By implementing these proven strategies, coworking space operators can significantly boost their membership sales and build a thriving and prosperous business.
▪ There are approximately 19,400 coworking spaces globally, and this is projected to skyrocket to nearly 50,000 by 2025.
▪ While coworking spaces have proven to be successful, the ability to attract new members remains a significant challenge for operators. In order to thrive and create a profitable business, maximizing membership sales is crucial.
▪ A well-designed and flexible membership model can significantly contribute to boosting revenues for your coworking space.
Coworking spaces have become a prominent feature in major cities worldwide, revolutionizing the way people work and collaborate. With a current count of approximately 19,400 coworking spaces globally, as reported by Gitnux, the growth of coworking is projected to skyrocket the number of spaces to nearly 50,000 by 2025.
In the United States, Jones Lang LaSalle Incorporated (JLL), a renowned global commercial real estate company, estimates that flexible workspaces will encompass a substantial 30% of the country’s office stock by 2030.
While coworking spaces have proven to be highly successful, the ability to attract new members remains a significant challenge for operators. In order to thrive and create a profitable business, maximizing membership sales is crucial. To address this challenge head-on, we have curated a collection of invaluable insights derived from top-notch sales courses.
By implementing these nine proven strategies, coworking space operators can significantly boost their membership sales and build a thriving and prosperous business.
1. Enhance Lead Generation and Streamline Management
The success of any coworking space heavily relies on a consistent influx of new leads. Without a robust lead generation and management strategy in place, expanding your membership base can feel like an insurmountable task. According to HubSpot, a staggering 65% of businesses consider generating traffic leads as their most significant marketing challenge.
Generating viable prospects can indeed be challenging, but it’s a mission-critical activity that requires focused attention. This is where a comprehensive lead management system such as Pipedrive, Zoho, or Zendesk comes into play. By implementing an effective CRM system, you can optimize how you generate, track, analyze, and nurture potential opportunities. This approach allows you to identify and qualify leads more efficiently, minimizing any leaks in your sales funnel.
A formalized lead management process also enables you to prioritize your efforts and allocate more time and attention to high-value buyers. The collective impact of these improvements can turbocharge your sales endeavors. In fact, according to CSO Insights, companies with mature lead generation and management practices enjoy a 9.3% higher sales quota achievement rate, illustrating the direct correlation between effective lead management and sales success.
2. Optimize Your Onboarding Process for Success
Extensive research indicates that providing a positive experience within the first seven days significantly enhances the likelihood of retaining new members in your coworking space. Retaining customers is not only beneficial for fostering a sense of community but also for maximizing your profits. The onboarding process presents a valuable opportunity to create a lasting impression while preventing any potential friction or frustration that could drive new members into the arms of competitors.
To ensure an effective onboarding process, it is essential to address both operational and community-building aspects. Implementing a formalized process that covers operational essentials, such as rules and regulations, is key. This structured approach guarantees consistency in introducing new members and ensures that no crucial details slip through the cracks. By demonstrating professionalism and competence, you instill confidence in your members right from the start.
To further enhance the sense of belonging and boost future sales, consider incorporating the following tips inspired by customer service courses:
1 Foster team connections: Introduce new members to your entire team, enabling them to know who to approach for specific needs or inquiries. This approach promotes a welcoming atmosphere and encourages collaboration.
2 Embrace social media: Extend a warm welcome to new members not only through in-house digital announcements but also by showcasing their arrival on social media platforms. Sharing these updates demonstrates the vibrancy and activity within your coworking space, inspiring others to join.
3 Establish a new member cohort: Create a designated group for new members to connect and engage with one another. Encourage veteran members to make introductions, facilitating early relationships and a sense of community.
4 Personalize event invitations: Send personalized invites to new members for upcoming events and gatherings. By extending this gesture and formally acknowledging their attendance, you make them feel valued and appreciated.
5 Maintain regular check-ins: Follow up after the initial onboarding meeting with regular check-ins. This ongoing communication demonstrates your commitment to their satisfaction and success within the coworking community.
3. Provide Varied Membership Options
A well-designed and flexible membership model can significantly contribute to boosting revenues for your coworking space, and diversifying membership tiers offers multiple advantages.
First, it allows you to compete more effectively in the market by catering to a broader range of potential customers. Secondly, offering different membership packages enables you to accommodate the diverse needs and preferences of individuals and businesses. This, in turn, helps you attract a larger customer base overall.
Furthermore, incorporating upselling opportunities within your membership structure provides an additional avenue for generating higher revenues.
For instance, consider offering credit bundles as an upselling option to members. When customers exhaust their allocated credits for desk and meeting room bookings based on their membership plans, they can conveniently purchase extra packages directly within the booking app they use. This approach not only enhances convenience for members but also presents an opportunity for your business to earn additional income.
A successful membership model hinges on clearly defining and expressing the value associated with each tier. It is crucial to ensure that the distinctions between different membership options are easily understandable and align with the specific needs of your target audience. Experimentation is recommended, as sales training courses often emphasize the importance of finding the optimal balance that resonates best with your customers.
However, it is essential to strike a balance and avoid overwhelming members with an excessive number of options. Too many choices can lead to decision paralysis and hinder the sales process, resulting in reduced conversions. Moreover, there is a risk of cannibalization, where one price level eats into the revenue potential of another. Careful consideration should be given to avoid such negative impacts when designing your membership tiers.
4. Host Memorable Events
Hosting regular events not only offers an opportunity to generate additional revenue but also plays a crucial role in increasing the visibility and recognition of your coworking space. After all, how can you expect to ramp up sales if people are unaware of your existence?
Coworking spaces are known for fostering collaboration and providing networking opportunities, which is why hosting events that align with your members’ interests can be a powerful tool for building cohesion and engagement. These events serve as platforms to strengthen relationships with current clients and partners, while also attracting potential future members.
The versatility of most coworking spaces makes them ideal venues for a wide range of events. From happy hours and lunch-and-learn sessions to wellness activities, launch parties, cooking demonstrations, and even charity drives, the possibilities are endless.
It’s important to recognize that events can significantly impact your corporate reputation, which, in turn, directly affects revenue. Therefore, careful planning is essential. Take the time to curate events that align with your space’s mission and values. Ensure that each event makes sense for your coworking community and creates a positive and memorable experience for attendees.
5. Implement an Effective Referral Program
Even if you manage to attract potential customers who seem like an ideal fit for your coworking space, convincing them that your space is truly the best option can be a challenging task. In today’s climate of heightened consumer skepticism, simply promoting your space’s advantages may not be sufficient. So, what can you do to overcome this hurdle? Consider launching a referral program that harnesses the power of your existing satisfied members to spread the word.
Referral programs have proven to be highly effective in driving customer acquisition and boosting sales. According to SaaSquatch, customers referred by others have a 16% higher lifetime value compared to non-referred customers. Furthermore, those who actively refer others tend to be more loyal and generate more revenue over the long term.
To make your referral program a success, it is essential to provide your existing members with something truly exceptional to brag about. By creating outstanding customer experiences and fostering a sense of community and collaboration within your coworking space, you empower your members to confidently refer their contacts. This positive word-of-mouth promotion carries significant weight and credibility, making it easier to overcome skepticism and gain the trust of potential customers.
Incentives play a crucial role in encouraging referrals and showing appreciation for members who participate in the program. Consider offering rewards such as discounts on membership fees, exclusive access to events or amenities, or even monetary incentives. These incentives not only motivate your existing members to refer others but also demonstrate your gratitude for their support.
6. Enhance Your Online Presence
Optimizing your online presence is a critical factor in establishing a strong and reputable brand. It allows you to build awareness, credibility, and, most importantly, trust, as trust is the foundation of successful sales.
Implementing the following strategies, recommended by business sales experts, can significantly enhance your online presence.
First and foremost, invest in creating a professional website that is visually appealing, user-friendly, and optimized for responsiveness. A well-structured website serves as a 24/7 lead generation tool, consistently filling your sales funnel with potential customers. Ensure that your website offers useful, informative, and up-to-date content that engages visitors and showcases the value your coworking space provides.
Incorporate search engine optimization (SEO) techniques to improve your website’s visibility and attract organic traffic. Additionally, include compelling call-to-action (CTA) buttons that guide visitors towards desired actions, such as leaving their contact information or making a purchase.
In today’s digital age, social media platforms play a significant role in shaping brand perception. Therefore, it’s crucial to make your social media presence shine. Establish a consistent and clear branding strategy across all platforms, using your company logo as the profile picture and maintaining a consistent username. Craft a concise and informative bio that highlights your coworking space’s key offerings and incorporates relevant keywords and hashtags for improved searchability.
Actively engage with your audience by following a regular publishing schedule and sharing valuable content that resonates with your target audience. Monitor social media mentions to promptly respond to both positive and negative feedback, demonstrating your commitment to customer satisfaction.
7. Harness the Power of Customer Data
Utilizing customer data is a valuable and often untapped resource in the quest to grow your coworking space’s membership. Regular analysis of data provides actionable insights for both retaining existing members and acquiring new ones. By leveraging customer data, you can identify your most valuable customers and target individuals who fit similar profiles, thereby increasing your chances of attracting high-quality leads.
In today’s fiercely competitive environment, staying agile and adaptive is key to gaining a competitive edge. Data analysis enables you to uncover customer behavioral insights, which can be leveraged to drive sales growth and improve your gross margin. According to McKinsey & Co., companies that effectively leverage customer data and insights achieve remarkable sales growth of up to 85% and a significant increase in gross margin of over 25%.
It is important to note that data is only as valuable as the information collected and the analysis applied. To harness the full potential of customer data, consider investing in sales analytics training. These courses provide valuable guidance on the types of data to collect, how to gather it effectively, and how to interpret and analyze the data to gain actionable insights. With the right skills and knowledge, you can unlock the power of data to make informed business decisions and optimize your membership sales strategies.
8. Enhance Member Retention
In the pursuit of long-term revenue growth, member retention plays a vital role. As the saying goes, “Make new friends, keep the old. One is silver, the other is gold.”
Increasing customer retention rates by a mere 5% can have a substantial impact on profitability, as highlighted by a study conducted by Harvard Business School and Bain & Company, which found that it can lead to profit increases ranging from 25% to 95%.
While practical amenities such as a workspace, Wi-Fi, and access to meeting rooms initially attract individuals to coworking spaces, it is the sense of community and belonging that keeps them engaged and loyal. Therefore, fostering a thriving and supportive community should be a top priority in your retention strategy.
The foundation for better member retention lies in effectively positioning your coworking space from the beginning. Different coworking spaces have unique identities that resonate with specific types of members. By targeting the right “tribe” that aligns with your space’s values and offerings, you can attract individuals who are more likely to remain committed and engaged, reducing the number of member exits.
Regular interaction and maintaining open lines of communication with your members are crucial for fostering a sense of belonging and loyalty. However, it’s essential to strike a balance and avoid overwhelming members with excessive or irrelevant information. Instead, make a point to reach out and connect personally, acknowledging their presence and valuing their input. Utilize surveys to gather feedback and suggestions, and demonstrate a genuine willingness to listen and act upon member input.
9. Provide Value-Added Services
To gain a competitive edge and foster customer loyalty, offering complimentary services can be a game-changer. By going the extra mile and providing additional services to your clients, you can not only attract new customers but also keep them coming back. Examples of such services include parking facilities, lockers, round-the-clock keyless door entry access, free use of a landline phone, reception and call services, complimentary coffee, water, or even meals.
However, it’s crucial to ensure that these additional services offer genuine relevance and value to your members. Conducting a survey among your clientele can help you understand their preferences and identify the services that are most appealing to them. This way, you can tailor your offerings to meet their specific needs and enhance their overall experience.
Remember, the quality and execution of these complimentary services can significantly impact how members perceive your coworking space as a whole. Therefore, it’s essential to ensure that the services you provide, or the partnerships you establish to offer them, maintain the same level of excellence as your core offerings. Strive for excellence in every aspect of the customer experience, including the sign-up process for these additional services.
As the coworking industry continues to evolve, adapting to the changing landscape and implementing effective sales strategies is crucial for long-term success. By incorporating these tips into your business practices, you can establish a solid foundation, drive growth, and create a thriving coworking space that stands out in a competitive market.
Remember, building a successful coworking business takes time and effort, but with the right approach and a commitment to providing exceptional experiences for your members, you can navigate the challenges and achieve sustainable growth.