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A picture worth $170 million
If you rent from Hertz, you probably won't be getting away with any dings or scratches from now on. The company plans to start taking pictures of the cars before they go out and then again when you bring them back.
The company currently loses about $170 million in damage payments a year, Chairman and Chief Executive Officer Mark Frissora, 54, said in a telephone interview yesterday.
The photo system is part of a broader plan to use technology to increase efficiency and improve customer service, Frissora said. The equipment produces a high-resolution, digital photograph of the rental car, and will compare before and after pictures for differences, Frissora said. Hertz employees currently walk around the vehicle and mark any damage on a form, which the customer signs.
"There will be no discussion because the document would clearly show any incremental damage," Frissora said. "This keeps customers from being placed in a confrontational position and saves time."
It's a definite plus to be able to prove you didn't cause the damage. And if you did, well, it might be a good time to learn Photoshop. We can probably clean this right up:
Well good for them. I think Hertz is on the right track. They can easily pull up the prior image and see if there was previous damage so innocent customers do not get blamed for other prior customers damages. People who want to pass the buck and not accept responsibility for damages that occurs while in their watch really erks me. Even if it is damage from opening a Car door. I caught someone who opened their car door into mine and that repair cost $568.00. Why make Hertz eat that? Bottomline is those costs are passed on back to the consumer with higher rental rates and other charges. I rather see those that are responsible pay for those costs versus an innocent customer or accept their insurance.
Has Hertz thought this through carefully? Once its customers start getting nickled and dimes for minor damage claims that are not even their fault (e.g. someone opened a door into their parked car while they were shopping), the word of mouth will spread and people will rent elsewhere.
Mr. Fissora's grasp of the technology is par for the C-level brain. It will not necessarily increase efficiency because the vehicle must be scanned. If it's scanned manually then interpreted by someone that's more overhead. If an automated image recognition system does the comparisons (e.g., as the car is driven into the lot) then there will be more than a little room for error e.g., dirt or mud, water, snow on the vehicle. Would an employee be permitted to override the system? If so then they are back where they began. If not they they have created another customer service problem. If customers feel that the system is being used to take advantage of them then they will go elsewhere.
In the recession of the early 1990s and later there were numerous business articles and books written on the importance of customer retention, customer service, pleasing the customer, and so on. Nordstrom was exhibit A in terms of how to manage customer service and trusting employees judgment. That seems to have given way to the attitude of customer as adversary, and perhaps employee too. That cannot be good for business when competition exists. Ironically, in our consumer economy power has shifted to corporations, especially financial corporations, and away from consumers.
