In the world of school music dealers, the landscape is both challenging and full of potential. Among the various factors contributing to success, one stands out as particularly crucial: rental instrument retention. This metric, which tracks how often customers continue renting instruments over time, reflects not just customer satisfaction but it’s also a cornerstone of sustainable business growth and consistent cash flow.
Rental instrument retention is essential for several reasons. Firstly, it ensures a steady and predictable revenue stream. Unlike one-time sales, rentals generate recurring income, which is vital for covering operational costs throughout the business cycle. Secondly, high retention rates signify strong customer loyalty, often leading to the best form of referral: word-of-mouth.
Moreover, high retention rates contribute to a positive reputation within the community. Schools and parents are more likely to trust and support a dealer known for its reliability and excellent service. This trust can result in long-term partnerships with educational institutions, further strengthening your market position. So, how can you ensure you strong retention? Here are a few ideas.
Building Connections with Ed Reps
One key strategy for enhancing rental retention is employing dedicated educational service representatives. These reps are invaluable assets, responsible for promoting your store’s services — including the rental program, merchandise and repair services — and maintaining relationships with teachers, administrators, and students. A good rep builds strong connections through consistent service and dedication, staying attuned to what’s happening in schools.
Engaging Parents, Students & Teachers
Another critical factor is engaging all stakeholders: students, parents and teachers. While educational reps can make a significant impact on students and teachers, connecting with parents is equally as important, as they may have limited music knowledge. Parents might only interact in person once during a rental night or not at all if the rental is processed online. In today’s digital world, reaching out to parents through a medium they always have with them—cell phones—can be especially effective.
Innovating Engagement with Tech
Ted Brown Music has implemented Blustream, a texting service integrated with AIM by Tritech, into our point-of-sale (POS) system. When a customer rents an instrument, Blustream automatically sends them a text to initiate what is called a “journey.” This journey is a scheduled series of texts designed to keep parents informed about their child’s progress and educate them about music. The service supports active responses, including yes/no answers, and curated options like A, B, C-style questionnaire questions. It also offers flexible message scheduling at strategic times and allows unlimited texting.
For example, a new clarinet customer might receive a text that says something like: “Hey there, welcome to your first Ted Brown Music Tip! We hope your student is excited to play the clarinet! If assembling it seems tricky, don’t worry — just apply some cork grease. Watch this quick video on putting your clarinet together. Happy Playing!”
Additionally, if you have an upcoming educational event at your store, you can include information about it in the journey, ensuring that every rental customer is aware, in addition to any other marketing efforts you may have for the event.
This approach not only informs parents but also involves them in their child’s musical journey. The videos can be created in-house to boost your social media and YouTube presence, or you can link to existing content if creating your own content is a constraint.
Measuring & Responding to Retention Rates
To effectively manage rental instrument retention, dealers need to track relevant metrics carefully. This includes monitoring the average rental duration, the timing of returns, and understanding the reasons for cancellations. Staff should be trained to inquire about the reasons for cancellations when instruments are returned in-store. Online, you can require customers to provide feedback before finalizing a cancellation form.
For school music dealers, rental instrument retention is not just a metric but a vital component of business success. By focusing on exceptional customer service, offering quality instruments, providing equitable rental plans, integrating technology, supporting educational initiatives, and engaging with the community, dealers can enhance retention rates and secure long-term growth. In a competitive market, the ability to retain customers can be the defining factor that sets a dealer apart and ensures continued success. MI
Garrison Grisaffi is the educational services director at Ted Brown Music Company in Tacoma, Washington, and is also a NAMM YP board member.
