Self-storage operators nationwide have recognized the importance of their customer referrals and are spending more time and effort to create solid referral programs that will boost occupancy and increase revenue. Referrals provide one of the strongest returns on marketing dollars you have as a facility operator. Referrals (word of mouth) cost very little relative to other forms of marketing and advertising.

Aim to see 20 percent to 25 percent of your business come from customer referrals. This goes to the bottom-line profitability of a store and can make or break the success of a particular operation. Dont have a referral program in place? Here are some guidelines to get you started.  

Take Care of Customers

For your referral efforts to be a success, you must take excellent care of your customers. Service is a key ingredient to developing and implementing your program. If the tenant is pleased, hell refer his friends and family to your store. Facility operators often make the mistake of closing the sale and then forgetting about existing tenants. This is a classic error that must be avoided to achieve long-term results.  

Communicate

Your referral program can take on many forms, but the operators achieving the greatest success are those who have a passion for this type of initiative. They survey their customers during lease-up to track how customers discovered the facility and if they were referred by an existing tenant. This is very important; you need to know if your referral program is working to make the necessary adjustments to reinforce or improve it.

Operators of the more successful programs clearly communicate their program and its benefits to tenants. In other words, its not only critical to develop a strong referral system, you need to tell people about it!

You also need to reinforce the program at optimal times. For example, discuss the program during lease signing and provide written material explaining how it works. Give new tenants customer-referral coupons for their friends and family members. The coupons should reward both the tenant and the person he refers to you.

Finally, reinforce the program to customers in your monthly e-newsletter, and via snail mail at least quarterly. Send them a simple reminder about the program along with additional referral coupons. Consider including customer testimonials in this correspondence to provide positive support of the program and how it has benefited other tenants.

Offer Rewards

There are many ways to reward a customer for a referral. The value of the reward has increased recently, as many facility operators in todays economy must fight for every customer. Its not uncommon to see a referred customer receive $50 off his first month of rent, and the referring customer receive $50 off his next month of rent or even $50 in cash. Some operators have doubled this amount in the past few years due to declining occupancies and aggressive competition.

When you receive a customer referral, be sure to pick up the phone and thank your tenant. Acknowledge that hell be receiving the coupon for $50 off his next rent payment, or whatever you offer as a part of your program. Also be sure to send him additional coupons, as hes more likely to refer someone else now thats hes been properly thanked and rewarded for his recommendation.

Brad North is founder of Advantage Consulting & Management, which specializes in facility management, feasibility, onsite sales, marketing and operational training to the self-storage industry. He is a frequent contributor to various self-storage publications and a nationally recognized speaker and consultant within the industry. For more information, call 678.491.7984; visit www.advantageconsultingmanagement.com.

Local residents recently protested the Sunday operation of a self-storage business in Saltney, Flintshire, North Wales. Lock Stock Self Storage Ltd. received approval for operation of its facility in 2006, providing it did not open on Sundays or bank holidays. The company is now seeking to open the site from 10 a.m. to 6 p.m. on Sundays, which residents of the nearby Lindfields estate claim will create noise and disruption.

Carolyn Edwards, chairman of the residents association, told planning officers that the site was a "disruptive, noisy eyesore," pointing out that land on the estate side of the street was developed for residential use. The area houses many young families, and a park and school lie opposite the self-storage facility. Edwards said the sounds of large vehicles and unit doors would be inappropriate on Sunday mornings.

Another resident said the storage facility often stays open on Sundays.

Lock Stock has countered the complaints by saying the sound from its facility is less than that from passing traffic and trains, and unit access is infrequent.

Planning officers sided with residents regarding the noise concern, though environmental health officers said they did not believe noise from the facility would be a detriment to residents. Planners suggested the hours of operation be amended to 10 a.m. to 4 p.m. These hours were approved.

BETCO Inc., a Stateville, N.C.-based manufacturer of self-storage metal buildings, has expanded its standard Premium Series line of buildings with the new Advantage Series. The new buildings are designed for facility owners who want a price advantage but also a complete building package that meets their needs.

Features of the Advantage Series include:

• Galvalume PBR roof, with pre-painted option
• Upgrade available to a Galvalume standing-seam roof, with option for pre-painted
• Horizontal Galvalume or galvanized R-panel interior partitions
• Optional gutters and downspouts
• Optional roof and wall insulation
• Pre-painted exterior columns and header covers
• 40-Year warranty on all pre-painted surfaces
• 20-Year warranty on Galvalume and galvanized interior structural components
• Two-year labor warranty on standard building
• 10-year labor warranty on upgraded building with standing-seam roof
• No red iron (rust protection)
• 5-by-10 interior column spacing (no interior footings required)
• Engineered drawings for permit acquisition, erection and foundations included

BETCO manufactures self-storage buildings, roll-up doors and hallway systems for new construction and conversions. The company also offers refurbishing of existing buildings.

A man in Terre Haute, Ind., who pled guilty to 21 counts of burglary at a self-storage facility, was sentenced Monday to 20 years in prison.

Ebb Howard and his wife Heather were arrested in 2009 for stealing items from self-storage units. Police recovered the stolen items in the couples home and at another self-storage facility. The stolen goods included jewelry, collectibles, power tools and other items.

Howards sentence included a charge for dealing methamphetamine and a prior burglary charge. As part of the plea deal, Howard was sentenced to six years on the burglaries, 12 years on the meth charge and two years from the prior burglary.

Virtus Real Estate, a private equity firm based in Austin, Texas, is raising funds to invest in self-storage properties. The company is closing on its third self-storage fund to acquire more than $100 million in self-storage properties.

Virtus Real Estate plans to raise two more funds to buy more niche properties, such as medical office buildings, over the next year.

PODS Enterprises Inc. recently welcomed Tina Azzarella to its Clearwater, Fla., headquarters as the corporations new manager of corporate relocation. 

Azzarellas duties include increasing corporate sales, creating new sales strategies, managing and training corporate sales personnel and overseeing tradeshow strategies.

With 10 years experience in the relocation industry, Azzarella has previously handled corporate software sales for moving companies, sold and managed relocation services for corporations as well as having served as vice president of corporate sales for Dependable Auto Shippers.

Azzarella holds a Certified Relocation Professional designation formally recognizing her mastery and extensive knowledge of the principles and practices of relocation. She is also a Global Mobility Specialist, signifying she has received comprehensive training in workforce mobility and intercultural management.

Founded in 1998, PODS currently provides moving and storage services to a population of more than 240 million consumers, in 48 U.S. states, Canada and Australia through its company-owned and independent franchise network. To date, the PODS network has completed more than 250,000 long-distance relocations, exceeded one million deliveries and has nearly 140,000 PODS containers in service.

During the Inside Self-Storage World Expo in New Orleans last week, the Storage Business Owners Alliance (SBOA) and Supply Source One hosted a client reception at the House of Blues music venue. The event raised $1,000 for Louisianas St. Bernard Project, a local volunteer organization that has helped to rebuild more than 200 homes since the devastation of Hurricane Katrina.

On the eve of Sept. 30, 225 reception attendees enjoyed drinks and dinner. Ian Burnstein, CEO of SBOA, and Rob Vodraska, national account manager of Supply Source One, agreed to contribute $4 for each person who gathered at the event. 

The SBOA enables small to mid-sized self-storage operations to enjoy the benefits of bulk buying power. The group has grown to include more than 1,000 member facilities and increased its vendor connections to 35. Members pay $99 per year to take advantage of savings on items such as packing and moving supplies, marketing services, credit card processing services and more.

Supply Source One, a vendor member of the SBOA, is a provider of self-storage retail product including locks, boxes, bubble wrap and more. 

The St. Bernard Project creates housing opportunities so Hurricane Katrina survivors can return to their homes and communities. The nonprofit, community-based organization carries out its mission through three primary programs: the Rebuilding Program, Center for Wellness and Mental Health and the Opportunity Housing Program. The organization was launched in March 2006 by Zack Rosenburg and Liz McCartney.

Storage Express has completed construction of a new 29,000-square-foot self-storage facility in Memphis, Ind., a small community about 15 minutes outside Louisville, Ky. This fully automated facility includes temperature-controlled spaces, a 24-hour rental center, and modern security and access control.

Storage Express owns and operates 73 self-storage properties in secondary markets across Indiana, Illinois, Kentucky, Tennessee and Ohio. The company is headquartered in Bloomington, Ind.

Self-storage operators in the United Kingdom have enjoyed a pickup in storage occupancy and rental rates in recent months.

Safestore Holdings Plc, Big Yellow Group Plc and LoknStore Group Plc are faring better than other commercial real estate in the country. The two biggest U.K. self-storage chains, Safestore and Big Yellow, only need 40 percent occupancy to break even, making all additional rentals profit.  

Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley agree Safestore and Big Yellow shares may outperform other commercial real estate plagued by stagnant rents and property values.

A typical U.K. self-storage facility is multi-story located near a main road. Units vary in size, and two-thirds of tenants are private individuals. Other notables:

• Average rental rates dropped 2.8 percent in 2009.
• Occupancy at 32 Big Yellow storage dropped to 69 percent at the end of March
• Occupancy at Safestore rose by 3 points to 59 percent in the three months through July, and average rents climbed 3.5 percent from a year earlier.
• Safestore, Big Yellow and LoknStore have declined an average 8.3 percent in the past 12 months. 

Westy Self Storage of Fairfield, Conn., will host a meeting of the Connecticut Real Estate Investors Association (CT REIA) on Oct. 5, 6:30 to 9 p.m. The quarterly meeting, held in association with the Fairfield County Real Estate Investors Association, is free for CT REIA members and $20 for non-members.

The event is intended for real estate investors looking to connect with colleagues in Fairfield County. Attendees are encouraged to bring their business cards and real estate deals.

Presenters include John Czel of ACBI Insurance, Mathew Cholewa of First American Title Insurance Co., and Laura Treonze of Keller Williams. Speakers will discuss how to protect investment properties, the easy way to make 1031 tax-deferred exchanges, where to find the best investment opportunities in Fairfield and New Haven counties, and more. A Q&A session will also be featured.  

CT REIA provides motivation, networking opportunities and up-to-date education for people who want to buy a home or investment property. The association features a nationally known investment speaker each month at its meetings. Real estate professionals, investors, landlords, realtors, contractors, wholesalers, rehabbers, and the general public are invited to participate.

Westy Self Storage operates 16 facilities throughout Connecticut, New Jersey and New York.