Integrated Platform

Maximizing Revenue







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MAXIMIZING REVENUE

We have delivered exceptional results with our management expertise. Our platform and our technology advantage are how we continue to grow our business and our brand, with an online marketing presence that is second to none.

Last year one of our greatest accomplishments was the successful integration of our revenue management, call center and online marketing teams. This seemingly simple structural change enabled enhanced collaboration and insight into areas of inefficiency and positions us to offer the right price, with the right promotion at the right time, to the right customer.

91.4 Percent Annual Occupancy
7 Percent Same Store Revenue Growth

Our operational excellence continues to distinguish us from our peers. With our integrated platform, we are able to gain efficiencies, control our costs and maximize our revenues. As a result, our performance once again was among the best in the self-storage sector in 2014.

Technology Advantage

At Extra Space Storage, we are focused on being the best at getting better and we are committed to continuous improvement. We continue to make long-term investments that give us the technology advantage to produce best-in-class results.

For example, in 2014 we expanded our team of technical experts to build on our strength in analyzing customer, transactional and operational data. We also began updating our enterprise resource planning software, which will give us even greater operational and financial capabilities when we complete rolling it out in 2015.

Driven by innovation, we are always looking forward and our investment in our data-driven platform positions us for more growth in the years ahead. Our technology advantage also sets us apart from less sophisticated operators, allowing us to gain more market share.

Internet Marketing Prowess

Over the years, we have developed a strong reputation for marketing expertise. We have built one of the industry's most visited and effective websites, which enables real-time pricing and promotions and optimized experiences for specific customer segments. Approximately 80% of customers interact with us online before they complete a transaction, whether on our desktop or mobile site, at the call center or in the store.

Through paid online advertising, organic efforts and social media, we continue to generate significant web awareness – one of the most important ways our customers first become aware of Extra Space Storage. With millions of unique web visitors each year, our web reservation conversion rate continues to grow and has outpaced cost-per-click and overall search engine marketing cost increases. Size matters on the Internet. Our nationwide platform gives us economies of scale and a distinct advantage by putting us into consideration with a vast number of potential customers.

Marketing to mobile devices remains a strategic focus, accounting for a growing percentage of our rentals. Our mobile website is seamlessly integrated with our marketing, revenue management, and operations systems. We are constantly gaining new insights into customer behavior, which strengthens our ability to attract customers when they search for storage from their smartphones and tablets.

Data-Driven Expertise

Today, we believe our single most valuable asset may be our data. We continue to leverage marketing and pricing to maximize the value of each customer interaction. Our national platform and the power of the Internet allow us to achieve results that smaller, less sophisticated operators simply can’t match.

By expanding our Internet marketing team’s expertise in analytics and yield management, we are improving our customer acquisition strategies. Our superior systems are delivering outsized results through the Internet, driving a larger share of traffic to our facilities at the expense of smaller operators.

Our ability to convert more reservations into rentals has helped us lower our cost per acquisition, benefiting the bottom line. Now our focus is on continuing to improve our conversion rates – turning more prospects into Extra Space Storage customers.

Revenue Management

We continue to leverage our sophisticated revenue management tools to maximize our growth. Our platform is more predictive than ever, giving us real-time information to weigh supply and demand and then set the best possible lease rates. We also consider the forecasted value of customers based on customer segments and use that information to better coordinate pricing with our Internet marketing strategy to optimize long-term value and decrease churn.

As market conditions change, our multi-faceted revenue management system automatically analyzes rate and occupancy to find the ideal balance. This lets us maximize rates, minimize discounts and optimize occupancy, which reached a record high of 92.4% in 2014. In addition, we offer varied rates and discounts by channel, empowering each sales channel to perform at the highest level. By carefully managing our pricing, our level of spend on Internet advertising, and the use of discounts and promotions, we are keeping our efforts in sync to optimize revenue.

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