Canadian 2016 Automotive Solutions Guide. A Global Marketing Information Company jdpower.com
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1 Canadian 2016 Automotive Solutions Guide A Global Marketing Information Company jdpower.com
2 TABLE OF CONTENTS Setting the Benchmark Solutions... 2 Independent Benchmarking Proprietary Research... 2 Vehicle Consulting... 2 Retail Consulting... 2 Independent Benchmarking... 4 Avoider Study... 4 Manufacturer Website Evaluation Study (MWES)... 4 Sales Satisfaction Index (SSI)... 4 Initial Quality Study (IQS)... 4 Vehicle Dependability Study (VDS) Customer Satisfaction Index (CSI) Study... 5 Customer Service Index Long Term (CSI-LT) Study... 5 The Power Information Network... 6 Retail Solutions... 6 OEM/Industry Solutions... 7 Automotive Events... 8 TalkAUTO Canada Conference... 8 Automotive Marketing Roundtable (AMR) Automotive Summit... 8 AutomotiveConference LA AutomotiveConference NY... 8 Social Media and Publications... 9 Canadian Analyst Note Canadian Market Metrics... 9 Twitter... 9 LinkedIn... 9 Canadian J.D. Power Automotive Team J.D. Power Locations J.D. Power and Associates McGraw Hill Financial. All Rights Reserved.
3 SETTING THE BENCHMARK Today s global automotive industry could face far more change than stability during the next several years and at a pace it hasn t experienced since the first car rolled off the assembly line more than a century ago. With the rise of annual vehicle sales in the world s mature auto markets, coupled with the emergence of new growth markets as China, automakers today are in a race to tailor the design of new vehicles to fit the needs of local consumers as well as to incorporate emerging technologies, all the while increasing sales and overall market share. Despite these shifting dynamics, the automotive industry remains steadfast in benchmarking its overall success against one key ingredient the Voice of the Customer. For nearly 50 years, J.D. Power has been a trusted advisor in measuring the Voice of the Customer in the automotive industry, helping clients measure, understand, and improve the key performance metrics that drive growth and profitability. The company s full suite of solutions are designed to help clients achieve their highest performance in the areas of product quality, retail sales, customer experience, marketing and media planning, and auto financing, among others. To learn more about J.D. Power and its services, please visit jdpower.com. Automakers today are in a race to tailor the design of new vehicles to fit the needs of local consumers as well as to incorporate emerging technologies, all the while increasing sales and overall market share J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved. 1
4 SOLUTIONS Independent Benchmarking J.D. Power s syndicated research provides insight for manufacturers and suppliers in their quest to satisfy today s informed consumers. J.D. Power independently funds industry-wide assessments of companies, products, and services and offers comprehensive research reports and analysis to help the automotive industry better understand strengths and weaknesses in a competitive context as well as from the customer viewpoint. Proprietary Research J.D. Power also offers proprietary services to evaluate client sales and service processes or to measure and monitor quality and customer satisfaction over time. J.D. Power works closely with clients to develop customized customer satisfaction and quality tracking programs and provides clients access to daily, weekly, monthly, or quarterly data that will enable them to identify issues and implement process and product improvements. Vehicle Consulting Quality problems are less often associated with actual defects and more often related to the ability of the product to meet customer expectations. J.D. Power helps automotive clients successfully deliver on those expectations by providing consulting services that span the entire product life cycle from product strategy and development through assembly and sustainment. Using proven methodologies that yield measurable improvements, the company s vehicle consulting services help clients develop competitive advantages by integrating the Voice of the Customer into their strategic planning, development, supplier operations, launch/production, and sales and service. Retail Consulting The Canadian automotive practice provides comprehensive retail consulting services, by integrating J.D. Power s cutting edge Voice of the Customer research into the dealership retail experience. By evaluating consumer shopping behavior, expectations and actual interactions, we can ensure a brand s retail experience matches the quality of the vehicle and the expectations of the brand s customers J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved. 2
5 Examples of Proprietary Solutions Dealership sales and service tracking Vehicle quality tracking from an initial quality or long-term dependability stand-point Sales rejector analysis Service defector analysis Initial shopping behavior and upper funnel sales analysis Avoider study and analysis Certification programs to ensure compliance with predetermined manufacturer or industry standards 2015 CANADIAN BENCHMARK 2016 CANADIAN BENCHMARKS MWES Online vehicle research behaviour Research and Consider CSI & CSI LT 1-12 year old vehicle servicing Service Experience J.D. Power Analytical Orientation Shop and Purchase SSI & IQS Sales and product experience 90 days after purchase Product Experience VDS 1-3 year old vehicle dependabillity and APEAL Chart Elements Verification Timeline of Changes/Updates Elements Yes Type of Deliverable (Report, White Paper, Case Study, etc.) Replace with type of deliverable Data provided (Excel/Word/PPT): Data and/or edited chart provided on (date): Fill in date here/other info if needed Title of chart: Illustrator/InDesign printout of chart to editing on (date): Fill in date here/name of person editing Subtitle of chart (if any): Flag chart if it contains unanswered info on (date): Fill in date here/other info if needed Axis titles (if any) okay: Follow-up on chart if it contains unanswered info on (date): Fill in date here/other info if needed Second axis legend (if any) okay: Chart proofed by Rita/Sandy prior to final deliverable on (initial/date): Fill in date here/name Legend okay: Editor s Name Date Task Source provided okay: Run Spell check when final Lisa Name or 4/30/13 Date Rebrand update Brief explanation of update or change to chart Notes: Name or Date Brief explanation of update or change to chart additional In case there is a need to include Name or Date Brief explanation of update or change to chart information on this chart. Name or Date Brief explanation of update or change to chart 2015 J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved. Name or Date Brief explanation of update or change to chart 3 Name or Date Brief explanation of update or change to chart
6 INDEPENDENT BENCHMARKING Marketing Avoider Study (Available for Proprietary) The Avoider Study examines the reasons why consumers do not consider particular models when shopping for a new vehicle. The study identifies the level of awareness and familiarity among consumers who avoided each model. The study also highlights the productrelated, image-related, and external reasons why consumers do not consider specific models, and details consumerperceived weaknesses that, if addressed, may increase buyer consideration rates. In addition, the study explores why newvehicle shoppers consider, and then reject, particular brands that were shopped for at a dealership. Advertising and Promotion Manufacturer Website Evaluation Study (MWES) Annual Publication Q2 The Manufacturer Website Evaluation Study (MWES) examines the website features that are important to consumers when shopping for a new vehicle online. The study examines which OEM websites provide the most useful information and identifies the features and content that add value to the new-vehicle shopping process. The study provides the competitive information necessary to stay ahead of the curve in terms of website content, appearance, navigation, and speed. The MWES provides an objective measurement of the ability of auto sites to drive visitors to the dealership from desktop, laptop and mobile platforms. Purchase Experience Sales Satisfaction Index (SSI) Annual Publication Q4 The Sales Satisfaction Index (SSI) provides a comprehensive analysis of the newvehicle purchase experience from the buyer perspective. The study measures the ability of the dealership to manage the sales process from product presentation and price negotiation to the finance and insurance process and final delivery. Incorporating feedback from buyers as well as rejecters (shoppers who consider but don t buy), the study provides insights into buyer needs and expectations, as well as suggestions for improving the sales process. Product Quality Initial Quality Study (IQS) Annual Publication Q4 The Initial Quality Study (IQS) provides manufacturers and suppliers with in-depth diagnostic information on new-vehicle quality after 90 days of ownership. The study uses problems per 100 vehicles (PP100), often referred to as things gone wrong, as a unit of measurement of owner-reported problems. Overall, more than 175 problems are evaluated in two categories: defect/malfunction and designrelated problems. Make and model PP100 scores are based on all problem types J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved. 4
7 Vehicle Dependability Study (VDS) Annual Publication Q3 The Vehicle Dependability Study (VDS) provides manufacturers and suppliers with in-depth diagnostic information on vehicle dependability and quality after 1-3 years of ownership. The study uses problems per 100 vehicles (PP100), often referred to as things gone wrong, as a unit of measurement of owner-reported problems. Overall, more than 175 problems are evaluated in two categories: defect/ malfunction and design-related problems. Make and model PP100 scores are based on all problem types. Service Experience Customer Satisfaction Index (CSI) Study Annual Publication Q3 The Customer Service Index (CSI) Study surveys owners regarding their recent dealership or aftermarket service experiences for both warranty and customer-pay work. The study measures satisfaction in five key factors of the service experience Service Initiation; Service Advisor; Service Quality; Service Facility; and Vehicle Pick-Up and provides performance diagnostics for each. What s more, CSI probes customers for evolving service expectations and provides clients with a look at what the shifting nature of service in Canada will look in the years to come. Customer Service Index Long Term (CSI-LT) Study Annual Publication Q3 The Customer Service Index Long Term (CSI- LT) Study examines customer satisfaction with maintenance and repair service at new-vehicle dealerships, as well as in the automotive aftermarket. Owners of vehicles 4 to 12 years old are surveyed regarding their most recent service experiences for both in-warranty and customer-pay work. The study examines satisfaction with the five measures of the service experience Service Initiation; Service Advisor; Service Quality; Service Facility; and Vehicle Pick-Up and provides analytical diagnostics for each measure. The study also examines the share of dollars and service visits for both dealers and non-dealers J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved. 5
8 THE POWER INFORMATION NETWORK The Power Information Network (PIN), a division of J.D. Power, provides clients throughout Canada and the United States with real-time automotive information, analysis, and decision-support tools to reduce risk exposure, improve marketing and remarketing effectiveness, and increase profitability. PIN automotive solutions are based on the collection and analysis of daily new- and used-vehicle retail transaction data from more than 950 automotive franchises in Canada. Details from both types of transactions are evaluated to create products that focus on key measures, including price, cost, profit, finance, lease, and trade-in values. PIN advanced market intelligence solutions address industry needs and assist clients in improving product planning; vehicle production and distribution processes; marketing and incentive strategies; new-vehicle pricing and revenue management; inventory optimization; and used-vehicle remarketing. PIN solutions address the market intelligence and decision-support needs for a complete array of businesses operating within the automotive industry. Solutions focus on delivering real-time market insight; the highest levels of data accuracy and integrity; and methodology transparency, and J.D. Power s team of automotive experts support client needs. Retail Solutions Dealers enrolled in PIN have access to a full suite of dealer-specific and marketcomparison reports designed by J.D. Power, and also receive a complimentary subscription to the company s Powergram automotive newsletter. PowerDealer New- and Used-Vehicle Sales Tools Used-Vehicle Inventory Tools The Used-Vehicle Booking Tool and Guidebook Pricing tools allow dealers to improve inventory mix by providing model-level ROI performance, along with pricing and market demand metrics. These tools assist in identifying the most desirable models for a given market, in terms of ROI, turn rates, and pricing. Customer Mapping and Geographic Tools These tools allow dealers to benchmark marketing program effectiveness by identifying their customers on Google maps or comparing sales across selected geographic locations and time periods. New/Used Average Deal Recap Report Identifies performance gaps versus the market on deal structures and highlights areas where adjustments may be made to improve volume and profitability. New-Vehicle Inventory Performance Report Provides performance by model line for each franchise the dealership sells, compared with other PIN dealers in the market area carrying the same franchise. This information improves the ability to identify stocking options by monitoring inventory movement and gross potential. New/Used Finance/Leasing Report Allows retailers to identify lender options, buy rates, and term structures of lenders in their geographic market J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved. 6
9 OEM/Industry Solutions PIN data enables manufacturers, financial organizations, and suppliers to leverage the foundational benefits of real-time transactional data through a set of tailored solutions that address critical business needs. These solutions, which merge transaction data with proprietary cleansing and calibration techniques and include additional data sets, ensure the most accurate and timely information available. PIN Explorer A dynamic newand used-vehicle sales reporting tool that enables users to perform competitive analyses; track newproduct introductions; conduct market comparisons; and isolate weaknesses and strengths. The advanced analytical functions of PIN Explorer include customized reports, dashboard capabilities and the ability to automate reporting through subscriptions. PIN Incentive Spending Report A bimonthly report that merges take rates with program offerings and provides complete transparency regarding how OEMs are spending money for incentive offers, as well as take rates and contribution to spend for every incentive on every model in the industry. Also includes a measure for vehicle purchase price net of incentives J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved. 7
10 AUTOMOTIVE EVENTS TalkAUTO Canada The TalkAuto Canada conference, held annually in November, showcases a variety of strategic insights and tools aimed at dealers, manufacturers, as well as the broader automotive industry suppliers. The goal of this conference is to provide a forum through which automotive industry members can interact and exchange ideas on critical issues affecting the sector. Automotive Marketing Roundtable The Automotive Marketing Roundtable (AMR) is an annual conference held in October, designed to help automotive professionals leverage digital media for sales and marketing purposes. Attendees have described the Roundtable as the Super Bowl of automotive marketing events and is the event for anyone doing business in the automotive industry in today s digital marketplace. This event is intended for automotive OEMs, retailers, marketers, agencies, third-party websites, and other professionals working, or interested in, the automotive marketing environment. Automotive Summit The Automotive Summit (formerly known as the International Automotive Roundtable), which focuses on critical issues and solutions that impact current and future automotive operations, will kick off the annual NADA Convention. Each year, J.D. Power conducts its U.S. Automotive Franchise Assessment, providing a comprehensive overview of how each of 32 franchises is performing in the U.S. market. The Summit is the only public setting where these Franchise Assessment results are revealed in their entirety. This information is unique and invaluable to anyone interested in the relative health and prospects for all of the new-vehicle franchises in the U.S. market. Immediately following the Summit is the NADA Welcome Reception co-hosted by J.D. Power. AutoConference LA The AutoConference LA (formerly the Western Automotive Conference) is a half-day event co-hosted by J.D. Power and NADA. The event focuses on the industry in the Western United States with a special emphasis on the California/ Los Angeles marketplace. Proceeding the LA Auto Show, the conference is expected to attract more than 400 attendees from across the automotive industry, including manufacturers, dealers, suppliers, marketers and advertisers.. AutoConference NY The AutoConference NY (formerly the Automotive Forum) is a one-day event in New York City that brings together leaders from OEMs, suppliers, retailers, and the media to discuss our industry. The forum is jointly hosted by NADA, J.D. Power and the New York International Auto Show. This event goes beyond the headlines to explore how developments in the industry will impact the various sectors moving forward. The day s agenda includes a mix of keynote addresses and panel sessions to explore from several perspectives how past events will influence the future. Most importantly, participants have the ability to ask challenging questions during the panel discussions. There are also several networking opportunities throughout the day for professionals to connect with a diverse group of executives and peers across the auto industry J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved. 8
11 SOCIAL MEDIA AND PUBLICATIONS Canadian Analyst Note The Analyst Note is ed to subscribers each month. In each issue, the analytical team at J.D. Power tackles a single subject affecting the industry and provides data and insightful opinion on the matter, drawing information from all available sources, including syndicated research studies and Power Information Network (PIN) data, among others. Canadian Market Metrics Market Metrics is a one page snapshot featuring key performance indicators based on PIN data. News about and from J.D. Power s public relations J.D. Power news, updates, data, and perspectives for and about the automotive industry. LinkedIn J.D. Power Automotive Professionals LinkedIn Group This group was created exclusively for automotive professionals working in the industry across segments and functions and is intended for networking, discussions, and information sharing among group members. J.D. Power Automotive Marketing Roundtable LinkedIn Group The networking experience that Automotive Marketing Roundtable attendees participate in is a valuable aspect of this annual event. This group was created to provide a forum for continued networking and information sharing among attendees throughout the year. While this group is intended for active attendees, members may invite others interested in automotive Web marketing to join and participate J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved. 9
12 CANADIAN J.D. POWER AUTOMOTIVE TEAM Darren Slind Senior Director and Regional Practice Leader Canada and Latin America J.D. Ney Manager, Automotive Research and Consulting Virginia Connell Supervisor, Automotive Research and Consulting Robert Karwel Senior Manager Automotive Practice (PIN) Justin Ramkishun Senior Analyst (PIN) Doris Harrison Senior Manager Elena Sheehy Operations Support Manager, Canada and Latin America Brian Murphy Senior Manager, Vehicle Consulting J.D. Power and Associates, McGraw Hill Financial. All Rights Reserved. 10
13 GLOBAL OFFICES AMERICAS Headquarters 2625 Townsgate Road Suite 100 Westlake Village, CA Phone +1 (805) Toll Free +1 (800) Fax +1 (805) Troy, Michigan 320 E. Big Beaver Road Suite 500 Troy, MI Phone +1 (248) Toll Free +1 (888) Fax +1 (248) Orange, California 3200 Park Center Drive Level 13 Costa Mesa, CA Toll Free +1 (888) Norwalk, Connecticut 200 Connecticut Avenue, Suite 5A Norwalk, CT Phone +1 (203) Fax +1 (203) Denver, Colorado 1800 Larimer Street, Suite 2000 Denver, CO Phone (720) Fax (720) EUROPE München, Germany Theresienhöhe 13a München Phone Fax Chicago, Illinois One Prudential Plaza Chicago, IL Phone +1 (312) Washington, D.C G Street NW, Suite 200 Washington, D.C Phone +1 (202) Fax +1 (202) Toronto, Canada 130 King Street West Suite 1309 Toronto, Ontario M5X 1E5 Phone Fax São Paulo, Brazil J.D. Power do Brasil Ave. Brigadeiro Faria Lima, andar Pinheiros, São Paulo - SP Brazil Phone Fax Mexico City, Mexico Prol. Paseo de la Reforma 1015 Edificio Punta Santa Fe Piso 17 C.P , México D.F Phone ASIA PACIFIC Tokyo, Japan J.D. Power Asia Pacific Toranomon 45 MT Bldg. 8F Toranomon Minato-ku, Tokyo Japan Phone Fax Shanghai, China J.D. Power Asia Pacific Suite 1601, Shanghai Kerry Centre 1515 Nanjing West Road JingAn District Shanghai China Phone Fax Beijing, China J.D. Power Asia Pacific Suite 1601, 16/F Tower D Beijing CITC A6 Jianguomenwai Avenue Chaoyang District Beijing China Phone Fax Singapore J.D. Power Asia Pacific 8 Shenton Way #44-02/03/04 Singapore Phone Fax Bangkok J.D. Power Asia Pacific Unit7, 21st Fl., Interchange 21 Building 399 Sukhumvit Road, Klongtoey Nua Wattana, Bangkok Thailand Phone Fax jdpower.com 11
14 J.D. Power 130 King Street West, Suite 1309 Toronto, Ontario M5X 1E5 888-JDPOWER ( ) A Global Marketing Information Company jdpower.com Los Angeles New York Detroit Denver Chicago Washington, D.C. Toronto Tokyo Singapore Shanghai Beijing Bangkok Munich Mexico City São Paulo
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