Retail Observer

RETAILOBSERVER.COM MAY 2016 60 O ver the years, the rent-to-own industry has adapted to many significant changes in the industry. Recently, a new trend has developed which ultimately gives the customer the choice of the product. Historically, owners or buyers bought and promoted merchandise they thought their customers would want. This concept still holds true today but in a harbinger of things to come, dealers that show an increase in traffic and revenues, are offering customers more choices. Although merchandise is still traditionally available on the floor, dealers are now using catalogs as well as online manufacturing and vending sources to give buyers almost unlimited access to products. In doing so, dealers are becoming much more in tune to the practice of letting customers choose the unique products they want and then have dealers order it for them. Sound familiar to retail? With smaller showrooms than traditional retailers, the rental industry is expanding its inventory offers by using special orders direct from vendors. With the growth of rent-to-own or lease options for retailers provided by Progressive and Acceptance Now programs, customers now have a wider range of products available to them. As a result, the traditional rent-to-own dealer is adapting to changes in the industry by offering more products via special order as well as by stocked inventory. Dealers are upgrading their product offerings and reconfiguring stores to imitate the look of a retailer. For example, DAC Products, a well-respected vendor in the rental space, is introducing new TV display walls and customer service desks featuring a more modern twist that will help dealers move ahead of the competition. Another area that dealers are adapting to is the marketing arena. The days of all-print advertising along with some television and radio ads are not enough alone due to technology. Today, dealers must also embrace the digital movement. Having store brand awareness in the digital market is the future of the industry. Dealers realize that their business absolutely depends on the strength of their store's digital media presence. A cursory glance at any marketplace reveals customers' utter reliance on their smart phones for locating stores and for making purchasing decisions. Dealers must adapt to the changes in buyer behavior and exploit digital marketing techniques. This can be achieved by incorporating responsive websites, SEO, Google and Facebook ads, and social media into their advertising and marketing budgets. By embracing digital advertising along with more traditional methods, dealers can saturate their local markets and encourage positive results. In order to grow their business and stay ahead of the competition, dealers must adapt to the radical changes that have affected the industry. The new choices available to customers and the digital media revolution have brought challenging but manageable dilemmas that dealers can contend with. With creative ideas and a watchful eye on the future, adaptation to new changes and trends can be a much smoother process for the industry. THE RENTAL INDUSTRY: SATISFYING THE CUSTOMER RO Dennis Shields Rent-to-Own Trends Dennis Shields, Executive Director of the TRIB Group

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