study’s shopping evaluation includes the following tasks: requesting a quote; comparing policies; finding policy information; finding discount information; and finding company contact information. After customers rate these tasks, each task is weighted to determine the extent to which it influences the website’s overall usability. The two most heavily weighted tasks—finding policy information and requesting a quote—are the hardest tasks to perform, with customers providing ratings of 3.6 and 3.8, respectively. Finding company contact information is the easiest task to perform, with a rating of 4.2.
    While policy price is a significant factor in a shopper’s decision-making process, the study finds that a positive website experience may still influence customer preferences. As would be expected, a higher rated site that also offers a lower price quote tends to close the shopper’s business a majority of the time (90%); however, a higher rated site that provides a higher quoted price still closes a majority of the time (60%). 
    “Since customers indicate that finding contact information is easier than requesting a quote, at least some of them will use that contact information to obtain quotes by other means, such as contacting a company’s call center,” said Bowler. “The cost of using human resources to address these questions and requests is much higher than an automated system on a website, which means that companies may be able to realize savings by improving the process through which shoppers request quotes online.”
    Policy Servicing Experience Affects Website Recommendations
    In the servicing portion of the study, policyholders were asked to evaluate their current insurance carrier. Tasks evaluated in the servicing index include account log-in; profile management; paying bills; viewing policy information; researching claims processes; requesting a replacement insurance ID card; adding a driver or vehicle; and enrolling in paperless billing. The easiest task is paying bills, receiving a rating of 4.5, while it is marginally harder to print or request a replacement insurance ID card and add a driver or vehicle to a policy, at 4.2 and 4.2, respectively.
    “A positive online experience for customers has measurable benefits for insurers, both in terms of existing customer satisfaction and attracting additional shoppers to their websites,” said Bowler. 
    More than two-thirds (68%) of customers who had a positive experience say they “definitely will” return to the website, compared with 21 percent of those who had a negative experience. Additionally, 65 percent of customers who had a positive online experience say they “definitely will” recommend the website to others; conversely, only 16 percent of those who had a negative online experience say they “definitely will” recommend the website to others. 
    Among the 20 insurance websites included in the study, Esurance, Progressive and GEICO perform particularly well in the ease of use for both shopping and servicing with their websites. 
    The 2013 Insurance Website Evaluation Study (IWES) is based on more than 7,000 evaluations. The study was fielded in March and April 2013. 

    About JD Power & Associates

    Headquartered in Westlake Village, Calif., JD Power & 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 & Associates is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

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

    Media Relations Contacts:

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

    Follow us on Twitter: @JDPower

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

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  • 2013 Canadian Dealer Financing Satisfaction Study

    Stronger Relationships between Dealers and Finance Providers Help Drive Record Level Canadian Dealer Satisfaction

    2013-05-21

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    TORONTO: 21 May 2013 — Canadian automotive dealer satisfaction with finance providers improves significantly in 2013, not only surpassing the pre-financial crisis level, but also setting a record across all four finance segments, according to the JD Power & Associates 2013 Canadian Dealer Financing Satisfaction StudySM released today.The study, now in its 15th year, examines dealer satisfaction with finance providers in four segments: prime retail credit; retail leasing; floor planning; and sub-prime retail credit.  

    KEY FINDINGS

    • Overall dealer satisfaction increases substantially across all four segments in 2013.
    • Several of the best practices that drive satisfaction are relationship based.
    • Dealer satisfaction increases when sales representatives visit dealers four times a year and provide clear program updates.
    • When sales representatives help facilitate re-hashing deals, satisfaction increases significantly.

    In 2013, dealer satisfaction is the highest it has been since the study’s inception in 1998. Satisfaction in prime retail credit increases to 883 (on a 1,000-point scale), and increases to 858 in retail leasing (each up 24 points from 2012). Satisfaction in floor planning is 910, a 21-point increase from 2012, and 846 in sub-prime retail credit, up 19 points year over year. 

    After achieving near-record automotive sales of 1.67 million units in 2012 and strong sales in the first quarter of 2013, Canadian automotive dealers are optimistic about their business. Three in four dealers anticipate their 2013 sales to continue to increase, with only one percent indicating they expect their sales to decrease, according to JD Power & Associates’ Power Information Network® (PIN) data.

    “While strong sales may bring  a positive perspective to Canadian automotive dealers, the effort by lenders to build a partnership relationship with dealers and meet their increasingly diverse financing needs is what has helped propel dealer satisfaction to an unprecedented level,” said Lubo Li, senior director and financial practice leader at JD Power & Associates, Toronto.

    Dealer satisfaction in the prime retail credit segment and sub-prime retail credit segments is measured in three factors: finance provider offering; application/approval process; and sales representative relationship. In the retail leasing segment, satisfaction is measured in four factors: finance provider offering; application/approval process; vehicle return process; and sales representative relationship. In the floor planning segment, satisfaction is measured in four factors: finance provider credit line offering; floor plan support; floor plan portfolio management; and sales representative relationship.

    The study finds that Canadian dealer satisfaction with finance providers is heavily influenced by the relationship with their lender. Three relationship-based best practices in particular drive a positive dealer financing experience. 

    First, personal engagement with dealers is paramount to nurturing the ongoing partnerships, with the lenders whose sales representatives visit dealerships at least four times per year achieving the highest levels of satisfaction. When providers empower sales representatives to modify or amend deals, overall satisfaction increases by 52 points in prime retail credit.

    Second, when personal visits by sales representative include ongoing program updates and clarifications, dealers feel most connected to lenders. Clarity in communications allows dealers to more effectively manage their business and confidently communicate to their customers with respect to obtaining financing. Providers that equip their sales representatives with the tools to effectively review program components and offer clarity are well-positioned to achieve higher levels of dealer satisfaction. For example, in the retail leasing segment, when dealerships completely understand their finance provider’s program offerings, satisfaction increases by 129 points, and when finance program training is provided to dealers, satisfaction increases by 83 points.

    Finally, the sales representative role is also that of a facilitator. While many finance providers may not allow their sales representatives to re-hash deals, dealers generally like when sales representatives are playing this role. When sales representatives help facilitate a consistent review of deals, satisfaction increases significantly. Lenders that provide programs and tools to re-hash deals without sales representative intervention or that enable sales representatives to connect dealers with the appropriate personnel achieve the highest levels of satisfaction.

    “When JD Power released the 2011 Canadian Dealer Financing Satisfaction Study, the company provided industry insights regarding streamlining the approval and funding process, providing consistent contacts and messaging and communicating with dealers through their preferred channels,” said Li. “In 2013, it’s clear that lenders have leveraged these recommendations to significantly improve their relationships with dealers and create a highly satisfying experience. We continue to encourage both dealers and lenders to work closely together to continue to improve satisfaction.”

    Prime Retail Credit Segment Rankings

    BMW Financial Services ranks highest in the prime retail credit segment with a score of 948, up 40 points from 2012, and performs particularly well in the finance provider offerings; application/approval process; and sales representative relationship factors. Mercedes-Benz Financial Services ranks second in the segment with a score of 933, declining by 25 points from 2012. VW Credit Canada (908) ranks third overall and improves the most year over year (+48 points). 

    Retail Leasing Segment Rankings

    BMW Financial Services ranks highest in the retail leasing segment with a score of 947, and increase of 41 points from 2012, and performs particularly well in all four factors: application/approval process; finance provider offerings; sales representative relationship; and vehicle return process. Mercedes-Benz Financial Services follows in the rankings at 927, declining 23 points from 2012. VW Credit Canada increases by 58 points year over year to 899, leading its competitors in the vehicle return process and finance provider offering factors. GM Financial posts the largest gain in overall satisfaction, with an increase of 69 points in 2013. BMW Financial Services meets or exceeds dealership credit decision expectations—the most influential key performance indicator—100 percent of the time (up 7 percentage points from 2012). VW Credit Canada, Ford Credit Canada and Mercedes-Benz Financial Services each meet this KPI 98 percent of the time. 

    Floor Planning Segment Rankings

    Ford Credit Canada ranks highest in the floor planning segment, achieving a score of 946, up by 13 points from 2012. Scotiabank (942) ranks second, increasing by 16 points year over year. Both financial providers perform particularly well in all four factors. VW Credit Canada ranks third with a score of 929, improving by 2 points in floor plan portfolio management and also leads competitors in offering multiple types of floor planning reports. Ford Credit Canada trails slightly by one percentage point in offering multiple floor planning reports. 

    The 2013 Canadian Dealer Financing Satisfaction Study is based on responses from more than 1,300 new-vehicle dealerships in Canada. The study was fielded between February 2013 and March 2013. 

    About JD Power & Associates

    Headquartered in Westlake Village, Calif., JD Power & 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 & Associates is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

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

    Media Relations Contacts:

    Gal Wilder; Cohn & Wolfe; Toronto, Canada; (647) 259-3261; [email protected]
    Beth Daniher; Cohn & Wolfe; Toronto, Canada; (647) 259-3279; [email protected]
    John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]

    Follow us on Twitter: @JDPower

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

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  • 2013 North America Airline Satisfaction Study

    Airline Satisfaction Improves to the Highest Levels since 2006; Traditional Carriers Drive Gains, While Low-Cost Carriers Continue to Lead Overall

    2013-05-15

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    WESTLAKE VILLAGE, Calif.: 15 May 2013 — Airline satisfaction has improved to its highest level since 2006, driven by gains made among traditional carriers, according to the JD Power & Associates 2013 North America Airline Satisfaction StudySM released today.  
    Key Findings
    • Overall passenger satisfaction with North American airlines improves to 695, which is up 14 points from 2012.
    • More than one-third (36%) of passengers check in for their flight online, an increase from 34 percent in 2012.
    • Check-in satisfaction is higher among passengers who check in online for their flight (837) than among those who check in at the airport via kiosk (805) or the ticket counter (801).

    Overall satisfaction improves to 695 (on a 1,000-point scale), a 14-point increase from 2012. Low-cost carriers continue to outperform traditional carriers, improving to 755, one point higher than in 2012. However, traditional carriers improve to 663—16 points higher than in 2012—the highest level in more than five years and a level of performance consistent with the period before the introduction of baggage and other fees.  

    The study measures passenger satisfaction with North America airline carriers based on performance in seven factors (in order of importance): cost & fees; in-flight services; boarding/deplaning/baggage; flight crew; aircraft; check-in; and reservation.
    Satisfaction improves across all seven factors, with the largest year-over-year increases in the boarding/deplaning/baggage (+17 points), check-in (+15) and aircraft (+15) factors.  
    “Traditional carriers have improved significantly across all seven factors, and it is a positive sign to see them turn a corner and starting to rise again, even as there is still more opportunity to improve,” said Jessica McGregor, senior manager of the global travel and hospitality practice at JD Power & Associates. “While satisfaction with low-cost carriers improves by only one index point overall, greater gains in the rest of the experience are masked by lower passenger satisfaction with cost and fees.”
    Baggage Fees Acceptance
    Baggage fees continue to be a source of passenger dissatisfaction and to lead to lower satisfaction levels. The impact is less pronounced than in the past, however, as passengers are gradually more accepting of the fees. The gap in overall satisfaction between passengers who pay for baggage and those who do not pay narrows to 63 points in 2013, compared with a gap of 85 points in 2012 and 100 points in 2011. Among passengers who pay to check baggage, 37 percent indicate the fees are reasonable, an increase from 28 percent in 2012 and 18 percent in 2011.  
    “Charging for bags still has a pronounced negative impact on passenger satisfaction, but with each year, passengers are increasingly more accepting of carriers unbundling baggage and other fees,” said Ramez Faza, senior manager of the travel practice at JD Power & Associates. 
    Technology has an Impact
    An increasing percentage of passengers (36%) check in to their flights online, and 15 percent use a mobile device—more than double the 6 percent who used mobile devices two years ago. Check-in satisfaction among passengers who check in using a mobile device is 853. Check-in satisfaction is even higher when passengers use a mobile app to check in (866). In contrast, check-in satisfaction among passengers who check in at a kiosk is 805, and is 801 among those who use the main ticket counter. Wi-Fi on flights is also enhancing the passenger experience. Overall satisfaction among passengers who use Wi-Fi during their flight is 39 points higher than among those who do not use it.
    The Power of People and the Value of a Genuine Smile
    Despite the fact that passengers are using self-service options in increasing numbers, airline staff continues to impact passenger satisfaction. The industry is improving the customer experience, with both carrier segments achieving an eight-year high for passenger satisfaction with flight crews in 2013. Among passengers who are greeted with a smile by airline staff, even if only some of the time, satisfaction scores are 105 points higher than among those who never receive a smile. The gap doubles to 211 points higher among passengers who are greeted with a smile consistently, compared with those who do not receive a smile at all. 
    “Treating passengers as valued customers and guests—welcoming them with a genuine warm smile—is an important opportunity for airlines to achieve considerably higher levels of satisfaction,” said Faza. “With the increasing use of technology reducing some personal interactions in the reservations and check-in processes, making the most of the rest of the passenger interaction with airline staff is imperative.” 
    Traditional Carrier Rankings
    Alaska Airlines ranks highest in the traditional carrier segment for a sixth consecutive year, with an index score of 717. Alaska Airlines, which improves by 39 points from 2012—the largest improvement among all carriers ranked in the study—performs particularly well in six of the seven factors: cost & fees; boarding/deplaning/baggage; aircraft; flight crew; check-in; and reservation. 
    Delta Air Lines moves up one rank position to second with a score of 682, improving by 23 points from 2012, with significant gains across all seven factors. Alaska Airlines and Delta Air Lines each improve significantly and perform well among traditional carriers in flight crew. Ranking third, Air Canada declines by six points to 671. 
    Low-Cost Carrier Rankings
    JetBlue Airways ranks highest among low-cost carriers for an eighth consecutive year, with a score of 787.  This also marks the ninth consecutive year JetBlue has ranked highest in the study.1 JetBlue, which improves by 11 index points on a year-over-year basis, performs particularly well in in-flight services and aircraft. Southwest Airlines, which improves in all of the factors except cost & fees, ranks second at 770, which remains on par with 2012.
    Airlines Social Media Savvy
    Airlines and companies in other industries are increasingly using social media channels to market to customers and to provide services and support. JD Power & Associates recently released its 2013 Social Media Benchmark Study,SM which evaluates performance and best practices of select companies and industries, including airline, from a customer perspective.
    In the social media study, JetBlue Airways, Southwest Airlines and Virgin America perform particularly well in leveraging social media to service customers, while Delta Air Lines, Southwest Airlines, Virgin America and WestJet perform particularly well in leveraging social media for marketing.

    Consumer Tips 

    JD Power & Associates offers the following tips to consumers regarding mobile boarding passes:
    • Download and utilize your airline’s mobile app to provide an efficient, quick and personalized travel experience, including the ability to check in, select seats and receive a digital boarding pass.
    • Some airlines offer a discount when you pre-pay for checked baggage when checking in online. This can save you money, as well as time, when you arrive at the airport. 
    The 2013 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 11,800 passengers who flew on a major North America airline between April 2012 and March 2013. The study was fielded between May 2012 and March 2013.

    [1] JetBlue ranked highest in the 2005 study, when all carriers were included in one segment.

     


    About JD Power & Associates

    Headquartered in Westlake Village, Calif., JD Power & 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 & Associates is a business unit of McGraw-Hill Financial.

     

    About McGraw Hill Financial

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

     

    Media Relations Contacts:

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

    Follow us on Twitter: @JDPower

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

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  • 2013 U.S. Full Service Investor Satisfaction Study

    Advisor/Investor Relationship Drives Full Service Investor Satisfaction

    2013-05-09

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    WESTLAKE VILLAGE, Calif.: 9 May 2013

    — As markets continue to rise, overall investor satisfaction with full service investment firms continues to increase for the second consecutive year, heavily influenced by the type of relationship that investors have with their advisor, according to the JD Power & Associates 2013 U.S. Full Service Investor Satisfaction StudySM released today. 

    Key Findings

    • Overall investor satisfaction with full service investment firms improves to 789, up 14 points from 2012.
    • Investors prefer a collaborative relationship with their investment firm.
    • Communication is crucial to investor satisfaction. The highest ratings come from investors contacted 12 or more times a year.

    The study, now in its 11th year, measures overall investor satisfaction with full service investment firms in seven factors (in order of importance): investment advisor; investment performance; account information; account offerings; commissions and fees; website; and problem resolution. The study was fielded in January and February 2013 and is based on responses from more than 4,750 investors who make some or all of their investment decisions with an investment advisor.

    Overall satisfaction has improved to 789 on a 1,000-point scale, up from 775 in 2012 and 772 in 2011.  Yet, in spite of a high correlation between investor satisfaction and actual market performance, satisfaction scores for some firms is lower than might be expected based on reported performance alone.

    “Logically, an improvement in investment performance is going to result in an increase in investor satisfaction,” said Craig Martin, director of investment services at JD Power & Associates. “However, not all firms achieve the same level of increase in satisfaction from this improvement. The study finds that there are two elements beyond investment performance separating firms with high satisfaction from those with low satisfaction: the person that investors credit for their investment performance and the relationship investors have with their advisor.”

    Firms with lower-than-expected satisfaction have the lowest proportions of investors who attribute investment performance to their own decisions rather than recommendations made by their advisor. These same firms also have a higher proportion of investors who defer their investment planning decisions to their advisor. This trend suggests that investors prefer advisor relationships in which they have an active role and there is a high degree of transparency.

    Firms with higher satisfaction ensure that investors feel involved and to an extent responsible for their investment performance. Stronger relationships allow these firms to positively influence investor perceptions of success.

    Communication Is Key to Improving Relationships

    Outside of making suggestions and decisions that lead to better investment performance, a key component to firms building stronger relationships with their investors is through communication. In addition to updates on portfolio performance, investors appreciate other meaningful insights, such as tips on new investments to consider.

    “Being absolutely transparent with investors about the performance of their portfolio, whether performance is good or bad, is absolutely critical for investment firms,” said Martin. “Beyond that, investors want communication that is meaningful, not just checking in once a month, but also providing insights, such as stocks to watch, tips for tax savings—things that add value.”

    Frequency and the right type of communication also play important roles in impacting investor satisfaction.

    “In the 2013 study, the firms with the highest satisfaction scores contacted investors more than 12 times during the past year, while those with lower scores only contacted investors approximately six to eight times,” said Martin. “However, firms should also understand how their investors prefer to be contacted. Some investors want regular updates via email, some prefer a phone call or an in-person conversation, while others prefer a combination of all three channels.” 

    The study finds that communicating the right information and using the delivery channels investors prefer at the optimal frequency improves overall investor satisfaction, which is likely to yield clear financial benefits for investment firms. 

    When satisfaction with investment performance is high, investors are more likely to recommend their advisor and investment firm to others, and also more likely to increase the amount they have invested with the firm. Among highly satisfied investors who indicate their investments have increased, 71 percent say they “definitely will” recommend their primary firm, and they make an average of five recommendations. Among investors with lower levels of satisfaction who indicate an increase in investments, only 30 percent say they “definitely will” recommend, and they make an average of 2.5 recommendations. Further, investors with high levels of investment performance satisfaction indicate they plan to increase their investment amounts at more than double the rate of that among investors with lower levels of satisfaction.

    Investment Firm Rankings

    RBC Wealth Management ranks highest in overall investor satisfaction with a score of 820, and Fidelity Investments ranks second with a score of 810. Edward Jones, which ranked highest in 2012, ranks third in 2013 with a score of 808, compared with 803 in 2012. 

    Drive Higher Perceptions of Performance 

    A high level of communication alone is not enough to improve investor satisfaction. Advisors who achieve above-average investment performance satisfaction and who have a strong relationship with their investors share the following traits:

    • They develop and/or review a financial plan that effectively incorporates risk and ensure this plan is in a tangible form that can be easily understood by the investor.
    • They clearly communicate the reasons for investment performance and the firm’s fee structure so investors fully understand the value provided for the fees paid.
    • They strive for an equal partnership with investors and make them feel involved in decisions impacting the performance of their investments.
    • They define the appropriate level and method of contact to meet the expectations of their investors.

    About JD Power & Associates

    Headquartered in Westlake Village, Calif., JD Power & 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 & Associates is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE:MHP), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power & Associates, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. 

    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 & Associates.
     

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  • 2013 Canadian Wireless Total Ownership Experience Study

    Satisfaction Is Highest among Wireless Customers Who Use Their Carriers’ Online Service and Sales Channels

    2013-05-09

    jdp-root

    TORONTO: 9 May 2013 — For the first time, satisfaction is notably higher among wireless customers who use online self-service channels for both service and sales issues than among those who use the traditional call centres and in-store channels, according to the JD Power & Associates 2013 Canadian Wireless Total Ownership Experience StudySM released today.

    Key Findings

    • The average reported wireless monthly phone bill is $77, an increase of $9 from 2012.
    • Among the 49 percent of customers with a data package, the average monthly spend is $86 vs. $65 among the 51 percent who do not have a data package.
    • One-half of full-service customers with a smartphone use a mobile application to contact/monitor their carrier regarding service issues.
    • Smartphone market penetration increases to 63 percentage points in 2013, up by 9 percentage points from 2012.

    The study examines wireless customer perceptions of their service; mobile phone (for both traditional mobile phones and smartphone devices); and retail experiences.  Satisfaction is measured in seven factors: network quality; cost of service; account management; offerings and promotions; customer service; handset; and sales process.  Carriers are ranked in two segments, full-service and stand-alone, which are differentiated by the range of products and services offered, as well as the ability of customers to bundle wireless services with other offerings.

    The study finds that satisfaction with the purchase experience is higher among wireless customers who use their carrier’s online self-service options than among those who use the traditional call centre service and in-store customer care options. Overall customer satisfaction with the online sales experience is 737 (on a 1,000-point scale), a 46-point increase from 2012, while satisfaction with online customer care is 699, which is a 14-point improvement from 2012.  Among customers who choose online self-service, 34 percent use their carrier’s online chat feature, a 9-percentage-point increase from 2012.

    “We see a sizable shift in behaviour, with customers opting to use online self-service tools to address issues with their services or device, and overall satisfaction is highest when customers use their carrier’s online chat function,” said Adrian Chung, account director at JD Power & Associates. “It’s important for wireless carriers to continue focusing on improving their website’s functionality in order for customers to benefit from the convenience and timeliness of this service option, which is not only a more cost-effective way for carriers to interact with their customers, but also creates a more positive experience when a problem is encountered.”

    Overall satisfaction improves by 6 index points to 691 in 2013 from 685 in 2012. This increase is primarily due to increases in sales process satisfaction. In the full-service carrier segment, overall satisfaction in 2013 averages 680, compared with 678 in 2012. In the stand-alone segment, satisfaction averages 730, compared with 718 in 2012.  Among stand-alone carriers, the 2013 study includes WIND Mobile, Public Mobile and Mobilicity for the first time.

    Smartphone Market Penetration

    While the incidence of smartphone use in 2013 has increased by 9 percentage points year over year and by 24 percentage points since 2011, the gap in customer satisfaction scores among smartphone manufacturers is narrowing.

    Among smartphone owners, the devices most frequently used are manufactured by Apple (31%), Samsung (22%) and BlackBerry  (22%).

    “Customers own Apple iPhone’s more than any other manufacturer’s device; however, the gap in device satisfaction is narrowing,” said Chung. “We expect this trend to continue as newly introduced devices from Samsung and BlackBerry grow in market share.”

    Wireless Carrier Rankings

    For a second consecutive year, SaskTel ranks highest in customer satisfaction among full-service carriers, with a score of 712, which is a 13-point improvement from 2012. SaskTel performs particularly well in the offerings and promotions; customer service; and sales process factors. Telus Mobility (699) follows SaskTel in the full-service segment rankings.

    Among stand-alone carriers, Koodo Mobile ranks highest in customer satisfaction for a second consecutive year, with a score of 765, improving by 13 points from 2012. Koodo Mobile performs particularly well in offerings and promotions; network quality; and account management. Virgin Mobile (744) follows Koodo Mobile in the stand-alone segment rankings.

    The 2013 study also finds that, on average, wireless customers:

    • 49 percent of customers report having data packages with an average monthly spend of $86.

    • 51 percent of customers who do not have a data package report an average spend of $65 per month.

    • Customers connect to the mobile Web an average of eight times per day and check mobile email an average of 11 times daily. 

    • Customers also send and receive 30 texts in a 48-hour span, on average, compared with 26 in 2012.

    The 2013 Canadian Wireless Total Ownership Experience Study is based on responses from 13,300 mobile phone customers.  The study was fielded in September 2012 and March 2013.

    About JD Power & Associates

    Headquartered in Westlake Village, Calif., JD Power & 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 & Associates is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE:MHP), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power & Associates, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com..

    Media Relations Contacts:

    Gal Wilder; Cohn & Wolfe; Toronto, Canada; (647) 259-3261; [email protected]
    Beth Daniher; Cohn & Wolfe; Toronto, Canada; (647) 259-3279; [email protected]
    John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]

    Follow us on Twitter: @JDPower

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

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  • 2013 Canadian Auto Insurance Satisfaction Study

    Multi-Channel Service Interaction Gains Ground; Price Sensitivity Rises Among Automotive Insurance Customers in Canada

    2013-05-02

    jdp-root

    TORONTO: 2 May 2013 — Mainstream adoption of technology is having a major impact on the way auto insurance customers in Canada interact with their insurance provider, according to the JD Power & Associates 2013 Canadian Auto Insurance Satisfaction StudySM released today.  

    In 2013, the percentage of customers using non-traditional channels, such as a provider’s website, has increased by as much as 7 percentage points from 2012, now accounting for as much as one-third of all customer interactions, depending on the particular region.
     
    Among customers who contact their insurance company, nearly one-half (49%)—including those of agent/broker-based insurers (43%) and direct insurers (57%)—use multiple channels to contact their provider.  

    “An increasing number of consumers are going to the Web for their first point of contact to gather information,” said Jeremy Bowler, senior director of the insurance practice at JD Power & Associates. “Auto insurers in Canada are aware of this major shift and need to continue to enhance their digital presence.”

    Bowler urges auto insurers to enhance their digital capabilities and promote these options, not only so that consumers can research and buy insurance when and where they want, but also so that customers can do the same when self-servicing a policy. 

    The study, now in its sixth year, measures insurance customer experiences with their primary auto insurer in Canada. Customer satisfaction is measured across five factors (in order of importance): interaction; price; policy offerings; billing and payment; and claims. Insurers are ranked in three regions: Ontario/Atlantic; Western (British Columbia; Alberta; Saskatchewan; and Manitoba); and Quebec.

    Auto insurance customers in all three regions are more price sensitive in 2013 than they were in 2012, based on the 2013 study results. 

    “Although overall satisfaction has increased in the Ontario/Atlantic region, the uptick in insurer-initiated premium increases in the Western and Quebec regions has taken a toll on overall satisfaction,” said Lubo Li, senior director of the services and emerging industries division at JD Power & Associates.  

    Regional Rankings:

    Customer satisfaction in the Ontario/Atlantic region has increased by 5 points (on a 1,000-point scale) from 2012, primarily due to flat or stable premiums. Bundling also is up in this region, which means that discounts appear to be bolstering customer satisfaction. Although customers in the Ontario/Atlantic region are the most price sensitive, possibly because there is no crown insurer presence, fewer customers reported premium price increases in 2013. 

    Grey Power ranks highest for a second consecutive year in the Ontario/Atlantic region with a score of 794, followed by Belairdirect (782) and The Personal (780).

    Customer satisfaction has declined by nine points in the Western region from 2012, primarily due to a higher number of insurer-initiated premium increases. Some 27 percent of customers in this region indicated an insurer-initiated increase in 2013, compared with 25 percent in 2012.

    Canadian Direct Insurance ranks highest in customer satisfaction in the Western region for a third consecutive year with a score of 800. BCAA (794) ranks second, and is followed by Co-operators (776).

    The Quebec region, which achieved the highest customer satisfaction score among all regions in 2012, experiences the largest year-over-year decline in 2013 (-25 points). Satisfaction with price (-45 points) and policy offerings (-27 points) significantly decreases from 2012. Among the three regions, a larger percentage of customers in the Quebec region in 2013 also indicate that their insurer initiated a price increase, compared with 2012 (14% vs. 11%, respectively).

    The Personal ranks highest in the Quebec region with a score of 835. Following in the rankings are La Capitale (830) and Promutuel (829).

    What Can Canada’s Auto Insurers Do to Enhance Customer Satisfaction?

    In each region, product offerings need to be competitive within the marketplace, which is where bundling can be very effective. “We see from analysis and our research that continued investment in websites should be a focal point for insurers since it offers an opportunity to provide convenience and efficiency to customers, which can lift satisfaction and hence loyalty,” Bowler said.  

    The study finds that Canada’s auto insurer websites have lower satisfaction [746], in comparison to any other interaction channel—such as agents [818] or call centre representatives [795]. 
    “Insurers that are able to meet the current level of customer expectations related to website usability may be able to trim costs with their call centres—through a reduction in calls volume—and provide efficient service, which can help them realize a return on investment,” said Bowler.

    Customer Satisfaction with Insurance Companies by Region, 2012 vs. 2011
    (based on a 1,000-point scale)

    Region

    Overall Satisfaction in 2013

    Overall Satisfaction in 2012

    Difference

    Ontario/Atlantic

    760

    755

    +5

    Western

    705

    714

    -9

    Quebec

    802

    827

    -25

    Generational Differences across Channels Should Be a Focus

    While younger customers, those in the Gen Y cohort , are currently the most frequent users of websites (34% usage rate), it is notable that online usage is also expected to grow among older customers, such as those in the Pre-Boomer generational groups (10% usage rate). 

    “Pre-Boomers, who comprise about 13 percent of customers, are definitely more apt to want to deal directly with a person, as opposed to conducting activities online. However, there is a desire to transact some activities online,” said Li. “Gathering information is the most frequently reported reason customers visit their insurer’s website.”

    The study finds that Gen Y customers are more apt to purchase a policy directly through an insurer, rather than to purchase a policy through an agent/broker. These customers also tend to be more conscious or sensitive to price when they shop, according to study results. However, similar to older customers, Gen Y customers prefer to speak with a person at a call centre or an agent/broker if they have a more complex issue to consider, such as discussing pricing options. 

    The 2013 Canadian Auto Insurance Study is based on responses from 11,257 auto insurance policyholders. The study was fielded from February 20, 2013 to March 25, 2013.

    About JD Power & Associates

    Headquartered in Westlake Village, Calif., JD Power & 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 & Associates is a business unit of McGraw-Hill Financial.

    About McGraw Hill Financial

    McGraw Hill Financial (NYSE:MHP), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power & Associates, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com..

    Media Relations Contacts:

    Gal Wilder; Cohn & Wolfe; Toronto, Canada; (647) 259-3261; [email protected]
    Beth Daniher; Cohn & Wolfe; Toronto, Canada; (647) 259-3279; [email protected]
    John Tews; JD Power & Associates; Troy, Mich.; (248) 680-6218; [email protected]

    Follow us on Twitter: @JDPower

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

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    Download PDF Download Study PDF

     

  • 2013 U.S. Insurance Shopping Study

    Fewer Customers Are Shopping Auto Insurance; However, Nearly One-Half of Those Who Do Shop Switch Insurers

    2013-04-29

    jdp-root

    WESTLAKE VILLAGE, Calif.: 29 April 2013 — While the percentage of auto insurance shoppers has reached a six-year low, the percentage of those shoppers who select a new insurer is at a six-year high, according to the JD Power and Associates 2013 U.S. Insurance Shopping StudySM released today. 
    Key Findings
    • Overall customer satisfaction with the auto insurance purchase experience averages 828 for the third consecutive year.
    • 23 percent of auto insurance customers shopped for a new insurer in the past 12 months.
    • Insurer websites are becoming increasingly important in the new-buyer purchase experience, accounting for 24 percent of the purchase experience.

    The study, now in its seventh year, examines insurance shopping and purchase behavior and overall satisfaction among customers who recently purchased insurance across three factors (in order of importance): price, distribution channel, and policy offerings. 

    Among the 23 percent of customers who shopped auto insurance in the past 12 months, 45 percent ultimately switched insurers–the highest rate since the study first began measuring insurance customer retention in 2008. By comparison, the proportion of insurance customers who shop has decreased from a high of 33 percent in 2011, while the switching rate among shoppers has steadily increased from a low of 33 percent in 2010.
    The decrease in shopping behavior comes at a time when overall customer satisfaction with auto insurance companies has improved to an all-time high of 804 (on a 1,000-point scale) in 20121.  Overall new-buyer satisfaction with the auto insurance shopping experience averages 828 for the third consecutive year, following a three-year decrease from 858 in 2008.
     “Unlike many other industries we measure, policy retention rates for personal auto insurance in the U.S. market average 90 percent,” said Jeremy Bowler, senior director of the global insurance practice at JD Power and Associates. “With customer satisfaction generally high and climbing, this industry has witnessed fewer customers shopping, but those who are shopping are serious about switching insurers.”
    Insurance shoppers are very cost-sensitive, and their satisfaction is less influenced by how they purchase their policy–from a local agent, a call center or online—placing more importance on price in their purchase experience when selecting a new insurer.
    “Insurance companies need to be creative in order to differentiate themselves in this very competitive market,” said Bowler. “Providing customers the freedom to choose their preferred contact channel, providing and clearly communicating discount options and a variety of coverage options are just a few ways insurers can appeal to shoppers.”
    The study finds that the importance of the insurer website in the new-buyer purchase experience has increased to 24 percent in 2013, up from 22 percent in 2012. The call center representative is less influential among customers selecting a new insurer in 2013 (20%), compared with 2012 (22%), while the local agent remains as influential as in previous years.
    “As more shoppers are buying their insurance online, it’s vital that insurance companies provide a high-quality and effective Web experience, whether customers are accessing the site on a desktop computer, a tablet or a smartphone,” said Bowler. “Customers want a site that’s easy to navigate, allows them to get a quote and even complete the purchase without having to speak with an agent or call center representative. If they’re not able to get that from one insurer’s website, they will quickly move to the next insurer’s site.”
    Insurance Customer Satisfaction Rankings
    Erie Insurance ranks highest among auto insurers in providing a satisfying purchase experience with a score of 854. Erie Insurance performs particularly well in all three factors. Rounding out the five highest-ranked insurers are Ameriprise (846); Amica Mutual and Liberty Mutual in a tie (845 each); and State Farm (843).
    The 2013 U.S. Insurance Shopping Study is based on responses from more than 16,900 shoppers who requested an auto insurance price quote from at least one competitive insurer in the past 12 months and includes more than 50,000 unique insurer evaluations. The study was fielded in January 2013.
    [1] Source: JD Power and Associates 2012 U.S. Auto Insurance StudySM

    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, to be renamed McGraw Hill Financial (subject to shareholder approval), is a powerhouse in credit ratings, benchmarks and analytics for the global capital and commodity markets. Leading brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power and Associates, McGraw-Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 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) 680-6218; [email protected] 

    Follow us on Twitter: @JDPower

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

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