An Interview with Ron Klein, Head of Product at Domuso
Rewards programs have become a cornerstone of customer engagement and satisfaction initiatives in various industries. We sat down with Ron Klein, Head of Product at Domuso, to get his views on the recent surge in resident rewards programs, the critical role they can play in influencing resident behavior, and their potential impact on digital payment adoption.
The Uptick in Consumer Rewards Programs
Rewards programs have gained traction across all industries in recent years due to their ability to align consumer behaviors with company objectives. For these programs to succeed, they must strike a delicate balance between being attractive enough for consumers to enthusiastically participate and being built in a way that companies can consistently deliver a mutually beneficial experience. According to Klein, “rewards programs excite consumers and motivate them to keep coming back, therefore fostering a loyal customer base and driving revenue for the company. That is why they work.”
Klein offered an explanation as to why these types of programs translate well to multifamily, saying, “there are parallels between successful programs in other industries and the goals that companies are looking to achieve in the multifamily sector. Hotel and airline reward programs share a common goal of enhancing customer loyalty, which in turn boosts their financial margins. Airlines aim to fill seats, while hotels seek to fill rooms. In the multifamily sector, the focus is largely the same. Vacancy goes down, revenue goes up.”
Introducing Next-Generation Loyalty Rewards for Multifamily
The data suggests that resident reward programs in multifamily will mirror the success of reward programs in the industries discussed above. Klein said, “these programs have huge potential to motivate residents to take specific revenue-driving actions. Offering rewards for reviews, lease renewals, and referrals, can improve both occupancy rates and the property’s online reputation, ensuring long-term resident satisfaction and increased reliable cash flow.”
The Gap: Influencing Payment Behaviors
Klein acknowledges that while many existing programs excel in managing reviews and reputation, they often fall short in promoting the use of digital payment methods, something that can greatly affect property profitability.
“The big gap we’ve seen so far with these programs is related to what is perhaps the most critical behavior of all, paying rent. Rewarding early or on-time digital rent payments can significantly reduce delinquency, therefore enhancing cash flow. Digital rent payments are also historically more secure, which reduces your at-risk income as well,” says Klein. “With staffing shortages at an all-time high, and most companies searching for ways to centralize traditionally manual front-office tasks, why not use rewards programs to influence consistent, safe, online payments from residents?”
Rewarding Payment Behaviors
As Head of Product at Domuso, a world-class rent payment partner in the multifamily industry, Klein has ample knowledge of the impact that digital payment adoption can have on a business.
“At Domuso, we have years of expertise dealing with the transition from traditional to fully digital payments. The path to success tends to vary somewhat depending on the makeup of the portfolio, but there are certain things that are consistent. The integration of resident reward programs and digital payments creates a powerful synergy. These programs motivate residents to embrace secure online payment methods, driving a more secure, steady stream of revenue for your properties and allowing you to centralize payment processes.” Klein goes on to say, “By incentivizing early digital payments, you can make sure residents are paying on time and with more secure methods. This is a great way to drastically reduce check fraud and delinquency, which we know are both huge problems in the industry.”
Payment Rewards + The Right Payments Partner
The benefits of rewarding payment behaviors skyrocket when your properties are using a robust payment platform that offers enhanced payment security, digitally certified payments, and adoption support.
“Resident rewards programs, when coupled with digital payment solutions, hold immense potential for multifamily properties. With the right rewards program, property management companies can achieve sustainable growth, streamline operations, and enhance resident satisfaction,” Klein explains.
Resident Rewards Can Be a Fee Manager’s Secret Weapon
For fee-managed companies, resident reward programs provide a unique avenue to offer property owners transparent and clear return on investment (ROI) and create a valuable distinction over their competitors. Managers can paint a clear picture for owners of exactly how these rewards are driving resident behavior in a way that improves the value of their property, addressing a long-standing challenge where property owners feel in the dark about their investments. As Klein puts it, “Property owners who choose a fee management group with a strong rewards program in place now have the power to invest in shaping resident actions, turning what was once a ‘black box’ into a clear and ROI-driven strategy.”
In today’s competitive rental market, where more people are renting than ever before, introducing resident reward programs can set your properties apart. These programs not only streamline operations and increase NOI, but are proven to drive resident satisfaction, making them a secret weapon for companies looking to work smarter, not harder, in today’s challenging market. It’s a strategic move that pays off for both multifamily organizations and their residents.
If you’d like to learn more about how Domuso will be helping companies leverage rewards programs to drive results, schedule a demo today!
Domuso is driving digital transformation for the multifamily industry with an advanced platform to manage payments and communication throughout the entire resident lifecycle. Domuso captures 100% of a property’s receivables electronically while giving residents the flexibility to access multiple payment methods from any mobile device.
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