Dematerializing car rental deposits is a pillar of digital transformation for vehicle rental companies. How should you go about it?
The dematerialization of the guarantees of vehicle rental consists in the replacement of the physical information supports by digital files and in their integration in processes. The latter ones can be automated, the dematerialization of the guarantees of a car fleet enables you to optimize the management and facilitates the access to the information. Let’s see together how to digitalize your company with many tools designed for this very purpose such as Swikly or the car rental software myrentcar.
What are the challenges of dematerializing deposits for car rental companies?
The challenges of dematerializing deposits for car rental companies are numerous. Digital technology is increasing the intensity of competition. In fact, new players are entering the market with disruptive business models, such as self-service car-sharing services that are entirely digital, like the Clickygo application. By capitalizing on fixed costs that are much lower than those of their traditional competitors, they are able to offer very aggressive prices.
Incumbents who are pioneering digital transformation initiatives and have chosen to dematerialize vehicle rental deposits are getting a head start on their competitors. In addition, according to the McKinsey study “Accelerating the Digital Transformation of Businesses”, between 10 and 40% of a company’s operating income could be at risk as a result of this increased competition. According to the same study, carrying out a digital transformation could improve their results by 20 to 50%. Such competitive advantages can very quickly alter the market structure, as can be seen with the growth of the car-sharing market.
The number of contact points between rental companies and their customers is increasing thanks to digital technologies: online booking platforms, mobile applications, social networks, influencer blogs, etc. Consumers are empowered and these new channels offer them unprecedented capabilities to express themselves and interact with rental companies. Above all, digital technology makes it possible to automate a large number of processes. Once routine processes are digitized, they can handled more easily by algorithms. Automating and dematerializing car rental deposits allows human resources to be reallocated to tasks that can enhance the customer experience.
Many players have inherited a dense agency network that is no longer in line with consumer habits. A better articulation between the digital channel and the agency is now necessary and implies a massive transformation of car rental companies. According to the McKinsey study “Accelerating the Digital Transformation of Businesses”, companies that have made a digital transformation have seen a 40% increase in results. According to the same study, employees spend between 5% and 15% of their working time managing paper documents. It is essential that the car rental market players transform themselves in order to reduce the administrative part of their tasks and refocus on higher value-added tasks. This includes the dematerialization of car fleet deposits.
WHAT ARE THE ADVANTAGES OF DIGITIZING CAR RENTAL DEPOSITS?
Are you wondering about the advantages of digitizing car rental deposits? If traditional rental companies have inherent disadvantages, such as limited agency opening hours, there is also a high level of customer dissatisfaction at reception. Upon arrival at the branch, a long queue often awaits customers, caused by poorly optimized processes. Indeed, each customer must present his identity papers, read the rental contract, subscribe to an insurance offer, sign and provide his deposit at the counter before accessing his vehicle. Worse still, the agencies, some of which operate independently and do not have access to the personal data of the parent company’s regular customers, must again present their papers and confirm their data (address, telephone, etc.). Finally, once they have arrived at the vehicle, it is not uncommon for it to be different from the one they booked. These gaps in the customer journey can be avoided by digitizing car rental deposits and other specific processes, but the momentum of digital adoption by consumers’ contrasts with the situation for rental companies.
If we take the weak points of the customer experience in the agency, we find alternative solutions that allow us to solve them thanks to digital technology and the dematerialization of car rental deposits. The inconveniences caused by the unavailability of personal data between certain agencies of the same brand can be erased by the implementation of an ERP integrating a CRM, i.e. a database referencing all the information related to the rental company’s customers. Collaboration and information sharing can be centralized and optimized, and the reception can be personalized throughout the entire network of agencies. Nevertheless, the implementation of such a solution on a national or even international scale remains complex.
If digital technology transforms the way we rent, a rental contract will always be necessary, and optimizing the way it is managed is simple to implement, hence the importance of dematerializing vehicle rental deposits. Indeed, in an era where the presence of a biometric reader in one’s smartphone is a standard, it is tricky to impose to its customers to read and sign a rental contract at the counter of an agency when the rental has been booked online or by phone. Today, there are many online signature tools that allow to secure a transaction with an electronic signature. Nevertheless, some agencies wishing to capitalize on their additional offers at the counter may opt for touch screen signatures, freeing themselves from paper contracts and their cumbersome management. Furthermore, opting for a fleet management software allows rental companies to control their vehicle fleet and to ensure that the vehicle booked will be the one available in the agency at the time of the rental.
Finally, the management of security deposits is very demanding, from taking the bank imprint, through to the complaints, the refused debits and up to getting paid. If rental companies are used to securing their security deposits by bank print, it is not always practical, especially because of the bank card limits which can prevent customers from using their bank card during their rental. Swikly is a service capable of digitizing car rental deposits and securing an online deposit by bank imprint, without impacting the bank cap, while guaranteeing the funds in case of damage. In addition, Swikly is compatible with the myrentcar car rental solution, which allows you to manage and optimize all the specificities of the business (planning, invoicing, accounting, etc.). These are therefore essential tools to improve your management and dematerialize car rental deposits!
HOW TO CHOOSE A SOFTWARE TO DEMATERIALIZE CAR RENTAL DEPOSITS?
Choosing the right software to dematerialize car rental deposits is extremely important. In an era where use is replacing ownership, and in the face of competition imposed by new, fully digitalized services focused on optimizing the customer experience, it is essential for traditional rental companies to adapt. Purchasing behavior is changing and shaping a new rental market. This paradigm shift may be a threat, but it is also an opportunity for growth and profitability. The challenge is to improve the customer experience throughout the “buying” process in order to successfully complete the digital transformation.
In this constantly changing environment, Swikly is positioned as a facilitator for rental professionals to digitize a vehicle rental guarantee. Thanks to the dematerialization, automation and simplification of warranty management processes, Swikly allows rental companies to refocus on the customer experience and thus considerably improve the quality of their services. Centralizing Swikly’s warranty management on the myrentcar solution allows you to secure, automate and simplify your exchanges. We therefore recommend to try the digitization of guarantees in car rental by obtaining a free demo via the form below!