Austin, Texas-based self-storage aggregator SpareFoot has released its Tenant-Value Calculator, a free interactive tool that allows self-storage operators to quantify the lifetime value of a new tenant, giving an idea of how much each prospective customer is worth. Storage owners and managers can instantly compute this analytic using their real numbers around rental rates, length of tenancy, and acquisition cost.
Available at www.sparefoot.com/library/tenant_value_calculator, the tool was created as a solution to a common problem for storage businesses: determining how much they should spend on marketing to earn return on investment (ROI) from every new tenant.
“They’re exact calculations, down to the penny," said developer Evan Huston. "You can use it to calculate the ROI for one specific person, or your average.”
The calculator adjusts in real time based on user-entered data to reveal the date on which a storage facility can expect to profit from a new tenant. Two graphs illustrate revenue from a tenant over time. The calculator can also be used to compare the value of different marketing platforms, such as fliers or online efforts.
“I’m excited anyone can use it, even without being a client,” said account manager Sara Richardson. “It gives facilities an idea of what our company is about.”
Founded in 2008, SpareFoot.com lists more than 5,000 self-storage facilities in its nationwide directory, which allows consumers to find, compare and reserve self-storage units online. Through multiple websites including SpareFoot.com, SelfStorage.com, Apartments.com and many others, SpareFoot helps self-storage operators find new tenants through a pay-for-performance model. The company is backed by Silverton Partners, FLOODGATE and Capital Factory.