Enterprise rent-a-car

By,Nipun Mehra, Melissa Zephir, Delphine Ilous,

Devanshi Patel, Larry Sultan

“We’ll pick you up.”

Outline•About the Company•Business Strategy (Marketing Mix, SWOT analysis

etc.)•Role of CRM•CRM techniques company uses•CRM and Success of the Company•Customer Review•Competition•Recommendations and Conclusion

About the

Company…

• Private Car rental business with a fleet of more then 850,000 vehicles

• Founded by Jack Taylor in 1957

• Based in St Louis, Missouri with services in the US, Canada, Germany, Ireland, Puerto Rico and UK

• Largest car rental company in North America and ranked 49th on the list of “Most respected Companied in the US” in June 2008

• Their revenues for 2006 were $US 9.04 billion

• Enterprise Rent-A-Car customer service has been recognized seven times by J.D. Power and Associates as highest in customer satisfaction for rental car companies at or near airports

• The company was named number 9 on Business Week's top 25 companies customer service list

• Enterprise is currently number 16 on the Forbes “500 Largest Private Companies in America” list

• In general 95% of the customer stated that they are completely satisfied with the company

Figures

Business Strategy

Marketing Mix

Product:

• Place: Our branches are located in neighborhoods, where our

customers live and work; in fact, there is an Enterprise branch within 15 miles of 90 percent of the U.S. population.

• Price: Although competitive, prices are generally more than its

competitors. But, the superior customer satisfaction makes it a ll worthwhile.

• Promotion: Superior CRM and mostly word-of-mouth marketing is the

major way of marketing its brand. Online and TV adverts are also part of the promotion.

The 4-part Business model:• Smart, well-trained employees who are passionate about our

business provide exceptional customer service.

• As the number of new and repeat customers grows, so does our company - offering employees plenty of opportunities to expand their responsibilities and advance their careers.

• As employees progress through the ranks of management, they are rewarded with a percentage of the profits from their individual operations.

So, they have a strong incentive to strive for even better ways to profitably serve their customers.

• A growing business leads to greater opportunities for advancement, helps Enterprise attract more top talent

... And the circle of success continues to turn.

STRENGTHS WEAKNESES

Leading Market Position Robust Financial Performance No. 1 in Customer Service Large Fleet of Vehicles

Maintenance and Cost of Repairs Very Capital Intensive Operations No One-Way Rentals

OPPORTUNITIES THREATS

Trend for renting Cars Use of Internet for Rentals Bigger presence at the Airports Serving ‘Green’ Customers

Increasing Fuel Prices Intense Competition Downturn in the (Used) Car Markets Mergers & Acquisitions

SWOT Analysis

Company’s Message

"Take care of your customers and employees first, and growth and profits will follow.“

Jack Taylor

So, in these days of "Customer No-Service," it is refreshing to experience the following:

• To be offered cold drinks on a hotsummer day.

• To be recognized and addressedproperly by your last name ...pronounced correctly, by the way.

• To be telephoned the day after you renta car just to make sure everything wasokay.

• And to be treated in an extremelyprofessional and personable mannerduring the entire experience.”

The words of the CEO…

(showing that CRM is truly at the heart of the company)

 "All of your systems have to be customer focused and probably more important, your people need to be customer focused," he explains.

“The goal of the company is to exceed customer expectations.

We build loyal, long-term relationships with our customers and neighbors by treating them fairly, meeting their needs and earning their trust. “

CRM techniques/instruments…

ESQi• When the business was smaller, Jack Taylor really wanted to know his customers

personally. He would keep track of who was taking delivery of cars, so we could call and thank them. He started the business because he thought he could give customers a better experience.

• But, as they grew, they started having more and more complaints. So, in 1994, we decided to ramp up our customer satisfaction research.

They created a measurement called ESQi (Enterprise Service Quality index).

It's a statistically valid sample of customers' opinions taken monthly, at every one of our branches.

There are basically two questions. The first asks about the customer's satisfaction level, with five answers ranging from "completely satisfied" to "completely dissatisfied," and the second asks how likely he would be to return to Enterprise.

• The ESQi results have helped to teach Enterprise what drives customer satisfaction:

i. the attitude and helpfulness of Enterprise employees ii. the speed of the transaction iii. the cleanliness of the car.

• ESQi showed that customer satisfaction has a direct impact on sales and profits.

This collection of data on customer opinions is a good example of qualitative data.

The collection of data on the numbers of cars rented illustrates quantitative data.

Together the analysis of both types of data helped improve Enterprise’s performance.

• Other techniques/instruments:

• In 1995, promotions and salary increases for branch employees were tied to their location’s customer satisfaction ratings. All of a sudden, customer satisfaction went to the top of the list.

"We don’t have an alignment issue," he says, "because we’re aligned at the wallet."

• Enterprise’s "We’ll Pick You Up" service, spares customers the hassle of getting a cab to the rental office, is likely its most visible customer service effort

• They have developed a ‘Cycle of Service’ training program. This gives new employees a number of practical tips about how to take care of customers

 

• Another way in which Enterprise has improved customer service is through a system of constructive criticism known as ‘The Vote’. Each week members of a branch are asked to rank others, from best to worst, based on the quality of their customer service in the previous week and to explain why. Awards are given to top-rated employees.

This system of positive criticism works well and very quickly branches with low ESQi

scores improve in the performance tables. 

ROI

CRM and Success of the Company

•They were eventually able to prove from their survey data that “completely satisfied” customers were three times more likely to rent a car again than those who were only "somewhat" satisfied

•They went from being a nearly $2 billion business in 1994 to a $7 billion plus business today because of their superior customer service

Customer review “The people at Enterprise, upon first call, were most helpful. They asked

what type of car I needed. ….After that, everything was easy. I took my ailing vehicle to the Chrysler dealership the very next day, and Enterprise met me there with the Metro. We went back to Enterprise, where I signed a lease agreement, provided proof of my own insurance, and handed over my bank check card. I was told that if, for any reason, I needed to extend the lease, I simply needed to call them.

I actually needed the car a day longer than anticipated, so they took care of the paperwork on their end…When I returned it safely to the dealer, someone came to pick it up, and we followed them back to Enterprise to pay for the extra day's rental. I cannot praise Enterprise enough. The car that was leased to me was in fine condition. The tank was full when the car was rented, and I was asked to return it with a full tank of gas. Since this was a 3-cylinder vehicle, the gas mileage was excellent

I found the Enterprise staff to be friendly, eager to accommodate my needs, and able to answer any questions I had about the vehicle. The fact that they were willing to pick me up at the Chrysler dealership and retrieve it from there was very helpful. I would recommend Enterprise to anyone.”

Competition

How does Enterprise STAND OUT ?

•Two main competitors are: Hertz and Avis

•Enterprise's true equity market value is probably in the neighborhood of $17 billion, while Hertz is estimated at $7.5 Billion

•Enterprise is superior to either in more than dollars - not nearly as cyclical (because it has very little exposure to the volatilities of air travel), much less leveraged, and sounder all around

•Unlike airport-based rental car companies who may never see a customer again, Enterprise agents are keenly aware that keeping local customers happy is vital to the company’s bottom line

• The concept of picking up customers at their homes was a field innovation.

It is the one feature that most identifies Enterprise and is therefore priceless

•Enterprise also offers the world's largest fleet of fuel- efficient cars, including more than 440,000 vehicles that get better than 28 miles per gallon on the highway

This is far more than any of its rivals.

Recommendations• Look for International Markets: Should continue to increase the number of its international locations.

With the continued success it has experienced with its new international locations in Canada, U.K., Ireland, and Germany, there is no reason for Enterprise not to continue its international growth.

• New Market Segments: Enterprise’s corporate website (Enterprise Corporate Website, 2005)

admits that Enterprise will continue to develop its new market segments, including Fleet Services, Truck Rental, and Car Sales.

Lack of airport sites has hurt Enterprise’s ability to provide complete service to its customers when they are away from home

• Technology: Develop and adapt new technologies in order to continue to provide

the customer the best customer service and the highest level of convenience.

Continue leading as a Green company: Establish outlets with only green vehicles to serve better the

environmentally conscious customers

Conclusion• Enterprise is not really a car rental business at all – it is a

customer service business

• Enterprise will continue to develop new market segments and continue to expand internationally, taking advantage of its brand image to identify with new customers in new markets.

The customer relationships Enterprise has built, will only serve to propel Enterprise’s efforts to expand into new market segments.

References

http://money.cnn.com

http://aboutus.enterprise.com

www.thetimes100.co.uk/case-study

http://favorcenter.net

http://www.netpromoter.com