As millennials age they are spreading their wings, and accumulating more and more stuff. The generation, defined as those born between around 1980 and 1996, has now become the biggest cohort of self-storage users.
About 38% of self-storage users are now millennials, according to the recently released Self Storage Association Demand Study. They are followed by Generation X, which make up 27% of self-storage users. Baby Boomers totaled 19%, followed by Generation Z at 14%. The Greatest Generation notched in at 2% of storage tenants.
Like every generation, millennials come with their own unique characteristics and idiosyncrasies. Reaching them is a key to success for storage operators, but first you must understand them. Here are 5 essential strategies for unlocking the millennial market:
1. Embrace digital platforms
If you want to reach millennial customers, you have to reach them where they spend their time. For most, that place is on social media. More than 90% of millennials are active users of social media, spending more than 2 hours a day on platforms such as Instagram, Facebook and Twitter. Regularly updated and engaging social media profiles can help attract millennials’ attention and drive brand awareness. Promoted posts and advertisements targeted at likely storage users can be an effective way to attract millennial renters to your facility.
Another key component of a millennial-focused marketing strategy is boosting online reviews on platforms such as Google Maps, SpareFoot or Yelp. Research reveals that 93% of millennials seek out online reviews before making a purchasing decision, and 84% say they trust online reviews as much as personal recommendation from a friend or family member.
2. Optimize website experience
As the first generation of digital natives, millennials are geared towards the internet and doing business online. A user-friendly website is essential for capturing and retaining millennial customers, who prefer to conduct transactions online than they do in person or on the phone.
Millennials value convenience and efficiency, expecting seamless online experiences across all devices. If customers cannot reserve and pay for their storage unit online, there is a high probability that millennial customers will move on to another competitor that offers online move-ins. Offering a seamless and contactless way to rent a storage unit directly from your website is likely to boost conversion rates with millennials, as well as the growing share of Generation Z customers.
3. Utilize self-service technology
Speaking of convenience, millennials are accustomed to self-service technology in many aspects of their lives, from ordering food to banking. Self-storage businesses that cater to this preference by implementing self-service features such as online reservations, automated payments, kiosks, and digital access control systems may develop a competitive edge when it comes to attracting millennial tenants. These technologies offer millennials the flexibility and convenience they desire, allowing them to manage their storage units on their own terms.
According to one survey, 84% of Gen Z and 76% of millennials said they prefer using tech-based checkouts, compared to 57% of Gen X and 46% of Baby Boomers.
4. Offer flexibility and convenience
Millennials have long had a reputation for valuing experiences over possessions, but that hasn’t stopped them from becoming the largest segment of self-storage customers. And it doesn’t mean the conventional wisdom isn’t true either.
Many millennials use storage as a solution to support their dynamic lifestyles, such as storing seasonal sporting equipment that they don’t have room to keep in their apartment all year around. Or perhaps they need storage space so there is less clutter at home so they can live (and increasingly work) in a stress-free environment. New millennial parents also find themselves growing their families, while the current housing market makes it difficult to upgrade into a larger home–necessitating the use of storage to make room for raising kids.
Appealing to such life improving self-storage use cases provides a compelling angle when messaging millennials. Highlighting amenities that support flexibility and convenience such as 24/7 access, RV and boat storage, wine storage, and pick up and delivery services can further appeal to the millennial mindset.
5. Highlight sustainable practices
Millennials, along with Generation Z, are increasingly environmentally conscious and seek out businesses that share their values. One way to win them over is to highlight the sustainable and eco-friendly features of your product.
What does that mean for self-storage units?
There are many steps storage facilities can take to make their facilities greener, both big and small. Energy-efficient lighting and solar power are popular improvements, which also generate considerable cost-savings over time. Facilities that were converted from a previous use should highlight the environmental benefits of the diverted construction waste and the use of new building materials from adaptive reuse, providing a guilt-free rental experience for millennial consumers worried about their carbon footprint.
Remember, studies also show millennials are willing to spend more on goods and services that they feel are sustainable. By implementing sustainable features, you could make your facility more desirable and attract high quality renters while potentially elevating rental rates at the same time. But it is important to truly stand by your commitment to sustainability, as millennials shoppers are adept at sniffing out greenwashing. If the climate-friendly features of your facility are lacking, consider supporting a local environmental non-profit to bolster your eco-bonafides.
Millennial marketing mastery
Millennials are extremely diverse, not just demographically, but also when it comes to culture, personality types and preferences. Pinning them down can be a tricky proposition, especially as they age up and evolve. However as they stand to remain the largest group of self-storage renters for some time to come, understanding their needs and behavior is a crucial task for self-storage marketers.
Ultimately, millennial outreach should be a part of a multi-channel approach that addresses the entire market. By embracing social media, optimizing online experiences, leveraging self-service technology, offering flexible services, and incorporating sustainable practices, self-storage businesses can effectively target and engage millennial customers.
