The equipment rental industry is anticipated to have a valuation of 145.22 billion US dollars by 2026, according to a report by Fortune Business Insights. With an upward trend, rental companies must adopt the right software to stay competitive and increase customer satisfaction.
Before you begin exploring the software that fits your business, you must be aware of the red flags to watch out for. Investing in the wrong rental software solution is worse than having no technology at all because you would have lost money, time, and effort for something that doesn't even work for you.
With an experience of almost two decades in the equipment rental and manufacturing industries, we have seen some costly mistakes rental companies make while on the lookout for technology.
This blog will share the top 5 pitfalls while looking for a rental software solution and how to avoid them, so you can steer clear of any negative consequences.
What pitfalls must equipment rental companies avoid during software selection?
Pitfall 1: Limited considerations of scalability
The equipment rental landscape is booming, so your business needs to evolve to keep up with the latest rental trends. However, more often than not, equipment rental companies only take into account their current needs and business challenges while looking for a rental software solution.
When you do not consider your future requirements and the scalability of your business, the result can be double expenditure or fractured systems that are not sustainable.
You end up with a solution that could work today, but not tomorrow, having to start from square one — searching for a solution that addresses the new business challenges.
Pro tip
When looking for equipment rental software, ensure you address today's requirements and all the possibilities of your long-term business goals. To achieve this, you can invest in cloud-based rental ERP software that supports easy scalability.
The new cloud-based rental ERP software releases are delivered automatically, with little to no downtime. This guarantees a future-proof solution running on the latest version at no additional cost.
Pitfall 2: Investing in multiple systems rather than one
The operations of a rental company can be vast, complex, and spread across the globe. With complicated processes, you may think of taking a process-based approach, where different software solutions support each process(es) in the business.
Opting for multiple software systems would mean more solutions to maintain, integrate, and all the more data to sync. You would have siloed solutions with challenges of downtime, work duplication, increased IT resources, and communication silos.
Additionally, there is a possibility of losing critical data in the case of poorly connected systems.
Pro tip
Using single rental software that supports your end-to-end business needs will consolidate data and standardize rental processes. Having a unified overview ensures that your financial planning and reporting align with rental operations.
You will be in a better position to make the right investment decisions and ensure that the finance team is conscious of the needs of the equipment rental department and vice versa.
Pitfall 3: Not having a customer-focused approach
'Customer is king' is a cliché we have often heard, and with good reason. There is truth in this, and all businesses would do well to keep this dictum in mind.
In the equipment rental market, you must keep your customers and prospects at the center of your software buying decision. Adopting a solution that doesn't support your customer demands only makes it easier for your competitors to grab them.
Dissatisfied customers lead to increased customer churn, and you lose money trying to keep your current customers rather than bringing in new business.
Pro tip
Invest in a solution that offers you a competitive edge by providing complete visibility into your customers' journey. You can focus on continuously improving the customer experience from when they first interact with your business till they become a revenue-generating sale.
Consider rental solutions that offer a portal for your customers, offering them insights into their rented equipment. By automating operations and communications, the portal can be a win-win situation for your business and end customers.
Pitfall 4: Selecting software that is not beneficial to all stakeholders
An equipment rental business is not just about the field personnel, maintenance, and operations teams. While these technical teams play a key role and are directly involved with the equipment, the rental business also includes the marketing, sales, human resources, finance, IT, and administration teams, which play an equally significant role.
While looking for a software solution, management may often include the input of the technical teams, leaving out the crucial perspective of the supporting staff.
This can be detrimental, as the software will be implemented across your organization. Not having a comprehensive understanding of company-wide challenges means missing the chance to rectify key problem areas that persist.
Pro tip
Include cross-team collaboration and encourage the viewpoint of team members from across your business. Having a broader perspective while making decisions with people who can think beyond what is visible would be helpful.
Creating an atmosphere of collaboration allows you to bring innovative ways of optimizing the daily rental operations and selecting the right software for your business.
Pitfall 5: Ignoring the latest technological developments
An equipment rental software solution is more than a part of your ERP ecosystem. It is an independent solution that keeps evolving to meet the market's changing needs.
For instance, equipment rental software now provides the possibilities of adding mobility, the Internet of Things (IoT), analytics, and Artificial Intelligence (AI).
Not embracing the rapidly changing technology puts you at a disadvantage in the digital transformation race. Everyone wants a digitally mature company, and if you don't have the right tools or features in your rental software, you risk going off the grid.
Pro tip
When talking to ISVs, check how they aim to enhance their rental software. Adopting software that can introduce innovation in your rental business allows you to be more dynamic with your business offerings.
Explore the possibility of adding a customer relationship management solution to your equipment rental software to track and manage your customer's journey from lead to cash. You can also add rental analytics to get insights into key metrics such as asset performance, utilization rates, booking trends, etc.
Want to know how you can select the right equipment rental software?
The best way to make the right purchase decision for equipment rental software is to list all your requirements and evaluate any potential software against the list.
Preparing a detailed checklist would ensure you do not miss out on any aspects you should check before making the final decision.
You can learn more about the essential features of equipment rental software by reviewing the checklist below.
In this checklist, you will know the following:
- The selection criteria to consider in a rental software
- The crucial rental ERP essentials
- The conditions to ensure the success of your rental software
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