Evaluating The Effectiveness Of Your Coworking Space’s Membership Plans

Are your coworking space membership plans really working for your community, or could they be quietly costing you potential members?

In this rapidly growing coworking industry, where flexibility and unique offerings are key to attracting and retaining members, ensuring your membership plans hit the mark is more important than ever before.

This blog post will explore how to effectively evaluate and refine your coworking membership plans, helping you maximize both member satisfaction and revenue.

Understanding What “Effectiveness” Means for Membership Plans

When we talk about the “effectiveness” of coworking space membership plans, we’re looking at more than just how many people are signing up to become members.

Effectiveness is about striking the right balance between keeping members happy, ensuring profitability, offering flexibility, and making the best use of your space.

To truly gauge the effectiveness of your plans, it’s essential to dive into the data and examine some key metrics.

The first KPIs to consider, and quite possibly the most obvious, are occupancy rate and space utilization. The two go hand-in-hand when looking at how effective your pricing models really are

Occupancy rate measures if your space is being utilized, whereas space utilization measures how it is being used.

When measuring occupancy rate, you’ll want to determine if your desks and meeting rooms are being filled regularly, or if you have empty spaces just collecting dust.

When thinking about space utilization, you’ll want to determine what, if any, spaces are continuously sitting empty and what they could be turned into that makes them more apt to turn a profit.

Once you have an idea of how well your space is being utilized, you’ll want to explore the average revenue per member (ARPM). ARPM is the average revenue generated by each individual member by means of membership, upgrades, on-demand services, and extra amenities. This number helps assess whether your membership pricing aligns with your value proposition and whether or not it’s supporting your bottom line.

If these three factors are not where they need to be, you might see an uptick in member churn rates.

Member churn is the rate at which members are leaving or not renewing memberships with you. Amongst other things, a high churn rate may signal that your membership plans are not resonating with your members for some reason and it may be time to reassess membership pricing strategies.

Identifying Your Target Audience

To create membership plans that truly resonate, it’s essential to first understand who your members are and what they need. This starts with a comprehensive demographic analysis.

Conducting a Demographic Analysis

Who fills your space? Are they freelancers looking for flexibility? Startups seeking a bustling hub for growth and expansion?

Or remote corporate teams requiring collaboration-friendly environments? Gathering this data and understanding who you are serving can reveal a lot about your community’s composition and what each group values in a workspace.

There are two main ways to collect this data – Internal sources and external research tools. Let’s dive into each one.

Gathering Data from Internal Sources

• Member Profiles: Use membership applications, profiles, and data stored in your CRM to get basic demographic information from current members.
• Surveys and Feedback Forms: Conduct regular surveys to capture details on member needs, goals, and satisfaction. Include questions about age range, industry, role (freelancer, startup founder, remote worker), and reasons for using a coworking space.
• Utilization Data: Internal tools, like OfficeRnD Data Hub, look at how members use the space. How do hot desks compare to private offices? Are they using meeting rooms regularly? What periods during the day are most popular? This reveals preferences related to job roles and work styles.

Utilizing External Research Tools

• Market Research Reports: Platforms like Meltwater Radarly, Google Trends, Heartbeat AI, and government databases provide insights on coworking demographics in your region or on a global scale.
• Social Media Insights: Social platforms offer analytics on audience demographics and interests, which can help you understand what types of people are engaging with your space online.
• Industry-Specific Surveys: Leverage reports from coworking-specific research organizations, such as DeskMag and GCUC, for broad industry insights.

Analyzing Your Data

Now that you’ve collected data points for your members, it’s time to make sense of what it all really means.

You can use this information to segment by member types and create different personas for each. Define each persona’s needs, preferences, and ideal amenities to tap into what they may be looking for in a coworking space.

You’ll also want to look for commonalities among current members, like the average age range or industries represented.

This can help shape your target market and optimize space usage. You’ll be able to use this information to compare yourself against local, regional, and global markets to assess how your space measures up to other populations. This can help identify untapped market segments or uncover new market potential.

Conducting a Needs Assessment

Once you have a good grasp of who your members are, the next step is to conduct a needs assessment.

A needs assessment digs deeper into what each member type is looking for, whether a dedicated desk for focused work, private rooms for secure meetings, or flexible day passes for those who need only occasional access.

Needs can vary widely across different groups, so having a clear picture helps ensure your plans are adaptable. When you know your audience’s needs and habits, you can design membership plans that not only appeal to different usage preferences but also create a better experience for each member type.

This ensures that your coworking space is a natural fit for everyone who walks through the door.

Analyzing Member Utilization Patterns

Once you know what your audience is looking for, it’s time to take a closer look at how often they’re using their preferred spaces.

Tracking Usage Data

Understanding member utilization patterns starts with tracking how and when your coworking space is being used.

This requires collecting and analyzing data on key metrics like frequency of visits, types of spaces accessed, peak times, and popular amenities. With this insight, you can shape a coworking experience that fits members’ real needs.

Frequency of Visits

Are certain members there daily, while others drop in occasionally? Knowing how often different members come to your space can help identify which membership plans are working well and where you might need additional options. Additional flexible or part-time plans may better serve those who need occasional access.

Types of Spaces Utilized Most Frequently

Do your members gravitate toward open desk areas, private offices, quiet rooms, or collaborative lounges the most? What features a space must have so they call it a good coworking space?

Tracking this information helps you understand what amenities are most valued, allowing you to allocate resources accordingly.

Peak Times

Peak times are another crucial data point.

By identifying when your space experiences the most foot traffic – whether that’s weekday mornings, lunch hours, or evenings – you can manage member flow and reduce overcrowding.

Knowing peak and off-peak hours also allows you to explore creative solutions, such as off-peak discounts or event hosting during quieter times, to ensure all members enjoy a comfortable workspace.

Popular Amenities

Finally, track the usage of specific amenities like meeting rooms, event spaces, and other special offerings.

If certain spaces are consistently booked, it might be time to introduce a more robust reservation system, expand room availability, or adjust membership plans to include more or fewer credits for these high-demand features.

Alternatively, if amenities such as recreational areas or designated quiet zones see low usage, consider how you might promote these spaces or repurpose them to better serve members’ preferences.

Evaluating Plan Value

The next key piece to creating effective membership plans is to assess the value of your offerings.

This step helps you evaluate whether your members feel they are getting their money’s worth or if tweaks are needed to enhance their experience.

This insight might lead you to offer flexible options where unused credits can roll over, or let members exchange meeting room hours for other services.

Alternatively, if members are maxing out meeting credits but still requesting additional time, a premium plan with expanded meeting room access could become a valuable option for those who need it.

Frequency of Add-Ons

Assessing the frequency of any add-ons that are part of membership plans, such as locker rentals, printing credits, or access to private offices, will also give you insight into whether or not your members are using their membership to its fullest potential.

If certain add-ons remain underused, consider if they’re truly valuable to members or if they might be bundled differently to attract more use.

Conducting Member Feedback Surveys

While data can tell you a lot about how members use your coworking space, there’s no better way to evaluate member preferences and satisfaction than going right to the source.

By inviting members to share their honest opinions on your current membership plans, you gain insights that go beyond the numbers.

Surveys and Focus Groups

Start by crafting a survey that asks targeted questions about how well current plans are meeting members’ needs.

Are they satisfied with the available amenities? Do they feel they’re getting value from their membership? Are there features or services they wish were included? By gathering answers to these questions, you gain actionable feedback on what’s working and what might need adjustments. Consider using a mix of multiple-choice, rating scale, and open-ended questions so that you capture both quantitative data and rich, qualitative responses.

For a deeper dive, consider hosting focus groups with a mix of members from different plans. Focus groups allow for more in-depth discussions and create space for members to express ideas that may not surface in a traditional survey.

Through open dialogue, members can discuss why certain aspects of their plan are beneficial or in need of improvement.

Qualitative Insights

In addition to structured questions, look out for anecdotal feedback that might emerge in both surveys and focus groups. Sometimes, a single comment or story can highlight an unmet need or spark an idea for a new service.

A freelancer’s remark about wanting access to a quiet space for video calls could reveal a larger demand for soundproof booths, or a corporate team’s preference for reservable desks might indicate a need for better space management tools.

This anecdotal feedback offers a personal touch and often reveals what members value most or what would make their experience even better.

Financial Evaluation of Membership Plans

Profitability goes far beyond tracking sign-ups. It requires a deep dive into whether each membership plan generates revenue that comfortably covers its associated costs and supports overall business growth.

A well-balanced plan should not only attract and retain members but also cover its own costs and contribute to the overall health of your business.

Revenue vs. Cost Analysis

Conducting a revenue vs. cost analysis helps you measure each plan’s profitability by balancing income against the full range of expenses it incurs.

You’ll start by calculating revenue for each membership plan, and then match it against your overhead costs, like rent, utilities, supplies, and staffing. Identify whether the plan generates enough revenue to cover its costs consistently, or if it operates at a loss.

This step is crucial in assessing whether you need to adjust pricing or refine the perks each plan offers.

Competitive pricing is another essential piece of this puzzle. Understanding what other coworking spaces in your area charge for similar plans can help you stay competitive without sacrificing profitability. If your plans are priced higher than average, make sure the additional benefits are clear and appealing to members.

Conversely, if your rates are lower, consider if they’re sustainable given your costs and member usage patterns.

Identifying Hidden Costs

Different membership types can come with surprising overhead, especially when spaces are frequently in use. Plans with unlimited access to meeting rooms may lead to increased cleaning and maintenance expenses if rooms need daily servicing.

Similarly, extended access hours can result in utility spikes – think heating, cooling, and lighting – when members occupy the space outside of typical business hours.

Knowing these hidden costs helps you factor them into your pricing, ensuring each plan not only draws members in but also covers the real costs of delivering an exceptional coworking experience.

Comparing to Competitors

To truly gauge the effectiveness of your coworking space’s membership plans, it’s essential to benchmark against the competition.

With new coworking spaces constantly emerging, staying aware of what others offer helps you understand your value proposition in the market.

Market Benchmarking

Start by analyzing membership options at nearby coworking spaces to assess how your pricing stacks up. Are competitors charging more or less for similar amenities?

Do they have more or better amenities? Are their plans more flexible, or do they have opportunities your space lacks?

This comparison will clarify how your space’s offerings align with what’s available in the local market, showing whether you’re positioned as a premium option or a more affordable choice. Striking this balance helps you attract members while delivering a strong value for the price.

Unique Selling Points

Identifying your unique selling points (USPs) is also key in this process. These are the standout features that make your space memorable and valuable:

• Weekly networking events
• Wellness amenities
• On-site tech support
• Premium/exclusive spaces
• Themed areas
• Food and beverage packages
• Discounts and promotions through partnerships

Adjusting and Testing New Plans

As your coworking space grows and your community’s needs shift, adjusting membership plans can keep your offerings fresh and relevant. But, before rolling out new plans across the board, consider launching pilot programs to test these changes on a smaller scale.

Pilot Programs

Piloting new membership tiers or flexible options – like part-time access, weekend-only memberships, or event-based passes – on a select group of members provides invaluable feedback.

This approach lets you gauge interest, refine features, and adjust pricing based on real-world data before a full rollout.

Agility in Changes

Beyond testing, agility in membership planning is essential. Coworking spaces thrive when they adapt to the evolving needs of their community.

Member preferences may shift as remote work models evolve or as your member demographics change, and staying agile allows you to tweak your plans accordingly.

By regularly evaluating usage data and member feedback, you can make proactive adjustments to your membership offerings, whether it’s expanding hours, adjusting benefits, or adding entirely new plan options.

Tools and Resources for Effective Evaluation

Evaluating the effectiveness of your coworking space’s membership plans doesn’t have to be a guessing game – especially with the right tools at your fingertips. From managing data on member preferences to gathering valuable feedback, several digital resources can streamline your evaluation process. These include:

• Customer Relationship Management Systems: CRMs are invaluable for tracking member interactions, preferences, and usage patterns. With a well-organized CRM, you can analyze trends in member behavior and identify areas for improvement in your plans.
• Booking Software: Booking software is essential for monitoring space utilization, as it tracks which spaces are in high demand and which might need a refresh. Together, these tools offer a full picture of how members are engaging with your space.
• Survey Platforms: Member-direct feedback lends insights into what members enjoy and what they would like to see improved. Platforms like Typeform and SurveyMonkey make it easy to design customized surveys that ask targeted questions on members’ satisfaction with their plans, their needs, and their preferences for new features.
• Coworking Space Management Software: OfficeRnD Flex offers powerful features to manage and evaluate membership plans effectively, integrating membership management, booking, billing, and CRM tools in one platform. With OfficeRnD Flex, you get the added benefit of customizable dashboards, allowing you to monitor metrics like occupancy rate, revenue per member, and membership trends, all in real time.

Industry Experts and Professional Consultants

Sometimes, a fresh perspective can help take your membership evaluation to the next level. Consulting with coworking industry experts or hiring professional consultants can provide deeper insights into membership plan optimization.

These professionals bring experience from across the coworking sector and can offer tailored advice on pricing, amenity selection, and member experience strategies.

Their external viewpoint and expertise can be instrumental in refining membership plans, especially when you’re considering significant changes or expansion.

Conclusion

Evaluating the effectiveness of your coworking space’s membership plans is a strategic way to ensure that your offerings align with what members value most.

From assessing member satisfaction and analyzing usage patterns to conducting a financial evaluation, each aspect provides valuable insights into how well your plans support both member needs and business goals.

Regular feedback surveys, usage data tracking, and competitive analyses can reveal new opportunities for enhancing your membership plans, whether through refined pricing, additional amenities, or more flexible options.

Now is the perfect time to start evaluating and refining your membership plans. Use the data and insights you gather to make adjustments that enhance satisfaction, boost usage, and improve financial viability. By making data-driven decisions, you’re not just keeping up, you’re positioning your coworking space to thrive and prosper.