5 Tips for Data Driving Your Self Storage Success

There cannot be two opinions about the value data analysis can bring to a business. It helps with accurate forecasts, strategic planning, and even to reduce business risk. Self-storage businesses frequently sit on a proverbial treasure trove of data - but most never use it to its full potential. We have put together five applications of data analysis in self-storage and what they can bring to your business.

Historic occupancy rates and future demand

Wouldn’t we all love a crystal ball that could accurately predict future demand? Unfortunately, one hasn’t been invented (yet). However, data analysis can get us very close to an accurate forecast by looking at past occupancy rates. Comparing them across different time periods, we can identify recurring trends, such as seasonal peaks and lows. Comparing occupancy rates year-over-year, we can get a clear picture of the shifts in demand.

To get a more accurate picture, the analysis must account for economic indicators, like population growth, industry events, for example, a new competitor aggressively entering the market, and the effects of past promotions. From this corrected data, it is possible to calculate average occupation rates and extrapolate them into a forecast by applying statistical tools like moving averages or other forecast models.

Impact of demographics on demand

The demographics of self-storage users are changing drastically across the globe. However, not every region is equally affected by this. Typically, self-storage operators can access socio-demographic data about their customers, from basics like gender and age to more detailed information like occupation and income – typically obtained during a credit check or similar. By dividing customers into similar clusters and comparing their sizes in a given time period, we can get an accurate idea of the specific demographic shift that is taking place at each location. One can compare the results with national demographic data to see if the self-storage is developing typically or atypically. For example, the demand for self-storage by Millennials or Gen-Z across the country is growing, but not at a specific location. That is a problem that needs to be looked into. Detailed information about customer clusters and trends opens the doors to more targeted marketing and sales campaigns.  

Revenue Management with Dynamic pricing

Self-storage operators can and should take a page from the playbooks of the tourism industry and implement dynamic pricing. A good data analysis tool can adjust unit rates in real-time by factoring in availability, demand, location, and seasonality. Surge pricing has the power to maximize profits and increase occupancy rates, with more competitive offers during times of low demand. Dynamic pricing is not yet common in most self-storage markets, so it can be a differentiating factor and an economic advantage over the competition.

Efficient Resource Allocation

By combining the insights from these three analyses, it is possible to allocate limited resources like marketing budget or staff to the locations that need them most. If a location is predicted to experience peak demand, it is time to allocate more team members to customer support to improve ticket resolution times and customer experience. Using insights from the demographic Analysis, we can specifically target the marketing campaigns using concrete channels, social media, or messaging to appeal to a particular demographic. This way, the budget can be allocated to campaigns with a higher probability of converting the target customer.

Identifying Opportunities for Extra Revenue Streams

Turnover in self-storage is high; that is a reality of the industry. Keeping long-term customers is already a success, but with data analysis, operators can go an extra step and identify customers who are most likely to need extra services. Offering them proactively will create an additional revenue stream and improve the customer experience. This could be things like offering insurance for renters who store expensive sports equipment, 24-7 access for those who frequently come around closing or opening hours, or identifying customers going through a life-changing event requiring additional storage space. Often, these insights come from already collected data, so they are free, and acting on them comes at no extra cost.

Data analysis can significantly impact the bottom line of self-storage businesses, both from a cost optimization and revenue management perspective. Every self-storage management tool worth its money comes with integrated data analytics tools. But if you are ready to embark on a more profound journey and unlock the full potential your collected data has to offer, we are the partner who can help you achieve just that. 

This article is provided by Unwired Logic.