Automation is putting the ‘self’ in self storage, with customers at many facilities now able to book, pay and move their items in without ever needing to speak to staff. It’s becoming clear that self storage operators who embrace change and innovation will be the ones who reap the benefits – now and into the future.
Even before the coronavirus pandemic, manual systems and processes were being disrupted and usurped by a wave of digital transformation. But after two years of social distancing and lockdowns, this trend has shifted into overdrive.
Johnno Wildon, product owner for self storage software provider Storman, puts it best when he says that while the past few years have been a challenging time, “they’ve encouraged people to think outside the box regarding how technology can play a part in self storage.”
It’s undeniable at this point that automation is making self storage more convenient for customers and operators alike. It’s no surprise, then, that SSAA members rated technology and automation as their top priority and area of interest in our survey earlier this year.
In the June/July edition of SSAA Insider, available now through the SSAA Member Portal, we look into solutions for facilities of all styles, shapes and sizes, from online sales journeys to self-service apps and smart access technology to unmanned sites.
Here are some of the key takeaways from our deep dive into automation and technology.
Modernise your mindset
The transition from a traditional self storage business model to a largely automated one takes more than technological tools, of which there are plenty available. It takes a willingness to embrace change.
Gavin Shields, who runs two unmanned facilities in the UK and is the CEO of self storage sales and management software Stora, says the biggest roadblock for self storage operators isn’t a lack of access to technology, but a lack of commitment.
“Many like the sound of more profits with less effort, but struggle to commit to the entire model, and then implement diluted hybrids or swap between models monthly,” he says. “When the numbers don’t deliver, they blame the model rather than its implementation.”
He says it’s important for operators to look at automation the same way they look at all the other incremental improvements they’ve made to their business over time, from updating hardware to installing new fittings and hiring staff.
“All of these changes are disruptive at the time, but once embedded with new processes to support them, businesses grow,” he says. “It’s the same with moving to the unmanned model.”
Miles Davis, co-founder of self storage software provider Storeganise, agrees that the implementation of cutting-edge tech solutions lags behind the capability of the tech itself.
“Automation, at first, sounds like an expensive undertaking,” he says. “While it can require some refurbishment or retrofitting, it brings tangible benefits for both the customer and the operator.
“The benefits for implementing a self storage management system are too convincing: user-friendly interfaces, streamlined processes, reduced overheads, and cloud-based systems. A partially or fully automated self storage business means more flexibility.
“Automation is a means to lower costs and improve profits.”
Fish where the fish are
Davis says that automation ultimately gives customers more control over how they interact with your business, and makes your business more accessible to a broader range of customers.
“Self storage customers of tomorrow are the internet generation – born with a smartphone in their hands,” he says. “Do you see them making an appointment to see someone to book a storage unit?”
Automation is about technological solutions that meet the growing technological sophistication of consumers. And in a world where the new norm for buying behaviour is tapping, not talking, the majority of customers will prefer to book and move their belongings into their unit without ever needing to speak to another human being.
Jason Keane, CEO of Storage Security Group, says the key to successful automation is providing customers with choice.
“Operators and customers benefit from inclusive products,” he says. “A system that provides access using a swipe card, a PIN code, Bluetooth, or remotely using an app means customers can interact with it in a way that suits them.”
Mark Greig, Chief Operating Officer of StoreLocal, says it’s about simplifying the process and removing barriers for consumers. StoreLocal’s state-of-the-art multi-use site in Hendra offers four levels of keyless storage, with hardwired Bluetooth electronic locks that allow tenants entry to the facility and their storage unit using a smartphone.
“We’re travelling lighter and lighter each day – so why not continue to simplify? Our Bluetooth system was put in place to do just that,” he says.
“For customers, booking a storage unit should not require multiple tabs and windows, so we simplified our customer journey to a one-page experience. We mean business when we say hassle-free. Our clients can review units, book, and pay online without changing pages.”
Adam Tolhurst, who previously operated a storage facility in Penrith, utilises Storco’s Global Entry, a cloud-based access management system that gives clients the ability to unlock units from anywhere in the world.
“There’s plenty of customers who can access the facility overseas or interstate,” he says. “We do get many people who might book online for their parents who maybe aren’t so tech-friendly, so it opens our market up to a wide range of customers.”
Human after all
Much of the talk around automation centres on the ability to scale operations and manage multiple sites with fewer staff – a particularly attractive angle at a time when staff shortages have been felt across numerous industries, including self storage.
But that also suggests redundancies, which obviously doesn’t appeal to facility owners who have had loyal staff in place for years.
For Gavin Shields, however, ‘unmanned’ doesn’t mean no staff. It means that while the user experience from booking to move-out should be wholly self-serviced to meet the market’s demands, that experience should exist alongside operational staff who can answer customer calls when required and put the bulk of their time to better use.
“You don’t have to downsize your staff,” he says. “[You can] use their time and skills in more valuable ways.
“For example, get sales solely focused on creating customer referral programs with local enterprises in the supply chain and generating high volume B2B rentals. Free your finance team from mundane tasks like invoice processing and chasing delinquencies so they can drive strategic growth initiatives like business expansion, supply chain efficiencies, and improvements to the analytics needed to manage company performance and support decision-making.”
“Nobody will miss the manual, repetitive tasks currently in the sales and fulfilment process. Instead, the shift creates bandwidth to upskill, do more-rewarding work, and increase their value to you and future employers.”
Storeganise co-founder Miles Davis agrees that automation doesn’t have to mean downsizing, but can simply free up staff for the jobs that require a human touch.
“What kind of jobs do humans hate but computers excel at?” he asks. “Repetitive, regular, menial tasks – such as sending invoices, confirmations, reminders, making bookings, and processing payments – entry-level automation. Self storage management software can take over these tasks leaving staff to focus on things that humans excel at – managing customer satisfaction.”
Safety first
Tim Callinan, general manager of Action OHS Consulting, says the technology that enables automation has come along at the perfect time for the self storage industry.
“The impact of the Covid pandemic meant that across all industries, the principles of social distancing were used to control the risk of transmission,” he says.
“Incorporating technologies such as self-service kiosks and robotics reduces the need for customers to interact with staff every time they need to access their units. Both can help eliminate the risk of transmission.
At the same time, Callinan says that the rise of automation creates a new set of hazards that businesses must address – particularly where those facilities are staffed by a solitary employee.
“There have been significant technological improvements to assist workers in isolation,” he says. “The technology exists in a variety of wearable devices such as handsets, wristbands, or lanyard attachments. These devices can create a sense of security for lone workers in knowing that they have immediate and direct access to other team members and managers during any emergency.
Dynamic data
With more automation comes more data, and a greater understanding of your customers’ behaviour. This data can then be entered into dynamic pricing software, which is starting to gain traction across the sector.
We surveyed a panel of industry leaders for SSAA Industry Snapshot 2021, and found that operators who have established proactive revenue management systems say the results have been well worth the investment.
AI-powered revenue management applications can consider a range of inputs and provide predictions to guide intelligent pricing decisions. In addition to first party data, AI-driven revenue management applications can also consider things like competitor activity, seasonality, marketing campaigns and demographic factors to guide pricing decisions.
From demand forecasting to monitoring marketing and online activity through to recommending rate increases for existing customers, these platforms have the capacity to influence decision-making across many aspects of a self storage business.
And while our survey found that some operators believe they are already using these revenue management systems to their full potential, others said this is just the beginning of where an AI-driven approach could take self storage.
You can read more about the emerging trends in self storage technology and automation in the June/July edition of SSAA Insider, available now through the SSAA Member Portal.
We’ll also be focusing on technology and automation at our events later this year, including the Annual SSAA Convention from 9-11 November at Sheraton Grand Mirage Resort on the Gold Coast, with opportunities to see and learn first-hand how operators are developing their digital environments. Learn more and register your interest here.