CAMBRIDGE INTEGRATED SERVICES
In early 2002, Cambridge began handling claims administration and loss prevention programs for Toyota Rent A Car (TRAC) and the Lexus Customer Convenience System (LCCS), their loaner car program. Though owned by the same parent company, these two corporate divisions run separately and mandate their own unique, branded service levels that exemplify the importance of a lifetime relationship with each customer. Dealers are very important customers to the Corporate groups at both Toyota and Lexus.
Every day, Toyota’s customers sign rental car agreements at one of over 950 Toyota dealerships. When a TRAC Dealer reports a claim concerning such a rental, Cambridge serves as the third party administrator (TPA) to handle all aspects of the claim while upholding the very customer-focused Toyota values. Likewise, the expectations of the dealers are very high. In conjunction with managing claims, Cambridge also executes a very effective loss prevention program for the dealers at all levels.
The TRAC Distribution & Operations Manager, John Bauer, oversees the entire program. “One of the striking Cambridge differences is how they have taken ownership. They have personal relationships with the dealers. They are a true partner who is fully engaged and speaks our language,” he comments.
Cambridge’s ongoing loss prevention program includes several monthly in person regional training sessions for dealers, with groups of 15-40 people. Because Toyota dealership staff move up the company career ladder rapidly, the turnover is high and new staff members require training on a regular basis. Specialized brochures, targeted phone calls and a sharp focus on regional level TRAC managers are other components of the program. Rather than automatically transferring complex calls to Toyota Corporate, Cambridge staff will provide exceptionally thorough and fact-based responses to dealer problems. Only rare, very high level policy decisions escalate to the corporate level.
“Time is money and having Cambridge handle the calls translates to quantifiable time savings at Corporate,” John contends. Of course, the fact that Cambridge often brings in over $1 million per month in recoveries is also a tangible result. “High recoveries mean lower insurance rates, which we pass on to our dealers. It lowers their expenses, which is very important,” explains John.
The results are equally telling at sister division Lexus, whose strong brand reputation was built in part by their signature practice of making free Lexus loaner cars readily available to customers at over 225 Lexis dealerships. This free usage has been a hallmark of Lexus since its inception in 1989, to the extent that customers consider it an entitlement. Many call ahead to schedule maintenance when the latest new Lexus model will be available as a loaner. Customers sign 3.5 million “no charge” rental agreements annually.
For Lexus, loaner cars are the single biggest owner retention tool and they bring customers back into the dealership, according to Jerry Marcotti, Service & Parts Field Operations Manager for Lexus. However, keeping over 13,400 loaner cars -- in 225 dealerships – cleaned, fueled and ready for immediate use by a Customer is very expensive for the dealers.
“Because of Cambridge’s proficient claims handling, low payouts and high recovery through subrogation, Lexus just earned a significant rate reduction from its primary insurer that we will pass on to our dealers,” says Jerry. Both Jerry and John credit Cambridge’s Patricia Dragon and her team for the success of the program.
“Under Patricia’s leadership, the Lexus loss control program has developed into a finely tuned machine, ” Jerry maintains. “Together, we have evolved this program to a very custom level.” John Bauer concurs. “The Cambridge program is outstanding in service and commitment,” he says. “And if I ever started my own business, I’d want Patricia as a partner.”
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