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Full Annual Report - Inchcape

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Section<br />

One<br />

Business<br />

review<br />

Our customers<br />

We place emphasis on the quality of our customer service and in 2007 we launched the Customer 1st initiative as part of the<br />

<strong>Inchcape</strong> Advantage programme to deliver outstanding customer service‘every time,every day,everywhere’.<br />

Following extensive consumer research, we<br />

developed and implemented Customer 1st<br />

processes, training and systems throughout<br />

our retail centres. In particular, this has<br />

allowed local management to set targets<br />

for each centre based on customer<br />

satisfaction measured through Net Promoter<br />

Score (NPS) and sales and service funnel<br />

management analysis. In 2008 the<br />

programme was expanded to include our<br />

aftersales operations.This is described in<br />

more detail on pages 14-15 of this <strong>Report</strong>.<br />

We have introduced a system for tracking<br />

daily customer information for both sales<br />

and aftersales operations including retail<br />

centre traffic, sales leads, test drives and<br />

vehicle and service orders. Results are<br />

collected and monitored daily through<br />

a dedicated award winning portal on<br />

the Group’s intranet.This information is<br />

aggregated overnight, providing reports<br />

and comparisons against brand, country,<br />

region and across time periods.This allows<br />

us to measure, for example, the number<br />

of orders taken as a percentage of leads<br />

and to set targets accordingly and gives<br />

management a strong knowledge of the<br />

automotive industry and detailed insight<br />

into particular markets.<br />

Our customer understanding is facilitated<br />

both by our mystery shop in each of our<br />

retail centres’ sales and aftersales<br />

operations and by quantitative analysis<br />

of our NPS results. On a monthly basis,<br />

each retail centre submits feedback<br />

from 20 buyers and a further 20 visitors<br />

about their experience at the centre<br />

together with feedback for at least 20<br />

aftersales customers.<br />

Guidance on best practice and detailed<br />

recommendations on opportunities to<br />

improve customer service are accessible<br />

to all retail centre employees via our portal.<br />

We use the Customer 1st programme to<br />

monitor both our own performance as the<br />

retailer for our brand partners and the<br />

performance of our third party retailers<br />

where we manage the retail networks as<br />

the distributor.<br />

We believe that this focus on customer<br />

service and sales technology will help<br />

us deliver a superior retail service to our<br />

customers. Further, an improved customer<br />

experience sets us apart from our<br />

competitors and builds loyalty, resulting<br />

in stronger relationships with our brand<br />

partners and leaving the Group better<br />

positioned to grow market share.<br />

Customer 1st in 2009<br />

• We carried out approximately 2,800<br />

mystery shop exercises in 240 retail<br />

centre showrooms across the Group.<br />

• We carried out approximately 2,200<br />

mystery shop exercises in 225 service<br />

centres across the Group.<br />

• We talked to 44,500 vehicle buyers and<br />

45,500 showroom visitors for our vehicle<br />

sales NPS.<br />

• We talked to over 54,400 service<br />

customers for our aftersales NPS.<br />

Our NPS position has improved across the<br />

Group in 2009.<br />

Supporting our customers<br />

We are committed to providing clear<br />

information to our customers to help<br />

support them in their vehicle purchase<br />

choices.This is provided in our showrooms<br />

and on our websites.<br />

As part of providing a customer focused<br />

aftersales service, we offer our customers<br />

an environmental vehicle health check<br />

which includes:<br />

• tyre pressure check<br />

• CO 2 test and emissions test<br />

• air condition check<br />

• engine lubricant test<br />

• emissions test<br />

In some of our retail centres, customers are<br />

offered a free ‘Green Test Drive’ when they<br />

visit us for a vehicle service.The Green Test<br />

Drive shares tips with the customer on how<br />

to drive more efficiently, how to improve their<br />

environmental impact and ultimately how<br />

to reduce their vehicle running costs.<br />

We also have accessories available that<br />

help our customers manage their<br />

environmental footprint including low rolling<br />

resistance tyres, which can reduce CO 2<br />

emission by around 2% and lower engine<br />

friction lubricants which can reduce CO 2<br />

emissions by around 1%.<br />

Our brand partners<br />

We carefully select the brand partners<br />

that we represent in each market.The<br />

automotive industry has made significant<br />

progress in reducing vehicle emissions<br />

and we fully support the investment that is<br />

being made by our brand partners in this<br />

area. In the UK, average new car emissions<br />

have fallen by over 13% in the last 10 years.<br />

The biggest impact that motorists could<br />

have on the environment is replacing<br />

older high emission vehicles and having<br />

their cars regularly serviced. Improvements<br />

in CO 2 emissions have been achieved<br />

in all product segments.As an industry<br />

leader, <strong>Inchcape</strong> stays close to CO 2<br />

technological developments.<br />

Improvements in CO 2 emissions<br />

2009 2008<br />

Industry average<br />

CO 2 g/km 149.8 158.7<br />

Improvement 5.6%<br />

<strong>Inchcape</strong> weighted<br />

average CO 2 g/km 148.9 160.9<br />

Improvement 7.5%<br />

www.inchcape.com 43

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