How to improve Car Rental Business –
Posted on September 17, 2021 at 05:28 AM
Car rental business has a scintillating future. According to Zion Market Research 2017, the global car rental market was estimated at $58.26 billion USD in 2016. The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 13.55 % between 2017 and 2022. The market is anticipated to hit $124.56 billion USD. The future figures are captivating enough. They will have you drooling over the idea of starting a car rental business or remain in it. However, in the long run, your business has to be more than just providing rental cars in order to survive and grow. And for that, it needs continuous upgradation, refinement, and improvement.
Challenges in Car Rental Business/ Possible Problems your business might be facing
- Customer engagement: Keeping your customers engaged and loyal to your business is the first major hurdle. In the world of internet people never limit themselves to a few options. They research and expose themselves to an uncountable car rental websites or companies through the internet and so keeping them keen in your car rental business is a task in itself.
- Customer Awareness: Do people really know that your business even exists? There are ‘n’ number of people that may not be aware of your car rental business and thus you are losing on all those untapped customers/ opportunities just because of this fact. Creating brand awareness or business awareness is a must in order to exhibit your presence in the market.
- Low Utilization Rate: the declining rate of utilization is a major stumbling block in this business. Low utilization rate leads to a decline in productivity and eventually low profits. For improving profits, utilization improvement is a must. However, improving the low utilization rate is easier said than done.
- Risk Management: Risk management is an immutable challenge that a car rental company faces. There has always been a hue and cry about the risk of accidents and thefts.
Competition: the challenge of competition is just not from the fellow car rental businesses but also from ride-hailing or car sharing services such as Uber and Lyft. With the entrance of Uber, Lyft and many such inspired startups it’s the car rental businesses that are taking all the beating. Handling overseas customers: Language barriers can be a roadblock to cater the overseas customers. It is more likely to be a challenge in such places where there is a large tourist inflow from different parts of the world. As people speaking foreign languages make it difficult to evaluate the exact car requirements or expectations of them.
- Accidental risk: Accidental risk is a matter of concern for automobile leasing enterprises. It’s more likely to happen with foreign travellers as they are unaware of the traffic rules or are used to drive on the other particular side of the road and many more reasons. But nonetheless, even the locals can crash or damage a car or any vehicle for that matter.
- Theft risk: who knows the personal agenda behind hiring or leasing a car from the company, someone might even want to purloin it away. These things are very uncertain but the risk of theft is always certain in automotive leasing business.
Ride the wave of market growth with our solutions to improve car rental business :
- INDUSTRY COLLABORATIONS:
New marketing ideas for car rental business keep on mushrooming in this changing business environment and collaborations is one of them. Shake hands with car hire comparison websites and team up to get your business listed on their websites.
It will not only direct a large chunk of customers in your direction but also help in customer awareness. The car hire comparison websites will list your company in exchange of a nominal fee or even for free. One can also collaborate with advertising agencies to advertise a car rental company which increases, brand awareness, customer engagement, business presence in the market etc.
- BUSINESS PRESENCE ONLINE:
According to reports, 55.1% people of the world population are internet users. In the era of digitization, a website is a mandatory requirement to get in touch and tap the online audience. However, it’s not enough to just make a website and put it out there on the web.
Make your way to the top of google and facebook with the help of digital marketing techniques. It will not only help you rank on top but also bring in more business from the online customers, outrank your competitors and establish your presence online. You can either hire a professional for digital marketing at a high cost or you can outsource this service to relinns at a much lower cost and avail all the professional benefits.
- AUTOMATED CUSTOMER SERVICE: Customer engagement is a top priority to improve a car rental business. And for that exceptional customer service should be the center of focus for every vehicle rental company. Automation of customer interaction can result in effectual conversions and is a magic wand for the sales graph of any vehicle renting business.
Chatbots are here to revolutionize the automation process. A chatbot is an artificial intelligence computer program that automatically stimulates human conversations via text or voice messages.
How does a chatbot upgrades car rental business?
- 24×7 Availability : A chatbot doesnt sleep, its there at the customer’s service 24×7 engaging the customers and answering there queries for better customer support.
- Higher Conversion Rate : Chatbot boosts the conversation rate by collecting quality leads and storing them for the sales team to work on. According to some business clients their conversion rate increased 300%-500% by implementing a chatbot.
- Automation : Chatbot automates the process of conversation, generating leads, tranfering leads to CRM.
- Time Saver: Time saved today means, productive time for tomorrow. Chatbot can answer 80% of the queries as customers usually ask the same repetitive questions. Thus they help saving time by chatting with hundreds of users at once.
- Reduce costs : Chatbots reduce the cost by 30% as you do not need to invest in a large number of human resources for customer support services. Chatbot is a one man army.
- Versatile : Chatbots are versatile. They cater to different functions such as query handling, lead generation, answering FAQs, booking appointments, scheduling meetings and much more.
Cost of getting chatbot for your car rental business
The cost varies depending on the business requirements. But if you want the best chatbot for the business at minimal cost, there’s nothing better than BotPenguin. At BotPenguin, you get a diverse price range catering to diverse business needs starting at just $15 ( They have free versions too!). FLEET PLANNING: Fleet planning is an effective way to improve the car rental business. Under fleet planning an enterprise determines what kind of cars are required and in what quantity are they required etc. It not only cuts down the cost but also improves utilisation rate. One can also get fleet management softwares and analyze the past trends to know what their return rates, cancellation rates etc. are. On the basis of which you can plan the fleet in an effective way to reduce wastage of assets. REMARKETING : In a race of tapping new customers do not forget your existing customers and the people who have shown interest in the business to hire or rent a car or any vehicle previously. Retarget them and engage them with exciting offers, deals and keep them notified about the latest business updates. Email marketing is one beneficial tactic to do all that or you can also opt for text messages. USER FRIENDLY DIGITAL PLATFORM:
Not all people browse web all the time for booking a rental car but they look for an easy and go to solution to commute. To get ahead of the competitors and increase the market share we need to provide a user friendly platform. App development is the only way out. With the help of a mobile app, users can easily book rental cars anywhere and anytime they want, the business can track the fleet at different locations and manage it and provide real time navigation.
People will no longer need to enquire about the prices, policies and other things when they will have everything ready in front of their eyes in the mobile app. This provides users a direct channel. Developing an app is not a layman’s job, a business must hire the best to get the best.
If you make efforts for continuous refinements in the business with right car rental business strategies, as a result, your business will thrive exponentially. Fleet planning, direct user channels such as apps, automation of business processes with the help of chatbots, collaborations, enhancing online presence using digital marketing techniques and retaining the existing customers is all that will assist your business to prosper and reach new heights.