The car rental industry is experiencing significant growth in today’s world. Experts predict an average annual growth rate of almost 3% in the next decade, with the global car rental market volume increasing from 80 to over 100 billion US dollars. This growth is due to the increasing interest of consumers in car rental as a form of car ownership.
Customers who use such services do not want to spend a large sum on buying their own car. Renting provides them with greater flexibility and mobility, particularly in large cities and megacities where owning a personal vehicle can be cumbersome. Renting a car allows the client to avoid worrying about regular technical inspections, insurance payments, parking, refuelling, washing, and dry cleaning.
The growth of the car hire market share is directly proportional to the increasing competition in this industry. Customers are becoming increasingly demanding regarding the quality of service and promptness of response to their requests. In this context, companies need to actively use modern tools to optimise customer interaction.
The development of technology has contributed to the improvement of car rental services. Companies are implementing various technologies such as mobile applications, cloud services, GPS trackers, online booking platforms, and virtual and augmented reality to improve the quality of their car rental services, attract new customers, and remain competitive.
However, one of the most effective tools for managing the car rental business is perhaps the CRM system. In today’s world, it is essential for a car rental company to use a CRM system to enhance its efficiency. This article explains what CRM is in the context of car hire and outlines the main benefits of using such software.
What is a CRM in car rental
CRM (Customer Relationship Management) is a dedicated system for managing customer relationships. The principle of CRM systems is based on implementing software technologies to collect, analyse and use information. Structuring this data helps companies achieve several critical objectives simultaneously, such as:
- Greater efficiency — dedicated customer relationship management software can significantly improve the performance of each employee and the company as a whole. You can drastically reduce the time spent on order processing and other routine repetitive tasks, as well as gain greater control over all business processes.
- Budget optimisation — automation of work tasks, structuring of orders, collection of statistics and other CRM functions contribute to cost reduction and competent optimisation of the overall budget, which allows you to get maximum profit at minimum cost.
- Risk mitigation — automating order processing substantially reduces the risk of human error. In addition, specialised software has tools to avoid unforeseen costs associated with owning a large number of vehicles.
- Improve service quality — CRM systems improve customer relationship management, track customer needs, provide personalised service, attract new target audiences and retain customer loyalty.
- Grow and scale — CRM helps you improve your marketing and sales strategies and provides quality analysis of all key metrics so you can actively grow your business, scale it and expand into new markets.
If you are currently considering integrating CRM with your business, you need to be aware that there are different types of CRM software.
For instance, data storage methods can be categorised as boxed or cloud-based solutions. Boxed software requires a licence purchase, and the corresponding system is installed separately on each employee’s personal computer or device. On the other hand, cloud solutions offer more flexibility as they allow access to the system from almost any device connected to the internet.
It is important to consider how well the system meets the specific needs of your business. While universal CRM systems may offer a basic set of tools that can be useful for managing any business, specialised car rental software such as RentSyst and Easy Rent are much more convenient and efficient for car rental company owners. These systems are designed to take into account the specific needs of the car rental industry.
Advantages of using CRM systems for car rental companies based on the example of RentSyst
The use of CRM systems in the car hire industry provides companies with a number of competitive advantages. However, to ensure maximum effectiveness, it is important to find a reliable developer. When selecting a contractor, several important criteria should be considered:
- Developer reputability and customer testimonials.
- Experience and expertise in building a CRM for car hire.
- Availability of tools that meet the needs of your business.
- Flexible pricing policy.
- Ability to customise the system.
- Availability of reliable technical support.
- Ability to scale the future CRM-system.
In this article, we will examine some of the benefits of using CRM in the rental industry, using the example of RentSyst, a company that develops dedicated software tailored to the specifics of the rental industry.
Fleet management
In a business that relies on the use of rented vehicles, there are many risks associated with damage, breakdown or even theft of vehicles. RentSyst CRM systems consider all of these risks. The software enables you to track the GPS location of each vehicle, maintain convenient maintenance schedules, receive information regarding engine and fuel levels, and be notified in real time of attempted break-ins.
Online reservation
One of the primary benefits of car rental software is the automation of the booking process. A user-friendly platform enables clients to log on to the website, browse available car models, select rental dates, order additional services, and receive automatic booking confirmation notifications.
Выставление счетов
A CRM system simplifies and accelerates the invoicing process. With the software’s tools, you can track payments and generate various types of online invoices using customised templates and automated financial transactions. Additionally, it facilitates monitoring of business income and expenses.
Digital document management
Document management is a crucial process for every business. Digital document management can significantly reduce paperwork. With dedicated software, you can systematise all available data, documents, contracts and invoices. Additionally, the electronic signature function can expedite the process of signing documents with your customers, contractors and partners.
Maintaining databases
RentSyst’s specialised software enables users to gather, store and organise all important information. Convenient maintenance schedules can help avoid sudden breakdowns, a customer database can speed up service and improve its quality, and an insurance payment schedule can help remind you to renew your car insurance.
Marketing strategy
The CRM system can also incorporate your company’s marketing strategy. You can design advertising campaigns, track their performance, and modify the strategy based on the outcomes. Additionally, car rental software enables you to manage your pricing policy and loyalty programme, offer various bonuses to your customers, and create personalised deals. This helps to retain customer loyalty and attract new target audiences.
Statistics and analytics
The proper use of statistics and analytics functions is crucial for the development of your car rental business. The CRM system provides tools to generate detailed reports based on various key indicators. Analysing these indicators helps you monitor market trends, understand customer requests, identify seasonal changes in demand, and use this information for budget optimisation, business development, and scaling.
Conclusion
Dedicated car rental software is an essential part of running a thriving car rental business. In this highly competitive industry, companies must make every effort to remain ahead of the competition and provide a quality service to their customers.
This can be achieved through fleet control, business process automation, database systematisation, and other useful features of specialised software. CRM systems can significantly enhance the efficiency of car rental services, optimise budgets, minimise risks, open up new opportunities for business development and raise profitability.
