Hertz Leverages IBM Analytics for Competitive Edge

Hertz is using IBM's business analytics software to improve customer satisfaction based on the analysis of customer feedback forms.

LAS VEGAS-IBM has announced that Hertz and Mindshare Technologies, a leading provider of enterprise feedback solutions, are using IBM analytics software to examine customer survey data including text messages to better identify car and equipment rental performance levels.

At its Information On Demand (IOD) conference here, IBM said Hertz is using IBM analytics software for pinpointing and making the necessary adjustments to improve customer satisfaction levels.

Indeed, as the world's largest airport car rental brand with more than 8,300 locations in 146 countries, Hertz continually receives feedback from customers. To retain its competitive edge, the feedback is analyzed so that real-time identification of issues and rapid problem-solving solutions can be deployed.

"Hertz gathers an amazing amount of customer insight daily, including thousands of comments from Web surveys, e-mails and text messages. We wanted to leverage this insight at both the strategic level and the local level to drive operational improvements," said Joe Eckroth, chief information officer at Hertz, in a statement. "Working closely with the IBM-Mindshare team, we are able to better focus on improvements that our customers care about while removing a time-consuming burden from our location managers. This has greatly improved the effectiveness of our 'Voice of the Customer' program and has helped build on our reputation for delivering superior customer service."

Using IBM Content Analytics software together with a sentiment-based tagging solution from IBM business partner Mindshare Technologies, Hertz introduced a "Voice of the Customer" analytics system that automatically captures customer experiences in real time, transforming the information into actionable intelligence. Using a series of linguistic rules, Hertz's "Voice of the Customer" system categorizes comments received via e-mail and online with descriptive terms such as Vehicle Cleanliness, Staff Courtesy and Mechanical Issues. The system also flags customers who request a callback from a manager or those who mention #1 Club Gold, Hertz's customer loyalty program.

IBM officials said in the competitive world of vehicle and equipment rental, Hertz recognizes that understanding customer feedback and adapting the business accordingly is what drives market share and success. However, most of this valuable information is trapped inside free-form customer feedback surveys. Prior to working with IBM and Mindshare Technologies, Hertz location managers read each customer comment submitted online via e-mail or by phone and then manually categorized it for basic reporting and analysis. This approach proved to be labor-intensive and inconsistent, as comments were categorized based on a manager's personal interpretation.

IBM content analytics software has improved the accuracy and speed of the tagging and analyzing process, almost double what had been achieved manually, setting the stage for more reliable analytics. Free from manually tagging comments, Hertz field managers can now focus attention on performing deep-dive analysis on the information, quickly identifying trends or issues and adjusting operational service levels accordingly, IBM said.

For instance, wait times at car rental locations can be a contentious issue. The faster and more efficient the car rental and return process, the more likely the customer will do repeat business. Using analytics software, Hertz location managers are able to effectively monitor customer comments to deliver top customer satisfaction scores for this critical level of service, IBM said.

In Philadelphia, for example, survey feedback led managers to discover that delays were occurring at the returns area during certain parts of the day. They quickly adjusted staffing levels and ensured a manager was always present in the area during these specific times.

The Internet and new social media technologies have made consumers more connected, empowered and demanding. The average online user is three times more likely to trust peer opinions over retailer advertising, underlining the importance for retailers to tap new technologies that pay close attention to what customers are saying.