Developing a Loans Service
Getting Started
Income
When setting up a Loans Service determine if it is to generate income (either profit or to cover expenses) or whether it will be free. Income generation can be realised by charging an annual subscription, a termly fee, ‘pay as you go’ or a combination of these. How much your borrowers can afford, or are willing to pay, will also affect the amount of income generated. Charge too little and there is the risk of not covering costs; charge too much and the Service may not be socially inclusive. Other factors to consider are: the number of boxes that can be borrowed at any one time, the duration of the loan and the geographic area to be covered.
Insurance
Insurance can be complicated and it is prudent to seek expert advice if in doubt. Check that loan boxes are covered by your insurance policy or indemnity scheme whilst on your premises or in your vehicles. When on loan, loan boxes should be covered by the borrower’s insurance. If loaning to private individuals who wish to use the objects at home, find out if your museum is the named beneficiary should anything happen to the objects. It is always advisable to ask borrowers for some form of ID to confirm they are the same people referred to in the insurance policy.
Delivery and Collection
Some Loan Services deliver objects directly to their borrowers, others encourage borrowers to collect. The frequency of the loans and the geographic area to be covered will be a consideration when deciding on the means of transport. The deliveries can either be made using in-house vehicles and staff, contracted out to a private firm or be in partnership with related organisations such as the Schools Library Service. If borrowers are to collect they can do so ‘as and when’, at fixed times or by appointment depending on your staffing levels and other activities. Advertise if collection times such as evenings or weekends can be offered and if easy parking is available.
Administration
Administration can be costly and time consuming, but is an essential key to maintaining a good Loan Service. Reduce administration where possible: for example, get borrowers to send in cheques rather than sending out invoices. The type of paperwork required will depend on whether borrowers pay for their loans, but will generally include: conditions of loan, guidelines for loans, subscription forms, order forms, receipts, delivery notes and notifications of collection dates. These can be paper-based or online. Conditions of loan and loan guidelines can be signed by borrowers when they join the Service or, particularly when dealing with one-off loans, they can be included on the back of the loan form.
To help keep a track of items whilst in schools, you may wish to consider asking the school to nominate one person as a contact point for deliveries, collections and general queries. If loans are not returned by the due date, ensure that an escalation system is in place, such as a telephone call to the borrower followed by a letter. Ensure borrowers who collect their objects always provide ID, particularly one with an address.
Marketing
Marketing is not just about publicity, though this is important. It also includes knowing about your customers and their needs. A good marketing strategy will help develop existing and new audiences, as well as develop audience-led initiatives. Undertake a SWOT analysis to identify key issues and opportunities as these will help identify your marketing objectives. Use evaluation to examine marketing’s ‘Four P’s’ – product, price, place, and promotion – and how they can be improved or developed to better satisfy customer needs.
When promoting the Loan Service, combine a website with leaflets, posters and fliers. Use photos and text to show potential users what they will gain from using your service and remember to prominently display your name, logo and contact details. Catalogues can also be used, both paper based or online. If including photographs in a website, use thumbnail images so that they do not take too long to download.
Other strategies include creating a database of teacher’s names (compliant with the DPA) for regular mailings and attending education fairs, conventions and INSET training days. These will help to raise your profile as well as obtain information and feedback from borrowers. Consider running training courses such as how teachers can use museum objects in the classroom.
Evaluation
Evaluation should be undertaken on a regular basis, both before the Service is set up and whilst in operation. This can be a difficult undertaking since there are many areas to be evaluated, ranging from charging policies to loan box themes, how the objects are used, who uses them – and who does not.
It is often beneficial to ask why you want to evaluate – what do you
want to get out of it? This enables questions to be designed accordingly,
which in any case should always be kept short and focussed. If using questionnaires,
these can be contained within the loan box, handed out or mailed to borrowers,
or they can form part of your website. Focus groups can also prove beneficial,
particularly when developing the service and it is always valuable to engage
with borrowers in person. Anecdotal evidence can be just as informative as
statistics and percentages.
National Museums Wales