Coworking spaces are popping up in most major cities around the world. Currently, there are around 18,700 coworking spaces globally, according to Statista. Forecasts predict that number will jump to nearly 26,000 by 2025. In the U.S, global commercial real estate company Jones Lang LaSalle Incorporated (JLL) estimates flexible workspaces representing 30% of U.S. office stock by 2030.
The success of a coworking model is deeply rooted in its ability to sign up members. Yet, operators report that attracting new people is the number one challenge. So how do you maximize membership sales and build a profitable business? Here are a few tips from some of the best sales courses that can help you.
1. Improve Lead Generation and Management
Trying to grow your membership without leads is an exercise in futility. So, a critical first step is to improve how you generate and manage your leads. HubSpot reports that 65% of businesses say generating traffic leads is their biggest marketing challenge.
So, although a vital activity, finding prospects can be a tough nut to crack. That’s why many salespeople benefit from a comprehensive lead management system. An effective lead management system improves how you track, analyze, and nurture opportunities. As a result, you'll be better able to qualify leads and reduce leaks in the sales funnel.
By using a formal process, you can also determine which buyers deserve more time and attention. All of which can turbocharge your sales efforts. According to CSO Insights, companies with mature lead generation and management practices have a 9.3% higher sales quota achievement rate.
2. Nail Your Onboarding Process
Research shows that a positive experience within the first seven days increases the chances that new members will stick around. The more customers you can hang on to, the better your profits will be.
Onboarding is your opportunity to make a great, lasting impression. Most importantly, you can prevent the friction and frustration that causes new members to run into the arms of the competition.
A well-designed onboarding process should address both operational and community-building aspects. Put in place a formal process to cover operational aspects like rules and regulations. Having a structure is the best way to ensure that everyone's introduction is consistent. Also, nothing falls through the cracks. You'll also come across as professional and competent.
The following tips from customer service courses can help new members feel part of the community, which can boost sales down the road.
- Introduce new members to everyone on your team, so they know who to go to for what.
- Besides in-house digital announcements, also welcome newbies on social media. Sharing on social media is a great way to show how active your space is, which can inspire others to hop on board.
- Create a new member cohort so that newbies can make early connections. Invite veteran members to stop by and introduce themselves.
- Send personal invites to events. Be sure to officially welcome anyone who attends.
- Follow up after the initial meeting with regular check-ins.
3. Offer Different Membership Tiers
A robust membership model can help boost revenues. For one, diversifying membership allows you to compete more broadly. Also, when you offer a choice of packages, you can accommodate different needs. As a result, you can acquire more customers overall. The inbuilt option to upsell also gives you an opportunity to earn more.
For instance, you can upsell members with credit bundles. When customers run out of credits for desk and meeting room bookings assigned according to their membership plans, they can purchase an extra package right inside the app they use for bookings.
A successful membership model is one where the value of each tier is clearly defined and expressed. When the value between options is murky, it can make renewal season a nightmare. Sales training courses recommend experimenting to find what works best for your target audience.
One important thing to remember is not to drown members with options. Too many choices can overwhelm. You could also complicate the sales process, which reduces conversions. There's also the risk of cannibalization. Cannibalization is when one price level eats into the revenue potential of another level.
4. Host Killer Events
Besides being a way to earn additional revenue, hosting regular events can increase the visibility of your brand. After all, how can you ramp up sales if people don't know about you?
People often join coworking spaces for the collaborative atmosphere and networking opportunities. So, hosting events aligned with members’ interests can also help spark cohesion and engagement. These affairs also allow you to strengthen bonds with current clients and partners, and attract future ones.
The versatility of most coworking spaces makes them effective venues for all kinds of events. Some examples include happy hour, lunch and learn, wellness activities, launch parties, cooking demos, charity drives, and much more.
Events can send your corporate reputation soaring or bring it crashing down. As you may know, reputation and revenue are intertwined. So, take time to plan and make sure the event makes sense for your space.
5. Start a Referral Program
Even if you find ideal customers, you still need to convince them that your space is the best fit. Sounds easy enough, but it can be an uphill task. For one, consumer skepticism is at an all-time high.
So, what options do you have? Start a referral program and use people who already love your product to spread the word. According to SaaSquatch, the lifetime value of referred customers is 16% higher than that of non-referred ones. In addition, customers who refer others tend to be more loyal and generate more revenue in the long run.
For referral programs to work, your existing members need something to brag about. So, you want to ensure that you create exceptional customer experiences. Also, offer incentives to encourage referrals and to show your appreciation.
6. Optimize Your Online Presence
Optimizing your online presence can benefit your brand in insurmountable ways. Most importantly, you can build brand awareness, credibility, and trust. One of the most important lessons you learn in any business training course is that trust is the currency of sales.
Here are a few ways to optimize your online presence, according to business sales experts. A well-built website can generate leads for you 24/7/365 and keep your sales funnel full.
So, to optimize your online presence:
- Create a professional website that uses responsive design and that’s user-friendly.
- Make sure the site is well structured and visually pleasing.
- Ensure the information on your site is useful, informative, and current.
- Have SEO-based content or articles that provide value to the readers.
- Have call to action (CTA) buttons to guide visitors towards desired activities, such as for leaving their contact information.
- Add the possibility to purchase your plans online, both on your website and apps.
Besides your website, one of the first places people will go to find out more about your company is social media. So, make your socials shine with the following tips:
- Create clear branding. Put your company logo as the picture on all platforms. Use the same username on all your social networks. Make sure the bio states exactly what you do. The bio should include relevant keywords (and keyword hashtags) for quick and easy searchability.
- Be social. Stay active by establishing a consistent publishing schedule (frequency, volume, type).
- Monitor mentions for both positive and negative activity. Take prompt action to mitigate the latter.
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7. Use Customer Data
Cold, hard data is your secret weapon when it comes to growing your membership numbers. Regular data analysis provides valuable insights for retaining and growing your customer base. For example, you can find out who your most valuable customers are so that you can target others who fit that profile.
Also, dissecting data can help you to stay agile, which can give you a competitive edge in a cutthroat environment. According to McKinsey & Co., companies that leverage customer behavioral insights can achieve 85% sales growth and more than a 25% increase in gross margin.
However, remember that data is only useful if you collect the right kind and understand how to analyze it. So, you may want to consider sales analytics training. These courses can show you what types of information you need and how to gather and interpret it.
8. Boost Member Retention
Remember the saying “Make new friends, keep the old. One is silver, the other is gold"? This concept relates to customer retention and how to drive revenue. A study by Harvard Business School and Bain & Company found increasing customer retention rates by 5% can increase profits by 25% to 95%.
While many people join coworking spaces for practical reasons—a desk, Wi-Fi, access to a meeting room — it's a sense of community spirit that keeps members glued in place and loyal. So, you'll want to make nurturing a thriving community a priority.
Better retention starts with better upfront positioning. Different types of coworking spaces have different identities that attract different members. Target the right "tribe," and you'll have fewer exits.
Also, interact with members and stay in regular contact. Take care not to bombard them with useless information as that is sure to have the opposite effect. Welcome suggestions and comments using surveys and truly listen to the feedback.
9. Offer Complimentary Services
Offering complimentary services to clients can give you a competitive edge and keep customers coming back. Some examples of services you can offer include parking, lockers, 24/7 access, reception and call services, coffee, water, meals, etc.
For a positive bump in earnings, make sure the additional services offer genuine relevancy and value. So, consider taking a survey to find out what services are most appealing.
Also, keep in mind that how members experience the extra services can affect their overall experience. So, make sure whatever you offer or whomever you part with to offer additional service is top-notch. Signing up for those services should also be a breeze.
Wrapping It Up
Managing a coworking space is not a simple job by any stretch of the imagination. Also, as coworking spaces continue to increase in popularity, operators will feel increasing pressure to harness concrete growth. While it's natural to see an ebb and flow in membership, the tips shared can help you get on a more solid footing.
