copyright RTO Online, Inc.
www.rtoonline.com

There is an interesting discussion being held on RTO Online Forums. It revolves around whether or not the core of rent to own is collections or sales. Collections being the ability to collect renewal payments on time, and Sales being the ability to sell the value of the transaction itself. The argument is an old one, but critically important to the evolution of the industry.

RTO Online comes down squarely in the Sales camp. The art of rent to own is the ability of an individual to sell the value of the transaction. Anyone can be trained to collect "money or merchandise." A good Salesperson is born, not made. He or she understands intuitively a fundamental truth: The likelihood of a rent to own customer renewing an agreement, is directly proportional to their ability to sell the value of the transaction.

Your customer will terminate the agreement the instant he or she feels there is more value in termination than renewal, and not before. So long as value exists, the agreement will exist. And I assure you, while outside collection efforts may be necessary, they are not viewed as a value by the customer. So what do rent to own customers perceive as value? What drives them to renew?

A recent study by Rent Way found three primary drivers for RTO customers...

1. Dealing with a name they can trust

2. Being treated with respect

3. Friendly people delivering on promises made

Not surprisingly, collection efforts do not appear on the list. The one common thread is people. Do your customers trust you? Do you treat them with respect? Are you friendly and do you keep your promises?

The value of You
Tattoo this on your forehead: "Customers rent from a person, not a company." What is the value of renting from you versus your competitors? There are many rent to own companies...there is only one YOU.

Every position in your organization, without exception, should be filled by a salesperson. Why? Because every position has something to sell. Delivery is a prime, and often overlooked, example. A delivery is a sale, in and of itself. A successful delivery leaves the customer feeling confident in your ability to provide service in the future and tells the customer "I respect you enough to be prompt, professional, courteous, and treat your home as I would my own." No delivery should end until the customer is convinced beyond a reasonable doubt that, with a single phone call, you will be back with bells on to solve any problem they might encounter.

A failed delivery will cause a customer to lose confidence in your willingness or ability to provide prompt service. At the first sign of trouble, the customer will likely perceive more value in terminating the agreement (and renting from someone else) than taking a chance on unprofessional and uncaring personnel. It's all about value.

A traditional retailer makes a sale once and it lasts forever. A Rent to Own professional makes a sale to the same person every seven days for up to 2 years and the customer is in complete control. It's not the merchandise you sell, it's the value of the use of that merchandise for the next period. Exhausting, yes, but equally satisfying if you view serving the needs of your customer as your primary goal.