RM Online - A look ahead; the driving forces that point the way into the new millennium

As we approach the new millennium, it is clearer than ever that the businesses that succeed are the ones that know how to use innovative ways to create value for their customers. Here are some of the driving forces to be aware of and some things successful companies in various industries, as well as rental, are either doing already to gain an edge and beat their competition, or will be doing more and more:

Real time responsiveness. Winning businesses will eliminate customer waiting, whether in line, on hold or over time. Financial institutions will be forced to give instant mortgage loan approvals. Because of increased competition from electronic commerce, retailers will need to find ways to eliminate waiting in line. The homeowner who comes into a rental store on Saturday morning has one day, maybe two, to invest in a project; that customer wants quick service and accurate advice. The contractor likewise is in no mood to wait.

The challenge: Ask yourself how you can reduce the amount of time spent at every step of a customer's transaction. What changes will you have to make in order to generate customer satisfaction based on speed?

User-friendliness. The trading stamp industry disappeared because it was too inconvenient. In the next five years, the cents-off coupon will disappear, too. Consider reexamining your "convenience quotient" in light of changing, more harried lifestyles. Examples include the trend toward 24-hour stock trading, real estate firms previewing homes on the Internet and home delivery of groceries for busy consumers. Are your rental services easy to use, user-friendly? Fast in and out? Punctual delivery? Uncomplicated paperwork? Friendly, knowledgeable and helpful counterpeople?

The challenge: Rethink your entire operation to make what you offer more accessible, user-friendly and portable. Think "one-stop shopping" and reduce the hassle. Make doing business with you easy.

Aging Boomers/Generation X. Generation X and the turning-50 Boomers present countless opportunities for creative responses.

But there's a downside, too: on the horizon is a growing Generation X labor shortage.

Have you looked into the changing market demographics as the Boomers age and the Generation Xers merge into the mainstream of the economy? The labor shortage is not going to improve - where will you find employees in the future?

The challenge: Brainstorm ways to understand and seize these emerging new markets and ways to reduce labor requirements, if possible, and ways to make better use of the labor you do have so you can provide the services your customers demand, without fail.

Mass Customization. Increasingly sophisticated consumers demand more options and "have it your way" solutions in both products and services. Levi Strauss stores measure hard-to-fit people and use the computer to send the specs to their plant in Tennessee. The customer receives the jeans just a few days later. Future-focused leaders will anticipate what it is about their services or products that could benefit from mass customization and respond accordingly. Every customer wants to be thought of as the only customer you have. Seize the opportunity to prove that customer right - place the customer at the center of your thinking.

The challenge: Innovations come from listening to customers nonstop. So listen, listen, listen. And then go and interpret what you've heard and develop your business plan, your style of doing business and your marketing program accordingly.

Lifestyle. Changing lifestyles are affecting every business. Thirteen million Americans are self-employed and work out of their homes. The two-career household is the norm. Double paychecks increase disposable income but time is at a premium.

The challenge: How are changing lifestyles affecting what your customers want from you? How can you profit by responding to these changes?

Unbundled service. Look for price-cutting to intensify, along with the consumer's impulse to seek the best deal. Accordingly, look for the category killer, the big box, to step up the pressure. By teaching do-it-yourself homeowners how to fix up homes, Home Depot saves them money. You can play that game too, and probably better than Home Depot - but you have to get your message into the marketplace and build a customer base among those you haven't reached.

The challenge: Rethink the services you offer. What can you eliminate from your lineup in order to give the customer a lower price and still make money? Above all, what can you do to increase the value you offer?

Value differentiation. If you're not going to be the low-price leader, you must add value continuously. Four Seasons Hotels have computer banks that store information about each guest. Customer Smith prefers a non-allergenic pillow; customer Jones likes a rare kind of tea. The customer wants to know, "What have you done for me lately?" You can do this, too. You have a computer there that can put you right inside your customer's head.

The challenge: Make sure the value you add is the value your customer seeks. Excellent customer service is so rare that people pay extra for it. Differentiate your company with real care for the customer - service that far exceeds expectations.

Techno-edge. Technology is not advancing - it is exploding. The future belongs to those who embrace its possibilities and become fluent in the technology early, instead of becoming techno roadkill. Search for new tools and software that increase speed, add convenience, raise productivity and challenge conventional wisdom about what can and cannot be done in your industry. Don't accept the quick and easy answer: "That won't work." Probe deeper. Think of how you can make something work for you.

The challenge: Seize the technological capabilities available to you. Look for techno edges that can be borrowed from other rental operations and from other industries, too. Transfer the best uses of technology to your own company.

Quality perfection. Quality is what the customer perceives it to be. Defects and delays add aggravation. You can't compete if you can't convince the harried customer that dealing with you will be a high-quality experience.

Businesses from Rolex to H&R Block have profited from designing quality into their operations and making a point of it in their marketing programs. They ascertain what customers want and they define what quality is - and then they show how they meet the definition they've established.

The challenge: Where do your customers perceive a lack of quality? Unsure where to start? It's simple: ask customers what they think - and listen carefully to their answers.

There are no promises in the new millennium. But it will be anything but business as usual - that you can be sure of. Company leaders need to take measures to change with change, not just react to change.

Innovation - coming up with ideas and bringing them to life - must take place at every level of the organization.

Resting on your laurels is not an option.