Rental companies often act like true entrepreneurs by always trying to improve their business. Many new initiatives and new business models are invented to try and become more successful and to eventually increase the Rental revenue. However, in this great attitude, IT systems are often overlooked, even though a good IT system can be an accelerator for doing business smarter, more efficient and to gain the insights needed to become more successful. Many a good initiative does not survive if it doesn’t deliver what’s been sold and having a good system in place is of vital importance. Rental processes are often complex and in general use the full extended capabilities of any system, starting at purchasing and ending with periodic invoicing.
Dynamics Rental Management can help organizations to streamline their internal processes to be ready for the future. When the base rental processes like purchasing, availability, periodic invoicing and maintenance are covered, an organization can truly focus on becoming more successful. This spotlight item will describe how Dynamics Rental can help companies increase their rental revenue.
360-degree customer view
To give customers the best possible service it is key to have a 360-degree customer overview to be able to look at a customer from all angles. Rental companies often sell multiple services, often sold by different departments within the organization. To make sure everybody within the organization knows what is happening, it is hugely beneficial to have all transactions within one system. This is vital to assure that the rental department sees if sales recently made an offer, or that the service department sees that a customer has many unpaid invoices. Besides a clearer insight, this overview will also help to tailor the offering to your customers. Every rental organization wants to be as customer focused as possible, but this can only be achieved if you have a clear insight in all activities.
Increase your average Rental amount with Up and Cross-selling
An easy way of doing more rental business is to do more up and cross-selling. I already described this in an earlier blog post (Up and Cross-selling to increase overall revenue), but I want to highlight it again. A good rental system is vital to offer your customers up and cross-selling options; if the suggested items don`t make sense then it will not be successful. By giving your sales reps good up and cross-selling information additional revenue is definitely possible. Nowadays rental companies are also doing more and more business via the internet and when a customer orders something themselves, showing relevant additional products can make a big difference.
Maximize utilization with clear insight in availability
To ensure rental equipment is in the right location it is important to have a clear insight into the overall equipment availability. Many rental organizations work with a multi-depot structure, so rental equipment is assigned to different locations. The key challenge of every asset manager is to assign the right equipment to the right location. Looking at the available units, whilst also looking at (expected) customer demand is key to have the optimal mix of equipment in a location. At the same time, when a depot gets a request for an item they don`t have on stock, a good solution can identify where this equipment is available so that the customer can be served. Asset Managers needs to continuously monitor and compare the utilization rates of different depots to assure the available equipment is used as efficiently as possible.
Sell additional services to unburden your customers
Another way of increasing the rental revenue is by providing new and/or additional services to customers. Many rental customers are renting equipment because they want to be unburdened and this wish can be used by Rental companies to offer additional services. Examples of additional services which can be offered are breakdown repairs, preventative maintenance, periodic reports but also a periodic call or meeting with the customer to discuss how the rented equipment is used and how it could be optimized. With the latest available technology like IoT and remote monitoring, rental companies can see how the rented equipment is being used and use this in combination with information from the customer to determine the optimum usage of the rented equipment. With this, rental companies can make the shift from being just a rental equipment company to a full-service provider that can fully unburden the customer.
Full insight in periodic invoicing
One of the most complex processes for any rental organization is definitely the periodic invoicing of rental equipment. Due to this complexity rental companies are losing revenue simply by not invoicing the correct amount. With Dynamics Rental Management organizations have full control over the amount that gets invoiced. With both a flexible pricing engine and flexible invoicing periods, the system automatically creates the right invoices to bill customers for the use of equipment.
These topics are just a couple of examples showing that the right rental software can make a big impact on your business. Every rental market has its own unique characteristics, so a stable but adaptable rental solution is key to success. Please contact us to see how Dynamics Rental Management can amplify your business.