Retail Observer

RETAILOBSERVER.COM JULY 2018 56 A couple of weeks ago, there was a story in the news about a new technology that allowed people to have robots make calls for them. Things like ordering take out food, scheduling a hair appointment, or making a dinner reservation can be done by machine, responding to a human in such a way that the person doesn't even know it's not another person they are talking to. The world is changing, retail is changing, and we all know by now that many of the empty shopping centers we pass are a direct result of people wanting to use their phone, computer, or device to tap on an item and then see it quickly show up at home. Businesses that can offer the same level of convenience while also delivering a more tailored, personal experience can do even better. WHAT DOES THAT MEAN FOR RENT-TO-OWN? The good news is that nobody knows their customer as well as RTO dealers. With customers now having expectations of instant gratification, dealers are driven to anticipate needs and make products available exactly when, where, and how their customers want them. Successful managers will continue to be those who can best identify customer needs (and pain points) based on geographic location, demographic, and personal preferences. Here at TRIB Group, we recently were going over a list of RTO retailers that were not TRIB Members, tickling the files (so to speak) to identify those that may be a good fit for our organization. I was surprised to see that many of these dealers have very minimal websites or any social media presence. Others had online stores that rival national retail chains. As each store, location, demographic is such an individual thing in RTO, it's difficult to make sweeping generalizations about the strategies and tactics that rent-to-own marketing should take. One thing is clear however, and that is each retailer must deliver deeply personalized messaging, offers, and experiences to customers. PLAY TO YOUR STRENGTHS No one knows their customers as well as the owners, managers, and staff in the RTO sales environment because sales in this space aren't just transactions, they are relationships. They are ongoing interactions between the dealer and the customer that extend to the life of the sales cycle. This is the strength of the RTO business model and the successful dealers play to it. Their customers will often receive a call or text message when a new item hits the showroom and it's something the sales rep knows they will be interested in. The social media posts from those in RTO sales are as much about promoting a special as they are about sharing something (often funny and engaging) with customers. They know their audience. When these dealers post something on Facebook their customers say "Hey, I know those guys!" That is the definition of engagement and relationship building. Somehow, these dealers provide personalized interactions and develop relationships that bring the concept of spectacular customer service to a level that an online only"retailer will never be able to reach. Another strength for the RTO dealer is the store itself. The physical store presents a tremendous opportunity to redefine the customer experience and can serve as a platform for fostering the long-term relationships unique to rent-to-own. The ability to see, touch, and feel a product is a powerful thing, as is the ability to sit down with the owner, manager, or sales representative and talk. Successful dealers play to this strength as well, by stocking their showrooms with a broad range of products, some the latest and greatest, and some of the basics. Rent-to-own retailers can and should use all their strengths to help foster ongoing relationships and create a customer experience that online only retailers cannot match. RELATIONSHIPS ARE STILL KEY TO RENT-TO-OWN SUCCESS RO Dennis Shields Rent-to-Own Trends Dennis Shields, Executive Director of the TRIB Group

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