Enterprise rent-a-car

“We’ll pick you up.”

By,
Nipun Mehra, Melissa Zephir, Delphine Ilous,
Devanshi Patel, Larry Sultan
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.

 SWOT Analysis
STRENGTHS WEAKNESES

 Leading Market Position  Maintenance and Cost of Repairs

 Robust Financial Performance  Very Capital Intensive Operations
 No. 1 in Customer Service  No One-Way Rentals
 Large Fleet of Vehicles

OPPORTUNITIES THREATS

 Trend for renting Cars  Increasing Fuel Prices

 Use of Internet for Rentals  Intense Competition
 Bigger presence at the Airports  Downturn in the (Used) Car Markets
 Serving ‘Green’ Customers  Mergers & Acquisitions
 Company’s
Message
"Take care of your customers and employees first,
and growth and profits will follow.“

Jack Taylor
 The words of the CEO…
(showing that CRM is truly at the heart of the company)

So, in these days of "Customer No-Service," it is

refreshing to experience the following:

• To be offered cold drinks on a hot

summer day.

• To be recognized and addressed

properly by your last name ...
pronounced correctly, by the way.

• To be telephoned the day after you rent

a car just to make sure everything was
okay.

• And to be treated in an extremely

professional and personable manner
during the entire experience.”

"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