Apart from provisioning the necessary services, Equipment Rental Businesses need to provide customers with the flexibility and freedom during their entire service encounter. However, due to the competitive economic landscape, businesses wanting to maximize their assets will overlook some processes, leading to costly lapses in their business. Here are some of the common lapses in Equipment Rental Business:
1. Failure to protect consumers’ privacyBusinesses with outdated systems and processes are vulnerable to many data breaches. Under the Personal Data Protection Act (PDPA), organisations that fail to protect the privacy of consumers’ personal data can be fined up to $1 million per breach. Businesses that involve collecting, storing and using customer particulars for booking and rental of equipments and facilities may be at risk if they do not have proper systems in place.
Failing to destroy physical documentation of consumers’ personal information and disposing them in unsecured dumpsters are also in breach of the PDPA.
2. Failure to anticipate customer demand
It is often impossible for equipment rental companies to accommodate to the schedule of their potential customers. Demand patterns are seasonal and can be unique to your store location; failing to understand such patterns may result in stores inadequately stocked to meet the demands.
With no access to real-time information, it is difficult for companies to better deploy equipment to maximize utilization and minimize customer lost.
3. Failure to Account for Cash or Document Deposits
Before renting out their equipment to customers, business would often require customers to place a cash or document (i.e. NRIC) deposit, in exchange for a rental slip. Upon the completion of activities, deposits will then be returned to the customers. Conflict may arise when customers lose their rental slips; dishonest employees may also deny collection of deposits.
Amongst the common lapses in the Equipment Rental Business, breaching the PDPA might just be the costliest and most often overlooked. According to The Business Times, just last year, businesses have been slapped with heavy fines after failing to protect their customers’ personal information. Businesses should re-look at their existing processes to identify any lapses to stay compliant and retain the trust of the customers.