Topic #7
RTO Companies Must Differentiate To Succeed

The biggest obstacle to gaining a new rental customer is proving that your team is uniquely qualified to meet their needs.

Never stop learning: Rent-to-Own (RTO) Professional Training Series is brought to you by RTO Online Inc. RTO Pros are encouraged to use this material for personal or company training, store meetings, or any other purpose. RTO Online will publish a different topic every week. More about the series.

By Roy Griffaw, RTO Online Inc. - bio

Competition for rental customers is fierce. Turning a shopper into a paying renter is more important than ever. By focusing on strategies that deliver a unique customer experience, Rent to Own dealers can differentiate themselves from the competition and gain market share.

When a customer walks into the Hemet, California Aaron's, they don't meet Ken Butler - They meet Miguel Angeles who recently earned the title "Best of the Best" in the Aaron's system for Product Technicians (see story). When a customer enters an American Rentals in Bloomington, Indiana they aren't greeted by CEO David P. David - They are met by America's leading store manager Sharon Lidberg (podcast).

Likewise, when a customer walks into your store, their level of satisfaction will not be determined by you, it will be determined by your team's ability to differentiate your company from the competition.

Stores Don't Gain Customers, People Do; Get back to basics
Customers buy from a person, not a company. If you're gaining customers, it's not because your furniture is irresistible or even unique, it's because your team represents more value to the consumer than your competitor's offering. Your team is the only thing that your competition doesn't have and cannot acquire. Your team is what makes your store - your entire company - unique.

The biggest obstacle to gaining a new rental customer is proving that your team is uniquely qualified to meet their needs.

What are you uniquely Qualified to Deliver?
Choose three things you do for customers that separates you from other rent to own companies in your market. Never let a customer spend more than 3 minutes in your store before telling them exactly what makes you unique. If you can't name three things that differentiate you from your competition, develop new systems or arrange for a sudden and unexplained fire.

Some simple examples:
- I deliver in one hour
- I guarantee same day completion of repairs
- I give a free week for every family member that opens an account
- I don't go home until you're satisfied
- I guarantee damage free delivery or we bring a new (fill in the blank) and the next week is free
- I will walk through fire and crawl through glass...etc.

Never Let Them Leave
A "be-back" is a lost agreement. In a business where a few dollars and a signature gets merchandise delivered and switching rental companies can be done with a phone call, renting is the ultimate impulse-buy. "I'll be back tomorrow" translates into "You didn't light my fire so I'm going down the street."

Rent to own customers are no different than retail customers, it's just that there is very little downside to making a bad rent to own decision. If a customer isn't satisfied with your service in week, they'll terminate and go elsewhere. You must capture their hearts and minds on the first visit and do whatever it takes to get the D. There is no room for error.

Get contact information from every person that walks thought the door
If you pull out all the stops and still the customer is about to walk, get a name and number. Make up a reason if you have to; "We have another load coming in next week," "We may have some specials later in the week,"...anything to get the contact information. Keep a list (hopefully it won't be a long list) and once per week, begin calling. "This is Rufus from XYZ Rent to Own, we met the other day. I'm sorry we couldn't serve you. If you are ever disappointed with your rent to own's service...etc." Hammer away at the list every week.

To Scott Brown and Louis Garcia, ColorTyme franchisees in Washington, DC there's no such thing as a shopper, or a terminated agreement - only future customers.  They treat every contact as a potential rental and are relentless in gathering contact information and following up.

Cold calling is not at the top of anyone's favorite job list, but it proves to the customer that you have a genuine desire to serve them. And I can't think of a better beginning to a long and profitable relationship.

Roy Griffaw is the former owner of Express Rent to Own of Missouri and the founder and CEO of RTO Online Inc. Griffaw founded RTO Online in 1996 to improve inter-industry communications. The company has grown to become the leading publisher of RTO industry trade news in the world. Contact admin@rtoonline.com for more information.