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Subjects: Survey, Economic News/Analysis

Digital Engagement Paramount to Customer Satisfaction, Reducing Cost to Serve, J.D. Power Finds

With macroeconomic conditions continuing to make it difficult for auto lenders to maintain or increase profitability, all eyes have turned to digital channels as the most cost-effective and efficient means to do so. According to the J.D. Power 2023 U.S. Consumer Financing Satisfaction Study,SM released today, customers who are digitally engaged have significantly higher levels of overall satisfaction, greater Net Promoter Scores®1 and have a lower cost to serve than customers using tradition channels to manage their accounts.

"In a challenging market, lenders' focus turns to cost containment and reduction," said Patrick Roosenberg, senior director of automotive finance intelligence at J.D. Power. "The key is to transition the traditional customer experience to a digital relationship. Customers who use their lender's mobile apps, website and signup for alerts to manage their account are significantly more satisfied and have a lower cost to serve. It's a win-win situation for both the lender and their customer."

Following are key findings of the 2023 study:

Study Rankings

BMW Financial Services ranks highest in customer satisfaction among luxury brands, with a score of 876. Lexus Financial Services (875) ranks second and Chase Automotive Finance (870) ranks third.

Capital One Auto Finance ranks highest among mass market, with a score of 877. Ford Credit (867) ranks second and NMAC (865) ranks third.

See the rank chart for each segment at http://www.jdpower.com/pr-id/2023159.

The U.S. Consumer Financing Satisfaction Study measures overall auto financing customer satisfaction in five factors (listed alphabetically): account management and communication; application/approval process; billing and payment process; customer orientation process; and customer service experience. The study was fielded in July-August 2023 and is based on responses from 11,012 customers who financed a new or used vehicle through a loan or lease within the past three years.

For more information about the U.S. Consumer Financing Satisfaction Study, visit https://www.jdpower.com/business/resource/us-consumer-financing-satisfaction-study.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com.

About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

1 Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

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