In self-storage, attracting the next tenant often takes significant effort and marketing spend. But what about maximizing the value of the tenants you already have? That's where Customer Lifetime Value (CLV) becomes crucial for long-term profitability, especially as competition increases.
CLV represents the total revenue you can expect from a customer throughout your relationship. For example, a tenant spending $300/month for 5 years has an $18,000 CLV ($300 x 12 x 5). Even small increases in retention or spending significantly boost your bottom line. This article outlines 4 straightforward strategies, often enhanced by modern technology, that any self-storage operator can implement to improve CLV and drive lasting results.
4 Easy Ways to Increase Customer Lifetime Value
When a business allocates its resources effectively, it can implement strategies that yield the highest returns. Figuring out where to invest your resources to increase CLV can be tricky, which is why we’ve outlined 4 easy strategies your self-storage business can implement today.
1. Customer Relationships
Building an intentional relationship with your customers can go a long way. Consider automating emails and text messages with personalized tokens such as the tenant’s name, birthdays, and more. From courtesy payment reminders to receipts, including your tenant’s name and reaching out to them on special occasions will personalize interactions, build a stronger relationship, and lead to higher customer loyalty and retention. Turn to your property management software to streamline this process.
In addition to personalizing marketing messages, you can suggest specific products and services to customers based on their history. Seek out customer feedback and respond to it quickly and appropriately to improve the overall customer experience and build a better relationship with your tenants.
2. Value-added Services
When you increase the perceived convenience and value of your facility, customers will be more inclined to rent from your facility longer and recommend it to friends and family. This could be something as simple as offering moving supplies or robust as implementing the latest and greatest technology throughout your facility to enhance security and allow remote monitoring.
Examples of value-added services:
- Climate controlled units
- Online account management
- Tenant insurance/Tenant protection
- Enhanced security
- Moving supplies
- Delivery services
- And more
Loyalty Programs
To encourage customer retention and repeat business, you may consider implementing loyalty programs. These programs can range from discounts on rent, a free month of storage, point systems, and referral programs. Luckily there are great tips for creating loyalty programs with current tenants and local companies. By tracking customer behavior, you can use data to acknowledge and reward your high-value customers most effectively.
3. Communication
Consider automating communications like payment reminders and receipts to enhance the overall customer experience. The better communication your facility has with its tenants, the smoother the rental process will be which can minimize any misunderstanding and frustration.
It should be easy for your tenants to contact you. Make sure you have clear contact information on your various channels and websites. This can range from phone and email to live customer support. When a customer does reach out to you, respond to them quickly and efficiently. When you prioritize their needs, they’ll be appreciative. Make sure your team has the right tools and training to provide the very best service to your customers.
Additional ways to increase Self-Storage Customer Lifetime Value (CLV):
- Loyalty programs
- Optimize pricing strategies
- Prevent churn
- Build strong customer relationships
- Improve the onboarding process
- Targeted marketing
- Listen to customer feedback
- Personalize customer interactions
- Provide exceptional customer support
As we've explored, increasing Customer Lifetime Value in self-storage comes down to practical strategies: nurturing tenant relationships, offering value-added services, implementing effective loyalty programs, and ensuring clear communication. Mastering these areas, supported by diligent tracking and analysis of your data, is what truly drives long-term profitability and sets successful operators apart.
Tenant Inc.'s integrated platform provides the essential tools specifically designed to help operators execute these CLV strategies efficiently. Leverage features for automated communication to build relationships, utilize robust reporting to refine value-adds and loyalty programs, and gain a clear view of your data to make informed decisions – all within one system built with the operator's needs in mind.
Ready to see the tools & tech that are setting leading facilities apart? Schedule your 1:1 demo today!
