This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why Clutter Storage's Business Model is so successful?

Get all the answers

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.

Clutter Storage’s Company Overview


Clutter Storage is a modern, tech-enabled storage company that aims to revolutionize the self-storage industry. Founded in 2015 and headquartered in Los Angeles, California, Clutter Storage provides an innovative, customer-centric solution to the challenges of traditional storage. Their services include packing, pickup, storage, and retrieval of items, making storage more accessible and convenient than ever before. Clutter Storage leverages advanced technology and a user-friendly platform to provide a seamless, stress-free storage experience. With their commitment to transparency, security, and efficiency, Clutter Storage has rapidly expanded its operations across several major cities in the United States.

Business Model:

Clutter Storage's business model is based on a service-oriented approach to self-storage. Unlike traditional storage facilities where customers are responsible for transporting and storing their items, Clutter Storage offers a full-service solution. Their team of professionals handles everything from packing and pickup to storage and retrieval. Customers can schedule pickups and returns through the Clutter Storage app or website. Additionally, the company uses a photo inventory system to keep track of stored items, allowing customers to view their items and request returns online. This customer-centric approach, combined with the use of technology, sets Clutter Storage apart from traditional self-storage companies.

Revenue Model:

Clutter Storage's revenue model is primarily based on its customers' recurring monthly storage fees. The cost depends on the volume of items stored and the duration of storage. The company also offers packing supplies and services for an additional fee. Furthermore, Clutter Storage generates revenue from delivery fees when customers request to have their items returned. The company's pricing is transparent with no hidden fees, which has been a key factor in its customer retention and growth. The predictability of this revenue model provides Clutter Storage with a stable cash flow and supports its continued expansion.

https://www.clutter.com/

Headquater: Los Angeles, California, US

Foundations date: 2013

Company Type: Private

Sector: Consumer Services

Category: Logistics

Digital Maturity: Beginner


Clutter Storage’s Related Competitors



Clutter Storage’s Business Model Canvas


Clutter Storage’s Key Partners
  • Retailers (e.g. Costco, Walmart, and Home Depot)
  • Moving and Janitorial companies
  • Background check providers
  • Cord blood banks
  • Investors (e.g. Sequoia Capital, Google Ventures, and SoftBank Capital among others)
  • Technological partners
  • Angels
  • E-commerce platforms
  • Distribution service providers
Clutter Storage’s Key Activities
  • Marketing
  • Invoicing
  • Collections
  • Marketing
  • Pick up and delivery
  • Data Analysis
  • On-demand photography
  • Product management
  • Customer service
  • Account management
  • Financing
  • Forecasting
  • Strategy
  • Engineering
  • IT
Clutter Storage’s Key Resources
  • Platform
  • App enables you to schedule pickups of your items
  • Coordinator to manage a team of movers
  • Movers
  • Warehouse
  • Trucks
  • Better software
  • Funding raised
Clutter Storage’s Value Propositions
  • It offers storage logistics at cost which are 50% better than industry incumbents while providing an user experience that is as good as or better than the typical self-storage experience
  • Clutter itemizes each box and works to keep it so on-demand delivery back is free and costs a flat fee of $7 per item
  • Uber for storage
  • Insured and climate-controlled technology enabled solution
Clutter Storage’s Customer Relationships
  • Hassle-free experience
  • Self-service
  • Automated storage
  • Pricing transparency
  • IOS and Android app
  • Online platform
  • 24/7 customer service
  • Long-term relationship
  • Do-it-yourself system
  • Personal assistance when required
  • Convenience
  • Affordability
  • Safety
  • Security
  • Support
Clutter Storage’s Customer Segments
  • The service is designed for busy people on-the-go
Clutter Storage’s Channels
  • Website
  • Facebook
  • Blog
  • Press
  • Telephone
  • App available in the app store and Google Play for booking
Clutter Storage’s Cost Structure
  • Employees and team
  • Facilities
  • Software
  • Ecommerce platform
  • Logistics
  • Development
  • Maintenance
  • Ecommerce platform
  • Logistics
  • Customer acquisition
  • Marketing
Clutter Storage’s Revenue Streams
  • Storage fee
  • Packing
  • Moving

Vizologi

A generative AI business strategy tool to create business plans in 1 minute

FREE 7 days trial ‐ Get started in seconds

Try it free

Clutter Storage’s Revenue Model


Clutter Storage makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Rent instead of buy
  • Access over ownership
  • Collaborative consumption
  • Customer data
  • Shared rental
  • Subscription
  • On-demand economy
  • Online marketplace
  • Digital transformation
  • Mobile first behavior
  • No frills
Analytics


Market Overview
  • Patterns
  • Sectors
  • Categories
  • Companies
  • Right click on the nodes to explore

Clutter Storage’s Case Study


Clutter Storage's CASE STUDY

Picture this scenario: You are living in a bustling urban city where space is a luxury. Your belongings overflow from your small apartment, yet moving to a larger place is neither feasible nor desirable. Enter Clutter Storage, a transformative solution that promises to sweep away your storage woes with unmatched convenience and technological sophistication. As experts in business strategy, we took a deep dive into Clutter Storage to understand what makes this modern, tech-enabled storage company a standout in the self-storage industry.

Company Overview

Clutter Storage, founded in 2015 and headquartered in Los Angeles, California, has revolutionized the way people think about storage. Unlike traditional self-storage options, where the burden falls on customers to transport, load, and store their items, Clutter offers a full-service approach. The company’s mission is straightforward: to make storage simple and stress-free. An elegant blend of technology and customer-centric services lies at the heart of this vision, evidenced by their innovative business model. Customers can schedule pickups and returns through Clutter’s highly user-friendly app or website. The company’s professional team handles everything from packing to transportation and storage, providing an unparalleled level of convenience. What sets Clutter apart is its photo inventory system, allowing customers to keep track of their items online, making retrieval as easy as a few clicks.

Innovative Business Model

In the crowded self-storage industry, Clutter stands out with its service-oriented business model. Unlike its competitors that offer spaces and leave the rest to the customers, Clutter ensures its users have a frictionless experience. This model is not just customer-friendly; it is also business-savvy. According to Clutter Storage's internal data (2023), customers appreciate the convenience such that the overall Consumer Satisfaction Score (CSAT) stands at a remarkable 94%. Services range from packing supplies and services to scheduled pickups and deliveries. More notably, the company's transparent pricing, sans hidden fees, clinches customer trust and drives retention. This pricing model feeds directly into Clutter's revenue model, which is sustained primarily by monthly recurring storage fees, augmented by delivery and packing fees.

Technological Edge

At the core of Clutter’s efficiency is its strategic use of technology. The company leverages its app to streamline operations and enhance customer engagement. Clutter’s photo inventory system is an exemplary testament to their innovative approach. By allowing customers to meticulously catalog and view their stored items online, Clutter saves valuable time and effort. This digital efficiency not only bolsters customer satisfaction but also minimizes logistical hitches, thereby augmenting operational efficiency. The use of data analytics to understand patterns of customer behavior has enabled Clutter to refine its services continually. According to a report by CB Insights (2022), companies that use data analytics to drive business decisions see a 23% increase in operational efficiency. Clutter's analytics-driven tweaks to optimize pickup and delivery routes contribute to lower operational costs, further driving its competitive edge.

Customer-Centric Approach

In the modern economy, customers gravitate towards services that offer more than the basics. Clutter Storage excels here with its full-service approach. From start to finish, the customer's journey with Clutter is marked by ease and transparency. What differentiates Clutter's experience is its remarkable attention to detail and an uncompromising commitment to customer service. Every aspect of the service, from the friendly movers to the 24/7 customer support, underscores this dedication. Margaret Wood, a market analyst at Forrester, notes, "Customer experience is the key differentiator in today’s marketplace. Companies that prioritize customer-centric strategies are 60% more profitable than their less customer-centric peers." Clutter’s service is designed for busy individuals who value convenience and efficiency, and it shows in their expanding customer base.

Revenue and Growth

Clutter’s revenue model is a testament to the success of its business strategy. Clutter generates steady revenue streams from monthly storage fees, which vary based on the volume and duration of storage. Further revenue is garnered from additional services such as packing and delivery fees. This diversified stream of income ensures a stable cash flow, facilitating Clutter’s continued growth and expansion. In 2019, Clutter raised a Series D investment of $200 million led by SoftBank Vision Fund, signaling strong investor confidence in its business model and growth potential (Crunchbase, 2020). This financial assurance has allowed Clutter to scale its operations to several major U.S. cities, including New York, San Francisco, and Chicago.

Social and Emotional Impact

Beyond logistics and technology, Clutter has made a notable social and emotional impact on its customers. By offering a simple and organized storage solution, Clutter reduces stress and contributes to an improved quality of life. It simplifies life, saves time, and adds an emotional layer by preserving cherished memories. The company's transparency and customer-first approach make it a trusted ally for people looking to declutter and organize their lives.

Conclusion

Our in-depth exploration of Clutter Storage paints a compelling picture of a company that has masterfully blended technology, convenience, and customer satisfaction. In an industry fraught with challenges, Clutter's unique business model and customer-centric approach make it not just a storage provider, but a life-enhancing service. As Clutter continues to expand and innovate, its case study will undoubtedly serve as a beacon for future enterprises aiming to disrupt traditional industries through technology and exceptional service. At Clutter, the motto is clear: simplifying storage, enriching lives. This clarity in mission, coupled with strategic execution, is what makes Clutter Storage special and undeniably unique.


If you enjoyed this content, you’re in for a treat! Dive into our extensive repository of business model examples, where we’ve dissected and analyzed thousands of business strategies from top tech companies and innovative startups. Don’t miss out!

+100 Business Book Summaries

We've distilled the wisdom of influential business books for you.

Zero to One by Peter Thiel.
The Infinite Game by Simon Sinek.
Blue Ocean Strategy by W. Chan.