Disclaimer: This post was not written by AI. Unless I’m an unwitting digital construct programmed to believe he’s human. But then I really shouldn't be so tired all the time.
AI, or artificial intelligence, is everywhere you look these days.
Every tech company on the planet is powering their services with new, cutting-edge AI innovations - but what does this actually mean?
Join StoragePug as we break down what artificial intelligence can and can’t do for your storage facility!
2024 Update: I'm revisiting this article because a lot of storage operators have been asking me about AI. Ultimately, AI can help streamline some stuff you do anyways, but no one has cracked the code on making it a huge revenue generator -- yet!
AI is in the news every day, big companies are dropping billions on the tech, and the showcases, like ChatGPT, are genuinely incredible! Operators are worried they're missing out on some game-changing technology - that they're wasting time!
Nothing that AI can do for self storage is that big - yet. AI is great for composing emails and crunching data. It works well for chatbots, provided you've got someone to help when the AI gets out of its depth.
Someone might come up with a great way to use AI that no one else has thought of yet, but at the moment small facilities do not need to invest heavily in AI tech. If you really like the idea of a chatbot to interact with your customers and answer questions, go for it. Just don't expect it to turn a struggling facility around on its own.
In this article, we’ll go over the newest, shiniest tech and break down whether or not you need to add any of it to your storage facility!
One good definition of AI is “a machine’s ability to perform the cognitive functions we associate with human minds.” Using this, AI is simply a machine that can do stuff we thought only humans could do.
Often, the term is applied to machine learning, in which the machine is programmed to go and find patterns, rather than having the patterns built into the code.
For example, a machine learning algorithm may be taught how to move chess pieces on a digital board, but not which moves to play. Instead, it’s taught to try all moves and then assign value to those that lead to victory. The AI does this trillions of times, and by the end, it knows better than any human which chess moves win the game.
Lots of different technologies fall under the modern “AI” umbrella, but most of them have to do with broad-based pattern recognition.
One reason these machine learning AIs are booming right now is that the amount of data they have access to has exploded too. There are more web pages than people on earth, and the big AI names, like ChatGPT, have access to all of them.
Finally, the machines have as many examples of language as they do of good chess moves.
Large self storage businesses use big data analytics to understand the behavior of their customer base, predict what will happen next, and make decisions based on this information. AI can analyze huge amounts of information and (hopefully) pull useful insights about who rents from you and how you can find more of them.
Big data can help target marketing initiatives, such as Google or Facebook ad campaigns targeting people who might be interested in renting a storage unit. Big data can also help manage rates by tracking rate changes across the internet.
AI data analytics is still going to require someone who knows the industry to interpret and implement the information. Just like with any AI, you should be careful with the results. However, AI can be useful in sorting through masses of information that would overwhelm our puny human brains.
For smaller operations, this often isn't necessary. Until you have thousands of customers, using the AI to crunch that data might not save any time over going through the data yourself. The AI doesn't know what numbers you need - you still have to do that part.
AI can also enable your software to suggest relevant amenities to your customer - moving boxes or a climate-controlled unit - by understanding which customers tend to buy what under which circumstances.
This usually isn't as good as having a manager offering services to customers, but it's better than nothing. Try out AI-driven add-ons and see if they work (if your software offers it), but don't drop a bag of cash to add it.
Data crunching technologies aren’t the exciting ones. We’ve been able to do this sort of thing for years, even if the actual use cases have been shifting.
No, the excitement comes from generative AI.
This includes ChatGPT and its competitors, such as Google Gemini and Claude, and it includes art-creating AI such as DALL-E, Midjourney, Stable Diffusion, and others.
Generative AI can do things that computers haven’t been able to do. Stuff we assumed only people could do - like creating art.
Really, this is almost an inversion of the Big Data analytics. Instead of pulling patterns out of data, AI takes the patterns it learned and creates data that fits the pattern!
The machine tries millions of iterations and tests them against the patterns it has learned. Then the algorithm asks actual people to say “yes, that looks like a bird,” or “no, that’s clearly a nightmare a bird had once.”
The chat-based ones can pull information from across the internet to answer your questions in a similar way - putting words in the order it has learned humans want it to. You’ll get “hallucinations” because sometimes the algorithm decides to give you what it thinks you want; it’s hard to program truth.
Of course, the versions of DALL-E or ChatGPT that we see have already been through these trainings, so they sound and look fantastic, magical… even human.
The technology is without a doubt impressive, but is it really going to transform the economy? Are we on the cusp of colonizing the solar system - and if so, will we need storage facilities there?
Self storage operators are finding ways to utilize new technology, but for the moment the AI revolution is only making our existing tech better, rather than changing the landscape.
Lots of companies have started using generative AI like ChatGPT to write content for them - including when they build websites.
StoragePug does not use AI in our content process, either for our own blog (hi) or for the websites we build for our clients. Why?
Because Google and other search engines don’t love AI-written content. AI content doesn’t rank as highly on search engines, because AI content does not have Authority, Experience, and Expertise, three massively important ranking factors.
Generative AI scrapes other sources for information, and the search engine can’t track those sources. On the other hand, posts written by authors with an extensive history of providing valuable insights on a topic - or at the very least humans who have experience with the topic - are a source in themselves.
You know those annoying “prove you’re not a robot” tests that you have to do to log in to websites sometimes? Basically, Google’s robots are giving those tests to AI-generated content and finding them wanting.
Ironic, I know, but good for us human writers! (Which is the most “he’s probably a robot” sentence I’ve ever written).
Here are a few technologies to keep your eye on when you’re improving your storage facility!
What are chatbots in self storage?
ChatGPT and its competitors are the next evolution in chatbots and autocomplete.
These are supercharged versions of the program in your phone that suggests the next word in a text message. Not only can the algorithms predict what word comes next in a sentence, they can predict what sentence comes next in a paragraph.
Chatbots can answer questions, form complete “thoughts,” and communicate with customers in a very human manner.
Are self storage chatbots useful?
Yes! Self storage chatbots can be incredibly useful in the right context. They’re great for providing information to your customers that might otherwise require a manager. Instead, your manager can spend their time on other, more difficult tasks.
There are different levels of chatbot as well, ranging from simple ones that can answer common questions to machine-learning chatbots that can learn from customer interactions.
For most self storage operators, the simple chatbots are good enough. People aren’t clicking into your site hoping for a conversation with a robot - they need answers to simple questions (do you have any 10x20 units available?) that a chatbot can easily find out for them.
Swivl is one popular option for self storage chatbots. These AI helpers can reduce the calls sent to a call center and help you improve conversion. They’re also always on, so customers can find help and rent units even when you’ve locked up the office and gone home.
However, if you go with a chatbot you should consider a call center too. If someone is talking with your chatbot after hours and they run into a problem, they'll want to talk to a real person.
Also, don't act like your chatbot is a person. AI chatbots are great at imitating people, but if a potential customer thinks she's talking to "Janine" and then "Janine" can't help her with something, that's bad.
What is self storage rate management?
Rate management is the practice of keeping your rates even with the market. Since the market is always fluctuating, it’s tricky to keep up with the changes!
Rate management software can adjust your rates constantly to keep them near what the market is looking for. That means instead of manually adjusting the price of your 5x5 every six months (or longer), your software can do it for you. A good algorithm can also adjust downwards if you’re not finding the demand you want.
Is rate management software useful?
It can be! If you’re struggling to keep your rates where they should be, an option like Prorize or Veritec can increase the money you make per storage unit by 10% or more.
If you’re running a single small facility, though, the cost of the software may not be worth the extra money it might be able to bring you. On the other hand, if you’re growing your business and haven’t already gotten a handle on rate management, AI rate software can make a big difference.
What is lien automation for self storage?
Automating self storage liens can make the entire process much easier and less expensive. While auctions can theoretically make you some money, it’s far more common to lose money on a delinquent tenant overall. An empty storage unit is worth more than the auction money.
Automation software can help you recoup the lost money with the least possible effort. Be sure you choose an option that can integrate with your self storage software. If your lien automation program, such as AI Lean, can’t talk to your PMS, it won’t be nearly as effective.
Is lien automation useful?
Yes, but it shouldn’t be your first priority. If you find yourself spending a lot of time on liens and auctions, automating the process can free you up to take care of other tasks. If liens aren’t a big part of your business, then adding automation won’t bring as big a benefit.
Either way, lien automation is a time saver rather than a money maker. Still useful, but not the game-changer some folks are looking for.
How does AI surveillance work in self storage?
Video surveillance helps to deter thieves and vandals - and it can help you determine what happened on the property if something goes wrong. If someone backs into your storage unit, surveillance cameras can "encourage" the offender to make it right, rather than driving off.
AI can improve your surveillance capabilities by monitoring the cameras and detecting intruders, then alerting a video monitor to determine what to do.
This gives your surveillance a chance to actually prevent incidents, rather than just responding to them. Some systems give audio warnings to unwelcome visitors or can even alert the police - and having a human monitoring the system can help avoid false alarms.
Is AI surveillance useful?
Yes, if you have security problems or if your customers would want the amenity. Security is very important to self storage renters and if you upgrade to AI monitoring, you should let them know.
If you find yourself dealing with off-the-clock incidents often, AI software such as Blue Eye could help monitor the facility when you’re not there. Using AI surveillance during business hours isn’t as useful because it’s impossible to determine a valid customer from a thief just through the cameras.
If you’re open 24/7, the software won’t be as helpful.
At the moment, the biggest thing AI can do for your self storage business is improve the things you’re already doing - security, customer service, rate management, and auctions.
You can also utilize AI such as ChatGPT to make writing and maintaining a blog easier - but a self storage blog isn’t that useful for your website anyway.
That doesn’t mean that AI won’t revolutionize the industry, but at the moment it’s just enhancing, rather than changing, best practices. The same principles that have served you well will continue to do so - automate to provide a good customer experience, automate to save time, and don’t automate the parts that need a human touch.
Your customers have an important vote in how much you automate too - some communities will love new tech, while others would rather nothing change. Some AI options can be implemented entirely on your end, while others require customer buy-in.
You know your business best! AI is always evolving, and you can jump on board whenever it makes sense for you.
Don’t worry about missing the boat.
Want to see more interesting self storage information and guides? Check out some of these posts:
At StoragePug, we build self storage websites that make it easy for new customers to find you and easy for them to rent from you.
