Improving Customer Experience - 2018 Review - Green Motion

Page created by Ann Welch
 
CONTINUE READING
Improving Customer Experience - 2018 Review - Green Motion
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
Improving Customer Experience - 2018 Review - Green Motion
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
Improving Customer Experience - 2018 Review - Green Motion
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
Improving Customer Experience - 2018 Review - Green Motion
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
You can also read