According to statistics, an existing client will choose the brand in 60-70% of cases compared to a new prospect (5-20%). That’s why retention and loyalty of members are as necessary as new customer acquisition for your coworking business.
You need to develop a solid plan to retain your target audience and encourage people to return. This article will outline five strategies to boost retention at your coworking space.
What Does Member Retention Mean?
Member (or customer) retention at a coworking space shows how well the company encourages people to stay with it and return to the place. Retention is the art of providing an unparalleled experience people will want to have more than once, whereas acquisition focuses on attracting new clients.
A high member retention rate indicates that you meet the needs of your target audience and provide quality services. So to retain customers, you need to specify your potential clients. Who will be interested in your offers? What income and interests may they have?
These and other questions are crucial to attract the needed customers and boost their retention and loyalty. Loyal customers are also more likely to respond to your marketing campaigns and also share positive reviews about the business with others.
The Formula for Calculating Member Retention
To determine your retention rate, you need to know the percentage of members who are still with you at the end of a specific period. Below is the formula to calculate member retention.
Member Retention
(ME - NM) / MB x 100
ME - Members at the end of the period
NM - New members acquired during a time period
MB - Members at the beginning of the time period
Suppose you have 20 participants on Day 1. You added ten new members in the past 30 days while losing five. Your membership is 25 as of day 30. According to the above calculation, your member retention rate would be 60%. The ideal retention rate should be greater than 90%, so you may want to enhance your current retention.
Why You Should Retain Members at the Coworking Space
A high retention rate brings various benefits to business owners. First and foremost, it means low member turnover, leading to other advantages, such as:
- Higher income
You can predict and increase your income as you can be sure of the expected number of members in a month. Lower member turnover reduces expenses on sales activities. According to statistics, profits can rise by 25-95% with a 5 percent increase in client retention.
- Diminished acquisition-related pressure
If you can guarantee a stable membership, your team can focus on other tasks rather than filling free seats. They may devote their time to activities to help your company expand, like attempts to improve the member experience and processes.
- Active community
People come to a coworking space not only to have a professional environment. They also value interpersonal relationships and communication with others. As reports show, 59% of potential clients appreciate a positive atmosphere, 56% choose the ability to interact with others, and 55% like the sense of community.
Boosting customer retention means people will see each other, participate in your activities, and find new friends. These are the reasons why decreasing the member churn rate is so crucial.
How to Retain Members at a Coworking Space
Coworking spaces provide numerous perks to users. People can work in a highly-productive environment, change scenery, and interact with like-minded individuals while performing their tasks and earning money. That’s why large companies and freelancers rent coworking spaces more and more. Another benefit is their flexibility and various activities to learn new skills and listen to inspiring speakers.
At the same time, you need to prepare for changing demands and the complexity of the audience. How can you cater to various needs and retain your customers? Let’s look at five retention strategies at a coworking space.
1. Create Strong Bonds in a Community
One of the crucial things at the coworking space is community. You can’t just increase retention rates without establishing a sense of belonging to a certain group of people. The reason is that members of your community will value the opportunity to sustain their connections and relationships with others. Thus, a strong community can ensure the long-term growth of your company.
What can you do to foster a strong community at a coworking space? Start with an efficient onboarding process. When clients enter your area, they shouldn’t feel like outsiders.
Let’s assume an interested member visits your facility. They sign an agreement because they like the space. Email or deliver a printed item to them as a welcome and show your readiness to resolve any issues. That’s where you may need dedicated software to streamline various tasks, including:
- a website for easier lead nurturing with retargeting and communication;
- a CRM and coworking management software to deal with day-to-day administrative duties;
- members’ apps to manage their operations with one click: book a room, find events, shop, contact your team for support, etc.
After onboarding, send regular emails to customers, introduce them to existing members, or launch a loyalty program. According to Statista, 55% of individuals continue to work at their original coworking location. Implement a loyalty rewards program to appreciate their devotion and encourage them to stay with you longer.
A loyalty program involves fulfilling various tasks in exchange for lucrative benefits. For example, offer discounts or other perks like gifts after a year of membership.
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2. Develop Several Membership Plans
People want to receive value for their money. One of the most widespread reasons to quit is because they aren’t getting the most out of their membership. But how can you determine the extent to which people can access your services and at which price? They may not need to visit your space daily or attend all events, so it’s unnecessary to pay for them.
Break your membership options into several tiers. Users with fewer needs may reduce their spending and pay for minimal services. If they want more, they may upgrade to the next membership option. For example, you may sell cards for ten visits a month, five visits plus full access to online activities and offline events, or an unlimited option for a monthly membership.
Enhance the workspace by introducing additional services. These may include a gym, daycare center, catering, or others based on audience preferences. Such bonuses may also attract potential clients who find more enticing opportunities than your competitors offer.
How can you learn member preferences? Conduct surveys and ask them to leave reviews. One of the most popular surveys is the Net Promoter Score. It asks users to evaluate your company from zero to ten and how likely they are to recommend the place to their friends. It divides your audience into promoters (9 or 10 points), passives (7 or 8 points), and detractors (ratings below 6). This testing helps you get fast and straightforward results.
The key is anonymizing the answers to make respondents comfortable sharing their thoughts. You may also inspire them to answer open-ended questions to extract more insights for improvements.
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3. Add a Personal Touch
People are the center of a business. Therefore, the more they connect with the workers at your place, the more they’ll feel like a part of the team. Building a personal connection may seem impossible when everyone stares at their screen. Use breaks and lunches to encourage members to talk to one another and your staff.
For example, you can approach them and start a conversation. This step will allow members to get to know the people behind the business and demonstrate that it’s not always formal and quiet. If you are the owner, make an effort to interact with your members and learn more about them in person. Consider integrating a healthy meal delivery service for your members to make breaks and lunches a more enriching time for networking and relaxation.
Personalization is a powerful tool for boosting sales in many businesses, including coworking spaces. Studies show that it can inspire 80% of consumers to buy from the company. Who doesn’t like to feel special among hundreds of customers? Collect clients’ names, birthdays, and other crucial details and include this information in your communication strategies. Congratulate members on important events and offer discounts to show your interest in them.
Coworking space also supports knowledge sharing. Host events, workshops, or conferences focused on improving your customers’ and their teams’ skills and growth. You can employ cutting-edge tools like virtual reality to visualize lessons and make them more engaging.
4. Nurture a Perfect Environment at the Coworking Space
It may be easy to attract new members to your coworking space. Most frequently, accessibility and flexibility determine the client’s desire to choose your company. However, it may be harder to encourage them to stay. That’s where you need to create impeccable conditions with stable and secure Wi-Fi connection, sufficient numbers of meeting rooms, ergonomic furniture, etc., and prioritize the team members’ professional growth.
It’s crucial to contribute to coworkers’ physical and mental health within the workspace. For instance, organize places for taking a little break from work. People anticipate the following possibilities:
- Relaxation areas for breaks, quiet rooms for private leisure, and play areas.
- To provide coworkers with the best chance of managing their workday, there should be quick access to venues and services like contactless payment and online reservations.
- Design areas for brainstorming and creativity.
5. Make Data-Driven Decisions
Surveys and reviews aren’t the only sources of information. You can analyze data from various tools, such as:
- reported issues in the coworking space and how fast they were resolved;
- how often people reserve a particular room;
- the most popular hours for booking a room;
- the number of participants in the event.
Leverage these analytical findings to optimize your offer. You may find it’s better to transform some working rooms into leisure spaces, plan new events, or change operating hours. Secure this information by getting cybersecurity insurance to protect your organization from data breaches, lawsuits, and damaged reputation.
Final Word
Organizing a comfortable coworking space to appeal to numerous individuals is a complex task. You need to find a perfect spot in a city, choose a place in the building, and make the space accessible to various groups. You also need to consider the space design, such as conference rooms, desks, and comfortable seats.
We’ve enumerated several actionable tips to boost retention in your coworking space. The bottom line is that retention stems from solid bonds and leads to customer loyalty. Provide perks to your members like no other place. Make people feel special when they enter the building.
Asking your clients what additional services they would like to have may seem like a lot of work, but it can be beneficial. Create a survey to discover their expectations from a coworking space. You can improve your company according to the results, leading to more clients and revenue.
The article was written by Kate Parish, the chief marketing officer at Onilab, a Magento eCommerce development agency. Kate has been working on diverse marketing strategies and activities for more than 8 years. In her pursuit to bring up top-notch marketing solutions, Kate is constantly exploring the topics of SEO, branding, SMM, PPC, and Magento PWA development.
