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  • 2013 Physician Manufacturer Experience Study—Oncology

    Evidence that Relationship Marketing Still Matters in Oncology Pharmaceutical Sales

    2013-04-25

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    WESTLAKE VILLAGE, Calif.: 25 April 2013 — Although the role of pharmaceutical sales representatives has changed in recent years, physicians continue to perceive the sales representative as the leading influence on their relationship with biopharmaceutical companies, according to the JD Power and Associates 2013 Physician Manufacturer Experience Study—OncologySMreleased today. 

    Key Findings

    • Overall physician satisfaction with biopharmaceutical companies for oncology averages 761 on a 1,000-point scale.
    • Physicians indicate that 71 percent, on average, of their interaction with sales representatives focuses on treatments and products, as opposed to conversations about family, sports or other non-business-related topics.
    • A key point of differentiation among the highest-ranked manufacturers is their perceived commitment to addressing patient needs and working well within the medical community. Together, these factors account for roughly one-third of the overall physician experience, nearly as much as the importance weight of the perceptions of the sales reps.

    The first in a series of studies on physician satisfaction with biopharmaceutical manufacturers, this study examines oncologist and hematologist satisfaction based on the following factors: sales representative interactions; contributions to advancing medical care; medical marketing practices; patient education programs and materials; and service process.

    Face-to-face detailing and diminished sponsored events are not the only changes in the world of pharmaceutical sales. Physicians are no longer gatekeepers in the same way they once were—more often working now as salaried employees within large delivery systems—and payers have greater influence on what medicines and services can be prescribed. Manufacturers have responded by developing more programs and solutions for patient assistance and medical staff education, yet these are often still set up through physicians.   

    Despite the shift toward other kinds of marketing activities, the relationship with sales representatives is still what most influences physician satisfaction. Physicians want the sales rep to anticipate their needs and offer proactive solutions to clinical questions and needs. Sales representative interactions is the most influential factor driving overall physician satisfaction with drug companies, slightly more impactful than contributions to advancing medical care.

    “Even though there is a lot of questioning about the traditional sales detail approach, the sales rep continues to be a very influential broker of information and resources,” said Rick Millard, senior director of the healthcare practice at JD Power and Associates. “Physicians value having a personalized service relationship that goes beyond the bonds that can be created working through other marketing channels.”

    Millard also commented that the 2008 PhRMA Code on Interactions with Healthcare Professionals has fundamentally transformed how biopharmaceutical companies develop and sustain customer relationships with physicians. 

    “Despite the restrictions on the types of encounters that may occur, physicians continue to value sales reps and to rely on them,” said Millard. “In many ways, the regulations have helped strengthen the impact of sales reps because it has made it a more explicitly professional relationship.”

    The study finds that the PhRMA Code doesn’t mean physicians and sales reps spend all of their time strictly talking business; they still spend about one-fourth of their time building their relationship and talking about non-prescription-related topics, such as family and sports.   

    While there are consistently high satisfaction scores in the sales representative interactions factor across companies, satisfaction with how companies contribute to medical care varies. A company that physicians value for scientific contributions may not necessarily be a service leader as well. 

    Some companies are distinguished by their products and innovation, while others differentiate themselves through the service component. Advancing medical care involves more than scientific evaluations of efficacy or effectiveness: it considers the relevance of products for cancer care and whether they meet an important need. One way that manufacturers advance medical care is by working effectively within the professional community of physicians. 

    Participation in clinical trials is another way to strengthen bonds between physicians and manufacturers.  

    “Physicians want to be part of advancing medicine and developing new products, and they’re more satisfied when manufacturers enable them to participate in that process,” said Millard.

    Pharmaceutical Manufacturer Satisfaction

    Genentech, Inc.1 ranks highest in physician satisfaction with biopharmaceutical companies in the therapeutic category of oncology with an index score of 773 on a 1,000-point scale. Genentech performs particularly well in the contributions to advancing medical care and medical marketing practices factors. Genentech is followed in the rankings by Novartis (769) and Bristol-Myers Squibb (764).  

    Overall physician satisfaction with biopharmaceutical companies averages 761.

    The 2013 Physician Manufacturer Experience Study—Oncology is based on responses from 450 oncologists and hematologists, who each evaluated up to five manufacturers, collected between March and April 2013.

    1Genentech, Inc., is a member of the Roche Group

    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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  • 2013 U.S. Automotive Emerging Technologies Study

    Owners Cite Fuel Economy-Related Technologies and In-Vehicle Smartphone Integration as Features They Are Interested in Purchasing in Their Next Vehicle

    2013-04-25

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    WESTLAKE VILLAGE, Calif.: 25 April 2013 — Vehicle owners have a high interest in technology related to fuel economy, device/application linking for smartphones, wireless connectivity, natural language voice activation and a variety of infotainment features for their next vehicle, according to the JD Power and Associates 2013 U.S. Automotive Emerging Technologies StudySM released today.
    The study measures vehicle owner interest and purchase intent for emerging automotive technologies, both before and after the market price is revealed. Among vehicle owners who say they “definitely would” or “probably would” purchase these features in their next vehicle, the highest percentage select the following five technologies both pre-price and at market price: 
    Pre-Price Feature Interest
    Device/Application link 1 82%
    Fuel economy indicator 79%
    Active shutter grille vents 76%
    Natural language voice activation 74%
    Next generation head-up display (HUD) 74%
    Market Price Feature Interest
    Fuel economy indicator (at $50) 72%
    Device/Application link (at $250)1 67%
    Active shutter grille vents (at $150) 61%
    Wireless connectivity system (at $300) 58%
    Surround-view camera system (at $550) 48%
    1Device/Application link is only asked of smartphone owners
    Energy Technologies Fuel Vehicle Owner Interest
    Of the 22 technology features included in the 2013 study, fuel economy indicator and active shutter grille vents–both energy-related technologies—capture among the highest interest from vehicle owners. Fuel economy indicator is second highest in pre-price feature interest, followed by active shutter grille vents. In recent years, automotive brands have rolled out fuel economy assisting technology, which has helped increase familiarity with the technology and its benefits. The active shutter grille vents feature is currently available on select domestic vehicles. Among owners who recently purchased from one of the domestic makes that offers a model with active shutter grille vents, 83 percent indicate pre-price interest in the feature, which is 7 percentage points higher than the study average at 76 percent. 
    Not unexpectedly, purchase interest declines across all features when a price is introduced. However, fuel economy indicator and active shutter grille vents have among the lowest drops in interest once price is introduced (decreasing 7 percentage points and 16 percentage points, respectively), compared with other technology features examined in the study. In part, fuel economy indicator and active shutter grille vents maintain vehicle owner interest because of their lower relative pricing at $50 and $150, respectively. 
    “Vehicle owners are continually aware of rising fuel costs and the need for better fuel economy. As they have come to understand the benefits of new automotive technology, they are increasingly interested in those that allow them to manage their fuel consumption with greater efficiency and help better manage their cost at the pump,” said Mike VanNieuwkuyk, executive director of global automotive at JD Power and Associates.
    Smartphones Getting Smarter–In-Vehicle Connectivity Must Follow
    During the past five years, there has been rapid adoption of smartphones. Exactly 67 percent of vehicle owners have a smartphone, while ownership of traditional mobile phones has plummeted to 28 percent in 2013 from 82 percent in 2007, when JD Power began measuring ownership of traditional phones. Smartphone technology has revolutionized the way owners have engaged in countless personal and professional activities from their vehicle.
    Vehicle owners have high expectations for their smartphone to easily integrate with the system in their vehicle. They want to use their smartphone in-vehicle with the same ease and functionality they have become accustomed to in their personal or business life. However, a key challenge is that many owners keep their vehicles for more than five years, and software upgrades for device linking technology lags the introductions of new smartphones.
    “Automakers have an important opportunity to gain a competitive advantage by working side by side with smartphone and application developers to provide a seamless smartphone experience for in-vehicle control of GPS/mapping, music, weather, search tools, travel and more,” said  VanNieuwkuyk. “These connections to smartphone applications need to be robust, affordable and simple to access and use in a vehicle environment.”
    In the 2013 study, 82 percent of vehicle owners with smartphones cite pre-purchase interest in an in-vehicle device/application link that would connect their smartphone to their vehicle’s infotainment system, compared with 78 percent in 2012. Owners want their infotainment system powered by their smartphone to keep their vehicle technology up to date. The physical proximity of one’s smartphone continues to be a concern, as vehicle owners struggle with the limitations of hands-free technology, generating interest in natural language voice activation systems.
    Vehicle owners in Generation Y (born 1977-1995) are more likely to be interested in device application linking technology at every price level, but the largest interest increases from 2012 are among Early Boomers, those who were born between 1947 and 1953 (increasing 7 percentage points pre-price; 14 percentage points at $250), which indicates high potential to purchase this technology. Pre-price purchase interest is equally strong for both men and women and is highest among owners of compact sporty cars, large premium cars and large premium SUVs.
    Autonomous Driving—Gaining Small Interest and Trust

    Fully autonomous driving is still a relatively new concept. While market price interest rises slightly (21% in 2013 vs. 20% in 2012), overall acceptance has room to grow. In recent years, various semi-autonomous driving modes have been implemented in vehicles, particularly those in premium segments. There is greater interest in semi-autonomous modes such as emergency braking and steering (40%) and automatic park assist (32%) than in a fully autonomous mode.

    “Fully autonomous driving is slowly working its way into the mindset of vehicle owners by way of those who utilize semi-autonomous driving features with comfort and confidence,” said VanNieuwkuyk. “While it will take more time for vehicle owners to embrace fully autonomous driving, the gateway for acceptance is underway given relatively strong interest in many semi-autonomous features.”
    Men show high interest at market price for low-speed collision avoidance (58%), emergency braking and steering (42%) and fully autonomous driving (23%). Younger owners are more interested in emerging driving technologies, with Generation X (born 1965-1976) having the highest market price interest in low-speed collision avoidance (59%) and Generation Y having the highest market price interest for emergency braking and steering (44%).
    Research conducted  by JD Power’s Consumer Insight and Strategy Group  to track social media activity regarding automotive energy, device/application linking and autonomous driving technology finds: 
    • Consumers believe that vehicle infotainment systems are inferior to their smartphones and tablets and want more mobile apps and control of software updates to integrate with their vehicle.
    • Energy technology mentions on social media have shown a notable increase within the past year, as consumers have placed a heightened emphasis on saving fuel. However, fuel economy-conscious vehicle owners seem to struggle with the unfamiliarity of stop/start technology and many social media mentions focus on how to turn this feature off altogether.
    • Interest in fully or semi-autonomous driving features primarily originates from wanting to have the latest technology, with the safety benefit being an added bonus. However, consumers still want the responsibility of driving their own vehicle until these technologies fully gain consumer confidence and trust.
    The 2013 U.S. Automotive Emerging Technologies Study is based on responses from 16,758 vehicle owners. The study was fielded in March 2013. The study includes 22 primary technologies, each with related secondary technologies such as; analyses on infotainment/connectivity safety- and energy-related emerging features; a key emerging technologies packaging exercise; an emerging technologies adoption calculator; and an expanded psychographic and lifestyle-driven analysis.
     

    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:

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

    Follow us on Twitter: @JDPower

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

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  • 2013 U.S. Tablet Satisfaction Study—Volume 1

    As Tablets Become More Popular, Sharing among Household Members Has Significant Impact on Future Brand Selection

    2013-04-25

    jdp-root

    WESTLAKE VILLAGE, Calif.: 25 April 2013 — As more households continue to adopt tablets, the act of sharing these devices has substantial influence on the purchase-decision process and on future brand selection, according to the JD Power and Associates 2013 U.S. Tablet Satisfaction StudySM—Volume 1 released today.
    Key Findings
    • Tablet owners who also have a smartphone spend 36 percent more time browsing the Internet on their tablet than on their smartphone.
    • Twenty-seven percent of tablet owners say they are likely to buy a new tablet within the next 12 months, compared with 37 percent in 2012.
    • Ninety-four percent of highly satisfied tablet owners are likely to purchase additional consumer electronic devices from the same manufacturer.

    Now in its second year, the study measures tablet owner satisfaction among those who have owned their tablet for one year or less. Satisfaction is measured across five key factors (in order of importance): performance (26%); ease of operation (22%); styling and design (19%); features (17%); and cost (16%).

    The study finds that 51 percent of tablet owners share their device with at least one other person. While the incidence differs across brands, tablet manufacturers may benefit from promoting shared usage as a selling point, as satisfaction increases when more people use one tablet device. When a tablet is only used by one person, overall satisfaction is 824 (on a 1,000-point scale), 28 points lower than when a tablet is shared by four or more persons (852).
    “It is somewhat unexpected to find that although 64 percent of tablet owners were the sole decision-maker involved in their device purchase, many of them share their tablet with someone else,” said Kirk Parsons, senior director of telecommunications services at JD Power and Associates. “It is important that manufacturers understand this dynamic and try to provide an exceptional experience for all users since this may improve future business prospects, as high satisfaction through sharing a tablet device may result in owners handing down their tablet to a family member or friend, and the likelihood of repurchasing a new tablet from the same brand and running the same operating system increases.”
    In fact, 41 percent of tablet owners who share their device among four or more persons indicate they “definitely will” repurchase their next tablet from their current tablet manufacturer, compared with 28 percent among those who do not share their device with any other person. This shared usage is not limited to adults. Nearly one-half (46%) of tablet owners have children who also use their tablet.  Among owners who indicate they share their device with children, 30 percent have downloaded education apps, compared with 16 percent among those who do not share their device with children.
    Tablets are also being used for business activities, with 20 percent of owners indicating they use their tablet for this purpose. Owners of tablets that originally evolved from e-readers are not as likely to use their device to engage in business activity. While tablet owners are beginning to engage in business activities with their device, just 31 percent of employers contribute to the price or reimburse their employees for the entire tablet purchase price, a 3-percentage-point decrease from 2012. This may be an indication that some companies may be promoting a “bring your own device” (BYOD) strategy. 
    For the second consecutive study, Apple ranks highest among manufacturers of tablets in overall owner satisfaction. Apple achieves a score of 836 and performs well in four factors: performance; ease of operation; styling and design; and features. Amazon (829) closely follows Apple in the rankings and performs particularly well in the cost factor. 
    The 2013 U.S. Tablet Satisfaction Study—Volume 1 findings are based on experiences evaluated by 1,857 tablet owners. The study was fielded in February 2013.
     

    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:

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

    Follow us on Twitter: @JDPower

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

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  • April 2013 Automotive Forecasting Update

    Solid New-Vehicle Selling Rate in April Driven by Replacement Demand

    2013-04-19

    jdp-root

    WESTLAKE VILLAGE, Calif.: 18 April 2013 — The new-vehicle retail sales pace in April remains in a healthy holding pattern as buyers continue to replace aging vehicles, 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 April are projected to come in at 1,029,000 vehicles, which represent a seasonally adjusted annualized rate (SAAR) of 12.1 million units and keep the rate stable at or above 12 million units for a third consecutive month. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.
    U.S. Retail SAAR–April 2012 to April 2013
    (in millions of units)

    According to JD Power and Associates PIN data, strong sales are being complemented by increasing prices. When comparing year-to-date data for 2013 with the same period last year, consumer-facing transaction prices are up 3.1 percent, which equates to an extra $13.2 billion spent on new vehicles through the first 4 months of the year ($113 billion in total). The average price of used vehicles sold at franchised dealerships has also risen 3.8 percent in 2013 (YTD) from 2012 (YTD).
    “The strong used-vehicle prices we’re seeing are supporting new-vehicle demand and are reflective of the general pricing discipline being exhibited by new-vehicle manufacturers,” said John Humphrey, senior vice president of the global automotive practice at JD Power and Associates. “Industry sales are also benefiting from an increase in the number of maturing vehicle leases, a trend that will continue throughout 2013.”
    PIN forecasts that overall lease maturities will rise by 447,000 leases (+35%) to a total of 1.73 million maturities for the full year of 2013, compared with 2012.
    Total Light-Vehicle Sales
    Total light-vehicle sales in April 2013 are projected to reach 1,312,100 units, a 7 percent increase from April 2012. The selling rate is expected to remain above 15 million units for the sixth consecutive month. The forecast for fleet sales is 282,000 units, which is slightly stronger than in April 2012, representing a 22 percent share of total sales. 
    JD Power and LMC Automotive U.S. Sales and SAAR Comparisons

    1Figures cited for April 2013 are forecasted based on the first 11 selling days of the month.

    2The percentage change is adjusted based on the number of selling days in the month (25 days in April 2013 vs. 24 days in April 2012).

    Sales Outlook 
    The outlook for vehicle sales in 2013 continues to improve. LMC Automotive is raising its 2013 U.S. forecast for total light-vehicle sales to 15.4 million units from 15.3 million units. The retail light-vehicle forecast continues to round to 12.5 million units, although the majority of the increase in the forecast is on the retail side of the market.
     
    “The irrepressible buying behavior of consumers is driving auto sales growth in 2013, as consumer spending remains remarkably stronger than the economy suggests it should be,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “If the current favorable trend in the stock markets and housing continues throughout the year, the automotive market may be poised for a breakthrough performance.”
     
    North American Production
    North American light-vehicle production in the first quarter of 2013 is up just 1 percent, compared with the same period in 2012. Year-over-year production in the United States leads the region, with a 3 percent increase on strong gains from Ford, Nissan and Volkswagen. Production volume in Mexico is up 2 percent, while Canadian vehicle production in the first quarter is down by 9 percent, as all manufacturers, with the exception of Ford, had lower production volume in the first quarter of 2013 than in the same period of 2012. 
    Vehicle inventory levels in early April fall back to a 60-day supply, compared with 64 days in March 2013. Overall, there are nearly 3.2 million units currently in inventory, as the market heads into the peak spring/summer selling months. Car inventory began the month with a 56-day supply (previously 61 days) and trucks with a 64-day supply (previously 68 days).
    LMC Automotive’s forecast for North American production is unchanged at 15.9 million units for 2013, an increase of 3 percent from 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, 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.

    About LMC Automotive

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

    Media Relations Contacts:

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

    Follow us on Twitter:@JDPower

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

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  • 2013 Auto Claims Satisfaction Study

    Auto Insurance Claims Satisfaction Declines as Out-of-Pocket Expenses Increase

    2013-04-18

    jdp-root

    WESTLAKE VILLAGE, Calif.: 18 April 2013 — Satisfaction with the auto claims experience declines in early 2013, as claimants indicate paying more to have their vehicle repaired, according to the JD Power and Associates 2013 Auto Claims Satisfaction StudySM—Wave 2 released today.
     
    Key Findings
    • Overall satisfaction with the auto insurance claims process dips to 850 in Wave 2 from 861 in Wave 1.
    • Claimants pay an average of $499 out of pocket for repairs, compared with $469 in 2012.
    • Vehicles repaired at a body shop in an insurer’s dedicated repair network are repaired more than one day faster than those repaired at an out-of-network shop.
     
    Overall customer satisfaction has declined by 11 points to 850 on a 1,000-point scale, compared with Wave 1. Additionally, out-of-pocket expenses, such as the deductible and vehicle rental, have increased to an average of $499, up from $469 in Wave 1 of the study.
    “There is a seasonal trend in claimant satisfaction, which declines significantly during the winter months,” said Jeremy Bowler, senior director of the insurance practice at JD Power and Associates. “When consumers have an accident and need to repair their vehicle around the holidays, it’s an inconvenience, and road conditions tend to batch accidents, causing volume peaks for the repair industry. Furthermore, for those claimants who incur personal out-of-pocket expenses, having to dip into their holiday savings to pay for repairs is frustrating.”
    The study also finds that appraisal and settlement times are taking longer. On average, claimants wait 3.3 days for an insurance appraisal, up from 2.9 days in Wave 1, while settlements take an average of 6.6 days, up from 5.8 days in Wave 1. Settlement payments are also taking longer, averaging 14.9 days in Wave 2, compared with 13.9 days in Wave 1.
    Claimants who use a body shop in their insurance company’s dedicated repair network get their vehicle back 1.3 days faster, on average, than those who use an out-of-network shop (8.6 days vs. 9.9 days, respectively). Further, claimants who have their vehicle repaired at a dealership wait an average of 11.9 days, compared with 11.0 days for those who have repairs at an independent or chain shop. 
    “While using a shop that’s in the insurer’s network may limit where claimants can take their vehicle for repairs, it generally speeds up the repair process,” said Bowler. “The insurance companies may have priority at their network shops, where individual claimants may find themselves at the back of the line at an independent shop.”  
    JD Power and Associates offers the following tips for auto insurance customers when filing a claim: 
    • In the event of a multiple-vehicle accident, always get a copy of the police report. Call 911 only if someone has been seriously injured, but do call the police for any incident that results in more than minor damage to a vehicle. Ask the police to file an accident report or at least an incident report, so you’ll have something to show your insurance company.
    • Contact your insurer as soon as possible after the damage has been incurred. Some insurers have operators available around the clock, so, if possible, call from the location where the damage occurred. In any event, report the incident within 24 hours of occurring. Even when the other party is at fault, notify your insurer first, who will be more likely to look after your interests than the other party’s insurer will. 
    • Write down the details of the incident as accurately as you can as soon as possible. The more accurate your report of what happened, and the more consistent you are in repeating it, the better. Keep records of all calls you make and receive regarding the incident. Take photos of the damage to your vehicle.
    • If you believe your adjuster is not treating you fairly, or if you have other problems, contact your agent directly, as it will be in the agent’s best interest to make sure that you’re well taken care of.
    The study measures customer satisfaction with the claims experience for auto physical damage loss. Depending on the complexity of a claim, a claimant may experience some or all of the following factors measured in the study: first notice of loss; service interaction; appraisal; repair process; rental experience; and settlement. Settlement is the most important factor in overall satisfaction among both total loss and repair claimants.
    The 2013 U.S. Auto Claims Satisfaction Study—Wave 2 is based on 2,878 responses from auto insurance customers who settled a claim within the past 6 months. The study excludes claimants whose vehicle only incurred glass/windshield damage or was stolen, or who only filed roadside assistance claims. Wave 2 of the study was fielded between November 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, 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]
    Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

    Follow us on Twitter: @JDPower

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

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  • 2013 U.S. Retail Banking Satisfaction Study

    Big Banks Make Significant Improvements, Closing the Customer Satisfaction Gap with Regional and Midsize Banks

    2013-04-18

    jdp-root

    WESTLAKE VILLAGE, Calif.: 18 April 2013 — Overall customer satisfaction with retail banks improves significantly from 2012, largely a result of improvements made by big banks1, according to the JD Power and Associates 2013 U.S. Retail Banking Satisfaction StudySM released today.

    The eighth annual customer satisfaction study is the longest-running and most in-depth survey of the retail banking industry, with feedback from more than 50,000 consumers covering various aspects of their banking experience. The study measures satisfaction in six factors: account information; channel activities; facility; fees; problem resolution; and product offerings. Banks are ranked based on overall customer satisfaction in each of the following regions: California, Florida, Mid-Atlantic, Midwest, New England, North Central, Northwest, South Central, Southeast, Southwest and Texas.

    After several years of relatively minor increases in overall satisfaction scores, customer satisfaction in 2013 (763 on a 1,000-point scale) has increased by 10 index points from 2012. The largest increase in satisfaction is in the big banks segment, which has improved in 2013 by 16 points from 2012 (759 vs. 743, respectively). While as a group big banks have historically trailed smaller banks in satisfying customers by a fair margin, the satisfaction gap between big banks vs. midsize (785, up 4 points from 2012) and regional (760, up one point from 2012) banks has narrowed year over year.

    “While big banks have traditionally had an advantage over smaller banks in terms of convenience of branch locations and technology, their disadvantage was often in the personal service customers desired,” said Jim Miller, senior director of banking at JD Power and Associates. “Many of the big banks have made great strides in listening to what their customers are asking for: reducing the number of problems customers encounter and, more importantly, improving satisfaction with fees. Consumers today are likely to find banks of all sizes offering the level of convenience, technology and personal service they have come to expect.”

    During the past several years, many banks have eliminated free checking and implemented new fees, which has often negatively impacted overall satisfaction. The study finds that as fees have begun to stabilize and banks have helped their customers better understand their fee structures, satisfaction in this area has begun to rebound, and is up by 14 points this year from 2012. One-third (33%) of customers say they “completely” understand their fee structure, compared with 26 percent in 2012. Fees also have been a major source of customer problems and complaints. The stability in fees, coupled with banks placing more emphasis on preventing problems, has lowered the proportion of customers experiencing a problem by 3 percentage points year over year, to 18 percent in 2013.

    While customers appreciate the personal service they receive at their branch, such transactions are slowly declining, while the numbers of online, ATM and mobile banking transactions are increasing. This trend is especially pronounced in mobile banking, where usage has increased to 17 percent, up from 11 percent in 2012, and the average number of transactions per customer has increased to 51 per year, up from 29 in 2012. As banks roll out envelope-free ATM deposits and deposits by mobile phone, customers are finding it easier to handle routine transactions without needing to visit their branch. 

    “Successful banks are not pushing customers out of the branch, but rather providing tools that make it easier to conduct their banking business when and where it is convenient for them,” said Miller. “Customers are quickly adopting mobile banking, making it a critical service channel for banks, not just a ‘nice to have’ option.”

    JD Power and Associates offers the following tips for consumers to keep in mind when shopping for a new bank:

    • Make sure to review your current bank’s fee structure, as well as those of its competitors, to ensure the services and products you’re receiving are those that best meet your needs. 
    • Think about how you want to conduct business with your bank. If personal service is most important to you, how are you treated when you walk into a branch? If you prefer to deal with your bank remotely, what type of mobile and online tools do they offer? With a little research, you can find banks that offer the best of both worlds. 
    • Evaluate the products and extra services you receive from your bank–including discounts or rewards programs–to ensure they are ones that meet your needs.
    • Consider how often you experience problems with your bank, including how well your bank resolves problems and complaints. 
    • Consider changing banks if you are not satisfied with the service you currently receive. Switching banks may be easier than you think, and most banks have staff dedicated to supporting new customers who have recently switched.

    The study measures satisfaction among banks in 11 regions. Study results by region are:

    California Region: Rabobank ranks highest in the California region with a score of 825, and performs particularly well in the product offerings, facility, account information, fees and channel activities factors. California Bank & Trust (792) and U.S. Bank (780) follow in the rankings.

    Florida Region: TD Bank ranks highest in the Florida region with a score of 803, performing particularly well in the facility factor. Following TD Bank in the rankings are Regions Bank (796) and Chase and PNC Bank in a tie (794 each).

    Mid-Atlantic Region: Beneficial Mutual Savings Bank ranks highest in the region with a score of 839, and performs particularly well in the product offerings, account information and channel activities factors. Union First Market Bank (836) and Northwest Savings Bank (816) follow in the rankings.

    Midwest Region: Chase ranks highest in the region with a score of 799, and performs particularly well in the product offerings, facility and account information factors. Bank Mutual (793) and Regions Bank (790) follow in the rankings.

    New England Region: Bangor Savings Bank ranks highest in the region with a score of 831, and performs particularly well in the product offerings, fees, and channel activities. Eastern Bank (818) and Rockland Trust Co. (814) follow in the rankings.

    North Central Region: With a score of 814, Huntington National Bank ranks highest in the region, performing particularly well in the account information, fees and channel activities factors. Following in the rankings are Flagstar Bank (807) and 1st Source Bank (802).

    Northwest Region: Banner Bank ranks highest in the region with a score of 817, and performs particularly well in the account information, and fees. Umpqua Bank (815) and Columbia State Bank (799) follow in the rankings.

    South Central Region: Arvest Bank ranks highest in the region with a score of 820, performing particularly well in the product offerings, facility, account information and channel activities factors. Following in the rankings are PNC Bank (802) and Trustmark National Bank (795).

    Southeast Region: First Citizens Bancorp ranks highest in the region with a score of 836, and performs particularly well in the product offerings, fees and channel activities factors. United Community Bank (835) and First Citizens Bancshares (819) follow in the rankings.

    Southwest Region: With a score of 819, Arvest Bank ranks highest in the region, performing particularly well in the product offerings, facility, account information, channel activities and problem resolution factors. BancFirst (812) and MidFirst Bank (804) follow in the rankings.

    Texas Region: Frost National Bank ranks highest in the Texas region with a score of 855, and performs particularly well in the product offerings, account activities, fees, account information and facility factors. Amegy Bank (814) and Chase (795) follow in the rankings.

    The 2013 U.S. Retail Banking Satisfaction Study is based on responses from nearly 52,000 retail banking customers of more than 120 of the largest banks in the United States regarding their experiences with their retail bank. The study was fielded in January and February 2013.

    For more information, view retail banking satisfaction rankings at JDPower.com. 

    1 Big banks are defined as the six largest financial institutions based on total deposits as reported by the FDIC, averaging $180 billion and above. Regional banks are defined as those with between $180 billion and $33 billion in deposits. Midsize banks are defined as those with between $33 billion and $2 billion in deposits.

    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.

    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 Australia Wireless Network Quality Study

    The Gap in Network Quality Performance among Wireless Carriers Narrows as Expansion of 4G Technology Continues to Increase across the Country

    2013-04-17

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    WESTLAKE VILLAGE, Calif.: 17 April 2013 — As the wireless services industry grows increasingly competitive and 4G service becomes more prevalent, the gap in network quality performance between the highest- and lowest-ranked carriers has narrowed compared with 2012, according to the JD Power and Associates 2013 Australia Wireless Network Quality StudySM released today.

    Now in its second year, the study measures the most recent usage activities among wireless customers in three dimensions that impact network performance: calling, messaging and data.  Overall network performance is based on 10 problem areas that impact 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, where a lower score reflects fewer problems and better network performance. 

    The study finds that the variation in network quality performance among wireless carriers at the industry level is much smaller in 2013 than in 2012. While network quality performance among carriers still varies at the state level, the gap between the highest- and lowest-ranked carriers for the overall industry has decreased to only 7 PP100 in the 2013 study from 11 PP100 in the 2012 study.

    “As carriers continue to invest heavily in infrastructure upgrades and improvements, the differences in their network performance has truly resonated with customers,” said Kirk Parsons, senior director of wireless services at JD Power and Associates. “The expansions in 4G coverage will become increasingly important as carriers continue to roll out next-generation technologies and services.”

    As observed in other countries that deploy 4G technology, overall network quality performance tends to improve, most notably in data-related problems with slow connection speeds. In Australia, there is a similar impact, as the overall PP100 score has decreased by 3 PP100 from 2012, partially because of the increase in 4G-based handsets. For example, 4G smartphone customers overall experience 12 PP100, compared with 13 PP100 among 3G customers. On average, 4G smartphone customers experience significantly fewer issues with data, compared with 3G customers (17 PP100 vs. 21 PP100, respectively), and particularly with issues related to slow mobile Web (16 PP100 vs. 20 PP100, respectively).

    “It’s very interesting to see the stark performance differences between the newest generation of network technology, 4G, and other network services that were the first offerings of high-speed data centric devices based on 3G marketed devices in 2011,” said Parsons. “With the network advantages of using 4G technology, in terms of spectrum efficiencies and increases 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.”

    More importantly, the deployment of 4G networks may result in greater customer lifetime value. In fact, overall satisfaction with wireless service among 4G customers is substantially higher than among 3G customers (7.2 vs. 7.1, respectively, on a 10-point scale). Additionally, 4G customers are also notably more loyal to their carrier, with only 16 percent saying they “definitely will” or “probably will” switch their carrier within the next 12 months, compared with 22 percent of 3G customers.

    For the second consecutive year, Telstra has the fewest customer-reported problems (9 PP100) in all 10 network quality problem areas, compared with the study average. Telstra also performs particularly well in call quality issues, such as audio problems, and messaging-related issues, such as transmission failures and late text messages.  

    Optus and Virgin Mobile follow Telstra in the rankings, each at 11 PP100. Optus performs particularly well in the data quality dimension, while Virgin Mobile performs well in the messaging quality dimension.

    The 2013 Australia Wireless Network Quality Study also finds the following usage trends among wireless customers:

    • On average, wireless customers make/receive nine calls within a 48-hour period, compared with 15 calls per 48-hour period in 2012.
    • On average, smartphone customers continue to experience more problems than do traditional handset customers (12 PP100 vs. 9 PP100, respectively). The largest gaps are in data-related areas, in which problem rates among smartphone customers average 11 PP100 more than among traditional handset device customers.
    • Average problem rates are lowest among wireless customers in the South Australia and Queensland states (9 PP100 each), and highest among wireless customers in Western Australia (13 PP100). 

    The 2013 Australia Wireless Network Quality Study is based on responses from more than 2,000 wireless customers across all Australia states and territories. The study was fielded in February 2013.

    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:

    John Tews; JD Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
    Derek Evans; Blackie McDonald Communication Group; North Sydney, Australia; 61-2-8907-4900; [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 U.S. Interior Paint Satisfaction Study

    Application and Retail Staff Are the Most Important Drivers of Customer Satisfaction among Paint Customers

    2013-04-16

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    WESTLAKE VILLAGE, Calif.: 16 April 2013 — Application drives customer satisfaction with paint brands, while availability and courtesy of staff drives customer satisfaction with paint retailers, according to the JD Power and Associates 2013 U.S. Interior Paint Satisfaction StudySM released today.

    The study measures customer satisfaction with both interior paint brands and the retailers where the paint was purchased. Satisfaction with paint brands is based on evaluations from customers who purchased and applied interior paint during the past year, and is measured in six key factors of the painting experience: application, product offerings, durability, price, design guides and warranty/guarantee. Satisfaction with retailers is measured across five key factors of the paint shopping and purchasing experience: facility, selection, staff, services provided and sales/promotions.

    Application continues to be the most important driver of satisfaction with paint brands at 25 percent. Satisfaction with retailers is driven primarily by store staff (27% ).

    “With 83 percent of customers reporting applying the paint themselves, it is not surprising that customers are more likely to be satisfied and achieve their desired results when they are able to talk to a professional about their painting project and get the advice they need,” said Christina Cooley, director of the home improvement industries practice at JD Power and Associates.  “The challenge for retailers is to make sure they have the staff available and support their associates with training to help their customers be successful in their projects.”

    Interior Paint Brand Satisfaction Rankings

    Overall customer satisfaction with interior paint brands averages 779 (on a 1,000-point scale) in 2013, an increase of 3 points from 2012. Benjamin Moore ranks highest for a third consecutive year, with a score of 800, which is a 10-point increase from 2012. Benjamin Moore performs particularly well in four of the six factors: application, durability, product offerings and design guides. 

    Following Benjamin Moore in the paint brand rankings is Sherwin-Williams (790), achieving the highest score in warranty guarantee, and BEHR (788), achieving the highest score in price.

    Interior Paint Retailer Satisfaction Rankings

    Sherwin-Williams ranks highest among paint retailers with a score of 820 and performs particularly well in three of the five factors: services provided, staff and selection. Following Sherwin-Williams in the rankings are Ace Hardware (801), achieving the highest score for facility, and Menards (786), which achieves the highest score in sales/promotions. The overall customer satisfaction average with interior paint retailers is 782.

    JD Power and Associates offers the following recommendations to customers when purchasing interior paint:

    • Do your homework before visiting a retailer. There are a number of resources online from retailers, paint brands and independent third-party sites that can help you prepare for your project in the most time-saving and cost-efficient manner.
    • In addition to retail and industry professionals, turn to family and friends for recommendations and advice.
    • Since some retailers only carry exclusive paint brands, shop around and research different retailers and brands to make sure you get the best combination of paint brand and retailer to help you achieve the results you want.

    The 2013 U.S. Interior Paint Satisfaction Study is based on responses from more than 6,800 customers who purchased and applied interior paint within the previous 12 months. The study was fielded in January and February 2013.

    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.

    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 Alberta Single-Family New-Home Builder Customer Satisfaction Study—Calgary

    Brookfield Homes, Innovations by Jayman and Sterling Homes Achieve Builder of Excellence Distinctions in the Calgary Single-Family Home Market

    2013-04-14

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    WESTLAKE VILLAGE, Calif.: 13 April 2013 — Three builders of new single-family homes—Brookfield Homes, Innovations by Jayman and Sterling Homes—have been recognized as JD Power Builders of Excellence for providing outstanding service and high customer satisfaction, according to the JD Power and Associates 2013 Alberta Single-Family New-Home Builder Customer Satisfaction StudySM released today.

    The study measures satisfaction among new homebuyers throughout the new-home purchase and early-ownership experiences with builders in Calgary, and is conducted in association with the Professional Home Builders Institute of Alberta. 

    To achieve this distinction, a home builder must perform within the top 20 per cent of customer satisfaction scores, which are based on benchmarks established in JD Power and Associates’ customer satisfaction research. Customer satisfaction is measured across eight factors: builder’s service/warranty staff; builder’s sales process/staff; home readiness; construction site/team; workmanship/materials; price/value; physical design elements; and design centre/décor centre.

    Compared with the Calgary regional average, Brookfield Homes, Innovations by Jayman and Sterling Homes all perform particularly well in construction site/team; home readiness; service/warranty staff; builder’s sales process/staff; and workmanship/materials. 

    “New-home builders increasingly recognize the value of post-delivery contact and follow-up, which study data shows as being one of the key factors contributing to the increased levels of customer satisfaction this year,” said Dale Haines, senior director of the real estate and construction practice at JD Power and Associates. “Not only is overall customer satisfaction with new-home builders in the Calgary market up from 2012, the Calgary market’s performance has reached the highest levels of customer satisfaction since 2008.” 

    According to Haines, high levels of customer satisfaction may also be attributed to Calgary-area builders’ continued improvements in home quality, on-time delivery and post-possession follow-up.

    “Builders who take the proactive step of reaching out to their customers shortly after possession to resolve outstanding issues typically achieve higher customer satisfaction scores,” said Haines. 

    “Congratulations to the 2013 Builders of Excellence. The Professional Home Builders Institute of Alberta is proud to offer customer satisfaction surveying to all Alberta new-home builders,” says Angela Tripathy, chief corporate officer at The Professional Home Builders Institute.  “Receiving this award proves that the builder has embraced the core values of service excellence and made them an integral part of their customer care experience.”

    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:

    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 Home Buyer/Seller Satisfaction Study

    Real Estate Companies May Be Able to Differentiate Themselves by Focusing on the Needs of First-Time Home Buyers and Sellers

    2013-07-10

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    WESTLAKE VILLAGE, Calif.: 10 July 2013 — As the real estate market continues its recovery, real estate companies that are able to effectively serve the needs of the large first-time home-buyer and -seller market will be better positioned to increase market share, according to the JD Power 2013 Home Buyer/Seller Satisfaction StudySM released today. 

    The study, now in its sixth year, measures customer satisfaction among first-time and repeat home buyers and sellers among the nation’s largest real estate companies. Overall satisfaction is measured across four factors of the home-buying experience: agent/salesperson; real estate office; closing process; and variety of additional services. Satisfaction is evaluated across five factors for the home-selling experience: agent/salesperson; real estate office; closing process; marketing; and variety of additional services.
    Key Findings
    • Overall customer satisfaction with real estate companies is higher among repeat versus first-time customers.
    • The real estate market has experienced an increase in foreclosure and short sale transactions during the past year.
    • Customers are more loyal to their real estate company than to their sales agent.

    Overall satisfaction with real estate companies is higher among repeat customers compared to first-time buyers or sellers. The average score among repeat home buyers is 817 on a 1,000-point scale and 803 among repeat home sellers. The industry average for both the first-time buyer segment and the first-time seller segment is 797. 

    The percentage of first-time home buyers increases significantly in 2013, compared with 2012 (49% vs. 40%, respectively). The percentage of first-time home sellers increased to 44 percent in 2013 from 30 percent in 2012. Related to the increase in the first-time buyer/seller market, the average listing price in 2013 has dropped by 11 percent from 2012 ($200,000 vs. $225,000, respectively). Foreclosure purchases have increased to 19 percent from 17 percent year over year, and short sale purchases have increased slightly to 15 percent from 14 percent. However, there has been a larger increase in short sales by sellers, to 20 percent in 2013 from 14 percent in 2012. Considering that nearly one-fifth of home real estate transactions include a foreclosure or short sale, it becomes that much more important for customers to be informed during every step of the process in order to understand and be comfortable with the pricing strategy or purchase price and to remain connected to the real estate company, even after the close of the transaction. 
    “Real estate companies remain challenged in adapting their customer service approach to best meet the needs of first-time home buyers and sellers. They need to educate these customers by explaining the current state of the market, discuss foreclosure and short sale transactions, and walk them through every step of the closing process,” said Christina Cooley, director in the diversified services industries practice at JD Power. “Those real estate companies that are best able to adapt to specific customer scenarios and their resulting expectations and needs are much more likely to be successful in achieving customer satisfaction and loyalty.”  
    Customer advocates for real estate companies are critical, as first-time home buyers and sellers are most influenced by a company’s good reputation and the recommendations they receive from friends, family and colleagues. More than one-third (35%) of first-time home buyers and 27 percent of first-time sellers indicate they selected their real estate company based on its reputation, while 28 percent of first-time home buyers and 27 percent of first-time sellers selected their company based on recommendations.
    “A real estate company’s agent remains the most important aspect of the customer’s experience among first-time and repeat home buyers and sellers; however, customer loyalty is first to the company and second to the agent,” said Cooley. “Interestingly, less than 20 percent of customers say they “definitely will” switch real estate companies if the sales agent moves to another company. In the end, it is the combination of the company’s standards, processes and approach to addressing customer needs combined with outstanding execution by the sales agent that will truly differentiate the customer experience.” 
    First-Time Home-Buyer Satisfaction Ranking
    Prudential Real Estate (811) ranks highest in overall satisfaction in this segment and performs particularly well in all factors. RE/MAX (798) ranks second in customer satisfaction, followed by Century 21 (797).
    Repeat Home-Buyer Satisfaction Ranking
    Prudential Real Estate (829) ranks highest in overall satisfaction in this segment, followed by Century 21 (820) and RE/MAX (819). Prudential Real Estate scores highest in three of the four factors–agent/salesperson; variety of additional services; and closing process. RE/MAX ranks highest in the real estate office factor.
    First-Time Home-Seller Satisfaction Ranking
    Prudential Real Estate (809) ranks highest in overall satisfaction in this segment, followed by Keller Williams (802), RE/MAX (800) and Century 21 (799). Prudential Real Estate performs particularly well in the marketing and closing process factors. Keller Williams performs particularly well in the agent/salesperson factor; RE/MAX performs well in the real estate office factor; and Century 21 performs well in the variety of additional services factor.
    Repeat Home-Seller Satisfaction Ranking
    RE/MAX (819) ranks highest in overall satisfaction in this segment. Following RE/MAX in the rankings are Century 21 (816) and Prudential Real Estate (809). RE/MAX performs particularly well in the agent/salesperson and marketing factors. Century 21 performs well in the closing process factor.
    JD Power offers the following tips to consumers shopping for or selling a home:
    • If you’re buying or selling a home under special circumstances, such as a foreclosure or short sale, ask your real estate agent to explain the implications of these transactions and the responsibilities of the buyer and the seller. Be aware that short sales may take a long time to negotiate; closing costs may be high; and the property may require numerous repairs.
    • Don’t just focus on short sales or foreclosed properties because you think you can get a bargain.    The price is still likely to be in line with market value, and any required repairs will add to the total cost. Finding a home in move-in ready condition might save you money in the long run.
    • Be aware of all the services your real estate company offers, such as inspections, appraisal, mortgage company recommendations, home insurance and home warranty. Take advantage of any opportunity to make the process easier for you.
    • When you’re shopping for a real estate agent, consider both the company and the individual. It’s important that you and the agent have a good rapport, but it’s also important to choose an agency that can provide comprehensive services and has a proven record of success in helping home buyers and sellers.
    The 2013 Home Buyer/Seller Satisfaction Study includes 4,371 evaluations from 3,930 customers who bought and/or sold a home between March 2012 and April 2013. The study was fielded between April 2013 and June 2013. 

     

    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), 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, 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]
    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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