Retail Observer

July 2017

The Retail Observer is an industry leading magazine for INDEPENDENT RETAILERS in Major Appliances, Consumer Electronics and Home Furnishings

Issue link: http://www.e-digitaleditions.com/i/840487

Contents of this Issue

Navigation

Page 31 of 67

RETAILOBSERVER.COM JULY 2017 32 S uccess in the rent-to-own industry going forward relies on the development of a strategic plan that produces increased growth and improves profitability over the long term. This plan should focus on increasing retention, increasing ownership, and growing the customer base. Here we focus on growing and marketing to a new customer base. One of the challenges for retail RTO outlets is to offer products that continue to serve the needs of their existing client base while expanding the portfolio to draw in new customers and respond to the different needs of a new client base. An example of customers for the present and into the future is the millennial group. Many in this group are a good fit for the RTO business model as they have yet to establish credit histories and in this early stage of adulthood, renting in both living space and furnishings and appliances make sense for them on many levels. They are in their 20's, and they move around a lot. Many are on their own for the first time and are renting an apartment or house. The ability to rent furniture and appliances allows them to escape the hassle of moving these items from place to place. It also allows them to beautifully furnish their homes right at the beginning. With rent-to-own, they don't have to come up with large outlays of cash to furnish an entire house at the beginning or make do with acquiring furnishings little by little. Rent-to-own enables them to have it all right at the start. If they decide to relocate somewhere else, they don't need to worry about selling used stuff, moving it, or getting rid of it. Products for this demographic tend to be more transitional or modern than traditional. They want furniture choices that reflect their style and individuality. Millennials are also looking for highly efficient appliances to reduce their energy use where they can. The key to serving millennials is to offer choices that include higher-end aspirational products, furniture choices that reflect recent trends, and items that appeal to a more tech savvy audience. In addition to offering appealing product choices, marketing efforts to the millenial group should be uniquely tailored to them. Perhaps the most tech savvy generation, they were born with technology at their fingertips. They are used to being connected and spend an enormous amount of time on social media. Reaching them through social media and advertising on these channels should be a consideration when creating any promotional plan. Forward-thinking RTO dealers are putting more online ecommerce shopping and mobile payment options on their websites and are engaging customers through social media channels. A good example of this is Rent One. Their website does an excellent job of articulating the rent-to-own value proposition: getting products quickly and hassle-free, returning them at any time, instant approval, and a robust product selection. They even offer battery powered 4-wheelers in their product portfolio, as well as designer handbags and TV stands with fireplace inserts. Renting all of this is easy to do with just a few clicks on their ecommerce site. The site also displays the full cost of ownership for any product on the site. The millennial customer is an excellent fit for rent-to-own retailers because in general, this is a group that prefers to rent rather than to buy. Retailers should look to the future and develop a strategy to serve this unique market. Having a quality ecommerce site, a well-designed ecommerce program, mobile payments, and SEO strategy will keep the rent-to-own retailer connected to this group of consumers. GROWING THE CUSTOMER BASE How to appeal to the customer of tomorrow RO Dennis Shields Rent-to-Own Trends Dennis Shields, Executive Director of the TRIB Group

Articles in this issue

Links on this page

Archives of this issue

view archives of Retail Observer - July 2017