ISSUE: Sep/Oct 2008

THE COMMUNICATIONS TEST

Avoiding The “What Have You Done For Me Lately?” Mindset

By: Linnea Appleby

Self Storage Communications Test

We all know that great customer service is the way to get and keep tenants at your storage facility. We smile on the phone, stand when people enter the office, visit them on the property when they are loading up their unit, etc. But, how about those tenants that you never see? They sign the lease, then send you a check every month, and that is the extent of your relationship. You really don’t have much of a chance to interact with them and continue impressing them with your great customer service—until they get the rent increase notice. And that gives them cause to wonder if they really need to keep that stuff and more importantly, pay to keep that stuff. Tenants then get the “What have you done for me lately?” frame of mind. So, how do we overcome that mindset and continue to have good communications with our tenants?

A good place to start is with a well written welcome letter. Most facilities are now doing this as part of their regular rental process. If you have not started this, I suggest you consider implementing a welcome letter as a standard business practice. It is an easy way to get off to a good start with your tenants.

A welcome letter can accomplish several things. First, it helps solidify the rental experience in the customer’s mind. Hopefully, the rental process was an easy, pleasant experience. It also gives you the opportunity to reiterate some of the points you went over in person that they may have forgotten, like your office and gate hours, insurance options, ancillary services, and even your name.

Welcome letters can also provide a great opportunity to remind customers of your facility’s referral program. For a first-time storage user, the initial experience of standing at the counter and doing business can be a lot to take in. Often, customers get stuck thinking only about what they need to do or remember for their own use. When they get a letter with a referral program reminder, they have had a chance to absorb the information and are in a better position to think about referrals.

Pushing customer service aside for a minute, the most important part of the welcome letter is that it verifies the address of the tenant. If a letter comes back undeliverable, you can start the process immediately to contact them and get correct information. It is generally a requirement at most self-storage facilities that tenants keep correct and current contact information as part of the rental agreement. Talk to your supervisor about your facility’s specific policy on how to handle returned welcome letters.

Toot Your Own Horn

Another good time to send a note to a tenant is when you have chosen to waive a fee or provided some other monetary consideration. For example, suppose a tenant sends their payment in the first time and it is short by 50 cents. Some managers think to just throw in some spare change and make it even for the tenant so they do not accrue fees and such. Instead, use the opportunity to let them know you have done this for them. Send a balance due letter with a handwritten note on it that just says something like, “We have you covered this month! Thanks for your business!” Is it worth the cost of the paper and a stamp to let them know you covered them for 50 cents? Yes! Anytime you do something nice for a tenant, you should let them know.

Use this same philosophy for those times when you find a payment in the door, but it arrived just a bit too late and a late fee has been applied. If you want to waive the fee for a tenant, send them a letter letting them know what you’ve done for them. Is it tooting your own horn? A little bit. But more importantly, it is providing great customer service and documenting it!

Take the time to send a letter to all tenants when you are having capital improvements done to the property. Perhaps you are seal coating the parking area, remodeling the office, or repainting the building. A nice letter, one that lets them know that you are taking good care of the facility in order to better serve your customers, is a good way to keep in touch on a positive note. This is an especially good tactic when you are planning to do rent increases in the near future. Tenants are less likely to be upset about a rent increase when they see that you are upgrading and taking care of the property.

Take a moment to think about any changes at your self-storage facility. Have you added new services to the facility that your tenant base may not be aware of? Maybe you have increased your supply of boxes and packing supplies or are now offering customers’ the ability to pay with rent insurance or monthly auto bills. Perhaps your facility now rents trucks or offers a free rental for new clients. Sure they have already moved in, but a note about this new service along with a referral program reminder might get them thinking about friends or family. Do they know that you have notary services or propane exchanges and shipping services at the site? Send them a letter letting them know what services you have added to increase their convenience. Also, make sure you send press releases to the newspaper for any new services you offer.

Auctions also provide a good opportunity for communicating with customers. Make every effort to keep customers informed about any upcoming auctions at your self-storage facility. Not only is this a good way to increase attendance at your auctions, but it also solidifies the effects of nonpayment. Simply ask each new tenant if they would like to be on the contact list for auctions or public lien sales. This will give you the chance to contact them regularly—as frequently as you hold these sales. Let them know they are not obligated to come or buy anything; you would just like to notify them of the date and time if they are interested. Often, just this question at the time of rental will allow you to review the schedule of nonpayment with the new tenant.

As a side note, e-mail is also great way to notify folks of upcoming sales. This gets the job done and is much cheaper than regular mail.

Make the most of postcard mailers and direct mail. Don’t forget to include your current tenant base in all of your marketing mailings. Sure they are already tenants, but your existing customers may know someone who can use the offer. Consider that the phone companies, cell phone providers, satellite and cable companies, and many other large corporations send marketing materials to their current clients. Self-storage is no different. Of course, you’ll want to save special offers for new business, but keep in mind that the deal may be enticing enough to convince a current tenant to rent a second unit.

Take the time to send a letter to all
tenants when you are having capital improvements
done to the property.

Communicate And Celebrate

If your facility holds a special customer appreciation day or any similar event, spread the word. Take this opportunity to send out a mailing to inform current tenants of any upcoming events and celebrations. This can be a great way to get the ball rolling with customer communications. People always like to celebrate success. Let them know of plans for a grand reopening, building dedication, or ground breaking ceremony for a new phase. If you have something special just for current tenants, like a drawing for a prize or a special event like a bus trip to a baseball game, then sending out a note to your customers is always welcome and appropriate.

Newsletters can be a great communications tool, as well. Some companies like to create and send newsletters to their tenants, local residents, area businesses, and other community organizations. A short, but smartly written, well-timed newsletter with interesting tidbits can be helpful.

While creativity is always a plus when communicating with customer, consider this word of caution—always use company approved letters and mailings. Do not create and send anything on behalf of your company without permission from your supervisor. In addition, it is always good to have your letters and items proofed by several people to make sure the content is correct and complete.

Managers should also take a few extra
precautions when communicating with
customers over the Internet.

Managers should also take a few extra precautions when communicating with customers over the Internet. When sending e-mail, be considerate of your customers’ private information. If you are sending a mass mailing or even addressing a note to more than one person in the same e-mail, make sure you know how to blind copy so personal e-mail addresses are not shared with the world. Sending no correspondence is better than sending bad correspondence.

These suggestions are just a small sampling of all the possibilities for managers to creatively communicate with their customers. By now, you should have some ideas of your own that can be used at your facility.

Keeping the lines of communication open is always good for both the customer and the storage business. Adopt some of these ideas, and you will be well on your way to continuing to offer and show great customer service.

On a final note, remember to keep a copy of everything you send so you have good documentation for your files. It can also be a good reminder of what did and did not work in terms of successfully communicating with your tenants. Of course, the best test for effective communications goes hand in hand with pricing changes at the facility. You’ll know you’ve succeeded when the dreaded rent increase notice comes out and none of your tenants ask, “What have you done for me lately?” Instead, they will know what is going on at the facility and continue to remain loyal to you as a manager and to your business.

Linnea Appleby is President of PDQ Management Solutions, Inc., based in Sarasota, Florida.