Operating a car park might seem like a straightforward business, but behind the scenes, there are numerous challenges that parking facility managers face daily. From technology glitches to customer satisfaction, the complexities of managing a car park go beyond simply collecting fees. We’ve gained valuable insights for nearly ten years, and worked across different industries. We have discovered solving issues requires an understanding of the problems. In this blog post, we’ll explore the top five challenges in running a car park.
1. Unskilled staff resulting in poor customer experience
Whilst we hire people who love people and customer service – which is a great starting point, we find they almost always need training. A few years ago, we launched the First Class Valet Academy, which provided training for our own team, however some of our clients use the academy to outsource their training needs as well. We’ve also worked with clients to create bespoke training modules that are tailored to individual sites and assets.
The overall customer experience is a pivotal factor in the success of any business, and car parks are no exception. If safety, clear communication, friendly staff, and responsive customer service are achieved, it greatly improves the overall customer experience. When customers pay for valet parking they expect an exceptional service experience. When the service provided is exceptionally good, customers come back as return customers and tell people about the excellent service.
2. To outsource or not to outsource
Some say it’s the best thing they have ever done! To resource the operations of car park or car park services can be a complex task. Our advice is to look at long-term outcomes and your goals to then match them to your strategy. The bottom line is always going to be important, but every asset and company looks at what they want to achieve differently. Over many years of operating, we’ve found every client has different needs. Some elements, such as technology, are outsourced, and in other cases, the team, management, and mid management are outsourced to us, which allows our clients to clients to focus on their core business and not have to worry about the day to day, nitty gritty operations of a carpark. We also work with clients on commercialising their car park to achieve the best financial outcomes.
3. Claims, risk, and technology
The technology a car park uses is usually put in place for a better experience, but more importantly to reduce claims and risk. One of the biggest pain points for car park management is managing claims and false claims. In today’s digital age, car parks rely heavily on technology for tasks such as ticketing, payment processing, and security. Implementing and maintaining these systems can be a significant challenge. Frequent technological issues, such as malfunctioning ticket machines or payment processing errors, can lead to frustrated customers and huge operational disruptions if contingency plans are not in place and ready for immediate deployment if needed.
Our valet technology using mobile-based systems is an example of significantly reducing the number of claims our clients experience. It also produces reports so you can measure reductions and identify areas of risk. Regular maintenance and staying abreast of technological advancements are crucial to ensure a smooth parking experience
4. Security
Security is a paramount concern for both car park operators and users. Instances of theft, vandalism, or even personal safety issues can deter customers from using a particular car park. Installing and maintaining effective surveillance systems, providing valet parking, adequate lighting, and security teams are essential components of managing security concerns. Additionally, implementing technology such as license plate recognition systems can enhance security measures.
Many of our clients have implemented valet parking services to not only provide an enhanced customer experience but also to address security concerns, especially in environments where any security concerns can lead to reduced patronage.
5. Low Net Promoter Scores (NPS)
Believe us, car parks and the associated service industry don’t have the best reputation. Ineffective operations, unclear signage, poor cleanliness and inadequate customer service can lead to frustration and dissatisfaction among users. Implementing mobile apps for parking information, real-time availability updates, and convenient payment options can significantly improve customer satisfaction. Pre-arrival information on websites should be easy to use and informative. Our First Class Valet technology is the only one available in Australia that is paperless and seamless. The mobile technology resonates with customers, as all is controlled from their mobile phones. Our clients (like they should) measure Net Promoter Scores consistently, especially in the hospitality, hotel and retail industries. Carpark operators should consider offering auxiliary services such as concierge services. For example, a laundromat drop off and pick up, car washing, valet services, even managing catering and uber orders.
Running a car park involves more than just providing a space for vehicles. It is a true extension of an establishment. Navigating the challenges of technology integration, security, risk and customer experience requires a proactive and strategic approach. By addressing these challenges head-on, car park operators can create a seamless and efficient parking experience for users while staying ahead in an ever-evolving industry.
Give the First Class Valet team a call for a free operational review or discussion, contact us here
