All the work that goes into designing products of excellence is bought to fruition in the phases of sales and post-sales assistance. The objective is to establish a relationship of trust with customers, first enabling them to choose the best product to meet their needs, and then to carry out their work as effectively and with as few stoppages as possible.
From the materiality analysis, customer relations emerged as important with regard to various aspects, above all concerning the management of product quality assurance. This aspect involves the product development stage (see also pages 132-135) and the post-sales phase. In the latter, the ability to respond quickly and resolve product defects is essential for the Company to build trust and customer loyalty. For customers, minimizing the risk of downtime is crucial.
Next in importance is the ability to manage customer relations across the board, ranging from the Company’s accessibility regarding requests for information and problem reporting, to the ability to provide clear answers as quickly as possible. This phase is also important in laying the foundations for future success by gaining an understanding of the degree of customer satisfaction, and, based on feedback and suggestions received, enabling changes to be made to existing product ranges, and new product lines to be developed that meet future market needs. For the Company, this aspect is important for building trust, while for stakeholders it means improving the use of their equipment, and limiting disruption in the event of problems.
A further crucial aspect emerging from the materiality analysis is the relationship with dealers, since they represent the Company in their interactions with customers. During the sales phase, it is essential to communicate the full range of technical capabilities of the Company’s products and the principles that led to their realization. During the post-sales phase, it is important to assist customers in the best use of equipment and machinery, reducing downtime in the event of damage. A network of well-trained dealers that understand the specific needs of customers is key to achieving these objectives.
A final issue of fundamental importance is the customization of products to the needs of emerging economies.
The Company operates in 190 countries, and for this reason it is important to consider the specific characteristics of each individual market, customizing its products to local requirements. In this way, CNH Industrial can win market share while at the same time promoting economic and social development in emerging economies.
Policies and commitments
Its commitment to its customers is a cornerstone of the Code of Conduct, in which CNH Industrial undertakes to fully meet the expectations of end customers and states that all CNH Industrial executives, managers and employees shall strive to exceed customer expectations and continually improve the quality of the Company’s products and services. It specifically sets out employees’ obligations to pursue this goal by building and maintaining fruitful and lasting relationships with customers, through safety, assistance, quality and value supported by ongoing innovation.
This commitment is extended to dealers through Company contracts, which include a clause by which dealers undertake to abide by the Code of Conduct and its Guidelines.
Commitments, actions and targets are set out in the Sustainability Plan (see pages 120-123).
Customer relations are managed by each of the brands, which define the main guidelines. Each Region has a Commercial Services function that reports directly to the Regional Chief Operating Officer (each Regional COO is a member of the Global Executive Committee). Through the brands, the Commercial Services function provides the services needed to implement the defined customer strategy. The Quality function, whose head is also a member of the GEC, operates centrally, and pursues the following objectives: to ensure the quality of Company products over their entire life cycle; to drive consistent processes and methodologies across product lines, Regions and product support functions; to assist Regions in achieving their objectives; and to drive optimization across product lines and Regions to improve results, efficiency and speed.
Each Regional Commercial Services function has a department that deals with the management and development of the dealer network, in compliance with the guidelines defined by each brand.
DEALER AND SERVICE NETWORK
The dealer and service network is directly managed by the individual CNH Industrial brands and supported at regional level by Network Development. This function designs tools and defines processes to monitor the relationship with dealerships, ensuring a consistent approach across the Company.
Specific dealer development programs ensure that CNH Industrial’s dealer network complies with its customer service and quality standards. The main objective of these programs is to drive best-in-class customer support across the dealerships and to build a stronger and more competitive dealer network, so contributing to dealer business growth. Competitiveness, organizational structure, financial sustainability, as well as customer support and satisfaction, are examined through the following operational areas:
- visual identity
- facilities and operations
- administration and marketing sales parts service.
SERVICE QUALITY STANDARDS
The monitoring of programs for dealer quality standards is managed via a dedicated system known as AssessNet- NAT (Network Assessment Tool). Thus far, this system has been used in the EMEA and NAFTA Regions, with extension further afield planned from 2014 onwards. The AssessNet-NAT software is used to manage information on CNH Industrial brand dealers, and allows each company to continually monitor the compliance of its dealers with the required qualitative standards, while also overseeing the measures planned to meet these standards. The system also collects information on the various audits performed on the dealership network, along with the results.
CASE IH Pinnacle Excellence and Red Excellence, New Holland Agriculture President’s Club and Blue Ribbon are some of the programs developed in line with strategies for global markets, and customized to respond to the precise local and regional requirements. The CASE IH Pinnacle Excellence Program strives to improve the quality and competitiveness of CASE IH dealers in terms of brand representation, performance, customer service and technical support. For Pinnacle Excellence, Case IH performed an overall assessment of the strengths of its own customer support services, those of its dealers, and those of dealers in comparable industries, with a view to identifying industry best practice. The results of this comprehensive survey were then used to design the Pinnacle Excellence Program, with the goal of driving best-in-class brand representation and customer service across the dealerships. Both are factors that can greatly improve competitiveness and the customer experience, so enhancing dealer profitability and brand performance. In 2011, in NAFTA, CASE IH introduced the Pinnacle Excellence Program to seven hundred dealers, employing 25 best practices with measurable guidelines, assessing the Sales, Marketing, Operations, Parts, and Service functions, and evaluating overall levels of expertise at the dealerships. To support Pinnacle Excellence, several in-depth dealer-training programs were developed and implemented:
- the Sales Excellence Program, a comprehensive training scheme that helps dealers to define a professional and organized sales process and to grow their business
- the Parts and Service Profitability Program, an advanced training workshop focused on increasing dealership profitability
- the Financial Leadership for Growth Program, a training workshop for dealer stakeholders and financial managers to help them examine and plan performance and growth targets
- Business Management Services, a web-based program that collects and analyzes dealers’ key monthly financial data taken directly from their management systems
- the Customer Satisfaction Measurement Program, a turnkey service that measures customer experience and satisfaction at a particular dealership in terms of purchases, operation of new vehicles, and repairs under warranty.
The New Holland Dealer Standards Program was re-established in 2010 and sets guidelines and measures to increase the dealer’s customer base and enhance customer satisfaction with New Holland products and services. Standards selected directly reflect the brand’s priorities, although they are not intended as the sole criteria for excellence, but rather set the framework within which dealers should strive for further improvement.
The program has two achievement levels: the President’s Club and the Blue Ribbon. While the Blue Ribbon level sets the minimum standards for dealers, the President’s Club level recognizes dealers who reach a higher level of service excellence, as well as a preset product target. The New Holland Dealer Standards Program will continue in 2014 with improved guidelines and raised targets to drive dealers to strive for excellence in the market and in the community.
In Europe, New Holland Agriculture’s business activities are customer-focused. The New Holland brand and its dealers are committed to sustaining a lasting relationship based on trust and confidence, and indeed the company considers its dealers to be business partners. The Top Partner Program promotes the continuous development of all parties involved and helps to assess dealer expertise, as well as identify areas for improvement, giving guidance on how this can be achieved. It is based on three main principles: leadership and management, customer acquisition and support, and personnel management and retention. These principles are applied through Sales and Marketing, and Service, areas in which New Holland has defined a series of best practice objectives to give dealers a competitive market advantage. A series of specific standards form the basis of the Top Partner Program, according to three levels of compliance: certified, advanced and premium. First level compliance demonstrates a dealer’s ability to deliver a unique and consistent New Holland Agriculture experience to the customer, whereas premium level compliance reflects systematic implementation of recommended dealer best practice.
Case IH Europe believes in building the industry’s most professional dealer network and, through the Red Excellence Program, trains dealers to a very high professional level to meet the increasingly demanding requirements of existing and future customers. The scheme was launched in 2009 in five key markets and has since been extended to all European plants. The aim is to foster a successful and sustainable partnership with dealers and continuously raise the quality of customer service. Red Excellence supports each dealer, identifying critical business areas and driving best practice to achieve continuous improvement. Key areas for dealerships are:
- HR and Training
- Sales, Service, and Marketing
- Dealership buildings and signage
- Tools and equipment
- Harvesting and Advanced Farming Systems.
There are three levels of Red Excellence compliance for Case IH dealers: the certified level recognizes the fulfillment of minimum Case IH quality requirements for a consistent brand experience; the professional level demonstrates above-average quality standards for an outstanding customer experience; and the master level recognizes best-in-industry standards, excellent performance, and outstanding customer service through the adoption of best practice.
Another dealer network management tool is geomarketing; it monitors the performance of different dealerships and provides key operational guidelines for both CNH Industrial companies and dealerships, providing information useful to directing its operations.
In 2013, the Steyr brand launched a project to produce a practical guide on how to make dealership buildings more efficient and sustainable. The key elements identified were: to favor the use of wood, to encourage the use of natural light, to adopt solar power technology, and to install heating systems powered by renewable sources (e.g., biomass). Adopting these principles may lead to certification with the klima:aktiv building standard1 or other major sustainable building specifications. The preliminary study was carried out in collaboration with ten dealerships in Austria and aimed at evaluating best practice. The next draft of the guide has been discussed by the CNH Industrial team together with the four main brand dealers. The guide is currently being circulated throughout the organization.
(1) klima:aktiv is the Austrian climate protection initiative launched by the Federal Ministry of Agriculture, Forestry, Environment and Water Management, and is embedded in the Austrian federal climate strategy.
Since the beginning of 2014, the Parts function has been working closely with the Agricultural brands to build sustainable and efficient processes, with the aim of improving dealer efficiency and performance. Dealer standards for the Parts function are completely integrated into the Top Partner and Red Excellence programs, and focus on certain high-impact areas, centered on Parts best practice and based on five key pillars. Working together with the dealer network through this robust program, CNH Industrial continues to build strong relations whilst remaining customer focused and striving to exceed expectations.
At critical times, CNH Industrial customers turn to the Parts function with an expectation of the best solutions from the brands, in terms of both products and service; the Company is best placed to achieve this by building a profitable and sustainable network and by focusing on customer satisfaction and loyalty. Only a satisfied customer is loyal and returns time after time.
CNH Industrial Parts understands that the process starts with product purchase and is re-enforced in the workshop. Dealers must welcome customers in a professional manner, communicate the right brand image, and remain customer-focused, extending this approach to sub-networks and warehouse management.
Targets for the network are to improve assessment and aftersales resource allocation, plan and implement marketing strategy, and capitalize on each moment of contact between dealership personnel and the final customer.
The quality assurance standards adopted by the various CNH Industrial companies have also been implemented across the dealer network. In Trucks and Commercial Vehicles segment, for example, customer service quality standards are regularly verified by external audits based on ISO 9001; 80% of the Trucks and Commercial Vehicles dealer network in major European countries is ISO 9001 certified.
POWERTRAIN – DEALER AND SERVICE NETWORK
FPT Industrial believes it is vital to develop the skills and knowledge of all its dealership personnel. Every year, technicians and sales and post-sales employees attend specially designed training programs that are in line with Company strategies and requirements. The courses are focused on developing and enhancing the managerial skills and technical knowledge of personnel, as well as on raising awareness of a corporate identity based on standards of excellence.
The FPT Industrial dealer network comprises about one hundred autonomous businesses tasked with the sale of its engines and spare parts. Globally, the post-sales network is present in over one hundred countries, with 1,300 service outlets.
Our dealers are either single-brand vendors of FPT Industrial products, or multi-brand dealers that sell FPT Industrial engines alongside other products from non-competitors. In North America, the dealer network is organized into major distributors and multi-brand dealers, and supported by 250 dealerships.
Training provided to the dealer and service network is key to strengthening the dealers’ technical and business skills and to keeping them updated on the latest product innovations. Over the years, the specific training initiatives for the Powertrain network have kept pace with the evolutions in technology, giving dealers and workshops a full grounding in the installation, maintenance and repair of both mechanical and electronic engines, as well as after-treatment systems.
Dealer training sessions are planned centrally and can be provided at FPT Industrial headquarters, at the dealership, or at the end-customer’s premises, should an engine require a specific type of installation. Technical training is available in five languages (Italian, English, French, Spanish, and German) and is supported by regularly updated training books available online for distance learning. Part of the FPT Industrial training strategy for 2011-2013, the Customer and Commercial Excellence School project is a course aimed at Sales, Marketing, and Product Marketing and is provided together with the SDA Bocconi School of Management.
The heads of sales, key account managers, and marketing managers are among the professionals involved. The course is aimed at strengthening the customer focus culture, enhancing business skills within FPT Industrial, and promoting comparison and benchmarking through the experiences of companies from different sectors, but nonetheless analogous to FPT and recognized as advocates of best practice. Where sales are managed through dealerships, and to support continuous improvements in customer satisfaction and as part of the quality certification process, customers are given questionnaires requesting feedback on the network. Analysis of the results and the generation of statistics lead to improvements in the sales process and a better understanding of end users’ needs.
TRAINING FOR THE NETWORK
CNH Industrial is committed to ongoing investment in the dealer and service network, with a view to offering customers an expert service. With this in mind, the Company believes that training employees to understand and respond appropriately to customer needs is essential.
Building the skills and know-how of all dealership personnel is of fundamental importance. Every year, CNH Industrial designs and runs special training programs for technicians, sales people and after-sales personnel, tailored to Company strategies and requirements. These training courses focus on developing managerial skills and technical expertise, as well as promoting a corporate identity built on excellence.
CNH Industrial has created Unetversity, a professional training organization which aims to enhance the knowledge and expertise of its dealers. It is made up of 270 professionals and 52 training centers across the world, and offers a catalogue of around 5,600 courses, available in various languages, and customized according to the specific needs of dealership personnel. In 2013, Unetversity delivered around 1.4 million training hours, including online and instructor-led courses. Investment in dealer network training totaled €31 million in 2013.
Unetversity’s training approach contributes to dealer network business growth, providing customized solutions that reflect the current market environment and offering a wide range of training activities, based on both traditional classroom-based approaches and online. Each segment also develops courses tailored to meet the training needs of the dealer and service network.
In 2013, Unetversity further developed and extended training opportunities, making significant improvements in two areas:
- expansion of the training program with the addition of new materials
- increase in training coverage through online training worldwide, with a stronger training presence in developing regions.
In 2013, the Agricultural and Construction Equipment segment provided 949 thousand hours of instructor-led courses on technical and commercial aspects.
In 2013, the Trucks and Commercial Vehicles segment provided 119 thousand hours of instructor-led courses on technical aspects, and more than 83 thousand hours of training to the dealer network across all markets, of which 65 thousand hours covered energy conservation, ecology, and safety, with about 30% more time devoted to the latter two topics.
The Trucks and Commercial Vehicles segment operates through Iveco-Unetversity Commercial Training, a vocational training scheme that aims to strengthen the knowledge and expertise of the Trucks and Commercial Vehicles Network and make it the benchmark for excellence in the Trucks and Commercial Vehicles segment.
It also aims to raise awareness across the network of the importance of conducting all its dealings in a context of respecting the environment, promoting best practice for driving economically, and disseminating information on reducing emissions.
Iveco Unetversity offers a range of up-to-date courses on innovations within the sector, in line with the most effective training methods for classroom and online teaching. All Iveco-Unetversity courses are available in several languages and are tailored to the specific needs of dealership personnel.
The continual search for topics of special interest to the network saw, in 2013, the entire sales team, along with the owners, engaged in an in-depth study of the characteristics of Euro VI engines and their application during the Stralis Experience Test Camp. This was a major international event involving all heavy vehicle retailers, dealers, and international key account managers. The event provided a complete grounding in the product ranges of major competitors in the heavy vehicle sector, was full of detail and even offered the chance to test drive the vehicles: to see, touch, and try out all that the industry has to offer, with the aim of renewing and strengthening the profile of Trucks and Commercial Vehicles segment and of the quality of its products.
Product training focused on technologies that save energy and reduce maintenance requirements, in line with a responsible business approach. Participants were also given the chance to talk over the issues, thus enabling them to discuss such topics with customers in a more professional and knowledgeable way.
At the same time, training also focused on aspects of responsible selling, requiring all dealers to manage customer relations in a transparent manner, especially with regard to financing agreements and maintenance and repair.
As well as innovative products, emissions reduction, and cutting-edge services attending to the customer’s every need, Iveco Commercial training also provided experiential courses on telephone recalls, supervising and monitoring the sales force on, among other things, the proper use of Customer Relationship Management data, and the making of calls in a professional manner according to a structured and shared methodology.
Helping dealers to improve on current sales methods, training them to increase new customer penetration in the area, and reducing competitors’ market share through targeted training, builds a network that is ready for future challenges.
ON SITE TRAINING
In 2013, Unetversity took further steps to decentralize its training offer, extending the use of structures located in various countries and increasing online training delivery. In NAFTA, the Agricultural and Construction Equipment segment has now achieved a training footprint of six training centers, with nine partner colleges at additional training locations in proximity to the dealer network. In North America, these efforts saved seven million kilometers in travel for participants, in addition to saving 5.5 million kilometers worldwide through the use of online training solutions. In Europe, two partnership schools in the Netherlands and Denmark saved 1.5 million kilometers in travel, extending the Company’s network of training centers, present in all major European countries.
The Trucks and Commercial Vehicles segment is further decentralizing its training presence, with the completion of two new training centers in China and the Middle East. The training organization was expanded in this region in order to meet the growing need for training in some developing regions, and now includes courses in additional languages.
In 2013, the Trucks and Commercial Vehicles segment continued its On Dealer Site training. Trainer and vehicle spent the day at the dealership, conducting the course on site. This system allows dealers greater accessibility to information, significantly reducing the cost and time of travel for participants. Time spent on such training is more than compensated for by enabling the dealer to continue sales operations and customer service uninterrupted.
In 2013, 252 million hours of online training were delivered to CNH Industrial salespeople and aftersales personnel, 243 thousand hours were delivered to Agricultural and Construction Equipment dealers and over nine thousand hours delivered to the Trucks and Commercial Vehicles segment sales and service network on product services and sales skills.
Furthermore, since 2012, content is also available on tablet computers, thanks to the development of new product training apps specifically for network personnel. This content, the new technologies, and the approach to the customer within the scope of the Total Cost Of Ownership (TCO) summarizes the philosophy through which the Trucks and Commercial Vehicles segment promotes and distributes information to technicians and salespeople on themes including commitment to safety, reduction of emissions and individual wellbeing.
Finally, each segment constantly monitors the quantitative results of the training it provides to the network, using a dedicated system to assess course satisfaction levels and measure learning levels.
TRAINING ON SAFETY AND THE ENVIRONMENT
Significant attention is given to training to enhance dealer and customer awareness of the environmental and safety-related features of CNH Industrial products. Training programs include an overview of brand environmental strategy in line with the recent Tier 4 regulations, along with related technical solutions applied to the products, field demonstrations, and training on proper machine use to increase efficiency, reduce fuel consumption, and optimize safety.
The training organization is also dedicated to improving customer driving skills, with respect to both safety and the environment. In 2013, over 12 thousand hours of training were delivered to construction equipment operators and 24 thousand hours to agricultural equipment operations. Specifically, in France and Germany, New Holland Agriculture rolled out the Harvester Master program for combine and forage harvester operators, in which over three thousand participants were trained on topics related to safety and sustainable driving techniques. Particular focus was placed on avoiding machine fluid leaks and soil contamination during operation, and on maximizing equipment efficiency while minimizing fuel consumption.
Training programs are designed to facilitate the introduction of new technicians into the dealer network. In collaboration with local government, CNH Industrial organizes training for young technicians, giving them the skills necessary to find work at Company dealerships. Dealers are also involved in these initiatives, making a commitment to hire the technicians trained.
In 2013, Trucks and Commercial Vehicles devoted significant resources to marketing products with low environmental impact. Network dealers had the chance to explore issues such as the reduction of emissions, noise pollution, and maximizing vehicle payload, in order both to satisfy customers and to respond to the needs of the community.
Not all those working in this field understand that truck fuel consumption is affected by traffic, environmental conditions, and driving style. The role of the Segment Commercial Training is to help drivers understand how it is possible to save more fuel by modifying their behavior. It does this by providing a definitive response: Driver Training courses are aimed at all those who drive Trucks and Commercial vehicles and who want to get the best user experience possible. This type of training has been provided for over three years, and is customized to the product range and to the client.
In all major markets, the driving courses are supervised by a team of specialist teachers and demo drivers, and provided 9,300 hours of assisted driving in 2013.
From the initial contact onwards, CNH Industrial interacts with and provides assistance to its customers to give them an experience that meets their expectations. The Company’s customer care departments are dedicated to developing, managing and promoting customer service solutions, helping to foster enduring relationships and satisfy customer needs and expectations.
Specifically, CNH Industrial customer care operates through four customer service centers located in the main Regions: EMEA (Arese and Turin, Italy), NAFTA (Racine, USA) and LATAM (Sete Lagoas, Brazil).
Customers can contact the Company via the Web or by phone, which are the main channels of communication.
Most CNH Industrial customer centers are operational 24 hours a day, seven days a week.
The dealerships are also an important interface for handling requests from customers in each of the Company’s main Regions of operation, since they offer a variety of services, including information, complaints management, and assistance to customers in case of breakdown.
At CNH Industrial, the customer service center works in close collaboration with brands, dealers, technical services and other functions, and resolves to: give clients easy access to the Company and its brands through various channels of communication manage relationships with customers and provide them with the necessary support monitor and measure customer satisfaction and collect customer feedback.
MAIN SERVICES PROVIDED
CNH Industrial believes that customer satisfaction and, consequently, customer loyalty are closely linked to the quality and efficiency of the services it provides. The main services set up by the Company to manage the various aspects of customer relations are: CRM relations (Info and complaints) - effectively manages and facilitates a customer’s cross-channel exposure, interaction and transaction with a company, product, brand or service through studied methods and processes throughout their full life cycle; the customer experience should be positive, respectful, and attend to their needs, in line with their expectations when looking to purchase new machinery. Through CRM relations the Company receives complaints that are organized by type or category, and assigned a target date or objective for completion. Most product complaints are given an 11 day target for completion. If a case goes beyond the target date, the Customer Relations manager reviews the case and decides whether to escalate. Escalation usually involves external company resources, such as field services and/or dealerships. Each customer that files a complaint is asked if they wish to take part in a phone survey.
Breakdown Assistance (BDA) - intervenes in case of vehicle breakdown for Agricultural and Construction Equipement clients, ensuring all necessary steps are taken so that the client can resume work as soon as possible. Through BDA, when a customer experiences equipment failure, not only the dealer but also the whole company is alerted to help the dealer resolve the problem. A dedicated parts shipment and delivery team oversees the location and delivery of parts, including overseas shipments. The service tracks customers until all issues are resolved, allowing them to get back to work as soon as possible. In NAFTA and LATAM, the process is carefully monitored, and, following resolution, dealer and customer satisfaction surveys are conducted to evaluate service and process performance, measured in hours of Total Vehicle Downtime (TVD).
In 2013, for BDA in LATAM, a Daily Report for BDA incidents was implemented (organized by regional targets in BDA hours in Brazil) to record whether the incident was first notified to the Field Service, Vice Presidents, Parts, or Product Support functions. The aim is to involve all personnel in finding a fast solution to reduce repair time. In parallel, a specific initiative was carried out with the Parts function to increase stock levels for parts requested through BDA.
Assistance Non-Stop (ANS) - ensures a round-the-clock service to Trucks and Commercial Vehicles customers, 365 days a year. Established to provide instant technical support for vehicle problems, the service is operational across 31 European countries, and is available in ten languages. The ANS service can be contacted on a universal toll-free number, or through the Iveconnect system. All employees working in this service receive specific training, with regular refresher courses. Every assistance request is managed by an operator who, once the customer and vehicle have been identified and located, carries out a pre-diagnosis of the problem. When the fault has been verified, the operator contacts the nearest mechanic, who is directed to the breakdown site.
The operator continues to monitor the process until the repair is complete, assisting the mechanic if needed and keeping the customer updated until the vehicle is released. The customer center shares a database with relevant departments containing faults by number and type, and matches those with the faulty model and duration of the breakdown. Through the Iveconnect system, available across the new Stralis range, access to the Assistance Non- Stop service is even simpler and quicker. Indeed, in the case of a vehicle breakdown, the driver can contact the customer center directly from the vehicle, automatically sending a breakdown assistance request. The customer center then sends updates on the open order number, and the estimated time of arrival of assistance at the customer vehicle, directly to the on-board telematics system. The customer center can activate the nearest mechanic through ANS Mobile, an app available on Android and Blackberry devices, which can locate the nearest mobile repair van and its movements using GPS. The project, which started as a pilot in 2012, is now being extended at European level, the most important markets for the Trucks and Commercial Vehicles segment, with the aim of further reducing assistance and repair times. Furthermore, the software interface allows the ANS technician to visualize all relevant order data directly on the device, along with GPS maps, and permits real-time interaction with the customer center, directly supplying information on repair status.
The ANS system managed more than seventy thousand cases of assistance in EMEA in 2013 (over 16% more than in 2012), and 14,200 in LATAM. This is partly because the customer center, to better meet customer needs, focused on launching new dedicated services such as Store Assist, a non-urgent breakdown service for incidents at the customer’s depot rather than roadside.
Excellent results were achieved in 2013, with more emphasis given to mechanics’ arrival times at a breakdown: in 2012, 69% of arrival times were under 70 minutes, rising to 80% in 2013. In terms of repair time, in 2013, 75% of total breakdowns were resolved in under 8 hours, while 74% of total roadside breakdowns were resolved in less than 2 hours. Furthermore, 98% of customers declared themselves satisfied or very satisfied with the service offered by the customer center.
Lead Qualification - is a process that verbally qualifies sales leads, gathered via CNH Industrial websites, and distributes them to the appropriate dealer. The leads are contacted by phone to confirm their request for a dealer contact, before distributing to the dealer. A follow up call is then made (five days post qualification) to confirm the customer has been contacted.
Customer care figures
The Trucks and Commercial Vehicles customer center employs around one hundred staff members in Europe who receive continual training. It offers continuous assistance through the ANS program and also manages the Contact Us Service. To request information or to report a complaint from anywhere in the world, customers can simply access the Iveco website and communicate directly with the company.
The entire process is supervised by specially-trained personnel, from the first contact with the customer to the company’s response, ensuring the speedy resolution of all issues. This service is available to both existing and potential customers, and is primarily used to request information about vehicles and parts, prices, technical documentation, type-approvals, as well as brochures, gadgets, etc. Contact is made through an easily-accessible form on the Iveco website. Every query is carefully analyzed and referred to the appropriate body, depending on the issue and country from which it originates; in this way, customers receive personalized information or are directly contacted by specialized personnel. In 2013, the customer center managed approximately nine thousand inquiries.
The call center in Racine, USA, addresses retail customers’ complaints and the general public’s information requests using a closed loop, documented system. The contact center is open five days a week, 11 hours a day for customer support, and deals with five brands, also addressing issues via email and postal mail. Agents interact with dealers and other Company employees to help document and resolve complaints. The closed loop system means all cases have a start, middle, and end, and are all concluded in a timely manner, the majority in under 12 days. In 2013, 6,425 information requests and 2,349 complaints were dealt with, each case requiring multiple contacts, for a total of 63,584 contacts (35,493 by phone, 28,091 by email). 88% of the cases were closed in 2 days, a 2% increase over 2012. The BDA contacts were 109,947 (45,522 by phone, 64,425 by email). 62% of cases met Company targets, compared to 66% in 2012, although the Total Vehicle Downtime performance improved by 3% over 2012. For customer complaints, 69% of cases were closed within 12 days or less, exceeding the goal of 60%, and with a 3% increase over 2012.
The APAC Region is creating a customer relations structure, with services directly managed by the Commercial Services function. In 2013, initial performance data revealed the following: in India, for New Holland Agricultural Equipment, there was an average call center response time of ten seconds; in Turkey, for New Holland Agricultural Equipment, 15% of customers participated in the satisfaction survey, with a score of 75/100; and in Russia, for Trucks and Commercial Vehicles, 85% of vehicles were repaired within 48 hours.
CUSTOMER SERVICE CENTERS – HIGHLIGHTS
|Personnel training (hours)||2,728||n.a.||419|
|Contacts managed (no.)||50,339||11,374||63,584|
|Personnel training (hours)||1,870||90||880|
|Contacts managed (no.)||51,724||16,708||55,302|
|Personnel1 (no.)||up to 31||12||up to 30|
|Personnel training (hours)||2,500||2,550||4,800|
|Contacts managed (no.)||47,358||13,308||72,197|
(1) Personnel count varies during the year due to seasonality.
CUSTOMER SERVICE CENTERS – HIGHLIGHTS
|Personnel training (hours)||7,930||7,840||7,270|
|ANS dossier/Contacts managed (no.)||70,787||60,571||56,300|
The CNH Industrial customer database processes customer information in a single central system for all brands, adopting a unified approach for all companies and markets, and providing an integrated view of customer data from different sources; the database supports the operational management of customers and leads (coming from brand sites or loaded directly onto the system by dealers) in terms of distribution and follow-up. In 2013, the database assisted in the creation of loyalty programs (e.g., the 2013 Harvesting Master program) and marketing initiatives aimed at activating, and better supporting, relations with customers and prospective customers. CNH Industrial is also putting a new social media service in place, to provide customer care and to effectively monitor and track conversations on products and services.
A corporate database is available for the Agricultural and Construction Equipment segment in NAFTA, containing over 5.5 million customer and industry records, including all CNH Industrial customers registered for warranties. UCC1 (Uniform Commercial Code-1) file data and demographic information from Farm Journal are also available. These three sources of information provide a record of all industry transactions over the last ten years. CNH Industrial also records customer relations interactions, requests for information, breakdown assistance, lead management, and Red Select surveys and cases as they occur. All of this information can be accessed by our marketing teams to create advertising campaigns and generate lists of sales prospects.
CUSTOMER CARE AT POWERTRAIN
In the Powertrain segment, customer relations are managed by a new Technical Service and Customer Solutions function, with the aim of putting the focus firmly on the customer.
The new function is guided by CIP (Continuous Improvement Process), which embodies the Company’s ongoing commitment to improvement. This approach is based on three fundamental elements: to learn, to analyze, and to optimize. Through CIP, customer feedback is received, analyzed and then shared across the organization as a lesson learned. When applied to the Company’s operations, this translates into processes being carefully analyzed to identify and fine-tune their various stages, with improvements made in small, gradual yet continuous steps. CIP ensures the customer’s voice is heard throughout the Company, allowing ever-more effective solutions to be developed, anticipating their requirements and optimizing the product range.
The new Service function is divided into six teams:
- Training School for providing an appropriate training and technical offering
- Technical Diagnostic Tools Management for managing technical assistance methods, tools and manuals
- Technical Customer Support for an expert response to customer queries and urgent requests
- Field Engineering for resolving the technical issues of customers and dealers in the field
- Service Engineering for Serviceability for setting standards that ensure serviceability
- Warranty Management for managing warranty authorizations, methods and standards.
Workshops were also organized with major FPT Industrial customers, including Mitsubishi Fuso, Clas, Tigercat, and Ford. These workshops were met with great enthusiasm from participants and provided a more in-depth understanding of the market. All this translates into the standardization of processes and services, such as warranty policies covering all products, training sessions and workshops for all customers and dealers.
CUSTOMER INSIGHT AND CUSTOMER SATISFACTION
Through extensive planning, execution, and evaluation of activities, customer relations management aims to design, operate, and coordinate multiple interaction touch-points to deliver a real brand experience to the customer and to define guidelines on how to listen to customer input by monitoring satisfaction levels to improve the quality of services offered.
Indeed, results and customer satisfaction levels are continually monitored by the Company. For example, the Agricultural and Construction Equipment brands constantly monitor specific factors at their customer service centers to ensure the ongoing improvement of services. These factors include response time, time taken to resolve a problem and time taken to achieve customer satisfaction. In NAFTA, the Red Select/5 Star Surveys are managed directly by customer care, and are made up of three different surveys carried out in the first months after product purchase, to measure customer satisfaction with regard to both the product and the buying experience. Customer responses are passed on to the relevant departments and provide opportunities to improve customer satisfaction and identify early trends. In 2013, levels of customer satisfaction remained constant, and were particularly high in LATAM, with an average score of nearly nine out of ten for the information service. The results of these surveys are consolidated and passed on to the marketing research teams on a monthly basis. The frequency of customer satisfaction assessment depends on the services offered: customers that open an information request are given the opportunity to take a survey via the Internet; dealers are offered the opportunity to complete a survey on their experience with Breakdown Assistance; in LATAM, for Non-Stop Assistance, customer satisfaction is assessed 72 hours after service delivery. Three elements are evaluated: the telephone service or call center, assistance in loco, the service dealer (winch or tow), and, afterwards, general satisfaction with the service. Assessment results lead to a plan of action, to be implemented by field services.
CUSTOMER SERVICE CENTERS – KEY INDICATORS
|Average call center response time (seconds)||12.0||15.0||24.0|
|Customers participating in satisfaction surveys1 (%)||20.0||39.0||12.4|
|Satisfaction index (scale 1-10)|
|Vehicle downtime (% of vehicles repaired within 48 hours)||36||46||47|
|Average call center response time (seconds)||13.0||12.0||31.0|
|Customers participating in satisfaction surveys1 (%)||16.0||17.0||11.0|
|Satisfaction index (scale 1-10)|
|Vehicle downtime (% of vehicles repaired within 48 hours)||39||16||48|
|Average call center response time (seconds)||12.0||12.0||23.2|
|Customers participating in satisfaction surveys1 (%)||17.0||18.0||9.5|
|Satisfaction index (scale 1-10)|
|Vehicle downtime (% of vehicles repaired within 48 hours)||46||17||49|
(1) Data refers to information and complaint survey data.
(2) Data no longer collected, in EMEA, because of data protection legislation.
CUSTOMER SERVICE CENTER – KEY INDICATORS
|Average call center response time (seconds)||24.5||17.7|
|Customers participating in satisfaction surveys (%)||33||21|
|“Satisfied” or “very satisfied” customers1(%)||98||97|
|Arrival time under 70 minutes (%)||77.9||6.9|
|Roadside repair under 2 hours (%)||73.6||71.1|
(1) Survey carried out to objectively evaluate and measure the satisfaction of customers using the Assistance Non-Stop service when in a broken down vehicle, by contacting the Customer Center to request roadside assistance. As of January 2012, evaluation criteria were changed, in order to measure the percentage of customers who declare themselves to be satisfied or very satisfied with the service.
Integrating customer feedback CNH Industrial customers are central to product design, and their involvement at this early stage is essential to provide the right response to their actual needs. Through Customer-Driven Product Definition (CDPD), CNH Industrial customers actively participate in the development and testing of new models. CDPD consists of: visiting and collecting feedback from customers, analysis of their suggestions, meetings with product platform teams, customer testing on new model prototypes followed by comparison of their main features, and, finally, integration of customer suggestions into final product specifications. All these stages lead to product designs that not only ensure optimal performance and efficiency, but also meet the needs of customers that use CNH Industrial vehicles every day in their work.
CNH Industrial also tracks parts’ usage to support the Breakdown Assistance program. Usage is organized by product range for the current month, the last three months, and the year to date, and is passed on to the Company’s Quality unit on a monthly basis. By reviewing the data, the Quality units can identify developing trends, and whether previously identified and corrected trends have been addressed.
Information on the products Each product sold comes with an owner and maintenance manual, through which CNH Industrial provides key product information to customers, and that is in every respect an integral part of the product itself. The manual contains exhaustive information on safe use and on behaviors to minimize environmental impact, such as disposal of lubricating oils and additives, and efficient product use to reduce consumption and pollution.
The manual contains comprehensive information on:
- product identification data
- product functions (start-up and operation)
- correct product maneuvering
- safe product use
- human-machine interactions (controls and devices)
- on-board equipment
- technical features
- checks, and ordinary and scheduled maintenance
- product approval standards (emissions, noise, electromagnetic compatibility, etc.)
- instructions for using biodiesel, if applicable
- safe product transportation (for construction equipment).
Owner and maintenance manuals are compiled as per the ISO3600 standard, and the safety and accident prevention information contained therein is presented according to the ANSI Z535 standard. They are available in all the languages of the markets where the products are sold, in compliance with applicable local regulations.
All manuals and their contents also comply with EU directives specific to vehicle type, such as 2006/42 EC and 2010/53 EC.
To enhance usability and reduce paper usage (the manual of a combine harvester can reach seven hundred A4 pages), all manuals are available on the dedicated service network webpage. Repair shop manuals, which can reach up to five thousand pages, are also available on DVD for the service network.
|Information in the owner and maintenance manual||Agricultural Equipment||Construction Equipment||Trucks & Commercial Vehicles|
|Sourcing of components||n.a.||n.a.||n.a.|
|Presence of substances with potential for environmental or social impact||yes||yes||yes|
|Safe use of product||yes||yes||yes|
|Disposal of consumables||yes||yes||yes|
|Other (noise and vibration levels)||yes||yes||no|
PRODUCT QUALITY SUPPORT AND RECALL CAMPAIGNS
Another important element of customer proximity and care is the way CNH Industrial manages its recall campaigns.
The goal is to intervene as effectively as possible to maximize vehicle availability, while also collecting important information for future product improvement.
The central Quality function coordinates the various recall campaigns.
When the need for a recall campaign has been identified, those functions that interact directly with customers are engaged, including the dealers and managers of the various brands.
CNH Industrial’s Current Product Management (CPM) process introduces improvements to current production units and responds quickly to issues at units in the field. The CPM team includes representatives from Quality, Engineering, Parts, Purchasing, Manufacturing, and Brand Service.
During recall campaigns requiring vehicle repair, CNH Industrial implements a series of programs to inform customers through various channels on the interventions involving their vehicles.
The Best Service Program is a tool for managing campaigns that are particularly sensitive due to the region or product type. The program is managed centrally by Quality and aims at offering centralized support to dealers and other commercial entities and at fostering customer loyalty during recall campaigns. Prolonged vehicle downtime can be financially damaging for customers, above all for farmers during their most productive periods of the year. To reduce vehicle downtime at repair shops, Customer Care coordinates the different bodies centrally, in order to keep both customers and dealers updated and to ensure spare parts are supplied as promptly as possible.
The decision to launch a PIP (Product Improvement Program) is taken by the CPM team, which considers both technical and customer-impact factors. Once the PIP has been approved and prepared for launch, it is released to the network via the Product Support structure that, together with Brand Service, ensures rapid completion and maximizes customer satisfaction.
Below is a summary of Mandatory and Safety PIPs approved in 2013.
NUMBER OF PRODUCT IMPROVEMENT PROCESSES (PIPS) LAUNCHED
|Agricultural and Construction equipment||140||20||160|
|Trucks & Commercial Vehicles||107||18||125|
NUMBER OF UNITS INVOLVED IN PRODUCT IMPROVEMENT PROCESS (PIPS)
|Agricultural and Construction equipment||44,661||5,838||50,499|
|Trucks & Commercial Vehicles||126,848||46,700||173,548|
CUSTOMIZATION FOR EMERGING MARKETS
CNH Industrial believes in meeting each client’s needs with the right product, and, for this reason, its brands in emerging markets opt to develop products on-site to meet the needs of local economies. In fact, in addition to the R&D centers present in all Company Regions (see also pages 14-15), Regional Operating Groups are identified within Product Development and Engineering, to develop and customize products not only according to the Company’s global specifications, but also to local markets.
Trucks and Commercial Vehicles segment, for example, was involved in Caminho da Escola, a government program in Brazil established by the Fundo Nacional de Desenvolvimento from Educação. The program aimed to improve student transportation from rural areas, help reduce absenteeism especially among students up to 13 years of age, standardize school transport vehicles, harmonize and lower prices, and increase safety on board. In collaboration with Brazilian company NEOBUS, the Trucks and Commercial Vehicles segment developed a new school bus by updating its Daily 70C CityClass according to specific federal government requirements (including those on price). The new features included 29 +1 or 36 +1 passenger seats, depending on the wheelbase, a modern and streamlined exterior, a larger size with more spacious interiors and greater passenger comfort. In addition, the drive system was specifically designed for Brazil’s rural roads.
In Kazakhstan, where vehicles are manufactured in partnership with SAP, a new range of PowerDailys and Tractors was developed focusing on type-approval and performance standardization with the specific needs of the country (fuel type, etc.). Specifically designed for the Chinese market, the PowerDaily is now being adapted to the demands of the Kazakh market.
The Trucks and Commercial Vehicles segment recognizes the social role played by advertising, and advocates positive and responsible values and conduct across all forms of communication. In 2013, the company released the new Charter for Ethical Advertising to promote responsible marketing and advertising in the markets in which it operates. Based on the applicable legal and advertising standards in these markets, the Charter sets the fundamental principles of communication for those working at or with the segment, including advertising agencies. The Charter is centered on three core values: personal and professional respect for the customer, fairness and integrity in communicating and passing on accurate, truthful, and clear product information, and commitment to offering useful solutions to customers through the goods and services provided. The customer’s central role guides the Trucks and Commercial Vehicles segment business ideology. Created to serve as an operational tool, the Charter uses clear, concise language to facilitate its application across the company. Iveco brand is an active member of the European Advertising Standards Alliance (EASA) and of the Utenti Pubblicità Associati (UPA), an Italian association of major companies investing in advertising and communication that supports the Istituto di Autodisciplina Pubblicitaria, an organization focused on advertising standards.
CNH Industrial also places great importance on the sales process, crucial to building a relationship of trust with the customer. CNH Industrial Capital offers customers a range of financial products, including loans and leases, combined with auxiliary services (insurance, management of maintenance and repair contracts, etc.), to assist and facilitate purchases of both new and used CNH Industrial products, primarily through the authorized dealer network. CNH Industrial Capital has extensive processes and systems in place to ensure compliance with all laws and regulations on transparency, disclosure, data privacy, anti-money laundering, and sustainable financing. CNH Industrial Capital is committed to high quality standards, to focusing on customer needs, and to financial product and service innovation. In this regard, various initiatives have been undertaken at Company level, including customer satisfaction surveys, and ongoing training and effectiveness campaigns for sales representatives and internal employees, all designed to enhance the quality of products and services offered to customers.