Sunday, April 17, 2005

Separation of corporate vs. licensee

Hello there. You are probably wondering what I mean by separation between corporate versus licensee. When a business chain begins, all the stores, restaurants, or car rentals belong to the business chain owner and are controlled by a board of directors with CEO's and vice presidents called a corporation or corporate. Eventually, individuals will desire to buy into the company chain called a franchise. These individual owners sign a contract with the parent company called home office to open a business location in the chain for a fee paid to the parent company. Also in that agreement is the right of the individual business owners called licensees have complete reign over their location's rules that can override corporate rules to the displeasure of customers accustomed to corporate rules.

What that means to the customer renting a car. At corporate locations within the company chain have the same rules, can transport cars from one location to another as needed which increases the amount that can be rented, and are more willing to please customers who believe they are specially privaledged to stop them from complaining to higher management. Corporate has a hierarchy of managers ranging from location manager to city manager to district manager to regional manager, etc. when a customer is displeased with their service.

Licensee locations have their own rules set by the owners, have their own rental cars to rent so one way rentals use cars from corporate cities, and are more likely to tell a customer believing they are specially privaledged the word "No". After a fight over the phone with someone working for the First Lady's office did I coin the term "I do not care if he/she is the President Of the United States, the answer is the same" when speaking to customer service people from the 800 customer complaint line. Yes, employees at licensee locations will put an arrogant customer in their place real fast. So let the complaining begin.

Another difference between corporate and licensee locations is that the licensee owners are more in touch with their employees than corporate managers are. Various corporate managers visit locations and only speak to other managers, not bottom of the hierarchy employees. Corporate policies are dictated by the customer point of view only by looking at sales figures coupled with customer complaints and surveys. When handling customer complaints they often will side with the customer making their employee's position "Whoever said the customer is always right should be shot." (my philosophy too).

Licensee owners more in touch with employees, actually speak to the employees on a regular basis and understand both the employee and customer point of view. Private owners also understand employees will anger customers by following their policies and back up the employee's position of "I don't make the rules, I just work here." At a licensee location, a break in the rules requires management approval, who is not always around. I work for a licensee and can honestly say I like my boss. I wouldn't go on vacation with him, but I am in no hurry to leave my job.

What does being in touch versus out of touch mean to the customers. Happy employees stay with the company longer so licensees will more likely have more experienced employees able to fix problems and know loopholes that can benefit the customer. My aunt and uncle went on a trip to discover the car rental agent there was alone and clueless how to do her job in addition to not able to type well (I'm guessing the girl was new instead of incompetent). She told my mother that if I was there, that would not have happened. I rented to my aunt twice before her trip. She knows how quick I am at renting cars. Post later. Genie out.

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