Rent-to-own News - APRO's Potential Customer survey shows improved industry perception

APRO's periodic "Potential Customer Survey" wrapped up Wednesday in St. Louis, mining a trove of information on how to 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 is only available to APRO members.

"We also call this the “Image” survey as it paints our image to those outside the RTO world," said APRO Public Affairs Director Richard May. "Under the premise that 40-50 million Americans fit the RTO demographics and we serve only 4 million we felt we needed to address how to reach those customers who should rent-to-own but do not."

The comprehensive study consists of two parts. The first is a random digit dial phone survey of 600 participants which guarantees a + or – of 5% of accuracy.

The second part of the study is conducted with two focus groups. Approximately 10 rent to own dealers representing both independent dealers and publicly traded companies were on hand to watch the focus group portion of the study in St. Louis.

The two focus groups consisted of one group that has never rented to own and the other with some members that have.

The first group had 11 participants and the second at 10 participants.

Kathy and Mark Windsor of National TV Sales and Rental were two of the participating RTO dealers who watched the interaction between the "potential customer" respondents and Trenholm through a one-way mirror.

Kathy Windsor, who participated in APRO's 2004 study, said she noted less negativity toward the rent to own transaction and more willingness by participants to consider it. The respondents also seemed to know much more about the rent to own transaction, though misconceptions remain.

"It was refreshing to see we'd made such improvement in our image over the last five years," Kathy said. "Still I was surprised to learn that many of them thought we only rented used furniture and didn't provide a warranty. They were quite surprised to learn that we will take care of the merchandise the way we do when it's on rent. Some didn't even know we provide free delivery. Those are things we need to be more clear about."

Windsor said there was a noticeable change in attitude when respondents learned about the quality and brands of merchandise carried in RTO stores as well as the 'lifetime reinstatement' feature.

"This study is really invaluable to dealers but also to people who are not familiar with our business, but who may be looking to get into it. You may think you know what people think, but looking at the real data make it crystal clear what they think." 

Dan Cole of National Rent To Own -- who also attended the 2004 focus group study -- echoes Windsor'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."

The study and the analysis, which will be ready in the next several months, is available to APRO members only. In addition two DVDs of the focus groups will be made available for those who want to view the entire process.