Hertz - Service Quality model - oral presentation 23-08-13
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Transcript of Hertz - Service Quality model - oral presentation 23-08-13
Hertz car rental &
Service Quality
•Audrey Jaspart
PLAN
1. Hertz Corporation Presentation of the car rental company Hertz car rental blueprint framework
2. Investigation context Interviewers Significant trends in the car rental industry in Ireland
3. Hertz - Service Quality Gapsa. GAP 1: Knowledge Gapb. GAP 4: Communication Gapc. GAP 5: Perceptions Gapd. GAP 7: Service Gap
4. Conclusion
Hertz CorporationPresentation
Hertz presentation
The Hertz Corporation (also called Hertz) is a subsidiary of Hertz Global Holdings Inc
150 countries
8,860 corporate and licensee locations
The largest company in the sectorSince 1918
Turnover: $7,633.0 million (car rental)
Hertz Report 2012
Hertz presentation
The company is engaged in car rental and equipment rental business
There are two main types of customers: - Customers who rent for leisure (45%)- Customers who rent for business (55%)
The rental location is also a key point of Hertz: airport and off-airport
Hertz agencies localization in Ireland
Hertz and the use of new technologies
• Major player in the use of new technologies
• The company has set up terminals reservation, e-receipts, Smartphone applications...
Hertz car rental blueprint framework
Investigation context
Interviewers
Mrs. Hayley Murphy, HR Consultant, Hertz Europe Service Centre
Mr. Joffrey Kropfinger, Hertz Sale Representative, Ireland
Two Hertz agencies in Dublin (Ireland):• Hertz - Dublin Airport• Hertz - 151-157 South Circular Road, Dublin
Significant trends in the car rental industry in Ireland
• Car rental market remains extremely fragmented in Ireland having 64% value share in 2012
• Hertz Ireland and AVIS Ireland both have the largest value shares at 10%.
• BUDGET (company) car rental Ireland also had a good market share of 8%.
Hertz Service Quality Gaps
Customer experience relative to expectations
1. Knowledge Gap
2. Standards Gap
3. Delivery Gap
5. Perceptions Gap
7. Service Gap
Customer needs and expectations
6. Interpretation Gap
4. Communication Gap
MANAGEMENT
CUSTOMER
4.
Customer perceptions of service execution
Management definition of these needs
Translation into design/delivery specs
Execution of design/delivery specs
Advertising and sales promises
Customer interpretation of communications
Service Quality Gaps
Knowledge Gap
Key factors and main goals
We can identify 4 key factors responsible for provider gap 1 :
=> Inadequate marketing research orientation
=> Lack of upward communication
=> Insufficient relationship focus
=> Inadequate service recovery
The main goals of the Gap 1 are :
=> Understand customer expectations
=> Improve communication between frontline staff and management
=> Turn information and insights into action
First issue for the knowledge gap
Issue: Lack of upward communication
• Managers and employees don’t communicate about customer expectations
• Too many layers between contact personnel and top management
• Lack of interaction between management and customers
Recommendations for the lack of upward communication
Executive and management listening to customers
Executive listening approaches to employees
Employee suggestions
Second issue for the knowledge gap
Issue: Inadequate service recovery
• Recurrent customers complaints : often the same complaints
• Failure to make amends when things go wrong
• No appropriate recovery mechanism in place for service failures
Recommendations to have an adequate service recovery
Act quickly
Cultivate relationships with customers
Learn from lost customers
Third issue for the knowledge gap
Issue: Inadequate Marketing Research Orientation
• The company is too focused on service quality and customers expectation
• Hertz is not enough focused on what customers think about the company
Recommendations to have an adequate Marketing research orientation
Critical Incidents Studies (CIT)
Lost customer research
Futures expectations research
Communication Gap
The Services Marketing Triangle
Grönroos (1990) - the Services Marketing Triangle
Hertz
Hertz Marketing – Communications Strategy
Hertz has embraced the concept of Integrated Marketing Communications- To have a long term communication with the customer
ISMC : Integrated Service Marketing Communications
Television commercialsE-mail, travel magazines…
Social Media,Website…
Notify phone
Social Media Strategy
That Hertz does well to support the Service Quality
Use of tangibles evidences in advertising
Building a quality relationships service by encouraging employees to be efficient
Meet customer expectations thanks to the service provided by employees, the service process and the decor in agencies
A services branding Model. Source: Berry, L.L. (2000)
First issue in Hertz communication
Issue: Inadequate horizontal communications
- Insufficient communication between sales, operations and advertising - Marketing department that makes promises and sales- reservation departments and agencies which deliver the service are completely independent
Hertz should improve the communication inside the company between the different departments
Second issue in Hertz communication
Issue: Overpromises in advertising and communication
The availability and range of cars are not promises that can be hold by all agencies and for all rental periods
1. To make realistic promises
2. To teach customers to avoid peak demand periods
Perceptions Gap
Perception GAP
• GAP 5: Between a customer’s perception of a service experience and service delivery
Perception: cognitive impression that is formed of “reality” which in turn influences the individual’s actions – AMA, 2009
Hertz promises
Two main promises• Attractive price• Wide range of vehicles
Three other promises• provide usable and maintain vehicles• pleasable and clear reservation experience• full support of the customer
Feedback questionnaire and claim management allow the company to measure customer’s satisfation
Identifying perception gap in Hertz
In order to identify the potential perception gap we need to study customer’s feedback customer’s opinions on forum
Five main issues linked• to vehicles’ condition • to stock management• to staff’s behaviour• to claim management• to price
Recommendations
Perception gap would lead to bad publicity from customers, direct and wrong consequences on the image’s enterprise, and loss of potential and actual business
Hertz need to • inform the customer all along the service process• provide physical evidence • educate its customers
In concrete terms• remind the conditions of the contract, especially price and characteristics of the vehicle • stay careful about employees’ behaviour offer them training• improve its soft management software• improve its claim management
Service Gap
Hertz Marketing – Customer GAP
Consumer has become increasingly demanding and expect high quality customer service
• GAP 7: Between a customer’s perception of a service experience and service expectations
Customer’s expectations: what the customer expects and influenced by word of mouth, personal needs, past experience…
Customer’s perception: It is derived from the customer’s satisfaction of the specific product or service and the quality of service delivery.
Company Rating
• To evaluate the consumer GAP: analyse 5 different websites of consumers feedback• The advantage: only truth opinions of the customers
Maximum of stars satisfaction: 2
Customers feedback
Customers feedback
Customers satisfaction
1 star2 stars3 stars4 stars5 stars
2.5 7.5 12.5 17.5 22.5 27.5 32.5 37.5 42.51 star 2 stars 3 stars 4 stars 5 stars
Satisfied customers 50 reviews
42 4 1 2 1
424
12
1
CUSTOMER SATISFACTION OF HERTZ SERVICES
84%
8%
2%4% 2%
1 star2 stars3 stars4 stars5 stars
RANKING OF 50 REVIEWS
Analyse of: • 50 first customers feedback • 5 websites • Different countries
Results:• 84% customers: unsatisfied• 8% customers: a bit satisfied• 2% customers: satisfied• 4% customers: good satisfaction• 2% customers: Very satisfied
Recommendations
• Understand customer needs and knowing customer expectations.
• Keep promises and provide the same products or services mentioned in advertising
• Make gesture of goodwill to customers
• Launch mystery shopper waves to improve the results of Hertz in welcoming customers
• Constant customers-feedback should be taken, including evaluation of the quality by a questionnaire
• Prompt response to customer request, and sincere interest in problem-solving
Conclusion
Conclusion
Hertz is the leader on car rental service’s market However, gaps are existing concerning knowledge, communication, perception and service.
Hertz needs to improve its Service Quality in order to:- be much more efficient - stay the number one in car rental service
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SOME QUESTIONS ?
Thank you for your attention