Online transactions continue to rise in the equipment rental industry as more customers expect online access and digitalization.
Equipment renters want more digitalization in the rental process, including through tools like AI and more online sales access, Josh Nickell, vice president of the equipment and event segment of the American Rental Association (ARA), said during a May 22 webinar hosted by equipment management software provider Texada Software.
Anyone not considering digitalization as part of an AI strategy is “missing the boat,” Nickell said. “AI is great, it’s fun, it’s a good buzzword and we can start implementing it now. But if you’re not doing some of these basics of [digitalization], then you’ve got to start doing some of that.”
Customers now have increased access to information online to complete the sales process in other industries, and they expect the same access in the rental space, Adam Kropf, senior director of product at Texada Software, said during the webinar.
Rental customers are looking “to be more informed before they even talk to your rental sales reps, and I think that’s a huge opportunity,” he said. “It’s also a threat for the other side, as they’re expecting this level of service.
“They have been upgraded in other businesses to be able to do more digital touchpoints, and that’s where rental needs to be to be able to stay relevant, stay complete, and competing.
Contractor demands
Contractor demand for online rental transactions increased to 27% in 2023, up from 16% in 2019’s pre-pandemic survey, according to the ARA’s 2023 consumer/contractor survey of thousands of contractors. Meanwhile, demand for in-person rental transactions declined to 50% in 2023 from 63% in 2019.
Moreover, 42% of customers want digital quotes, 53% want to find their equipment and tools online, and 49% want to schedule pickup and delivery online, Nickell said.
“Your customers want this, and you need to go ahead and provide this for them,” he said. “This is where you can start to build that incremental tool in there that really can help improve performance and the customer experience.”
Still, it’s important to remember that relationships remain a key factor in how equipment rental companies do business, so dealers with rental divisions and rental companies need to deliver digitalization and build trust, Nickell said.
It’s a high-trust industry, but after you have built that trust, it’s nice to pull out your cell phone and pull up a product code, a piece of information or a weight rating, and reserve something or set something up to pick up on the way home.”
