Web Marketing Straight Talk - Inside...

Web Marketing Straight Talk:

Who’s the Real Boogeyman?

Presented by

Chuck Gordon, CEO

SpareFoot

InsideSelfStorageWorldExpo.com

Agenda

1.

How you can win online with your own

website, SEO, PPC, etc.

2.

Who’s the REAL boogeyman?

3.

How aggregators help you win online

and defeat the boogeyman


PART 1:

How to Win Online


No New Tenant Is Free

Of course, it

would be

amazing if all

customers were

walk-ins.



How many walk-ins and calls

truly originate “offline”?

Then you can use

online channels to

close the gap.

You can get only so far in occupancy with

walk-ins and phone calls.



How much of your budget do you allocate to secure

“offline” customers?

+ Your mortgage or rent: If your facility is situated at a busy intersection, you’re

paying more for your property than if you were off the beaten path.

+ Your awesome manager: Compensation for an experienced manager is going to be

steeper than if you hire someone more green.

$


You Already Know Web Marketing Is Critical

Walk-in and other offline

Online paid, PPC, aggregators,

etc.

Your own website and SEO


Your Website


How can you represent that same presence

online?

If your facility has great signage, service and

presentation onsite, but just needs folks to get in

the door and experience that…


Good Overall Rating

Average rating

above 4.0 (of 5.0)

Review Volume

At least one review per facility every quarter

Concise Description

Clear, concise description

highlighting facility amenities

Integrated Software

Accurate, real-time availability,

prices

and promotion

Professional Photos

At least three

professional photos

Storage consumers value

and book units based

on…

Operational Efficiencies

Professional, friendly, reliable,

knowledgeable staff


It’s all about reassuring the customer that he will get great service—

a “warm, fuzzy” feeling that’s critical to his buying decision.

$SHOPPING BOOKING MOVING IN

FOLLOW-UP

CALLS

SECURITY,

REVIEWS

Warm and Fuzzy

Play to Your Strengths

and Show Off on Your Website


The Internet Is Scary: Establish Trust


SEO


Google Search

You don’t become

No. 1 overnight.

At least one in four folks click on the first

listing, while 50% of all consumers will click

on the first eight listings.

1

23

You have to be there.


You Know It’s Competitive Out There

All your competitors

are fighting for

Google’s top spots.


The RealityA single storage facility that does everything right (great website, SEO-friendly)

has a ceiling of how high it can get in search rankings.


Even if you paid seven figures to build out your SEO

(like large operators do), there’s no guarantee you’d

be No. 1 in Google.

$X000000


So … hire a great company to do your SEO,

but don’t expect

#1


PPC


PPCMany storage operators use Google

pay-per-click advertising (PPC) to ensure their

website appears on page one.

$


Complicated Expensive Competitive

$

Why PPC Is Hard


CR

Cost per click

(quality score x bid)

Inquiry or booking

conversion rateYour incurred cost

per customer

CPASpend x =

Quality score is an estimate of how relevant your ads,

keywords and landing page are to a person seeing your ad.

Conversion rate is the number of people who ultimately make aninquiry or booking with you, divided by the total number of paid clicks.

How PPC Works


LTVYou must understand your LTV to

spend on PPC

and other channels.


Average customer

length of stay

For most operators, this is around

$1,200.

Your average rent

amount

Lifetime Value (LTV)


Measure Your Marketing

Don’t evaluate a marketing channel’s

success by how much it costs overall.

Instead, think about cost per acquisition

(CPA) of the customers you’re getting from

the service.

CPA

Total amount spent

Total customers acquired


PART 2:

The Real Boogeyman … Revealed!


Biggest Players Dominate Storage

Number of Facilities(2012 Facilities and 2013 Acquisitions)

2,268

1,203

Sources: 2012 & 2013 Self Storage Almanacs, public filings

–VP Investor Relations, REIT

20-40

1.5

–SVP Marketing, REIT

“We’re seeing the … REITs taking the

market share from smaller, less

sophisticated operators. So that …

bodes well for a larger, more

sophisticated platform.”

“Our unspoken strategy is to out-execute

and out-spend independent operators in the

online channel, funnel all volume to our

stores while starving the mom and pops of

new tenants. Then, we can buy them for

cheap when they can’t increase occupancy.”

Top 100

Mom & Pop


Massive

Tech/Data

Advantage


What the Big Guys Are Doing

In-house team generating tons of new tenants, running the website, managing software, revenue management, payment processing,

tenant insurance, etc.

All systems are integrated, so it’s easier to monetize every customer and spend more to acquire new customers.


What Independent Operators Are Doing

Different software running POS, website, revenue management, insurance,

software, etc.

None of these systems are talking to each other, which means you don’t have

the advantages the big guys have.


Biggest Players Dominate Search

Approximate CTR % by SEO Rank

(Chitika study, June 2013)

75% of

volume

goes to

top five

resultsLargest

REITs

dominate

search

“The economies of scale, the

impact of the Internet and the

marketing channels for customer

acquisition justify increased

scale. It’s an evolution.”

–SVP, Public Storage

Search Results for “75201 Self Storage”

(March 19, 2015)


Approximate CTR by PPC Position

(WordStream, February 2013)

Position

Storage CPAs $250+ $150-250 $75-$150

Storage Advertisers Local Operators

Paid media is obscenely expensive … and difficult.

6%

4.5%

2.5%

1.5%1% 1%

0.8% 0.8%

1 2 3 4 5 6 7 8

Large

Operator

Large

Operator

Large

Operator

Aggregator


It would take

per year to compete with the REITs

on PPC and SEO.

MILLIONS$

$


To some, it might not feel too bad today … but

new construction is coming.

And it’s going to be BIG.


Scary?


PART 3:

How Aggregators Help You Win

Online and Defeat the Boogeyman

1


1.

More Facilities

2.

Partnerships

3.

Conversion Rate


Total Facility Relationships(Site Crawls, August 2013)

More facilities than

all the big guys

combined.

REITs Top 100 Mom & Pops 11,000+

1,000+

2,200+

Aggregators


Unmatchable Supply GrowthTotal Facility Relationships and Annualized Growth Rates

(Site Crawls, February 2015)

+100 per year via acquisition

1,000+

2,200+

Primarily Mom and Pops

REITs Top 100 Mom & Pops 11,000+Aggregators


Mom & Pops

1,000+

2,200+

Primarily Mom and Pops

Aggregators are

growing atthe rate of the big

guys in a year.10X

REITs Top 100 Mom & Pops 11,000+Aggregators

+100 per year via acquisition


And It’s Working

Rapidly outpacing the big guys’ traffic.

Large

Operator

Large

Operator

Rapidly outpacing the REITs

Monthly Visits

Large

Operator

Aggregators


SEO and PPC are only part of it.

More than half

of aggregator volume comes from partners.


Partner networks drive the majority of traffic to your facilities.

Stolen from the big guys

Partners


How? Aggregators won these deals because they

had the coverage to fulfill partners’ demand.

Overall, aggregators fight for this traffic –with a majority going to you!


New Channel:

TV Ads

TV ads create demand by

getting people who otherwise

wouldn’t to think about self-

storage.

Leverages the collective

power of 9,000-plus

independent storage facilities

to compete against bigger

players.

Opens up a new marketing

channel that was previously

only available to the largest

operators with the biggest

budgets, like Public Storage.


A/B iterative testing

PhD-led analytics division

and a dedicated design team

In addition to more than 4 years of tests and deep analysis.

Conversion Rate Is King


A/B Test: Mobile Usability

Results: Participants indicated that they preferred the current site 62.5%

of the time, and the new site 32.5% of the time

vs.


Compete with

the Big Guys

TimePeople

Cutting-edge technology

Dollars$

Aggregators Make an Overall Investment


YOU CAN WIN

by having your own website

and online marketing.

AND by partnering with aggregators to compete

with the big guys together as an industry.


THANK YOU!

Questions?


Contact the Presenter

CEO

SpareFoot

512.705.6208

[email protected]

www.sparefoot.com

Chuck Gordon

mailto:[email protected]

http://www.sparefoot.com/

Thank You!

Date post:	17-Jun-2020
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