While it used to come as a surprise, receiving an ad after casually discussing a product or service has become the "new normal". This is because companies are modernizing, thinking smarter, and using technology to their advantage by collecting data to better target customers. When you’re scrolling on your phone or surfing the web, data is automatically collected in the background. When used strategically, data analytics can provide actionable insights that significantly improve decision-making and thus drive revenue. While this process can be simple with the right tools and tactics in place, there are a few things you need to know to get the most out of your self-storage data.

Make your Storage Facility More Profitable and Competitive with Data Analytics

1. Owning Your Data

First and foremost, data ownership is imperative. When you own your storage facility’s data, there are no limitations on what you can do with the information flowing into and out of your business. When using data analytics to make revenue-driving decisions, you can maximize profits and maintain a competitive advantage in the growing marketplace.

2. How to Collect Data

Your self storage property management software plays a pivotal role in the quality and quantity of data you have access to. Finding a storage facility management software that doesn’t limit integration is key. When this software has a cloud-based nature and integrates with the industry’s latest tools and self storage automation features, your options for mining value are limitless. After all, the more insights you have access to, the more strategic you can be with decision-making and the more control you will have over your facility’s profitability.

The simplest way to collect and analyze data is with property management software that automates reports for you. With Hummingbird, you can utilize pre-made templates or build custom reports that meet your exact needs, as well as set how often and when you want to receive reports to always stay informed. You can use these reports to see what is happening in real-time and make adjustments if needed.

3. Key Metrics to Track

Too much data can be overwhelming. Luckily, the experts have already identified key metrics that are important to track. According to Storelocal, the metrics listed below provide performance insights that help you make better, more informed decisions for your business.

Key metrics to track:

Occupancy Rates
Monthly Rent Roll
Average Length of Stay
Conversion Rates
Customer Lifetime Value
Rent Per Square Foot
Revenue Management Index
Tenant Lifetime Value

4. Using Data to Improve Decision-Making

Once you’re tracking the right key metrics, use that data to identify new trends, areas of improvement, and customer behavior. These insights are valuable and can help guide you in making revenue-driving decisions. For example, take a look at the 3 scenarios outlined below. In these scenarios, we explain how the data provided can be used to make strategic business decisions that influence revenue.

Scenario 1: Increase rental rates based on occupancy

Let’s say you’re located in a college town where smaller units are typically in higher demand. After tracking occupancy rates, you discover 5’ x 5’ units are maintaining high occupancy rates month after month. These insights may encourage you to raise your rental rates for 5’ x 5’ and smaller-sized units, since there’s a higher demand.

Scenario 2: Customize staff based on activity

With the right tools in place, you can see exactly which tenants are accessing your site, at what time, and for how long. If you discover high activity at your facility from 11 AM to 1 PM you may want to consider implementing an on-site manager or additional staff to meet your customer’s needs. However, if you discover minimal activity from 2 PM to 4 PM, you may find extra staff is not needed, allowing you to save on labor costs.

Scenario 3: Implement fees for frequent users

You discover a specific customer visiting your facility multiple times a day, several days throughout the week. The more often a tenant visits your facility, the more they use the gate, keypads, unit doors, and other facility amenities. Consider implementing a fee for frequent users, since they put more wear and tear on your facility.

When you own your facility’s data, the opportunities for mining value are endless. While collecting data can be easy with the right tools and tactics, it’s important to use your data to make more informed, revenue-driving decisions. This will help you maintain a competitive advantage, improve operational efficiency, and increase your facility’s profitability.