The document discusses opportunities and challenges for the rent-to-own (RTO) industry based on focus group research. Key findings include: (1) those without RTO experience see it as a last resort, while education on benefits shifts attitudes positively; (2) advertising communicates awareness but not specific benefits; and (3) referrals and the internet are influential information sources. The RTO industry faces mounting competition and should target consumer segments like Hispanics and community college students through culturally relevant messages on campuses and in Spanish media. The end goal is overcoming the negative stigma around RTO by communicating it as a flexible option that establishes credit without debt when life presents financial challenges.

1. Jill Adams McDonough
Founder/President

2. What has Worked?
Where are the missed
opportunities?
2

3. Learning Trajectory
Over the last decade, APRO has taken
steps to understand barriers and
opportunities for potential customers
Fewer negatives.
When educated
Prospects more
open; current on benefits,
customers there were
Prospects favorably significant shifts
surprisingly influence in attitude.
hostile, preying non-users
on poor;
Overall, couldn’t be
receive ‚A‛ trusted
for customer
satisfaction
3

4. Executive Summary
Recent focus group series
Those who have never used rent-to-own consider short-term rental options a more valid reason for trial.
Although attitudes have improved over the years, consumers still think of rent-to-own customers as having
financial trouble or making a bad financial decision. There’s a negative stigma„although less so with
younger consumers.
Inexperienced RTO consumers don’t really understand the purchasing agreement. Until consumers fully
understand the package of added-value services available virtually risk-free, they will tend to think RTO is a
money trap.
Advertising continues to be the top means for awareness of RTO, yet clearly many of the more appealing
benefits are not getting through. Once educated on the specific benefits, ‚extra‛ services & flexibility,
participants became more receptive and positive.
Experienced customers find the following benefits most motivating: no money down (44%); early pay-off
(39%); quality selection/brand names (39%); chance to try before buying (36%); and no repair bills (36%)
Inexperienced customers find the following benefits most motivating: no repair bills (55%); return any time
(52%); quality selection/brand names (45%); chance to try before buying (42%)
Participants report that referrals from a trusted source are highly influential. They also name the Internet as
a top source of information.
Those with stronger credit concerns are motivated by credit benefits, such as no credit checks and won’t
harm credit.
4
Source: Trenholm Research, Inc.

5. Landscape Assessment ” Key Trends
Authentic, transparent
Activism: Power of One Social
Trust: ‚People like me‛
Faster, smaller, fragmented world of communication Technological
Aging population
More diverse population with greater % of youth being Demographic
Hispanic
RTO industry past severe consolidation
Proliferation of ‚new‛ competition
Brick and Mortar and eCommerce
Competitive
Trends
More favorable regulatory climate for RTO
Regulatory
Clamp down on loans and credit cards
U.S. recession in slow recovery
Pro: Cash-strapped consumers may see RTO as viable Economic
Con: Gas prices, insecurity may be ‚keep-aways‛
Focus on sustainability and social responsibility Ecological
5

6. Mounting Competition
Look beyond the person seated next to you…
6

7. Mounting Competition
Look beyond the person seated next to you…
Mainstream Retail Fringe Retail Credit Cards Direct
‚Pre-approved‛ and Accessibility and
store cards make for an affordability of local
Low prices, flexible Discount, second-hand
attractive offer. Many listings like Craigslist and
payment and layaway stores sprouting in
customers acknowledge online directories
all year long struggling economy
having had cards at peddling ‚scratch-’n-
some point. dent‛ appliances
7

8. Demographics
Targeting consumer sub segments could grow, differentiate your business
8

9. Highly Segmented, Highly Responsive
Yoplait Dannon Stonyfield
“ Young, Active
women “ Weight-
“ Women with
“ Teens conscious
young kids
“ On-the-go women
consumers
Lifeway Lala Fage Yacult
• ‚Foodies‛ • Naturalists • Boomers • Hispanics
(at risk)
9

10. The ‚Starting Over‛ Target
Viable segments to consider and quantify
Less acculturated Hispanics: Community College enrollment: Newly separated couples:
• Population growth outpaces • 2.8 Million full-time • Percentage of married people
mainstream • 4+ Million part-time who reach anniversaries:
• Education, income & • More apt to have financial • 5th- 82%;
occupational situation matches need • 10th ” 65%;
current core consumer • 15th ” 52%
Why RTO: No credit, period of Why RTO: accessible, latest Why RTO: require immediate
re-establishment, fewer negative technology laptops, transition replacement needs, financial &
perceptions from family living, early entry time crunched
10

11. Look for New Methods to Attract Separated Couples
Seek new ways to reach and
appeal to this target in authentic ways
Facebook Real-Time Ads
Beginning in March, Facebook has started testing ‚Real-Time‟
advertising with 1% of its user base; if you do the math that’s a survey
of 6M people. Users are immediately served relevant messages based
what they post to their profiles. Excited to be a first time home buyer?
Just finished delivering your second child? You might just be one click
away from a deal, furniture store around the corner, or book about
raising multiple children.
11

12. Adopt New Methods to Appeal to Hispanics
Added barriers of language, transportation
Messages must be culturally relevant (content and Spanish language)
Factor in ‚cultural pride‛
General distrust addressed via relationship-building, empowerment
Spanish-language sales persons
Simplify the offer
Not viewing traditional RTO media:
Spanish-language television & radio
Young Latinos very tech savvy
Churches, workplaces, local events
12

13. Adopt New Methods to Appeal to Hispanics
13

14. Capturing Community College Students
Experiencing a rise in attendance--ride the wave
Alternative to debt: college student debt ($4,138) at graduation was up 44% from
2004 to 2008
Tailor messages to specific life stage/needs (first apartment, new computer, juggling
employment, young kids)
Campuses are hotbeds for word-of-mouth, viral, social media
Ride coattails of college communications vehicles:
Recruitment marketing
Welcome packages
Confessions of a Community College Dean
Campus media
Distribute content to student bloggers, popular websites, including YouTube
Survey Finds More Companies Credit-checking Candidates by John Zappe May 16, 2011,
2:42 pm ET
14

15. The End Goal: Consumer Takeaways
What do consumers at-large believe?
While the industry reputation has improved, there is still a negative stigma.
15

16. The End Goal: Consumer Takeaways
Why should they believe it?
Sometimes life stretches us and we just don’t have near-term access to
cash in order to buy what we need. Rent-to-own stores offer new, brand
What do we want them to believe?
name merchandise with flexible, affordable pay terms that can actually
help establish good credit– without acquiring debt”and you can return
your quality merchandise when you’re able.
16

17. The Incredible Egg Story
Eggs were categorically classified as “bad” for
you. How did they overcome the negative
stigma to convince customers that eggs ARE
part of a balanced diet?
17

18. The Incredible Egg Story
Industry Experts Reporters Health Professionals
Features Scientists Nutritionists Studies
WebMD feature by Star Lawrence
Scientists at the Harvard School of Public Health studied a population of 117,000 in
determining that there was no difference in heart disease between those who ate 1
egg per week and those who at more than one egg per day.
Nutritionists weighed in to state that eggs have a high nutritional value, excellent
quality of protein and are not high in fat.
Studies indicate that eggs benefit eye health, possibly reducing the risk of macular
degeneration and cataracts.
18

19. The Incredible Egg Story
Experts, media and bloggers were educated
and armed with new, substantiated facts.
The Truth About Eggs
20 superfoods for weight loss
By Sebastian Stefanov, Nutritional Correspondant
Old Egg Myths
It was previously thought that eggs raised blood
Although eggs are given a bad rap, we're here to
cholesterol levels -- one of the main causes of heart
‚We consulted top experts for the best picks and asked leading
announce that they can meet your health and diet
disease. The yolk in a single large egg contains five
expectations, so get cracking.
chefs for easy, tasty ways to prepare them.‛
Eggs have gotten a bad rap over the last few decades.
grams of fat, so it was only natural for nutritionists to
assume that eggs clogged up people's arteries,
Deemed bad for the heart by health experts, they have especially since they also contain dietary cholesterol.
been the subjects of criticism and scrutiny. But are our
Another myth was that cholesterol is fat. That is simply
white (sometimes brown) friends really that unhealthy for
not true.
us? In the last few years, numerous health organizations
have been vindicating eggs' reputation. So what are we
to believe; why were eggs chastised, only to be acclaimed
19 again?

20. The Incredible Egg Story
Eat an Egg
132 million results!
20

21. The Incredible Egg Story
A credible expert presents a sound case for
eggs in an engaging, “sharable” format.
21

22. Business Goal and Strategies Summary
VISION
Thought-leaders and consumers will find Rent-to-Own to be a valid option
for meeting real needs in the face of financial pressures
GOAL
The Rent-to-Own industry will attract new customers enabling members to
substantially build upon their base business
Identify knowledge gaps Segment , prioritize based upon volume
STRATEGIES
Educate. Give. Evangelize.
Set record
Diversify Provide
Recruit
media mix extraordinary
straight champions
experience
Develop smart, integrated plan co-implemented by APRO and members
22

23. Educate
Set the record
straight!
23

24. Educate
Find the ‚White Space‛
Little disagreement that retail prices are higher in low-income urban areas
Families with no financial savings have no margin of of necessity… records, debt
Some turn to fringe (outlets) out safety ” bad credit
But others do so because they believe that the
Those with low income and low education experience periods of unemployment and
drastic earnings fluctuationsinstitutions provide are worth the fees.
services these
- Caskey
Cut off from major consumer credit sources, plus often excluded from mainstream
payment services
- Caskey
24

25. Educate
Explain the Process and the Benefits
Inexperienced consumers don’t understand the process…
{ ‚Now, because of curiosity I
would go check it out because all
I ever heard was negative stuff.‛
}
San Antonio, Inexperienced
25

26. Educate
Build a Solid, Fact-Based Case
Activate key learning from focus groups ”
identifying most compelling benefits of RTO vs.
competition
Build a solid case supported by facts
Develop and disseminate consumer-friendly
information
Correct misperceptions
Self-regulate
26

27. Educate
Promote Competitive Advantages
Won’t
Selection Flexible Free Upgrade
Return harm Free Try before
NEW, in payment delivery for newest No debt
any time credit Repair buy
stock terms & set-up technology
rating
RTO         
Credit Card 
Retailer    
Craigslist  
27

28. Educate
Create Handouts/Downloadable Tools
Step-by-step infograph of process with FAQs
Comparison Chart: credit card payments (sample APRs) vs.
RTO agreement. Highlight:
penalties for late payment vs. return anytime (52% said return any
time most motivating vs 22% experienced)
harmed credit rating vs. help establish credit rating
no value-added services or payment flexibility vs. RTO
early pay-out option
28

29. Educate
Provide Easy-to-Follow Tips for Consumers
Especially at a time when consumer credit is scarce and when existing credit lines are being cut, the rent to own transaction
can be especially useful to the credit-challenged because it never incurs debt or requires a credit check. Additionally, the
customer is never obligated to make the next payment and can return the product at any time for any reason.
However, the transaction may not be right for everyone and customers need to use the option to their best financial advantage.
Listed below are some rent-to-own tips for consumers.
1) Shop around. The rent to own industry is very competitive and will bend over backwards to attain your business, so use this fact to your advantage.
2) Assess your payment options. Use the 90-days-same-as-cash option, if possible. If you make the payments according to contract, in 90 days you'll
have a refrigerator -- or other home product -- at an affordable price in the market that is significantly cheaper than paying over time with a credit card.
3) If you cannot fulfill the three-month option, choose the rent-to-own plan that's right for you. The final price will still be less when payments are fewer.
Some rent to own companies offer 180-days-same-as-cash plans.
4) Exercise the early-purchase option. The early-purchase option can reduce the total rent-to-own price by 50 percent of remaining payments.
5) It's about flexibility, but "least/shortest" is cheapest. Choose the least number of payments over time to save considerable money. Rent-to-own stores
offer the flexibility of choosing your own payment plan.
6) Ask about payment-reinstatement rights. Make sure the rent-to-own company offers a payment-reinstatement option. If you return a product for any
reason then at a later date you can reinstate your previous payment history toward final ownership of the product. Most state rent-to-own laws mandate
a payment-reinstatement option and some stores offer a "lifetime payment reinstatement" option.
29

30. Educate
Share RTO Customer Testimonials
{
‚I am so thankful to have worked with…They were
able to help me move out of my apartment and into
my first home…‛
J.F.L., Austin, TX
}{
‚…helped my family and I move into a home that
we didn’t think we could. Your team was very
}
{ }{
helpful and made the process very smooth…‛
B.C., Denver, CO
‚Our experience working with you was
awesome. The entire process was pleasant, from
}
the first meeting until the super quick closing. You
answered all of our questions without hesitation.
Thank you for handling our first home purchase "I have greatly enjoyed my experience with you
with so much professionalism…‚ T.B., Seattle, WA and moving into my new home. You were very
friendly and easy going. I loved being able to
choose my closing date and move when I needed
to. I would recommend to anyone…‚
A.K.
30

31. Educate
Develop By-Lines and Fact Sheets
Credit ruins. Take small steps to start anew.
Can’t afford to take risks? Try it before buying and return any time.
Living paycheck to paycheck, you still have real and pressing
purchasing needs. Discover the best ways to meet those needs.
Trading your big screen TV or laptop for the latest technology can
cost as little as $X/week.
Upside to the lagging economy…‛No money down/90 days same
as cash‛ deals.
Avoid purchasing pitfalls. Look for flexible payments, free delivery
and ‚no-questions asked‛ returns.
31

32. Educate
Play Defensive, Plus Offensive
Surf top sites to audit conversations, feedback
Correct misperceptions or inaccuracies posted
in chat rooms, consumer advocacy sites
Provide links to 3rd party content
Proactively and transparently address issues
Solicit regular feedback from customers,
prospects
Demand integrity by colleagues
32

33. RTO Messaging is Not Converting Base of Non-Users
33

34. Educate
Rational + Emotional Messages Resonate with Prospects
Move discussion from base assets to higher emotional level
from high-pressure sales talk to honest, straight-forward appeal
Rental agreement and terms Stepping stone to financial security
(majority see RTO as a means to fulfilling short-term need).
Payment plan Flexibility to meet your needs
Free delivery Above-and-beyond services: no repair bills; door-
to-door delivery included
Stuff you want Brand new, brand name
Well-stocked Immediate gratification
Return anytime Totally nonjudgmental – try before you buy; return
and resume any time.
34

35. Buying Made Easy!
35

36. Business Goal and Strategies Summary
VISION
Thought-leaders and consumers will find Rent-to-Own to be a valid option
for meeting real needs in the face of financial pressures
GOAL
The Rent-to-Own industry will attract new customers enabling members to
substantially build upon their base business
Identify knowledge gaps Segment , prioritize based upon volume
STRATEGIES
Educate. Give. Evangelize.
Set record
Diversify Provide
Recruit
media mix extraordinary
straight champions
experience
Develop smart, integrated plan co-implemented by APRO and members
36

37. Give: An extraordinary customer experience
…getting closer to your
customers by thinking ‘as if
you were them,’ will allow
you to have a much richer
understanding of their needs
and will help you serve them
even better, to everyone’s
benefit.
Herve Purcines, Harvard Business Review
37

38. Give
Use Messaging Pillars as Foundation for ‚Value-Added‛ Offerings
Messaging Pillars Suite of ‚Products‛
Consumer-centric, empowering Merchandise, PLUS
You CAN have it! Cumulative listing of added value
Call to action. Customize based services/perks
upon life stage, life needs Roster of benefits offset perceived high cost
You control the price and terms. Doesn’t damage credit
Helps establish credit
Empowers. Customize with real,
concrete-proof points
Here you’ll get VIP treatment Incentives that may directly aid
Humanizes. Addresses perceived
your longer term financial stability
disregard from ‚other guys.‛ Support
with visual and verbatim testimonials.
38

39. Give
Introducing ‚Credit Readiness Certificate‛
39

40. Give
Introducing ‚Service and Savings Statement‛
40

41. Give
Introducing Stepping Stones Sweepstakes
Commit to and publicize promotional sweepstakes that fits with your
reason for being
Sweepstakes entry for every new signed agreement (drawn quarterly?)
Winner receives:
U.S. Savings Bond
Scholarship for community or trade college
1 year EAP enrollment
Not only serves as an incentive, but also reinforces RTO’s role - helping
folks struggling financially to get grounded
Perception is that you thrive because people don’t have the discipline to save
41

42. Give
Provide an Extraordinary Experience
Consumer
Enhance in-store experience;
Service & Savings Statement; Advocacy
Thank you letter; E-birthday
Capture & promote success Content
greetings to family members;
stories, testimonials
‚redeem when ready‛ card
Positive
Personal
reinforcement
of benefits Giving Attention
that gives
Certificate of Credit Readiness;
Customer surveys, incl.
back Exclusive ‚insider‛ offers;
Stepping stone sweepstakes for
how to best reach them
trade school, community college
scholarships, U.S. Savings Bond.
Feedback
mechanisms Meaningful
w/continuous Rewards
improvement
42

43. Business Goal and Strategies Summary
VISION
Thought-leaders and consumers will find Rent-to-Own to be a valid option
for meeting real needs in the face of financial pressures
GOAL
The Rent-to-Own industry will attract new customers enabling members to
substantially build upon their base business
Identify knowledge gaps Segment , prioritize based upon volume
STRATEGIES
Educate. Give. Evangelize.
Set record
Diversify Provide
Recruit
media mix extraordinary
straight champions
experience
Develop smart, integrated plan co-implemented by APRO and members
43

44. Recruit Evangelists
44

45. Evangelize
Turn Customer Satisfaction into Marketing Asset
CustomerMust take it to thebusiness indicator,
Satisfaction is a next level:
Cultivate Superfans from commodity.to convert
not a marketable Customers
Prospects into New Customers.
Prospective
Customers
Superfans
45

46. Evangelize
Identify and Recruit Thought Leaders
Have them act within the power of their positions to help change perceptions
Engage in discussion on how RTO provides a respectable
option for ‚the underbanked‛ and ‚hard of luck‛
Experts, e.g. John P. Caskey
Public affairs ally (national and/or local levels)
Media, e.g. Clark Howard?
Satisfied customers (9 or 10 NPS)
Real ‚people like me‛
Employees
Prospective customers highlighting competitive deficiencies, unmet demand
46

47. Evangelize
Bring Products & Endorsements to Life
Videotape most satisfied customers answering FAQs about RTO;
addressing benefits with greatest appeal for Focus Group participants;
and genuine testimonial as to why RTO was best option for them
Post on websites, YouTube and
other applicable sites.
Link via Facebook
Update periodically
47

48. Evangelize
Monitor, Recruit ‚Sneezers‛ from Social Media
Web crawling software and analytics can help track and measure buzz,
most popular topics, and those who have most influence in particular
arena. Monitor top ratings/review sites, customer discussion forums,
multimedia such as YouTube, social networking sites like Facebook,
Twitter, and industry and competitive blogs
48

49. Evangelize
Monitor, Recruit ‚Sneezers‛ from Social Media
Best Buy actively participates in conversations
Sony monitored forums & generated reports based upon
feedback. Discovered few shaped opinions of the masses. Invited
top 20 social communication influencers to headquarters
49

50. Business Goal and Strategies Summary
VISION
Thought-leaders and consumers will find Rent-to-Own to be a valid option
for meeting real needs in the face of financial pressures
GOAL
The Rent-to-Own industry will attract new customers enabling members to
substantially build upon their base business
Identify knowledge gaps Segment , prioritize based upon volume
STRATEGIES
Educate. Give. Evangelize.
Set record
Diversify Provide
Recruit
media mix extraordinary
straight champions
experience
Develop smart, integrated plan co-implemented by APRO and members
50

51. Diversify Media:
Gain Greater Reach, Impact and Efficacy
51

52. Diversify Media
One Size Fits All No Longer Effective
Mass-media approaches declining as technology allows better
customer tracking
Mass customization: direct and personal marketing meets needs
of busy consumers
Consumers will be loyal to companies that have earned„and
reinforced„their loyalty.
Reach consumers at multiple touch points through diverse channels.
Give them the information when they want it, where they want it.
52

53. Diversify Media
Optimizing Marketing Communications Mix
Traditional Social
Web Media DTC Media
Media Media
Integrated Communications Plan
53

54. Diversify Media
Widespread Delivery of Consumer-centric News
54

55. How does it all come together?
Opportunity to totally rethink industry approach
and reallocate resources
For SUCCESS,
commit to a unified plan:
APRO efforts synergistic with
Member efforts
55

56. APRO
Traditional Media Web Media Social Media DTC Media
• Recruit national media • Develop consumer- • Investigate • Finalize Credit
spokesperson(s); centric Web microsite listening/analytics Readiness
develop content, e.g. • Develop educational software ROI; Certificate; Savings,
by-lined articles, tips, video vignette (when develop Service Statement,
charts/infographs, RTO might make engagement Sweeps
Q&A, soundbites, etc. sense, benefits, strategy • Produce quarterly
• Develop ‚toolkit‛ with process, consumer
• Develop widget Consumer Report,
canned media tools testimonials)
• Identify and pitch • Identify and pitch customizable by
• Consider merits of
appropriate media Webinar to educate & influential bloggers members
arm influencers • Develop survey
Member Customization and Distribution
Traditional Media: Tailor & distribute materials to local media; integrate new messaging into existing communications
Web Media: ‚Consumerize‛ web site content based on FG insights; provide links to APRO microsite; gather & promote own customer
testimonials; house widget on your Website; explore Craigslist; identify local ‚influencers‛ and feed to APRO for Webinar invitation
Social Media: Use analytics reports to begin engaging local influencers; consider employee blog; offer up widget to local bloggers; promote
YouTube video via your/employee FB, Twitter; converse honestly and correct misperceptions about your business
DTC Media: Distribute APRO materials to customers and prospects; query customers to determine preferred communications; enhance ‚giving‛
according to earlier chart to provide extraordinary customer experience; solicit most loyal for testimonials
56

57. Business Goal and Strategies Summary
VISION
Thought-leaders and consumers will find Rent-to-Own to be a valid option
for meeting real needs in the face of financial pressures
GOAL
The Rent-to-Own industry will attract new customers enabling members to
substantially build upon their base business
Identify knowledge gaps Segment , prioritize based upon volume
STRATEGIES
APRO and Industry Members
Educate. Give. Evangelize.
Set record
Diversify Provide
Recruit
media mix extraordinary
straight champions
experience
Develop smart, integrated plan co-implemented by APRO and members
57

58. The END GOAL: Consumer Takeaways
Sometimes life stretches us and we just don’t have near-term
What do access to cash in order to buy what we need. Rent-to-own
we want them stores offer new, brand name merchandise with flexible,
to believe? affordable pay terms that can actually help establish good
credit– without acquiring debt”and you can own your
quality merchandise when you’re able.
They’re better understanding ‘gives & gets’ compared to options
due to educational materials & tools—where & how they want them
They’re hearing from trusted sources
They’re receiving relevant messages and value-added perks that
appeal to practical and emotional needs and help them get where
Why should
they want to go
they believe it? They’re feeling that you’re listening, responding, and fulfilling your
promise
58

59. Innovation: Grab that New Customer
RTO Customer
Occasion Renter Desperate
Give: Give:
Ticklers Rational and Emotional RTBs
Svcs
Stepping
Way of
Worth Stone
Life
the
Price
Rational – can’t justify
Stay Away Emotional – unmet demand
Give:
New Offerings/Experience
59

60. Thank You!
{ }
Success is about more than just price,
performance and quality. It’s about emotion,
passion, identity—sharing values.
William Taylor, Author of Practically Radical
It’s time.
New customers are open to what you offer.
Today’s new marketing climate offers untapped potential.
It’s time to work together (APRO + members) to build your
customer base.
60