Web Marketing Straight Talk: Who s the Real Boogeyman? Presented by Chuck Gordon, CEO SpareFoot
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2 Web Marketing Straight Talk: Who s the Real Boogeyman? Presented by Chuck Gordon, CEO SpareFoot
3 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
4 PART 1: How to Win Online
5 No New Tenant Is Free Of course, it would be amazing if all customers were walk-ins.
6 No New Tenant Is Free 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.
7 No New Tenant Is Free $ 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.
8 You Already Know Web Marketing Is Critical Walk-in and other offline Online paid, PPC, aggregators, etc. Your own website and SEO
9 Your Website
10 If your facility has great signage, service and presentation onsite, but just needs folks to get in the door and experience that How can you represent that same presence online?
11 Good Overall Rating Average rating above 4.0 (of 5.0) Professional Photos At least three professional photos Review Volume At least one review per facility every quarter Storage consumers value and book units based on Operational Efficiencies Professional, friendly, reliable, knowledgeable staff Integrated Software Accurate, real-time availability, prices and promotion Concise Description Clear, concise description highlighting facility amenities
12 Play to Your Strengths and Show Off on Your Website SECURITY, REVIEWS $ FOLLOW-UP CALLS SHOPPING BOOKING MOVING IN Warm and Fuzzy It s all about reassuring the customer that he will get great service a warm, fuzzy feeling that s critical to his buying decision.
13 The Internet Is Scary: Establish Trust
14 SEO
15 Google Search At least one in four folks click on the first listing, while 50% of all consumers will click on the first eight listings. You have to be there You don t become No. 1 overnight.
16 You Know It s Competitive Out There All your competitors are fighting for Google s top spots.
17 The Reality A single storage facility that does everything right (great website, SEO-friendly) has a ceiling of how high it can get in search rankings.
18 $X 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.
19 So hire a great company to do your SEO, but don t expect #1
20 PPC
21 $ PPC Many storage operators use Google pay-per-click advertising (PPC) to ensure their website appears on page one.
22 Why PPC Is Hard $ Complicated Expensive Competitive
23 Cost per click (quality score x bid) How PPC Works Inquiry or booking conversion rate Your incurred cost per customer Spend x CR = CPA Conversion rate is the number of people who ultimately make an inquiry or booking with you, divided by the total number of paid clicks. Quality score is an estimate of how relevant your ads, keywords and landing page are to a person seeing your ad.
24 LTV You must understand your LTV to spend on PPC and other channels.
25 Lifetime Value (LTV) Average customer length of stay Your average rent amount For most operators, this is around $1,200.
26 Measure Your Marketing CPA Total amount spent Total customers acquired 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.
27 PART 2: The Real Boogeyman Revealed!
28 Biggest Players Dominate Storage Number of Facilities (2012 Facilities and 2013 Acquisitions) 2,268 We re seeing the REITs taking the market share from smaller, less sophisticated operators. So that bodes well for a larger, more sophisticated platform. VP Investor Relations, REIT 1,203 Top 100 Mom & Pop 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. Sources: 2012 & 2013 Self Storage Almanacs, public filings SVP Marketing, REIT
29 Massive Tech/Data Advantage
30 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.
31 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.
32 Biggest Players Dominate Search Search Results for Self Storage (March 19, 2015) Approximate CTR % by SEO Rank (Chitika study, June 2013) Largest REITs dominate search 75% of volume goes to top five results 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
33 Paid media is obscenely expensive and difficult. 6% Approximate CTR by PPC Position (WordStream, February 2013) 4.5% 2.5% 1.5% 1% 1% 0.8% 0.8% Position Storage Advertisers Large Operator Large Operator Large Operator Aggregator Local Operators Storage CPAs $250+ $ $75-$150
34 It would take MILLIONS $ $ per year to compete with the REITs on PPC and SEO.
35 To some, it might not feel too bad today but new construction is coming. And it s going to be BIG.
36 Scary?
37 PART 3: How Aggregators Help You Win Online and Defeat the Boogeyman 1
38 1. More Facilities 2. Partnerships 3. Conversion Rate
39 Total Facility Relationships (Site Crawls, August 2013) Aggregators REITs Top 100 Mom & Pops 11,000+ 1,000+ 2,200+ More facilities than all the big guys combined.
40 Unmatchable Supply Growth Total Facility Relationships and Annualized Growth Rates (Site Crawls, February 2015) Aggregators REITs Top 100 Mom & Pops 11,000+ 2,200+ Primarily Mom and Pops 1, per year via acquisition
41 Aggregators are growing at 10X the rate of the big guys in a year. Aggregators REITs Top 100 Mom & Pops 11,000+ 2,200+ Mom & Pops Primarily Mom and Pops 1, per year via acquisition
42 And It s Working Monthly Visits Rapidly outpacing the REITs Aggregators Large Operator Large Operator Large Operator Rapidly outpacing the big guys traffic.
43 SEO and PPC are only part of it. More than half of aggregator volume comes from partners.
44 Partners Stolen from the big guys Partner networks drive the majority of traffic to your facilities.
45 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!
46 New Channel: TV Ads TV ads create demand by getting people who otherwise wouldn t to think about selfstorage. 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.
47 Conversion Rate Is King 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.
48 A/B Test: Mobile Usability vs. Results: Participants indicated that they preferred the current site 62.5% of the time, and the new site 32.5% of the time
49 Aggregators Make an Overall Investment People Time Compete with the Big Guys Cutting-edge technology $ Dollars
50 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.
51 THANK YOU! Questions?
52 Contact the Presenter Chuck Gordon CEO SpareFoot
53 Thank You!
54
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