Report States Car Rental Subscriptions Here To Stay
Cox white paper stresses players need to adapt to changes
Citing an example of how ride-sharing has already crippled the taxi industry, a report issued by Cox Automotive declared that new mobility services such as car rental subscriptions are vital to ensure the industry will be able to compete in the marketplace.
The white paper released by the company, which specializes in modernizing vehicle transaction methods, added that with the recent movement from car ownership to other options like public transit, ride sharing and renting cars, consumers will be more active in the driver’s seat when it comes to acquiring rides down the road. If some companies are slower to adapt to changes, they’re more likely to lose a client base to a more proactive competitor.
“This shift isn’t just about personal economics or reducing the cost of ownership because consumers are sometimes paying more to access products,” declared the report. “Consumer expectations of access are infiltrating the automotive industry and dealerships can seize this opportunity.”
In particular, subscription programs, such as those recently adopted by Enterprise and Hertz, isn’t particularly unique to the car rental agency, added the white paper. If anything, the companies are following the examples of such streaming services as Netflix and Spotify, which demonstrate that the industry is following a mainstream trend these days.
“As a result, consumers today are less willing to pay larger amounts for products or services upfront,” added the report.
“Instead, they now prefer to use a car or bike for a day, rather than committing to the full cost of owning one forever, or at least for its useful life. And consumers can now access goods from groceries, to luxury items like purses and gowns, to commodities like razors, to meal delivery kits – all for monthly fees. The subscription business model has infiltrated industry after industry from ecommerce to media to retail to transportation.”
The Cox document said that the addition of car rental subscriptions is a win-win for both businesses and customers in that companies can provide more options to satisfy clients’ needs, while opening up the possibilities of attracting a whole new market. Additionally, companies also don’t have to invest in huge capital to offer such new services, as everything they need is already in their offices. Naturally, the car rental management software companies use will soon account for these new business models.
Also relatively inexpensive but an element is badly needed, according to the report, is a more concentrated focus on customer service. Analyzing data that’s available in much larger volumes than ever before will also help personnel better understand their products and services, enabling them to greater personalize their rapport with customers.
Personalization is when a business understands your needs as a customer and meets them,” stated the report. “They just ‘get’ you.”