David Ingram President, CEO RTO Enterprises

With 136 locations, RTO Enterprises is Canada's largest rent-to-own. The company recently announced a 're-branding' effort that will consolidate all 6 six retail banners into a single brand name- easyhome. (see article)

Following is an interview with David Ingram, President and Chief Executive Officer of RTO Enterprises Inc on the planning, execution, and public relations effort associated with this major undertaking.

Q: We understand that RTO Enterprises has developed a new brand communication and presentation for your stores across Canada. Why did you decide to undertake such an aggressive and dramatic change?

David: From the time our new management team was put in place, we knew that the business offered tremendous growth potential. So, last summer we engaged Meadwell & Associates, a leading branding and communication company, to help us define and articulate our new brand promise.

Q: What was your first step?

David: Following a review of our materials and business plan, Meadwell & Associates organized a brainstorming workshop comprised of people from their firm, our company, a leading research firm and an associate design firm. The workshop focused on creating new value propositions. Value propositions that would be highly relevant to both our core current customers and new customers who had never considered us appropriate for their needs. We narrowed the wide range of propositions down to 5 that we thought would test different ways to present the business and stimulate customer interest.

Q: So you tested these ideas with current and new customers. What testing technique did you use? And why?

David: We used focus groups of men and women. We chose focus groups so that we could engage the customer in a two-way discussion about the business and our new value propositions. We probed:

• How they felt about their store
• What they liked and disliked
• How it made them feel
• What they thought of our 5 value propositions
• How they felt about the name of their store…and whether they were aware that there were other names.
• Ideas for new names that accompanied the value propositions
• What the word “rent” meant to them…and how they felt about it
• Their view and image of a current store and (if they could have their wish) an ideal store

Q: Wow, you covered a lot. What did you learn?

David: Yes, we did cover a lot and we learned a lot too. One of the most important things we learned was how important it is that they feel good about the shopping experience. They want to feel capable, accepted, welcomed and in control. They do not want to feel embarrassed or judged because of their current financial or credit situation.

Q: I am curious as to what you learned about the word “rent”?

David: As you know “rent” is at the core of our business proposition. So, this learning was very important to us. Also, it was a bit controversial among the members of the management group and the board as to whether we could effectively communicate our proposition without “rent” in the name. We wanted people to feel about renting the way they do about buying… Positive, ownership options, visible expression of achievement, pride, excited, satisfied.

Our customers told us that “rent” made them feel inadequate – irresponsible and
emphasized the point that they couldn’t afford to purchase what they wanted like other people. “Rent” meant short-term. “Rent” also reinforced the fact and their feeling, that they don’t really own the item. So the care and attention and sense of ownership that they had for the items was diminished..,“its not really mine, I am just renting it.”“ Renting reflects negatively on me.”

Prospects told us that “renting” did not fit their perception or image of themselves (e.g. when the truck emphasizing rent arrived at their home, it reinforced with their neighbors that they could not afford to buy and that renting was their only option.)

Q: Do you have other research to support these findings?

David: Yes we do. Focus Group research resulted in the following recommendations:

• The word “Rent” has negative connotations
• Consider dropping Rent from the store name
• 'Lease', while popular, implied a long term commitment

Q: Can you effectively explain the proposition to the customer with less emphasis on the word “rent”?

David: Absolutely, and the research confirmed it. Here’s an example:

At easyhome you can get the furniture, appliances, electronics and computers that you want and need right now for as long as you want…weekly, monthly, yearly or forever.

You can have a payment program customized to your budget and lifestyle, so you are always in control.

At easyhome we are here to serve you.

Even though we have taken “rent” out of our name, it will still be featured in other elements of our communication package and essential in our financial contracts with our customers. That will not change.

Q: Tell me more about the name. Why would you change the name of the stores?

David: As we acquired businesses over the years we also acquired names where today we have 6 different names on our stores. Our goal in getting the right name was 4 fold:

1. To select or create one name for our 136 stores across Canada. We want to build a single, dominant and powerful national brand.
2. To capitalize on the power and influence of a national brand, and on the efficiencies of scale offered by a single brand name.
3. To have a name that better explained what we do and the benefit to the customer.
4. To remove “rent” from the name and create a more positive shopping experience.

Q: What name have you selected for the stores?

David: After an extensive name search, and factoring in the learning from the research we settled on the name easyhome. This name was selected because:

1. It is simple and easy to recognize and pronounce
2. It supports our brand promise and shopping experience of being easy
3. It acknowledges the importance of the home…making it the focal point
4. It communicates our product selection as being for the home

Having all agreed to the name, we undertook the next steps to prepare the graphic visual / logo and the redesign of the store and all of its communication and merchandising material.

Q: How would you describe the new brand promise?

David: Our brand promise is to:

• Give the customer what they can’t get from anyone else – better financial programs & support
• Raise the customers sense of control
• Demonstrate a positive, friendly, supportive and non-judgmental
  attitude towards the customer
• Reinforce the customers sense of ownership and pride of possession
• Recognize the importance of the home to the individual and the family
• Strengthen the personal relationship between the customer, the store
  personnel and the brand

Q: Do you have plans to change the range of products that you will be selling?

David: Yes. We are expanding the product range with higher quality merchandise, a broader selection, more electronic and technology products. And more aspirational furnishings. This expanded product line will be presented on new fixtures and display stands that will showcase, and make it easier for the customer to view our products.

Q: How would you describe the new look and feeling of the stores?

David: The words that come to mind are:

• Customer friendly
• Reflective of our customers
• Approachable
• Clean, crisp, fresh and bold

The core colors are pumpkin, blue, green and white. Our staff will be attired in professional yet casual outfits that will complement the store environment and make our staff highly identifiable and approachable. The new look has created an environment where the product is hero and customers are honored. We want to make the customer feel completely comfortable and right at home in our stores. We have used lifestyle imaging to reinforce the home environment, and the
customers sense of enjoyment. We want to make the shopping experience friendly, fun and easy.

Q: How does the store personnel fit into the new brand promise and store experience.

David: As good as the new design might be, our staff will make or break our future. This business is really about people. We believe that our treatment of each and every customer will be key to making sales, extending the life of the contracts and forging lasting relationships. We are confident that the combination of our new name & design, branded stylish product and exceptional staff will be unbeatable.

Q: David if you could ask anything of your store personnel, what would it be?

David: My single request would be that they always put the customer first. And, that they make the customer feel welcomed, important, capable and good about themselves. That we all work together to provide superior customer satisfaction. That they walk the talk. Our message to our customers:

• At easyhome your satisfaction is our #1 priority.
• We have made it easy for you to get exactly what you want for as long as you want, right now.
• Our managers are committed to serving you and making you happy.
• We will only be satisfied when you are.

Q: That’s quite a commitment. Any closing comments?

David: Yes. There are 3 things I would like to emphasize:

1. The entire management team is extremely excited about our new brand strategy and store design. We are confident that it will enhance our relationship with our customers and therefore drive sales.
2. I want to thank everyone on the team internally and externally who have all worked hard to make our strategy come to life.
3. And, thirdly I want to thank our store managers and staff for their commitment, hard work and dedication to the launch of easyhome. With their help we will make 2003 a breakthrough year in the company’s history.
    

Interviewer: David, thanks for your time.

David: You are welcome. I look forward to seeing you at one of our new easyhome stores.