Critical KPIs for the Growth of Your Coworking Space
To track your business growth, you'll want to measure the KPI's of your coworking space.
Qlik defines key performance indicators as a 'quantifiable measure of performance over time for a specific objective'. Each business type has its own KPIs; for example, e-commerce businesses track average profit margins while marketplaces look at monthly active users. Space as a service businesses are unique; therefore, they need relevant KPIs for their business model.
This post will break down why KPIs are essential and a few relevant KPIs for your coworking business's growth.
Why are KPIs important?
Key performance indicators give you a way to understand your business better—and, through that understanding, make it better. You can analyze your business's health, look at progress over time, adjust when necessary, and tackle opportunities.
When you’re closely monitoring your coworking analytics, you notice specific trends and patterns that help you make data-driven decisions about pricing, membership tiers and niche-specific amenities.
If you’ve recently deployed a new sales funnel or a new landing page, KPIs tell you if the current strategy is working or if you need to make a change.They also provide a target for you to work toward as you try to expand your business.
Five KPIs for Coworking Spaces Growth
Number of New Leads by Channel
Leads are potential customers, without new leads it's challenging to grow your coworking space. If you've bought social media ads or have a sales team, tracking new leads informs you of the success of your lead generation techniques. Identifying quality leads and reaching out to them increases the chances of bringing on new potential members.
Yoast defines bounce rate as the percentage of landing page visitors that do not engage with your landing page. Tracking your bounce rate lets you know if you’re attracting quality traffic to your site and whether or not you have a high converting landing page.
Number of Booked Tours
A new lead has landed on your website, likes what they’ve seen and now they’ve clicked on your 'Book a Tour' button. Your marketing funnel has worked in converting leads to a booked tour. The number of booked tours lets you know if the current marketing strategy is continuing to work. If there is a substantial decrease in the number of booked tours, it's time to investigate and possibly decide on a new approach.
Number of Converted Tours
So this person has landed on your website, read up on your coworking space, booked and completed a tour, and now you haven’t heard back from them. Somewhere along the way, they changed their mind about your workspace. Maybe it was something they noticed on the tour or something they heard. Ultimately, you can learn a lot from whether or not the tour is converting.
Hubspot defines churn as the customers that leave your business in a certain timeframe. Once you have members, knowing how many of them cancel their memberships or stop showing up lets you know if you're still providing value as a coworking space. Churn numbers let you know if your current amenities and membership options are working to keep members. Getting feedback from members who leave your coworking space is a good way to improve your services and find ways to serve your members better..
Attracting and retaining new members is hard; sometimes, you have to try different approaches to perfect your marketing and sales strategies. KPIs allow you to understand what's working and what isn't so that you can adjust your coworking space to succeed in your market. You won't grow if you aren't tracking new leads, converting them, and preventing churn.
Worksimply Pro gives you a sophisticated platform to improve your retention rates and increase your revenue by tracking prospect and member analytics. Reach out for a demo of the platform if you're interested in growing your coworking space using analytics.