Unlocking the Mystery of Interactive Internet Technology

July 1, 2002
Good news. Humans are still the preferred information source at least in the rental industry. Isn't that somewhat of a relief? After all, these are the

Good news. Humans are still the preferred information source — at least in the rental industry. Isn't that somewhat of a relief?

After all, these are the times of the Star Wars prequels — starring mostly computer created droids and clones. Not to mention the continuing Matrix franchise, which suggests the age-old philosophical brain-in-a-vat theory of reality, where human activities are computer-controlled with virtual reality-style software. All this Hollywood film fantasy begs the question: Will there be any use for humans in the new century, or will machines control everything? Will customer service provided by the living still be valued?

In the rental industry at least, customers still want to talk to a live person when making a rental transaction. Interactive Web offerings such as online parts ordering and online rental reservations are slowly becoming more widely accepted throughout the industry, but still, customers prefer to talk to a human being in case they have questions or concerns about their order. And that trend doesn't seem likely to change in the near future — if ever.

“We don't want to lose the human contact between us and our customers,” says Fred Bratman, vice president of corporate communications at United Rentals, Greenwich, Conn. “Our approach to the business is one of service. We seek to build a relationship with our customers that often requires one person talking to another. The Internet is a valuable tool, but not the replacement for direct contact.”

Interaction attraction

Some rental companies have already implemented interactive features on their Web sites, but are customers ready for technology that advanced?

Cashman Equipment, a Las Vegas-based Caterpillar dealer and No. 39 on the RER 100, has had some success with its online PartStore. In fact, at one time the company boasted the third largest PartStore in North America. This interactive Web option enables customers to order any Caterpillar part online and choose from three delivery options. It is primarily the company's larger customers, however, that take advantage of these convenient ordering options.

“Some [customers] have a great need to purchase parts and get quotes on the Internet; some are wholeheartedly disinterested,” says Marsha Calder, marketing manager.

Cashman has found that large companies outside its market are very interested in researching rental options online prior to starting a job, but its smaller local customers have yet to show interest in such technologies.

“Because the jobs are short term and owner/operators are usually armed with a cell phone and trailer, they find it easier to make a few phone calls while project equipment managers use their computers to do the research,” says Calder.

United Rentals, which offers the E-rental Store, a mechanism for getting quotes and bids, and UR Data, a tool that allows customers to track and analyze data relating to their transactions with the company, also finds that these interactive services are primarily used by its large and mid-sized customers who have multiple locations and jobsites. UR Data, for example, helps these busy customers organize what they have out on rent and what's coming off rent, plus they can track data based on their budget for each individual jobsite.

United Rentals also offers offline options for getting the same information one might find online. The company wants to give its customers the choice of whether to do business online or offline. For those customers who are either not Internet savvy or prefer to speak to a live person, United, like many rental companies, offers a toll free number for customer service 24 hours a day.

The No. 1 listed RER 100 company views its Web site as a value-added offering and makes sure that its customers perceive it that way as well. “A lot of companies got way out ahead of what customers wanted and expected from the Internet,” says Bratman. “Our approach has been to survey our customers and see what works best for them.”

Not all rental businesses are taking the leap toward interactive Web site offerings, however. “A lot of these online reservation opportunities are currently a lot of smoke and mirrors,” says David Griffith, president and CEO of Modern Group, Bristol, Pa. “You're not going to do away with people. Candidly, online rental is very expensive and not very effective.”

A scenario that illustrates Griffith's point occurs when a customer wants to rent a 40-foot boom and a rental company only has a 60-foot boom in inventory. In that situation phone communication is going to be more effective in maintaining that customer and getting a sale, he explains. If the customer were to go to a Web site to reserve that piece of equipment only to find that the company doesn't have exactly what they're looking for, they would most likely take their business somewhere else. But if they call the rental company initially instead, then its staff can communicate with them directly and, together, try to come up with an alternative solution.

“With online reservations it is still difficult to facilitate speed and accuracy,” Griffith says. “Rental is more an art than a science.”

Industry veteran Daniel Kaplan, CEO of Daniel Kaplan Associates, Morristown, N.J., believes that it's still too soon for rental customers to embrace interactive Web services. Most of these customers are not renting online, he notes. Many long time veterans of the rental business just aren't comfortable doing business online at this time. “Business is still primarily done over the phone,” Kaplan says.

Verbal communication allows a rental company to remind customers of rent-up opportunities, while online reservations do not, says Griffith. Customers may not be thinking about something extra they will need to complete a job. One-on-one communication allows counter staff to make these suggestions. “With online rentals the marketing intelligence opportunity can be lost,” Griffith says.

Customer service online

For many rental businesses, the most important aspect of their Web site isn't the interactive features it may offer, but rather the additional customer service it allows them to provide. For example, Modern Group designed its Web site to make it extremely easy to get in touch with anyone within the company via telephone or e-mail. The company makes this possible by listing each of its employees' contact information on the site.

“We wanted to create an environment for the customer where their contact is checking e-mail four or five times a day,” says Griffith. “Many Modern employees have probably 20 to 75 customers corresponding with them via e-mail on a daily basis. For about 20 percent of our people, e-mail is the only way they touch a customer.”

According to Griffith, Modern wants to achieve a real-time dialogue with its customers, whether it be via phone or via e-mail. The company's Web site was designed to facilitate that dialogue.

Elmhurst, Ill.-based National Lift Truck also created a Web site that makes it easy for customers to e-mail the company with inquiries from different areas of the site. That customer correspondence is also copied to management so that it can analyze the activity being created online.

National Lift Truck, No. 92 on the RER 100, currently offers an online bidding service for its used and wholesale equipment. Customers can view available equipment and bid on the item online. NLT customers can also contact the company via e-mail from the site's rental page to inquire about availability and rates.

Though NLT has not had any specific requests to take orders online, it is something the company would like to offer its customers if they request it in the future. “We like talking directly to the customer to ask specific questions about what they are using the equipment for,” says Jeff DuBose, secretary and vice president. “This allows us a better understanding of how to help the customer in his needs, as sometimes they are not exactly sure what they want.”

For most inquiries, however, DuBose explains that the company prefers one on one communication for a more personal level of service.

Savage, Minn.-based Road Machinery & Supplies is beginning to work with online parts availability and ordering in conjunction with equipment manufacturer, Komatsu. According to David Johnson, vice president of sales, RMS customers have not requested an online rental option.

Back to basics

So if rental customers aren't visiting your Web site primarily for the interactive services you provide, what are they looking for when they log on? Some rental businesses view their Web sites as a source of education rather than an additional source of interactive service.

RMS customers, Johnson believes, often go to the company's site simply to find links to the manufacturers' Web sites of the equipment lines they represent. This allows them to educate themselves on their own time before contacting a sales person. “We believe the Internet is currently being used as a source of information for our industry, more than a place to transact business,” Johnson says. “In that regard, our Web site, in that it is linked to all of our manufacturers' Web sites, allows our customer base to find out a huge amount of information by visiting our site.”

Providing information to customers is a basic function every rental site should provide. RMS, like many other rental companies, offers maps illustrating the location of its 11 offices. Users are able to identify the employees working out of each branch as well as their contact information by clicking on each location.

Used equipment listed online is another basic feature that draws rental customers to the Web. According to United's Bratman, customers often look to the company's Web site to research equipment it has available, then they call the branch manager where it's located to discuss the details further.

RMS customers also take advantage of the used equipment listed on its site. In fact, its online listings, which include complete product descriptions, machine condition reports, prices, equipment location and contact information, draws the most traffic to the RMS Web site, according to Johnson.

Cashman Equipment, as well as many other rental business sites, attracts and grows its online customers with Internet specials and discounts exclusively for its Web site customers.

Grading industry performance

Though interactive Web services may not be what is drawing customers to your Web site now, it soon may be. Kaplan predicts that rental companies that offer service exclusively online will be competing with traditional brick and mortar rental companies for business in the future, though he doesn't anticipate e-commerce in the industry to take off significantly for at least three to five more years. Regardless of when the shift toward interactive Web offerings occurs, many rental businesses will be ready.

“When customers are ready, we'll deliver,” says Calder. “We take pride in knowing that we have a firm grasp on our customers' needs. While we have the technology available to provide advanced online services, we make sure we're not so far ahead of our customers that we begin to alienate them.

“The equipment rental industry is a people business in Nevada now more than ever,” Calder says. And that holds true in the other 49 states as well.

Brandey Chewning Smith may be reached at [email protected].