How to Increase the Lifetime Value Of Your Coworking Space Members
In 2020, there were 59 million freelancers in the United States — an increase of about one million per year since 2014.
With these numbers steadily increasing, it’s no wonder coworking spaces have been growing alongside them.
Freelancers, affiliate marketers, entrepreneurs, and start-ups turn to coworking spaces to beat the isolation that comes from working in a home office. But with so many coworking spaces popping up, how can you encourage your coworking members to be lifelong customers?
In other words, how can you increase your coworking members’ customer lifetime value (CLTV)?
Before we share 11 ways to increase your members’ CLTV, let’s review what CLTV means and how to measure it.
Customer lifetime value (CLTV) refers to how much revenue your coworking space can expect to earn from one member based on how long you predict they’ll stay.
For instance, if you predict a member will stay for three years and pay $60 per month, you can expect to receive at least $2,160 from that member by the end of their membership.
If you have 50 members who do the same thing, you can expect to receive at least $108,000 by the end of their memberships. These figures don’t include extra services your members may pay for, such as private meeting rooms or event registrations.
Knowing your CLTV helps you understand how much you can expect to generate throughout a customer relationship. The longer a member sticks around and spends money, the more valuable they are for your business.
Having a CLTV at least three times higher than your cost per acquisition (CPA) is key. Your CPA considers how much staff time, marketing, and material it takes to generate a new paying member. So if you know it’ll cost you $500 to acquire a new member for one year, then your CLTV needs to be $1,500 or higher for that member.
It’s also important to note that increasing your members’ CLTV is just as important as obtaining new members. That’s why 97% of companies focus their efforts on customer retention marketing. Not only are repeat customers more loyal, but they’re also more likely to convert than first-time shoppers.
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To sum up: Your CLTV is how much you can expect to earn per member based on how long you think they’ll stay. You should always aim to have a CLTV that’s at least three times higher than your CPA. Focusing your efforts on keeping your members is just as important as obtaining new ones.
Now that we’ve covered what CLTV is and how to measure it, let’s look at 11 ways to encourage your customers to become lifelong members.
An easy way to lose potential members is by making the sign-up process long or difficult. Coworking space members want to sign up and renew their memberships as quickly and easily as possible.
If you haven’t gotten around to investing in coworking space management software, then a fast-loading form on your website is a good start.
But investing in coworking space software as soon as possible is essential for increasing CLTV. This way, you can invite new members to join the workspace app once they sign up via your registration form.
Inside the workspace app, members can choose from an array of services/products right from their smartphones.
Member services may include:
- Meeting rooms
- Community newsfeed
- Printing and more
Selling additional coworking space services creates endless revenue streams and gives members a reason to stay.
The key is to sell a range of services personalized to your members. But how do you know which services your members are craving?
- Survey new members as soon as they sign up
- Survey existing members every three months
- Host a virtual meeting with your members
- Host a virtual Q&A session
When asking members what services they’d like, give them some example choices and leave room for any new ideas.
Here are some value-added services you can use as example choices:
- Personal assistant
- Free parking
- Airport pickup
- Tax services
- Marketing services
- Business development classes
- Networking luncheons
- Day passes
- Office cleaning
You can also offer subscription programs, like credit repair companies do, for any service you offer. Subscription programs are effective because they make everyone’s lives easier. Members only have to sign up once, and then they can sit back and enjoy their services. In return, you receive passive revenue.
Your coworking space content — whether on the app, your blog, email newsletters, or social media — should be custom-tailored to your members.
When members read your content, they should relate, feel seen, or derive value from the content you share.
Once again, this boils down to knowing your members.
To know your members better, conduct user behavior research that answers the following questions:
- What are my members’ buying habits?
- What are my members buying from my competitors?
- What jobs do my members have?
- What tools do my members use to perform their jobs well?
- How do my members spend their time outside of the coworking space?
- What problems do my members have and how can I solve them?
Then, personalize content to match your members’ unique needs, desires, and habits.
4. Use Social Media Channels Like Facebook, Twitter, LinkedIn, and Instagram to Promote Deals or Promotions
Promoting special deals and offers on social media channels helps spread the word about your offers and makes them shareable.
Before setting up a promo, find out where your members and their friends live online. This way, you can target the channels your members frequent most, and they can share them with their friends. You can also set up paid ads to reach more people that fall within your target audience.
When promoting offers on social media, make sure to convey value, build trust, and use compelling visuals.
Image source: https://www.facebook.com/CWDAYS/
To convey value, make sure your promotion is helpful, informative, educational, inspirational, or entertaining.
To build trust, embed customer reviews in your copywriting or videos.
When picking visuals, make sure they’re high-quality, serve a purpose, and (ideally) evoke an emotional response.
Members love entering their coworking space and knowing fresh coffee and tea is waiting for them. Providing these free perks is a low-cost way to entice members to keep coming back.
Providing complimentary snacks helps members stay energized and focused throughout their workday.
When hunger sets in, members start to lose focus as they think about the logistics of getting their next meal. Will they get stuck in a long line at a cafe? Will they lose their parking spot if they leave?
By providing complimentary snacks, you’re reducing these worries, which can seriously impact productivity. You’re also encouraging members to stay at your coworking space longer since they don’t need to leave the premises to satisfy a craving.
You can also gift members with extra perks, like:
- VIP offers (private desks to the highest paying members)
- Discounts and coupons (i.e., use a service like Swagbucks to gift old navy coupons)
- Free services like meeting rooms every other Tuesday
Your members come for the workspace but stay for the people.
Happy hours are more than having cheaper drinks. Welcoming members to end their workday with a drink and a chat builds a tight-knit coworking community.
Image source: andcards.com
When scheduling happy hours, choose a workday and let your members know ahead of time so they won’t miss it.
Since most members are freelancers, entrepreneurs, and startups, making connections with fellow space members is a major priority.
Hosting community events for current members can be a creative way to help members network, exchange ideas, and pitch collaborations in a low-key environment.
Here are some networking event examples:
- Pitch practice: Host a meetup where entrepreneurs can practice their pitches and learn how to cope with rejection
- Launch parties: Throw a launch party when members launch new products and services for their businesses and freelance roles
- Day trips: Arrange a day trip with lots of planned activities that can encourage members to interact and exchange information
- Speed business dating: Set up a business dating event where members only have a few minutes to exchange business details
In 2019, the average number of residents per coworking space was 185 members.
While that’s a decent number for one space, networking often requires casting a wider net.
Why? Members are interested in building connections with as many like-minded people as possible. The more people they network with, the more connections, partnerships, and collaborations they’ll be able to create.
Hosting networking events with other coworking spaces gives members the wide net they’re craving.
Here are some event ideas:
- Weekly morning breakfast mixers
- Venture capitalist guest Q&As
- Monthly business classes
- Monthly panel discussions
- Tech talks
Hosting classes your members are interested in gives your workspace a competitive edge.
From hosting a baking workshop to teaching your members how to code, they’ll love learning new skills that improve their work and personal lives.
Image Source: https://www.instagram.com/p/CO2fxo6jLli/
Not sure which classes to host? Survey your members to find out which classes they’d appreciate most.
11. Give Back by Partnering With Local Organizations, Charities, or Other Businesses to Offer Discounts to Your Members
Partnering with local organizations and charity fundraisers can be a great way to connect to the local community, build brand awareness, and earn discounts for your members.
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When deciding who to partner with, look locally and involve your members in the decision.
The goal is to find a way for the partnership to connect to the local community while benefiting the workspace.
Increasing the CLTV of your coworking space members is possible with these 11 tips. Remember: make it easy for people to join, offer a range of services and events, and provide complimentary snacks and perks whenever you can.
Don’t forget that all the above benefits of membership at your coworking space must be easily accessible through a simple and beautiful app. Need tips on how to choose the best option? Read this article: How to Choose the Best Software to Manage Your Coworking Space.
The article was written by Dustin Howes. Dustin owns an affiliate marketing agency that is dedicated to helping companies maximize their affiliate marketing efforts. Through group coaching and private consulting, Dustin teaches program managers how to recruit the right affiliates, optimize working hours, and how to take the growth of the program to the next level. Learn more affiliate marketing tips at dustinhowes.com.