More businesses are recognizing the importance of pricing as a key lever to driving revenue, which is why more industries are adopting the concept of dynamic pricing, where price changes occur based on demand and other market factors. Dynamic pricing has largely been a result of savvier consumers who increasingly rely on the internet to do price comparisons and make purchases, such as when making hotel reservations, booking airfare and retail shopping. In this digital era of consumerism, businesses understand the importance of putting themselves in front of potential customers during the shopping experience. This means being able to rigorously market themselves online through websites, SEO, SEM, etc. The result has been a wealth of online digital data commonly referred to as "big data."
Although adoption of new technology has been slow in self storage, in recent years, tools have emerged which aggregate self storage’s big data and automate the process of deriving meaningful analytics from it. In the self storage industry, big data largely consists of pricing information. Think about how easy it is now for a customer to reserve a unit online, the factors which may have influenced that unit’s pricing and the number of times pricing might have changed before it was reserved. By aggregating and organizing this pricing data, these tools can determine indicators such as market and competitor pricing volatility, rate trends and more.
As an owner or operator, having access to analytics derived from big data means a clear and in-depth understanding of your position in the market and the ability to quickly react to any sudden changes. It also gives you the insights to ensure you set pricing correctly. As a real estate investor, developer or financial professional, big data provides you with micro-level insights which are likely not part of typical due diligence reports or other market research. Pricing data analytics can reveal whether a market is underserved and help you identify where opportunities for growth exist. By investing in big data analytics tools, self storage professionals are putting themselves in a position to make better and more informed business decisions.
About the Author
Cindy Rivera is the Support & Marketing Manager for StorTrack. Launched in 2014, StorTrack is the premier source for pricing data and analytics for the self storage industry.