7 Growth KPIs to Elevate Your Coworking Business

If you run a successful coworking business, chances are you’re considering scaling your number of locations. Maybe you’re looking to open a second workspace in one of your current markets, or expand to a new city or even a different country.

Before this can happen, you must know your growth is on the right track.

So, how do you measure a coworking operation’s growth? You need to analyze specific KPIs. In this post, we’ll explore the various growth KPIs and introduce some best practices to elevate your coworking business.

What Are Growth KPIs?

If KPIs are key performance indicators, growth KPIs are metrics that relate to a company’s progress or development. They are quantifiable measurements that help you monitor and track signs of growth in each area of your business.

Business growth means different things to different workspace providers, and the best indicators of growth will vary between brands. For example, higher profits don’t necessarily equate to sustainable growth. Instead, they could be the result of extensive cost-cutting measures, which could have long-term negative impacts on customer service and cause people to work elsewhere.

You may base growth on revenue increasing by a certain amount or attracting more web traffic. For coworking businesses, you’ll be looking at factors such as new membership and retention rates, as well as acquisition costs and conversion metrics.

Growth KPIs help you understand business development over time and give you a good indication of expected success. You can measure progress towards your aims and use the data to make informed decisions. Plus, growth KPIs can also be useful for sharing with current and potential investors.

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7 Growth KPIs to Elevate Your Coworking Business

There are numerous metrics you can use to evaluate progress, so we’ve selected the most relevant KPIs for measuring growth in a coworking business.

Number of New Members

This KPI assesses your ability to attract new members to your coworking space and is essential if you plan on expanding your business. As well as measuring the number of people who are current members, you also need to look at how many of them are active users of your amenities and services – which indicates utilization.

It’s also useful to know where your new members have come from. How did they hear about you? What made them want to join? This shows you which marketing methods work best, and you can use these insights for future campaigns.

Website Traffic and Conversions

An increase in online traffic is a key indicator of growth. Besides studying the metrics from your main website, you can look at interactions with your social media channels and Google Business profile. Again, find out where the traffic is coming from and track it with tools such as Google Analytics.

Conversion rate is another essential KPI, providing insight into the success of your coworking space’s online presence. Where do conversions happen? Which calls to action and landing pages work best? Are people bouncing away from the site before converting?

Member Retention and Churn Rate

It’s important to measure growth in terms of new members, but are you retaining those members long-term? Customer retention KPIs reflect satisfaction and loyalty. They help you assess the stability of your revenue engine.

If people aren’t renewing their membership, why not? How might you make them stay or re-engage those who’ve lapsed? Your churn rate has a huge impact on your growth, so it pays to minimize it as much as possible.

Average Member Lifespan

This KPI requires prediction. To forecast continued growth, you need to figure out how many years you can expect each member to stay with your business. This will help you to evaluate the true value of your members in terms of revenue and loyalty. The catch is that you can’t wait until the end of their lifespan to see how long it was, so you’ll need to base this insight on averages.

Member Satisfaction Rate

Monitoring customer satisfaction is critical. If it’s on the up and up, this indicates that the company is poised for growth. Happy members stick around, and they tell others about positive experiences. On the other hand, if this KPI takes a dip, customers may be about to churn.

Send out surveys with open-ended questions. Ask about general satisfaction and look at how members engage with each other as a community. You can also check the data in your customer relationship management (CRM) system to see details of member interactions and concerns.

Member Acquisition Costs

All businesses know that it typically costs more to acquire a new customer than to retain an existing one. But it’s important to crunch the numbers and find out exactly how much you spend on elements such as advertising and onboarding.

You can then balance the cost of acquisition against the revenue generated by each member to see how quickly you can expect a positive return on the investment. Try segmenting members to discover if some groups cost more than others.

Revenue Growth Rate

Coworking growth KPIs include the growth rate of revenue per user, as well as the growth of overall revenue. For members, you want this figure to be higher than the amount you spend to keep them. You can measure annual revenue or monthly revenue and segment it by customer type.

A rise in revenue indicates profitability and sustainability, and you can infer that your marketing efforts and engagement strategies are paying off. If revenue isn’t growing, you might want to look at making adjustments before you scale up.

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Best Practices to Improve Coworking Growth KPIs

Perhaps your growth metrics have revealed that there’s more work to do. In that case, following these best practices can accelerate your progress.

Implement a Member-Centric Approach

You won’t see further growth unless you can keep your members happy. A member-centric approach makes sure that everything is done with them in mind­­—including a comfortable working environment, a user-friendly website, helpful staff, and optional extra coworking amenities on site.

It’s vital that you ask members for feedback so that you’re aware of what they like and dislike about the business. What improvements or additions do they want to see? Feedback from those who churn is equally important for knowing what not to do.

Becoming more member-centric not only appeals to existing users but also helps you attract new ones. The data you gather is useful for personalization and for letting users know that you value their input.

Foster Community Building and Engagement

A coworking space needs a sense of community to be successful. The whole idea is that remote and hybrid workers can reduce isolation by coming together in a shared space, taking advantage of networking and collaboration opportunities.

It’s important to increase engagement between members and also to encourage members to engage with the business itself; think social media competitions, giveaways, and member-generated content.

You might also create a referral program and offer discounts and loyalty schemes for frequent members. On-site or virtual events also help bring people together in a big way.

Streamline Operations and Make Space for Flexibility

If you’re going to offer the best user experience possible, you need to make sure your processes are super-efficient. It should be easy for people to sign up or reserve a space, while the payment process must also be simple and fast.

Meanwhile, smart tools such as CRMs and time management systems make life easier for your own employees, from HR teams to marketers to on-site staff. A happy and productive workforce usually translates into happier customers.

Flexibility appeals to members, such as adjustable membership plans and the option to book by the hour or the day rather than making a long-term commitment. Offer single occupancy spaces as well as collaborative ones, plus flexible sizes for meeting rooms.

Measure the Success of Your Coworking Space with Growth KPIs

Measuring growth KPIs is essential if you’re planning to expand your coworking business—or even if you simply want to check on your progress. By monitoring key metrics such as retention rates and customer acquisition costs, you can evaluate performance and make data-driven decisions.

Growth KPIs give you valuable insights into member satisfaction and operational efficiency, helping you to understand where conversions are coming from and where you need to improve. This will help you to reduce customer churn rate and boost the financial health of your business.

Key Takeaway

Tracking growth KPIs is essential to scaling a coworking business successfully. Focusing on metrics like member acquisition, retention, satisfaction, and revenue growth enables informed decisions, reduces churn, and ensures long-term operational and financial health.