If you’re like most storage owners, you spend a lot of time evaluating the return on investment (ROI) of various aspects of your business. While having a luxury espresso machine in the manager’s office sounds lovely, it probably doesn’t create more profitability for your business (unless said manager does 5x the work after enjoying his or her morning espresso). Now... your website? That’s a different story. You know the ROI on a mobile responsive, search engine optimized website is huge, but how do you really calculate it?
When you’re evaluating your marketing ROI, whether it be from radio ads, digital marketing efforts, or simply a billboard on the freeway, it’s essential to factor in the average lifetime value of a customer (ALV). Your business’s ALV tells you how long the average tenant rents from you at the average price of a unit. For example, if your average storage customer pays $100/month and stays for 12 months, the ALV will be $1,200. As ALV increases, so does your ROI. The following infographic was created to show the relationship between ROI and ALV, and how various marketing efforts stack up when compared side-by-side. Check it out below!
Click below to enlarge.
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