MSORMAN Session 3: Enterprise rent-a-car


enterprise-rent-a-car

Corporate Overview

  • Established in St. Louis, Missouri in 1957 by Jack C. Taylor. Originally known as “Executive Leasing Company” in 1969. Taylor renamed the company “Enterprise” after the aircraft carrier “USS Enterprise”, on which he saved during World War II.
  • Forbes ranks Enterprise as number 16 in the top 100 private companies in the United States.
  • Best Corporate Car Rental Company 2006 – Institute of Transport Management
  • Top 50 ‘Where women want to work’ – The Times with Aurora
  • O2 Ability Awards 2006
  • Service Provider of the Year 2006 – British Insurance Awards
  • Best Graduate Advert and Best Graduate Web Site – Recruitment Advertising awards 2006

Some facts and figures about the company

Branches

  • More than 6000 in the USA
  • More than 850 branches in the UK, Germany, Ireland and Canada

Number of employees

  • More than 65,000 worldwide

Revenue

  • $9.2 billion in 2006

Number of rental car vehicles in service

  • 711,000 in 2006

Total number of fleet

  • More than 850,000

This all adds up to Enterprise being the largest purchaser of cars in the world.

Corporate Challenges

  • Exceed customer expectation
  • Measure customer satisfaction

Core Business

  • Service business is one that meet customer needs by providing them with a valued service.
  • Enterprise’s main activity is renting vehicles to customer who
    • need a car because of an accident, mechanical repair or theft
    • want to make a short business/leisure trip or who need a car for a special occasion
    • need a car in town for a business purpose
  • Customer service is the overall activity identifying and satisfying customer needs.

How did the company address the  challenges?

  • The management team at Enterprise rent-a-car developed a simple but highly effective way of finding out what keeps customer happy.
  • They created a questionnaire for customers based on two questions:
    • How would you rate your last Enterprise experience? This is ranked on a scale from ‘completely satisfied’ to ‘completely dissatisfied’
    • Would you rent from Enterprise again?
  • The results of the survey form part of the Enterprise Service Quality Index (ESQi). This is the basis for measuring performance of the various rental branches of Enterprise.
  • The process was focused on refining the survey with the result that it appears simple.

What are the strengths and weaknesses of the approaches/strategy implemented?

Strengths

  • They created a questionnaire for customers
  • Company realised the importance of developing ways of measuring customer service
  • Qualitative Data (Collection of data on customer opinions) and Quantitative Data (Collection of data on the numbers of cars rented)

Weaknesses

  • Customer surveys response rate is very low because the surveys are long and complicated
  • The survey results were not meaningful enough
  • They have a competitive advantage over rivals (Most customers prefer good service to lower prices)

Approaches/Strategy

  • They developed a new way of measuring customer satisfaction called “Enterprise Service Quality Index (ESQi)
  • Enterprise decided to cut down the survey to the two questions. Also the survey method was refined to compress ESQi scores branch by branch, rather than region by region
  • Enterprise has improved customer service through a system of constructive criticism known as ‘The Vote’. (Each week members of a branch are asked to rank other members, from best to worst, based on the quality of their customer service in the previous week and to explain why)

Recommendation/s

Maintain customer satisfaction

  • Provide other services in terms of car rentals and leisure.
  • In their website, enterprise
    • Business rental programs scale to meet specific needs. Plus, selling vehicles too.
      • Enterprise Business Rentals
      • Enterprise Car Sales (used cars, trucks, vans and SUVs)
    • RideShare, CarShare, Motorcycle, Exotic Car Collection and Trucks
    • Weekend Special Promo
  • Websites, Social Media and Mobile Application (Enterprise Mobile Application already available – AppStore and GooglePlay)

Improve customer relationship

  • Rewards and Redeem
  • In their website, enterprise
    • Enterprise Plus (Their loyalty program, a way to thank you customers for choosing them)
    • Rewards Tiers At a Glance (Level of membership: Plus, Silver, Gold and Platinum)
  • Receive Global recognition (Earn point and Elite Status Worldwide)
  • Travel Partners (Enterprise Travel Partners: Amtrak Guest Rewards and Plenti)

Best practices presented in the case

  • New way of measuring customer satisfaction – ESQi
  • Cost and benefits analysis
    • Deciding whether to carry out a business action
  • ESQi survey concentrates on those aspects of customers satisfaction which are very positive. Adopting this approach produces great results for Enterprise.
  • ESQi work well because it helps front line managers to pursue two objectives:
    • to get more top-box ratings
    • to get fewer scores of neutral or worse
  • It also supported the desire of people working in the branches to be entrepreneurial, that is, to have ideas of their own to improve service

Realization:

Aside from our group presentation, Enterprise rent-a-car, we also had class discussion about the other case study like McDonald, Parcel and First Direct Banking. Everything are about customers. Might be customer satisfaction and feedback. There I realized that it is not only about the company how and when it all started but on how that company should achieve it grow and success further.

With the help of customer, you can define what are the qualities needed on your company to boost its growth. Also it helps you understand the skills, performance of the employees and status of the company.  While there is Enterprise rent-a-car in UK, Grab and Uber are the most heard car rentals here in the Philippines.

I still remember when I first used Grab on my phone way back on the year of 2014. Grab-a-taxi is the only option you can choose as a vehicle to ride on. Slightly pricey than the regular taxi but safety because summary of your destinations will also be send on you through email. Until it boost when they partnership with a telecommunication company. More options of vehicle are added. You can choose from Grab-a-taxi, Grab-a-bike, Grab-a-car, Grab-express, Grab-a-car (Premium) and their new vehicle, Grab-a-heli.

More and more customer define this as an efficient way of transportation since they feel secured and comfortable. They have this kind of app on their smartphones (available on app store and google play) that required to submit a feedback after of your every completed transactions. From here, you can suggest and comment the experience you had using Grab.

This is one of the tools that help Grab to have more options and have better way on serving their customers.

Author: Akuma Geijutsu

Studied BSCSIT - SSE at Asia Pacific College stradmore! :D 2nd life! "Early to bed, Early to rise!" XD im krsnik a vampire that drinks other vampire bloods

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