I was recently attending a virtual (obviously written in 2020) Business Summit meeting, and one of the sessions was entitled How To grow Your Business.
I can insert “self storage” into that, and everything remains exactly the same.
My observations about people have told me that some people are just physically lazy.
My observations about people also tell me most people are mentally lazy. I am not excluded here either.
These statements about laziness became apparent to me as I looked at the essence of this business session.
Let me share with you the three steps in growing a business, then let’s translate it directly into your self storage business.
- Know your customer.
- Create an irresistible offer.
- Deliver more than expected.
Sounds simple, right?
Well, it isn’t.
Your Avatar
Given that most of the information you consume from me is from my website, or my YouTube channel, or through some kind of digital course or software, you could say one of my businesses is an “online” business.
I didn’t wake up knowing about how to support people in the self storage space by using online tactics, so I had to learn.
The buzz word in those circles today for your “ideal customer” is “Avatar.”
One is to create a fictional person, name, age, occupation, hopes, desires, aspirations, and fears, so when designing your content, you can speak directly to them.
Well, this is obviously a valid approach, but it can be limiting as well. In my experience, customers come in all shapes and sizes, age ranges, backgrounds, which shapes hopes, desires, aspirations, and fears.
The diversity of clients is especially apparent in the self storage space. You have homeowners, apartment dwellers, commercial customers, and more. Each of these has a different need to be fulfilled by using self storage.
Here is the reality of our industry, in my opinion. Each “ideal customer” is a function of the specific demographics of the market area.
This sounds simple, but is it?
When designing marketing, Facebook post, Google Adds, even what to say when a customer walks in, is usually different form one facility to the next.
We have one facility where the average income is high 30’s low 40’s (I know, I know… we should be more precise, but at the time, it seemed like a sweet deal).
What is driving them to a self storage facility is vastly different than another facility we own, in the same city, where the average income is in the high 60’s low 70s.
Very little about the customer base between these two properties in the same city is the same.
All marketing is different today.
In the first facility, the average length of stay at this point is 9.43 months. At the other facility, it is 24.37 months.
The value of a customer at the first facility is approximately $1,000, and at the second, it is around $3,000.
Rents are vastly different at each facility as well to reflect the submarket.
There is almost nothing the same about the customer base at those two projects in the same “market.”
Each “ideal customer” requires critical thinking, asking questions of them, seeing what their real needs are.
By the way, it is not renting space.
Just like your desire to get into the self storage business is not “to make money,” although many of you think that is the reason. Your real reason is what you think the money will get you, like freedom or a legacy for your family.
We need to figure out with each customer base what their real desires are.
It could be as simple as creating more space to raise their family in or creating a new home office so they can keep their family safe.
Family is what is important here for this customer.
In the second facility I am discussing here, we have a lot of customers who park or store their toys, RV’s, pop-up campers. They have a totally different need. They want to be able to get access when they want to and feel their expensive toys are safe.
Many here inherited their parents’ and relatives’ possessions when they died and need a place to put them while they figure out what to do with them (on average, it looks like it is around 24.37 months).
What is driving each customer base is totally different.
Don’t just relate to all customers the same.
Many of the industry publications will come up with average customer statistics. Don’t just accept these at face value. Due the critical thinking and research, project by project, and figure out who your customers are and what drives them to need storage.
Then when they need it, you can show up in a way that speaks to them.
In today’s world, you often get only a few seconds of their attention. Be relevant.
Increasable Offer
This is much more relevant as more self storage space hits the market.
Also, what you offer should be a direct function of the work you did, project by project, determining who your ideal customers are.
In the business summit I recently attended, the presenter indicated that the offer should be so compelling, “…the person needing your product or service should feel like an idiot if they don’t accept it.”
Sometimes easier said than done in self storage when you have budgets and performance numbers to hit for investors or partners.
But the logic is sound.
Given who the customers are at this facility, who are the business customers, residential customers, and why are they really needing storage; I can design offers that would take some of the perceived risks out of them choosing us over the competition.
For example, in the first facility, where incomes are low, it is important that they feel they stretch each dollar for their family’s sake.
We are trying the “buy one get one free” marketing approach because it is familiar and helps them realize they are supporting their families by doing business with us (also, we get money upfront rather than later).
Our “irresistible offer” changes and is always tested to see which approach gets traction.
Again, this requires lots of critical thinking and testing. The days of coming up with an offer for all projects, a one size fits all, in my opinion, are over.
Deliver More than Expected
I learned this in my 20’s when I read “Think and Grow Rich” by Napoleon Hill.
This book changed my life.
It is one of the core principles held within it and has never been more relevant than today.
In today’s world, “good customer service” is needed to get out of the gate.
Everyone claims they have “good customer service.”
You don’t even show up on the map with “good customer service.”
If that is your claim to fame, in my humble opinion, you are week.
I think we have to totally “wow” the customers every chance we can.
That is where your company culture and employee base is so critical.
And given we are moving today to a more touchless and automated customer experience, it has never been more challenging to create opportunities to exceed customer expectations.
And remember, “good customer service” in no way exceeds customer expectations.
Are you “wowed” when your insurance agent sends you a birthday card?
How about the Christmas card you may get from your real estate agent?
How would you feel if, when you are moving into your storage facility, the manager brought you a cooler of water and soft drinks on a hot day?
What if the owner of the facility offered to have some racks built to hold your expensive paintings you are moving into a unit from your parent’s house who just passed away?
I’m not saying you have to do this kind of stuff, but our managers have.
They know what they can do and spend to wow customers.
Conclusion
Remember, today, as business owners; we cannot afford to be lazy in our thinking. One size does not fit all.
Self storage is the best business there is. Let’s use some basic principles and critical strategic thinking to ensure we create a lasting business of real value to ourselves, our families, and our customers.
That is what creates fulfillment from a real business.
