Improving Customer Experience - 2018 Review - Green Motion
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Improving Customer Experience - 2018 Review A watershed year The past 12 months have been a turbulent time for the car rental industry globally. With more players in the market than ever before creating major downward pressures on pricing coupled with customer expectations rising, we have all had to adapt and continue evolving our propositions. We were established in 2007 as a global franchise network to offer customers great value car rental, while also helping them reduce the impact of CO emissions associated with their road travel. 2 Fast forward 12 years, and we now offer our award-winning, low cost and environmentally responsible service in over 40 countries, servicing close to 850,000 reservations across our 400+ locations. With progress comes responsibility, so our sector has come under increasing scrutiny from the media and consumer groups in the past couple of years on issues like pricing transparency and customer service levels. Our position as a franchise business gives us a unique perspective on challenges facing the sector as competition intensifies. Green Motion has faced challenges over the past year in satisfying all of our customers and demonstrating to media that we are committed to constant improvement. I have therefore asked my team to compile this report to capture some of these challenges, draw together the extensive improvement work we have undertaken and give some insight into what we are planning in 2019 to further enhance the Green Motion customer experience. Richard Lowden, Founder and CEO of Green Motion International Page 1 of 5 January 2019
Market challenges Across the Green Motion network, levels of customer service and satisfaction are on the up, with an average TrustPilot score of 6.49 out of 10 globally and an average Green Motion Customer Satisfaction score of 3.88 out of 5. We have also seen customer complaints fall significantly in the second half of 2018 thanks to changes in our processes and improvement plans taking effect. In most of the countries in which we operate, customer feedback continues to show good levels of satisfaction. However, the business has seen particular challenges at some of our locations in the UK, Poland and Lithuania. In these markets, there has been an increase in the number of customer complaints for the following reasons. 1. Customer service falling below the mark In a limited number of rental locations, a small number of staff have not been demonstrating sufficient levels of customer service. In a period where customer service has never been more important and companies are more open to public criticism, these failings have resulted in disappointed customers who have gone on to share their negative experience and damaged our brand. 2. Crowded marketplace As competition grows, the trading environment for all car rental companies becomes increasingly difficult. Not only are car rental companies competing with each other, but there are now new players in the market, such as car sharing and ride hailing services, which are cutting into the car rental space. Customers have also been educated to expect and seek out car hire rates as low as £2 a day (with rates in the first month of this year going as low as £0.50p per day in the United Kingdom). When combined with the introduction of free, online vehicle navigation tools and the dominance of price comparison sites, this has led to great commercial pressure on car rental companies to compete by cutting their margins, with the daily cost of hiring vehicles now often being lower than a cup of coffee or soft drink, with car rental now being considered the most competitive mode of transport versus taxis, resort or hotel transfers, train travel and even bike rental. Those customers who are looking to save as much money as possible when hiring a car are often persuaded to purchase third party excess reimbursement policies, in the belief that they will not be required to provide a deposit for the excess when they arrive at the rental counter, leading to unexpected costs. Our experience is that this misunderstanding – alongside other commonly held misconceptions – has led to widespread issues for customers and car rental companies alike. 3. Changing customer expectations As the number of car rental customers continues to rise, naturally so do their expectations of value and service. Understandably, customers are time-poor, so often in a rush when collecting their vehicle. Sometimes, this unfortunately means that they do not often take the time to read the terms and conditions of their rental agreement or take enough time to inspect the vehicle on collection. Page 2 of 5 January 2019
Over the past year, we have seen a rise in the cases of customers damaging their rental vehicles and disputing responsibility for the damage. Although there will always be some customers that are hesitant to report these incidents, their subsequent negative reactions in order to recover the cost of repair contributed to an increase in our complaints over the past two years. 4. Industry costs Cars are advancing at a phenomenal rate, becoming more environmentally friendly, comfortable and convenient than ever before. While the benefit for customers is clear, this leads to increased costs for the car rental industry, particularly when it comes to repairing damaged vehicles. Due to the inclusion of Advanced Driver Assistance Systems (ADAS) technology, repair costs have increased significantly in recent years. Most rental cars are nearly new and Green Motion franchisees are expected to return them to manufacturers in pristine condition or face substantial penalties. This means they must spend more than many outside the industry might expect for repairs – something that is particularly problematic for Green Motion franchisees who are often small businesses. In the face of these challenges, Green Motion is pleased to say that – after significant work and investment across the business, the number of issues and complaints has fallen dramatically in the second half of 2018. We fully expect this trend to continue further in 2019. Improving the Green Motion customer experience The key areas we identified as needing improvement following a review of our challenges earlier in 2018 included: charging for vehicle damage, vehicle inspection, vehicle collection and customer service. In the second half of 2018, a considerable investment has been made by the senior management team at Green Motion to review complaints, engage with customers and listen to their feedback in order to resolve issues, offer compensation, learn from mistakes and ultimately strengthen our offering. We have also proactively met with stakeholders including industry partners, consumer groups and journalists to gather feedback and discuss – and subsequently implement – improvements. Key improvements 1. To ensure a standard and transparent approach across each of our UK locations, Green Motion has created a new standardised damage pricing matrix to ensure that customers are charged fairly and consistently. This has been developed taking into consideration the prices levied by our competitors, as well as actual defleet costs and defleet matrixes from suppliers. 2. So that customers can feel confident that they have inspected vehicles at collection comprehensively and fairly, we have produced a whole new range of vehicle inspection advice collateral (e.g. videos, animation, leaflets) and actively promoted the importance of the vehicle inspection process for customers at each franchise location. Page 3 of 5 January 2019
3. We have introduced an extended inspection grace period until 10:00am on the day after collection – if customers report damage that they had not noted on the Vehicle Condition Report before this time, they will not be charged. This also addresses concerns surrounding vehicles being inspected in poor visibility due to insufficient lighting or bad weather. 4. A new Vehicle Handover Agreement has been introduced to ensure customers are comfortable, and able to confirm, that they were able to fully inspect the vehicle at collection and encouraged to take any photographs or videos that they might wish as a record of the car condition. 5. To help customers that may be running late, an Extended Vehicle Collection Policy has also been introduced across the UK network, which extends their collection window from two to four hours (believed to now be the widest collection window in the industry). If a customer informs Green Motion of their delay beforehand and provides a new time for collection, then the extended collection window will begin from the new time. 6. A new customer service call centre has been established in the UK to handle all customer queries and complaints in person. Increased resources have been provided to support Green Motion social media channels so customers with issues receive a more prompt response. Improved processes for central monitoring of customer feedback and complaint resolution are also now in place. 7. A new Franchise Service Agreement has been developed that sets higher standards for customer service and brings all franchisees closer together in the way they operate to improve our overall brand experience across all rental locations. 8. Direct action has been undertaken by Green Motion senior management to address issues identified at a limited number of individual locations. Such action led to the termination of an existing franchisee’s agreement at Birmingham Airport as a result of failing to meet expected standards along with high level management changes of the UK Master Country Franchise. 9. The company has worked closely with industry partners – such as HolidayAutos and Rentalcars – to further improve customer service and offering and ensuring there is better communication with our mutual customers. 10. The 2018 Green Motion Global Conference in London saw workshop sessions for franchisees on changing consumer expectations and improving customer service to help them strengthen their operations. Looking ahead We are committed to continuous improvement in our customer experience and further enhancements are planned in 2019. For example, we have a series of customer focus groups planned in the spring to capture and further embed learnings into our customer service strategy. This strategy is being bolstered by an increase in compliance monitoring to Green Motion customer service standards, achieved through site visits, detailed customer feedback monitoring. We’ve also engaged former disenfranchised customers to undertake direct mystery shopping of the our network to help ensure all our new initiatives are in play and working well. Very soon, we will be announcing new products and technology solutions that will significantly enhance how we operate. These will change the nature of how, when and where customers can collect rental cars, making the experience easier, more transparent and better value. Page 4 of 5 January 2019
In the meantime, developing customer proposition, reducing complaints and improving customer satisfaction tops our list of strategic priorities in 2019. We will continue to engage with industry partners, consumer groups and journalists to gather feedback and guide our improvements. Whilst we recognise there is plenty of work still to do, our ambition is to use the experience we have gained to build a leading customer experience in the car rental sector. To this end at the end of January, we will be launching our commitment to redefining the rental car sector by introducing a new open, honest and transparent product, positioning with clear pricing. Green Motion will be the first car rental company in the world to adopt the same approach used across the global travel industry including airlines and hotels. Our goal is to ensure that each and every customer fully understands what they are purchasing and is satisfied with their purchase. Green Motion is dedicated to providing an open, honest and transparent service for its customers across the globe. We plan to publish a follow-up report in the summer of 2019 on greenmotion.com to update customers and stakeholders on the progress we are making. Thanks for taking the time to read about our work and if you have any comments or suggestions you think would be helpful to us, please contact Media Enquires: elowcock@goodrelations.co.uk Reservations and other general enquiries: info@greenmotion.com Page 5 of 5 January 2019
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