How Extra Space Uses Data to Lead the Industry with Chandra Maddukuri

In episode nine of the Inside Extra Space Storage podcast, McKall Morris talks with Chandra Maddukuri, SVP of Revenue Management and Data Science at Extra Space Storage, about the AI and machine learning platform driving pricing decisions across the company's 4,000+ properties. Maddukuri also shares what it takes to spot cherry-picked data, why data literacy is a critical leadership skill, and how a data-driven test settled the debate over dual-branding Life Storage after the 2023 merger.

Transcript & Chapters

00:00 — About Inside Extra Space Storage Podcast

Maddukuri: If someone presents data with fancy visualizations or cherry-picked statistics to build a narrative, it is important to ask critical questions to get to the gist of the problem.

Morris: On Inside Extra Space Storage, we sit down with the experts building, operating, and scaling Extra Space Storage to not only be the world’s largest self storage operator, but one of the most trusted names in the industry. If you care about where Extra Space and the self storage industry are headed, you’re in the right place.

00:37 — Meet Chandra Maddukuri, SVP of Revenue Management & Data Science

Morris: Welcome to the Inside Extra Space podcast, where we gather leaders and some of our best thinkers at Extra Space to talk about self storage and the company. We’re lucky to have Chandra with us today. Chandra Maddukuri is our Senior Vice President of Revenue Management and Data Science, which might hold the record for the longest title in the company. As the communications person, I’m always keeping track, and that one might take it.

Morris: Chandra has been with Extra Space for nearly 16 years and runs both our data science and revenue management teams. Welcome to the podcast, Chandra.

Maddukuri: Happy to be here.

Morris: Thanks. I know we asked you to do this favor, and we appreciate it.

01:21 — Extra Space Storage’s Data Strategy & AI Platform

Morris: Let’s start with the big-picture question: When Extra Space looks at data, what is our strategy? Give us Data 101.

Maddukuri: Extra Space is the largest operator in self storage. We have over 4,000 properties. Being the largest operator also means we have the most data, and we value that data because it drives our business.

Maddukuri: We have one of the most sophisticated artificial intelligence and machine learning platforms for pricing. Data also drives our recommendations on the website, broadly supporting our customer acquisition strategy.

Maddukuri: In the future, data will be even more central to our strategy, especially with generative artificial intelligence. I see opportunities for executives to ask questions of the data in natural language and get answers directly, rather than scrolling through report after report. My team and I are actively working to make that a reality.

Morris: It’s hard for me to imagine data becoming more important at Extra Space because I already see how central it is to our decision-making. But as technology continues to evolve, it will become even more useful.

03:05 — How AI Is Changing Operations & What’s Next

Morris: You brought up AI. Your team is closely tied to some of our AI strategies. How are you thinking about it?

Maddukuri: AI is going to impact all of our lives and all aspects of business. We are already seeing it affect customer service in a major way. Within our call center, we are looking at opportunities to use AI to direct calls to the right agents, have AI agents answer some service calls, and support several other needs.

Maddukuri: AI has also become very good at writing code, which creates a major productivity opportunity, especially for software developers and data scientists. There are many initiatives happening at Extra Space to use AI to move the business forward.

Maddukuri: Most initiatives right now focus on productivity and efficiency, but in the future we will also see AI make a major impact on revenue.

Morris: I love that. Thanks for keeping it high level. Chandra is well known around here. The first time I was introduced to you, someone next to me said, “Just so you know, Chandra is a genius.” I appreciate that you could easily go much deeper on these questions, so thank you for the overview.

04:50 — Maddukuri’s Career Path From Airlines to Self Storage

Morris: Speaking of plot twists, how did Extra Space land your genius?

Maddukuri: Before joining Extra Space, I developed revenue management platforms for airlines, hotels, and cruise lines. Those platforms used artificial intelligence and machine learning to mine data and recommend the best price to produce the best revenue outcomes for those companies.

Maddukuri: Extra Space hired me to build a similar platform for self storage. That was my first project and what I worked on during my first couple of years here. We developed a pricing platform for self storage, and it has done really well for the company. I think it played a crucial role in helping us become the biggest self storage player in the industry.

05:46 — Why Maddukuri Has Stayed at Extra Space Storage For 16 Years

Morris: You came over to work on one project. What made you stay?

Maddukuri: I like the culture at Extra Space. It is talent-dense. There are many great people here whom I get to work with.

Maddukuri: Over the years, we have put a lot of energy into talent management. We want to retain high performers, and that shows in the quality of talent we have. It creates a culture that is collaborative and supportive, while also maintaining high standards.

Maddukuri: Last week, a good-performing employee left my team. When I asked why, he said he liked working here and liked all the learning that was happening, but it was hard to stand out. He wanted to move to a company where it would be easier to stand out.

Maddukuri: That is an interesting part of the culture at Extra Space. It is supportive and collaborative, but the standards are high.

Morris: Nice, smart people want to work with nice, smart people. That is what keeps me here, and I imagine it is part of what keeps you here.

07:28 — What EXR Looks for When Hiring Data Scientists

Morris: Your team is always growing and bringing on great people. When you are hiring a data scientist, what are you looking for?

Maddukuri: We look for candidates with exceptional analytical skills and the ability to look at data and produce insights that drive the business forward.

Maddukuri: To do that successfully, people also need to understand the business. To produce an insight or recommendation, they have to understand the business problem and the opportunity.

Maddukuri: I like candidates who ask a lot of questions, understand the business well, and can collaborate effectively. If a candidate has those qualities along with exceptional analytical skills at the core, that is my ideal candidate for the team.

Morris: Analytical skills and deep curiosity sound like the key ingredients. You have a great team that is well recognized in the industry, both in data science and revenue management.

08:46 — Revenue Management Innovation & Digital Storage Unit Mapping

Morris: What makes Extra Space a leader in revenue management, and how have we maintained that position?

Maddukuri: I think we are the leader in revenue management. That is clear from the number of managed properties we have. We manage more than 2,000 properties for third-party owners.

Morris: And by managed, you mean a third-party owner has chosen Extra Space to manage their property.

Maddukuri: Exactly. Partners have looked at the market and chosen us. There are several operators they could choose, and they are not selecting us because we are the cheapest. We are the premium provider, yet our management business is the biggest and continues to grow rapidly because we have the best platform.

Maddukuri: Revenue management and the revenue management platform are a major piece of that. We continuously innovate and improve. We have a sophisticated platform, but it continues to evolve over time, supported by a great team of data scientists.

Maddukuri: One innovative example is our digital storage unit mapping. We are the only company where customers can find units on a digital map. Customers like seeing where they are going to end up renting.

Maddukuri: We have been able to use that feature to earn a premium price. It improves the customer experience while also helping us get more value from our properties.

Morris: I remember when you were launching that map project. It was a huge lift for the team to build and map all of those units, but it seems like an innovative way to win with customers.

11:22 — Testing Philosophy: Learning from Wins & Losses

Morris: Your team is known for testing a lot of things. What happens when a test does not succeed?

Maddukuri: We view those as opportunities to learn. There are always elements to learn from, whether a test wins or loses.

Maddukuri: Even if a test wins, there may be aspects that are still worth pursuing separately. If a test loses, there may be learnings about what not to pursue in the future. There is always a lot to learn.

Maddukuri: The benefit of a winning test is that we get the positive impact into perpetuity. That makes the learning process especially valuable.

12:13 — Data Literacy as a Leadership Skill

Morris: I have heard you speak to leaders at Extra Space about data literacy and why it is important for people who want to grow into leadership. What does data literacy mean to you, and how can an up-and-coming leader build it?

Maddukuri: In short, data literacy means being able to ask critical questions of the data. If someone presents data with fancy visualizations or cherry-picked statistics to build a narrative, it is important to ask critical questions to get to the gist of the problem.

Morris: To see through that top layer.

Maddukuri: Exactly. Effective leaders do that. At Extra Space, to grow here, it is important to either have that skill or develop it.

Maddukuri: It is also important for the organization. When leaders have that skill, more often than not, the best decision gets made.

13:30 — The Life Storage Dual Brand Testing Data

Morris: We use data in so many decision-making processes. You have already shared the mapping example. Is there another example of data leading us to an interesting company decision?

Maddukuri: There are many examples. What I find interesting is that even with more strategic problems, Extra Space has taken a data-driven approach. One example is the dual-brand test after we acquired Life Storage.

Maddukuri: Life Storage had close to 1,000 properties and an established brand. We had to decide whether to maintain two brands, Extra Space and Life Storage, or roll all Life Storage properties into Extra Space.

Maddukuri: The argument for maintaining both brands was that they could give Extra Space more visibility in markets where we have a lot of density. We see that approach in other industries. Marriott, for example, has several brands.

Maddukuri: Our testing and analysis showed there was truth to that idea: If you have two equal, strong brands, it can be useful to keep them. But we found a substantial difference in how Life Storage and Extra Space performed. Extra Space was much more dominant.

Maddukuri: We estimated that it would take a long time and considerable expense for Life Storage to reach the Extra Space level. Given that, we chose not to pursue a dual-brand strategy and brought the stores into Extra Space.

Morris: I remember that being a major question after the 2023 merger. A lot of people, myself included, had a bias toward dual branding. Then the data told a different story. It is important to be able to correct and readjust how we think about things.

Maddukuri: Yes. I am proud that Extra Space is data-driven. There is a broad data-driven culture here, and that helps us make good decisions.

Morris: People are willing to change their minds when you provide the right data, and they are often happy about it.

16:33 — Career Advice for Data Scientists

Morris: Let’s pivot to career advice. What have you learned in the past 16 years that would have been helpful to know earlier in your career?

Maddukuri: For someone with a data science or machine learning background, I would say it is important to build a lot of technical skills and be analytically strong. But at the end of the day, you have to be able to drive value for the organization.

Maddukuri: You need to understand where value comes from and find the sweet spot where your skills and the organization’s needs meet. That is where good things happen for the organizations you work for and, eventually, for your career.

Morris: That is great advice. With your skill set, you could work on a million interesting projects, but you have to focus on the ones that serve the organization best.

17:56 — Chess, Stress Relief, & Closing Thoughts

Morris: One of the producers told me I have to ask you about your chess game. What is your current rating, and what is your favorite opening? We hear you are a great chess player.

Maddukuri: I do not know if I am a great chess player, but I like playing chess. I enjoy it. Sometimes I use it to relieve stress, and sometimes I play just to have fun. It serves a lot of purposes for me.

Morris: That sounds like false humility. Go ahead.

Maddukuri: My rating is close to 2,000 right now on Chess.com. Reaching 2,000 is my short-term goal.

Morris: I hope you hit it. I will never challenge you to a game of chess because I would hate to be humiliated like that. I am grateful you joined me for this conversation. Thank you for joining us on the podcast.

Maddukuri: Thank you.

Morris: And thank you to everyone who listened. Follow the show for more conversations with leaders at Extra Space. We hope you enjoyed it.

Morris: Thanks for listening to Inside Extra Space Storage. Each episode features conversations with leaders and teams behind one of the most recognizable names in the self storage industry. To connect with today’s guest, reach out to them directly on LinkedIn, and don’t forget to follow the show for more insights inside the industry. Until next time, have a great day and an even better tomorrow!

About the Host and Guest

Chandra Maddukuri, SVP of Revenue Management & Data Science

Chandra Maddukuri has been with Extra Space Storage since 2010, and leads an enterprise-wide team that’s responsible for developing revenue management strategies, enhancing revenue management systems, optimizing marketing mix, and developing bidding strategies for paid search. Before joining Team Extra Space, Maddukuri spent years working for a major revenue management software company that developed software for airlines, hotels, and apartment rentals. He holds a Master's degree in Operations Research from the University of Texas at Austin.

McKall Morris, Director of Corporate Communications

McKall Morris is the Corporate Communications Director at Extra Space Storage. She joined the company in March 2019 after several years in the airline industry. Since joining Extra Space, Morris has played a key role in advancing internal and external communications initiatives, helping shape how the company is represented across all channels. She holds a Bachelor's degree in Communications from Brigham Young University and an MBA from the University of Utah.

To learn more about Extra Space Storage, visit our investor site, or explore the next step in your career by viewing current job openings. This transcript was auto-generated and edited, including paraphrasing for readability. For the full conversation and exact quotes, listen to the complete episode on YouTube, Apple, or Spotify.