By Irv Shapiro

New developments in voice-based marketing automation can alleviate many of the self-storage market's current challenges, enabling facility operators to be more efficient while growing revenue.

For the uninitiated, voice-based marketing automation ties the most powerful elements of voice communications and Internet technologyincluding call tracking, forwarding, automation and recording as well as customer notifications and online lead generationinto a single solution that builds better customer relationships. Good voice-based marketing automation is like a Swiss Army Knife in that it offers a number of powerful tools when you need to solve real-world business problems.

Moreover, a good solution can be configured based on a specific operations business rules and organizational goals. It works in tandem with a self-storage facilitys website, marketing, customer service and collection cycles, yet it's flexible enough to accommodate changes as the business expands.

The alternative to voice-based marketing automation is a hodgepodge of disjointed phone, software and website components, which rarely streamlines the operations processes. Operators who feel like theyre spending too much and delivering too little are probably good candidates for voice-based technology. Here are a few ways it can address common challenges faced by business owners and managers.

Challenge No. 1: Driving New Business

Most self-storage facilities desire more customers but have a lower marketing budget than in the past. With a limited amount to spend on online advertising, Yellow Page ads, search-engine optimization and print materials, how can operators allocate their marketing resources to maximize new rentals?

Voice-based marketing automation provides up-to-the-minute intelligence on your marketing return. For example, an operator can place unique toll-free and local phone numbers on print and online ads, Web pages and marketing collateral; then every call he receives from these numbers is tracked and reported in real time. This gives insight into exactly where sales leads are coming from, making it easier to assign marketing dollars to the most effective channels.

Tracking phone calls also enables operators to provide customized messages to callers. For instance, if a call originates from an ad about an upcoming auction, an operator can automatically direct the caller to an auction line, providing him with more details and routing him to the most appropriate contact. In this way, voice-based marketing automation focuses best-selling efforts on the best prospects. At the same time, it lets the system take care of tasks that would otherwise distract owners and managers from obtaining new customers.

In April 2011, Uncle Bobs Self Storage determined it needed a more efficient process for managing the surge of inbound calls it was receiving as a result of TV reality shows focused on storage auctions. The more than 3,000 monthly inquiries about upcoming events put a drain on the companys resources. Calls fielded by its customer-care center were routed to the appropriate storage facility. If these callers wanted to learn about upcoming auctions at other locations, the only solution was to hang up and dial again. It was an inefficient, time-consuming process for operators and callers.

To accommodate the call volume and better route inquiries, Uncle Bobs hired a voice-based marketing company to set up an information hotline using a unique toll-free number and store locater. After being prompted to enter their ZIP code, callers automatically received details about all upcoming storage auctions at multiple facilities within a 25-mile radius of their specified location.

To streamline the process, the company provided an affordable solution with a customizable user interface, said Chris Laczi, advertising director for Uncle Bobs Self Storage. The technology behind it is remarkable, enabling us to convert data, dates and times about the auctions into a text-to-speech format a caller can hear. As soon as we update information, the hotline reflects it. Weve been able to reduce the calls by providing a resource callers may use on a recurring basis, any time, day or night.

Call recording and reporting also enables self-storage operators to identify the volume of calls, the specific prompts callers press for more information, and other call-tracking information. Maintaining a streamlined process for a direct phone line is just as important. Its a reality that self-storage operators are away from the main phone for a portion of the day, out among storage units, talking with customers, or even simply out for lunch.

Since consumers typically choose to work with the storage company that answers the phone, missing one call can mean losing a potential customer. Voice-based marketing automation ensures phone calls are automatically forwarded to the appropriate sales associate, a call center, or even the operators cell-phone number. That way, operators will never miss another call.

Challenge No. 2: Keeping Customers on Task

No-shows and late-payers are a growing challenge for most self-storage businesses. At the same time, limited staffing resources means it's not easy to call customers and remind them about their storage or truck-rental appointments. On the collections front, it takes time and effort to remind customers about late payments.

In this case, voice-based marketing automation comes to the rescue by automating reminder calls and bill collection. These calls can also be used to interact with customers, prompting them to confirm or reschedule based on their availability.

This automation offers three benefits for a storage business. First, time-consuming tasks are automatically handled. As a result, facilities can operate with fewer staff members, avoid wasting time on no-shows, and free up time for more important activities. Second, operators can increase profit by minimizing write-offs on late-paying customers. Finally, since all calls are recorded in a dashboard, operators can verify all customer inquiries were handled appropriately.

Challenge No. 3: Making the Most of Web Presence

Many storage-industry websites are unwisely judged based on how many online lead-generation forms are completed, as many are incapable of tracking visitors who subsequently pick up the phone and make a call. Thats a mistake because close rates for those phone conversations are usually much higher than leads submitted electronically.

Voice-based marketing automation addresses the problem by breaking down the walls that separate websites from phone calls. It integrates everything into a solution that makes sense, drives leads and gives clarity on results.

It starts by tracking phone calls, dynamically displaying phone numbers on a website so self-storage operators can tell where a call originated. In addition, operators can turn clickers into callers by instantaneously initiating a phone call with a prospect when a website form is submitted. They can even receive a whisper message about the prospect prior to taking a call, which can help secure the best possible sale. This whisper gives the operator information about where the call originateda Yellow Pages ad, TV, newspaper, Web, etc.

Alternatively, website visitors who call can be qualified through voice response, equipping operators with additional information prior to taking the call. With a good voice-based marketing-automation solution in hand, operators find that their website will quickly deliver results that matter.

Challenge No. 4: Having a True Understanding of Location Performance

Mystery shoppers are widely used to assess the strengths and weaknesses of individual self-storage facilities. However, mystery shoppers rarely provide valuable feedback on facility performance because managers usually know theyre being shopped.

By automatically implementing voice recording for all calls, self-storage owners can listen to a range of manager and prospect conversations. This avoids having to judge the locations performance based on one staged call from a mystery shopper. While voice recording isnt anything new to the industry, its often underutilized. This is a good way to understand true performance of a facility and eliminate costs associated with mystery shoppers. 

The Next Step

Self-storage operators feeling the pain of the above challenges will find it worthwhile to learn about voice-based marketing automation. What used to be affordable only to Fortune 500 corporations is now accessible to small- and mid-sized companies.

While market dynamics can be tough to predict, one thing is certain: There has never been a better time to invest in this new technology. It can help streamline activities that often fall on the self-storage operator, such as answering the phone, collecting past-due rent, and determining how to allocate ad dollars across various mediums. Operators can instead focus their time and energy on increasing occupancy and taking care of current customers.

Irv Shapiro is CEO of Ifbyphone, where he is responsible for overall business strategy and corporate leadership. Ifbyphone works with self-storage operators to implement voice-based marketing automation. For more information, call 877.497.1040; visit www.publicifbyphone.com .

By Terry Campbell

When Jim Clayton and his partner, Jim Jones, decided to get into the self-storage business last year, they were faced with an immediate challenge: entering a market with five competitors. But proximity to a U.S. Army post as well as an upscale facility design allowed them to forge ahead.

Though Clayton and Jones had both been in real estate for many years developing residential and commercial properties, and Clayton had built storage facilities for other owners, neither had operated their own storage business. When they saw an opportunity in Prince George, Va., they decided to take the plunge. They purchased their property in January 2010 and opened in May of this year.

Stay Over Storage is adjacent to Fort Lee, a U.S. Army post named for Confederate General Robert E. Lee and home of the Combined Arm Support Command. The post is home to approximately 7,000 military and civilian personnel and their families.

We understood at the outset that a significant portion of our business would come from Fort Lee, so our decision to purchase the property directly across from the base gave us an initial advantage, Clayton explained. But the partners also realized that their proximity to the base alone would not guarantee success. They decided to invest in a unique, upscale design and amenities to attract tenants.

 Our competitors are all within four miles of the post, but potential customers have to pass our facility first, Clayton explained. We realized our mission was to offer the very best facility and services possible, and hopefully, prospects would consider our place initially and decide to look no further.

Facility Features

The 75,000-square-foot facility has 517 leasable units373 climate-controlled and 144 traditional. All roll-up doors are pre-painted galvanized steel, as well as the architectural standing-seam roofs and cupolas. Interior units and hallways are of structural-steel construction.

The first unusual thing one notices about Stay Over Storage is the overall layout of the site. Storage buildings are typically positioned side by side, but this facilitys footprint is a U-shaped fortress-type layout, so named because the buildings are connected to protect the interior premises. This precludes the necessity for security fencing, except at the open end, where wrought-iron fencing and a gate completely enclose the property.

Next, the exterior of the buildings catch ones eye due to its innovative use of brick veneer over metal stud walls and glass. The structures resemble an upscale office complex or retail center.

Other features and amenities rarely seen in storage facilities and unique to this market are:

• Timer magnets that control the duration of door openings to and from the climate-control buildings. This allows tenants to keep building doors open for the entire time theyre moving in and out of their units rather than have to open and close them on each trip.
• Motion sensors mounted in drop-in ceilings that automatically control interior lighting. These eliminate the need to cut lights on and off when entering or exiting buildings.
• All-concrete floors sealed with clear coat. This helps to provide a more dust-free environment for customers and their personal items.

Also in the planning stages are additional services such as secured document storage, document conversion to CD and document-shredding. In addition, the site offers retail products for sale in the office and the free use of a move-in truck for new tenants.

Challenges: Part of the Process

Like most real estate endeavors, Stay Over Storage experienced some bumps in the path to completion. At the 11th hour, the municipality required Clayton and Jones to install an underground rain tank to control water runoff. Unfortunately, the cost to accommodate the countys request was substantial and came after our financing was already in place, so it turned out to be a significant strain on our pocketbook, Clayton says. But we worked it out.

Just a few months after opening, the partners agree their self-storage venture is working. Their marketing campaign is underway, and the future looks bright. The decision to create a first-class facility in the location we chose was a strategy we feel comfortable with, Clayton says. Hopefully, this is the first of many successful projects we plan to develop.

Terry Campbell is vice president of sales and marketing for BETCO Inc., a single-source manufacturer of self-storage buildings and components. For more information, e-mail [email protected]; visit www.betcoinc.com.

Talonvest Capital Inc., a provider of third-party capital placement, debt and equity for commercial real estate nationwide, recently negotiated and closed two fixed-rate, non-recourse loans worth approximately $20 million for California-based self-storage operators.

Talonvest procured $16.9 million of permanent debt for a three-property portfolio with locations in East Palo Alto and Kentfield, Calif., and Boulder, Colo. The facilities, with a combined occupancy of more than 90 percent, were financed with a 10-year fixed interest rate at less than 5.5 percent with a 30-year amortization. Paul Schmitt, CEO of Schmitt & Co., was responsible for the financing on behalf of his partners and investor clients.

In separate transaction, Talonvest structured approximately $3.1 million of permanent financing for Valley Wide Self Storage, a 120,000-square-foot property in San Jacinto, Calf.  The challenges to completing this financing assignment included the loan request being smaller than many loan programs will accommodate and the property not being in an urban locale, according to Talonvest Principal Eric Snyder. The company was able to solve the lenders concerns through structure and negotiation, he said.

Each of the new commercial mortgage-backed securities loans was provided by a large, national finance company.

Talonvest is a boutique real estate firm providing advisory services to self-storage and commercial real estate investors and developers. The firms principals have more than 70 years of combined experience structuring loans and equity investments for self-storage, office, industrial, retail and apartment properties throughout the United States. 

Safe Haven Self Storage, with locations in Mount Kisco and Elmsford, N.Y., will be converting the existing fluorescent and incandescent lighting system at its 70,000-square-foot Mount Kisco facility to energy-efficient LED lighting. Xeleum Lighting LLC will complete the project.

Once we saw the energy audit and ROI analysis, the decision to proceed with the conversion was obvious, said Kristian Pariseau, Safe Haven director of operations. Our LED lighting investment is repaid in energy savings in less than two years and, thereafter, the cost for lighting on our monthly electric bill is reduced by over 80 percent.

Because of the very long life of LED lights, the company also anticipates substantial cost savings from not having to purchase and install replacement lights far less often than in the past.

Safe Haven, along with numerous other commercial and industrial heavy electricity users, is undertaking this conversion because the energy cost to operate LED lighting is far less than that of conventional lighting, said Xeleum President Mehrdad Ghalebi.

Xeleums lighting products are direct replacements for a wide variety of the incandescent, halogen and fluorescent lights. They exhibit extremely long maintenance-free operating life and can reduce electric lighting bills by 50 percent to 85 percent, depending upon the specific light types, electric rates and hours per day of usage, Ghalebi said.

Xeleum and its affiliate RDI develops and manufactures electronic products for commercial, industrial and residential applications. Now in its 20th year, RDI is an ISO-9001-2000 and ISO 13485 certified manufacturer with more than 700 employees at its U.S. and China facilities.

Avon Self Storage in Connecticut has received approval from the Inland Wetlands Commission to build a new 12-foot-wide emergency-access route to the facility, which not only complies with the towns request for alternate fire-truck access, but will allow the facility owner to expand his site.

Owner Robert Haines has a pending application with the Planning and Zoning Commission to expand his company onto 190 and 230 Old Farms Road. To gain approval, he needed inland-wetlands clearance because his property falls within 100 feet of wetlands.

Some neighbors who live nearby in Sconsett Point expressed concerns about the emergency route being used by the public and the potential for additional litter in the wetlands, but most supported Haines request. The public hearing for the expansion will continue on July 19 at the Avon Senior Center.

Simply Self Storage has named a winner for its recent Facebook promotion and giveaway. Jeff Blecha will receive a brand new Apple iPad 2. He was one of more than 2,000 contestants to like the self-storage company on the social-media website and enter the contest.

The iPad 2, with a dual core A5 chip, allows users to watch movies, play games and shoot video.

Simply Self Storage operates approximately 130 facilities nationwide. Owned by the OB Cos., the storage chain offers amenities such as climate control, boat/RV storage, truck rental, moving labor for hire and more. The company website, SimplySS.com, provides informative articles for consumers on topics of storing, packing and moving.

Details on education seminars for the Inside Self-Storage World Expo in Tacoma, Wash., Oct. 4-6, are now available at www.insideselfstorageworldexpo.com. In addition to accessing site info, attendees can download the official Show Planner to assist in creating their personal education agenda.

The upcoming event, hosted at the Greater Tacoma Convention & Trade Center and Hotel Murano, will include nearly 40 seminars covering issues such as operational challenges, legal and legislative changes, finance options, multi-media marketing, facility design, development, sales and much more. The program includes two tracks tailored to specialized audiences. The new "Owners Only" track will feature seminars designed to help owners cut costs, effectively hire and manage employees, and address legal concerns. The "Canadian Exclusive" track will highlight development opportunities, marketing, insurance and more, with sessions taught by experts in the Canada market.

The ISS Expo also features four workshops, several networking events, and two days of product and service exhibits by more than 75 industry suppliers. Early-bird registration expires Aug. 5 and can be completed through the event website.

The Hotel Murano, in the heart of Tacoma, is close to downtown hotspots including popular restaurants, boutiques, spas, museums and golf courses. A discount room rate of $159 per night single/double occupancy is available to ISS Expo attendees through Sept. 9. Room reservations can be made at 888.862.3255.

Federal investigators in Benicia, Calif., are hoping to search a unit at Benicia Mini Storage in relation to a drug case. They applied for a warrant on July 1 and would like to search the unit by the 15^th. Investigators believe the unit may contain marijuana, guns and names connected with a marijuana-distribution network.

Already 18 people have been arrested in connection with the case. Authorities claim the network used college athletes as couriers to help distribute the drugs. Authorities also cited Anthony Guidry, Hustin Johnson and Munier Saad as being assistants to the nationwide drug operation that made $2 million.

Phoenix-based OpenTech Alliance Inc., developer of the INSOMNIAC line of self-storage kiosks, has released the latest version of its kiosk software (v1.5.215), which includes two enhancements: reservation completion and coupon acceptance.

Reservation completion simplifies the rental process for customers who have already reserved a unit online or through a call center and want to complete the process at the facility kiosk. Customers simply enter their name and phone number at the kiosk to access all the data they previously supplied. Then they finalize their choice of unit; provide their fingerprint, photo, drivers license scan and signature; and pay with cash, check or credit card. This new feature currently only works with SiteLink Web Edition self-storage management software, but support for other property-management systems is in progress.

Coupon acceptance allows customers to use coupons when renting at a kiosk. They simply enter their coupon code during checkout just as they would during online shopping. In addition, this new feature allows INSOMNIAC Live! call-center representatives to offer on-the-spot rental incentives to customers who call in from the kiosk, just as a manager might do in the office.

According to an OpenTech press release, both enhancements were designed to help storage operators rent more units and OpenTech reach its goal of renting an average of six units per month per kiosk.

 OpenTech products and services include seven models of INSOMNIAC self-storage kiosks ranging in price from $5,500 to $18,000, the INSOMNIAC Live!  call center, and the INSOMNIAC Self Storage Network for online storage reservations and rentals.