8 innovative Rental Business approaches to scale your success
A scalable business can adapt to a larger workload without comprising performance or revenue. Not every business is poised to make it big. Some business gets started off without the right people, systems, or mindset in place. Trying to grow such business in the later stages is difficult. Hence it is very important to adopt the right business approaches, in the beginning, to scale your success in the future.
Here are 8 business approaches that you can add to your rental business plan to scale your success.
1. Get the basics right
Before you even worry about scaling your rental business in the long run, ensure that you get your basics down and your fundamentals are foolproof. According to this survey, the reason for over 74% of startup failures is premature scaling. To avoid such scenarios, make sure your core product line or service is the right market fit. Make gradual enhancements in your service line based on user feedback and data. Find out the marketing channels with the biggest ROI potential by testing with smaller budgets first. Additionally, it is also important to make sure you have the right resources to scale your business.
2. Integrate advanced search filters
Advanced search filers are essential when it comes to refining the results and finding relevant content easily. To make it more convenient for your users, integrate advanced filters that will help to eliminate undesirable results. This feature makes it easy for your users to search for products and services according to their preferences and process the bookings faster.
3. Research the competition
When entering the market and looking to get your services to the masses, you need to research the competition. You can use any viable method to conduct this research to scan the service offers, online platform, marketing strategies and other aspects of your competitor’s business.
This allows you to understand and uncover any critical business strategy. If it is proven and working great for your competitors of the same niche, it will work for you as well. The competition analysis can be tricky as there is a lot of data to sift through. Before you begin, state your goals and choose the right rental business plan accordingly. Looking at your competition from a 360-degree angle will help you determine where you need to invest your resources and money to stay competitive.
4. Empower your customers with exciting offers and discounts
Discounts and offers excite customers and help to attract new customers. Giving compelling discounts during seasonal times will help retain more customers in your rental marketplace. For example, Airbnb offers $15 off on guest referrals and $200 on host referrals. More discount attracts many users and results in an increased booking, brand identity, and sales. You can implement it through email campaigns to grow your rental business across the globe.
5. Leverage the power of AI
Artificial intelligence or AI is redefining our interaction with technology. AI can successfully automate many aspects of the rental business. It has the potential to disrupt every industry and rental businesses are no exception. With the help of machine learning, the search features in your platform can be enhanced to give better search results matching the user perspective. One of the biggest advantages in the rental market will be the ability to understand particular geography through exhaustive knowledge of locations. What makes one location similar or different from another and how you can utilize the benefits of each location. If you leverage the true potential of AI, it can ensure the best services in your niche. Some of the very early applications of AI in the rental market are the Internet of things and voice assistants.
6. Create customer loyalty programs
Loyalty programs are proven ways to increase sales. It will cost a business three times more money to get new customers than selling to existing customers. Building a customer loyalty program will help with retaining your existing customers and attract new customers as well. For example, Airbnb has its own loyalty programs called SuperHost and SuperGuest that offers membership benefits to its most loyal customers from both hosts and guest category.
Hosts with a 4.8 ratio or above, 10 or more stays, 90% response rate and zero cancellations will be eligible for the program that gives hosts more visibility on the site and early access to Airbnb’s new programs.
7. Form strategic partnerships
Strategic partnerships and collaborations with the right brands can truly a world of difference and positively impact your business growth. It allows you to reach a wide range of customers instantly. However, the key is to identify those partnerships. Look out for brands that offer services complementary to your own. Contact them and propose opportunities to collaborate together.
Finding partnerships is a powerful way to build your brand and provide credibility in the areas that you otherwise can’t. Each partnership must be a moment of development marking new business opportunities for both brands and the community that they have created.
8. Offer complementary services in the same application
If you are offering a particular rental service, providing other services that complement the same will be a great idea. For example, if you are running a bike rental marketplace and you offer additional services like renting out bike gears and accessories like helmet, jacket and other stuff useful for riders, it will tremendously help with your business growth. However, it is not necessary for the complimentary services to be in the same niche, it can be in a different segment as well.
Providing the functionality of booking complimentary services will help the booking process easy for your customers and will help with increasing customer satisfaction. You can also partner with businesses offering services complementary to yours as discussed in the above section so as to benefit your customers and increase your profits.
To scale your rental business, you need to have the right process, systems, resources, and business approaches. But scalability is more of a mindset. You need to think big to become big. I hope these business approaches gave you some ideas to innovate your rental marketplace. Long term success is possible through innovative rental business ideas, technologies, and great products and services. What are the business approaches you follow to create a scalable rental business? Share with us in the comment section below.