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You've done all the work of getting a potential customer on your radar. What do you do now? Having good communication, follow-up, and sales training is crucial for your team. Join us as we talk about the best ways to follow up with your leads and communicate with your customers.
Focus: Owners & Operators
Aired: November 3, 2022
If you don't have time to watch the whole session, here are some of our favorite parts:
We asked our experts: What is the most important rule for your team when interacting with leads or customers?
Being positive and being helpful to solve their storage needs." - Carol Mixon-Krendl
"We want team members who approach every interaction with a good attitude and who have a good outlook on those customers and a good outlook on their property." - Hailey Teal
Empathizing and making a positive, personal connection with leads and tenants is important to both converting leads and building advocates who will refer your business to others. Hiring people with the right, friendly attitude is incredibly important to achieving this, and if you can find a "people person" with the right attitude, you can train them on the rest of the job. When it comes to communication, you want to respond quickly, concisely, and via the channel of communication that your lead or tenant prefers. While customers enjoy that personal touch, they are also looking for a seamless, positive experience, and a well-trained employee equipped with the right tools can ensure your tenants, new and existing, remain happy for their entire stay at your business.
Gabfocus Sessions are virtual workshops for self storage owners, managers, and operators. Brought to you by the team behind Gabfest: StoragePug and Affordable Storage Guys Management.
Each session features hand-picked industry pros who will dive deep into relevant topics surrounding our industry, share best practices, and explore trends in the market. It's our hope that these sessions help you navigate your self storage business better during these uncertain times.
Want to learn more about self storage? Join us on select Thursdays for Gabfocus.
Our panelists will be happy to answer any questions you have. We hope you enjoyed this Gabfest Session. Talk soon!
“Once your operation is in place, you can become more dynamic with your pricing, but that requires data. You need some method of being able to record the data that you need to know whether your price is in the right place - whether you need to move it up or start giving some concessions.” - Warren Lieberman
“I never want to downplay to what someone else is doing. I'm better than they are, then I'm going to be worth a higher price. That's what value is. If you go out to a restaurant and get really good service, would you go back? Yes! What if it was pricier? You'd still go back because you got better service and a better product.” - Jim Mooney
"It's good to be informed on your competition. I don't want to ignore them, but I don't want to respond too strongly to them either." - Warren Lieberman
"We did a survey of 10,000 facilities on their pricing. We found out that two-thirds of those operators didn't change the price of a single unit of the course of a month." - Warren Lieberman
“Rate increases and value pricing are the number one ways to grow your revenue.” - Jim Mooney
"Tenants in more convenient units tend to be less price sensitive." - Warren Lieberman
"The size of the unit is only one aspect of what people are willing to pay for." - Warren Lieberman
Lease up marketing strategies:
Your average customer value
Find the average stay length of all tenants. Next take your economic occupancy and divide by how many units you have. That will tell you what the average customer pays.
Multiply the average length of stay by what the average customer pays, and that's the average value of a customer.
For example, if a customer stays for 12 months and pays $100 per month, then their value is $1,200.
Your average lead value
Figure out your closing rate (or conversion rate) i.e. how many leads do you turn into tenants? Multiply that by your average customer lifetime value to figure out what your leads are worth.
Pro Tip: see which lead sources are converting the best. It may be that certain sources have a higher conversion rate, so those leads are worth more to you than a source that barely converts.
Typical Lease-up timeline
According to our panelists, it's typical to see a 3-4% increase each month, putting your facility at 36% after the first year, and 72% after the second.
Alternately, you can look at your lease up goals through the lens of your units, aiming for 20 units rented per month.
For Nick and StorageMax, they pro forma their economic occupancy at 85% with their sweet spot at 92%.
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