Did you know that it costs almost five times more to attract new clients than to keep the existing ones? Yes that’s right but still companies throughout Pakistan including many coworking spaces focus on acquiring new clients as a part of their main strategy. With rapid development of coworking spaces in the country, it has become crucial for these businesses to know the essential strategies to retain more coworking members.
In this blog, we will define member retention for you and also teach you to calculate member retention rate. Then, we will look at 5 strategies that you can implement to boost your member retention and revenues. Lastly we will see why member retention rate matters for your business.
So without wasting any time, let’s get to it.
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What is Member Retention?
Member retention at a coworking space means how well the company can encourage its existing members to stay at the coworking space or to return there for work. Member retention is the capability of a company to retain its clients by providing exceptional services that are unmatched in the market.
If you have a higher member retention rate, it means that:
- Your clients are happy with your services.
- You are attracting the right people for your workspace.
- You have a high client satisfaction rate.
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How to Calculate Member Retention Rate?
Calculating member retention rate is very simple and you can easily do it for your space. Member retention rate measures how many of the members who join in a given time period are still present by the end of that time period. It is calculated by the following:
((Members at End Time Period – New Members During the Time Period)/Members at Beginning time Period) x 100
Now that we know what member retention refers to and how it can be calculated, let’s move towards the main part – the strategies.
5 Strategies to Retain Coworking Space Members
Nurturing client loyalty has become very challenging in the modern day with high competition and rising inflation. To retain clients, you need to go an extra mile to provide the services that put you ahead of the curve. So let’s get to the strategies:
1- Nurture a Thriving Work Space
The first strategy is getting the right people at your coworking space that are passionate to thrive. This boosts your retention rate as people are not willing to let go of their valuable connections that they have formed in your space. In addition, you can create a sense of community that is established on values of hard work and innovation which another space may never be able to provide.
2- Offer Valuable Member Perks
To stand out from your competition, offer membership perks that make you unique. This could mean providing perks such as 24 hour access, hosting community events, providing daycare for children or wellness perks such as yoga to avoid burnout. To make this strategy more effective, find out what your members really miss in the working space that could be easily provided to them.
3- Provide Different Membership Plan
People want to know whether they are being provided adequate services for the amount they are paying. To provide them the satisfaction that they are paying for the right services, you can break up your membership into different tiers.This allows your members to compare the price with the availability of services making them more satisfied. It also gives them the flexibility to choose the plan that best fits their needs.
4- Keep a Detailed Track Record
To ensure that your services are the best in town, you need to start tracking different parts of your operations such issue resolution or space booking. This data will allow you to make decisions that are well thought and provide the best services to your members. Let’s assume you find a monthly pattern that a client follows for booking a work space, to reduce their work, you can phone ahead to confirm whether they will be booking the space this time as well.
5- Innovate and Transform Your Services
It’s always a good idea to follow the trends and keep on innovating. Keep a close on different industries and what changes are affecting them and provide services that are coherent with the changing circumstances. In addition, ensure that you are providing the best services with uptodate technology to provide a better experience to your clients.
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Why Should You Improve Member Retention Rate?
You must be asking why you should bother to retain existing clients with so much effort when you can attract new members. Well, here are a few reasons:
- Retaining existing clients is five times cheaper than acquiring new clients.
- A higher retention rate can boost your revenue as high as 125 percent.
- 80 percent of your future revenues come from 20 percent of current clients.
- You can focus on providing better services instead of getting new clients.
- It allows you to build a stronger community that shares common values.
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Final Word
To conclude the blog, member retention although a neglected strategy is highly important to coworking spaces. Not only does it cost far less to retain existing clients, it helps you to establish a thriving community. To achieve a higher member retention, you can adopt various policies including nurturing a thriving work space, offering perks, breaking down membership plans and taking informed decisions. In addition, data shows that existing clients opt for the brand 60-70 percent of the time compared to a marginal 5-20 percent for new clients proving that it is always effective to invest in client retention.
