Rent-to-own News - APRO members receive 'Potential Customer' survey results

APRO member companies today received the official summary of APRO's latest "Potential Customer" study -- a trove of information on how rent to own dealers can better reach the approximately 50 million people that fit the RTO demographic but have not yet utilized the transaction.

The full study, conducted by Linda Trenholm of Austin-based Trenholm Research in September, was conducted with two focus groups in St. Louis.

After 16 years of addressing the marketing potential of should-be rent-to-own customers, the results from this latest research are a mixed bag. Surprising to many of the 10 rent to own dealers on hand to watch the focus groups, was the fact many of the participants thought that rent-to-own stores offered “no-name" or "used” merchandise that is over-priced -- products the customer is stuck with once an agreement is signed.

Other participants said that rent-to-own makes good sense, especially if you use the transaction wisely.

“I think it’s a positive that the more recent the user, the more positive the image of rent-to-own,” Trenholm said. “This could be due to their financial situation or that they are more informed and [better] understand the advantages that rent-to-own offers. It may be that, as the population matures, the younger person does not remember the really negative days of rent-to-own and, with that, the negative energy about the industry may be dissipating with each year. For example, the 30-year-olds in the group were teenagers in 1997 and have grown up with rent-to-own stores presenting themselves more appropriately in their advertising and service.”

The study is conducted with two focus groups selected through a random digit phone survey. Of the two groups, one consisted of people who had never rented to own and the other with some members that had.

Dan Cole of National Rent To Own -- who also attended APRO's 2004 focus group study -- echoes Trenholm's observations noting there was still room for improvement in the industry.

"The biggest thing I saw in it was we got a lot of negative feedback six years ago and the perception of rent to own today is much more positive," Cole said. "Still some things like people who thought rent to owns only rented used merchandise let's me know we need to do a better job letting people know the services we provide and the quality of products we have. That's one of the most valuable parts of this survey."

In addition to the study analysis, two DVDs -- which are 1 hour and 30 minutes each -- will be made available upon request. To request a DVD, contact lhill@rtohq.org.

An article on the studies appears in the next edition of RTOHQ: The Magazine.