Coworking space performance, simply by its uniqueness, can’t be measured in the same metrics that you would a traditional office. The open concept is not conducive to measuring people assigned to a designated space. Coworking Space KPI’s are needed to best decide what to offer your client base, as well as finding ways to target other forms of clientele.
We’ve found that analyzing “Cost per Desk” alone doesn’t cut it anymore. To best understand what works for a Coworking space, here are the KPIs you must look for.
New Approaches to Measuring Occupancy
To ensure more accurate KPIs than “cost per person”, a Coworking operator must look deeper within the space. The most important factor to take into consideration is that Coworking spaces are more agile, with a great emphasis on dedicated workstations vs. shared spaces.
Within the agile work environment, you’ll want to track these additional space utilization metrics to further improve your cost per person:
Daily Peak Utilization: The maximum number of people using your space within the given day.
Daily Peak Utilization by Business Unit: The maximum number of people from a specific business or organization at your space.
Average Peak Utilization: The maximum rate of usage within various periods of the workday.
Frequency of Peaks: The amount of times the peak usage of the workspace is reached throughout the month. You can use this to detect similarities and patterns of usage.
Assigned Ratio Per Building or Group: This allows you to see the ratio of how many people you have assigned to a specific seat. It’s best to compare this with the Actual Ratio of users using the seats.
With a more agile workplace, it’s important to measure utilization metrics with a consideration for the level of collaboration within the space. By measuring the way members work together within a shared coworking space, you can see how your place is being fully utilized, giving you insights on where you can make improvements.
The key to measuring Community KPIs is to find the optimal form of productivity that can only come from members working together. Strong engagement will show an increase in the following categories:
Usage of group work areas
Conference room bookings
Video conferences with members from different regions
Collaboration among virtual users
Usage of phone booths
These are all pretty self explanatory. The higher the metrics are for usage of your conference rooms, group spaces, and phone booths, the easier it is to determine your space’s needs and performance.
Decreasing Tenant Churn
One of the biggest factors separating the thriving Coworking spaces from others is their ability to decrease churn rate (member turnover). For best results, you should calculate it per a span of 3 months, on average.
Just by adding a month or two to the average time a member stays at your space, your revenue will take an incredible jump. According to the 2018 Coworking Survey from Deskmag, nearly 75% of members plan to stay at their current space for at least another year or have no plans of leaving at all. Imagine if you could get that percentage up into the 80s at your space!
Take note of the following metrics for retention:
Number of new members per month
Rate of Member Retention – the percentage of renewing members per month.
Conversions per Marketing Channel – users signing up via online, print advertisement, word of mouth, etc.
Average Member Lifespan Per Channel – how long a user that comes from an online source usually stays vs. other channels.
Average Revenue Per Member Per Month – total revenue from memberships divided by the amount of members within the workspace. You can also segment this by business/organization.
Cost of Acquisition Per Medium – ideal for measuring marketing strategies.
Clearly, it’s more than just the raw numbers of how many members you have or what your dollar revenue is. If more of your members are inquiring about your location via social media advertising or posting, then obviously invest more in that medium than an ad in the local paper for example.
The location, be it a large urban area, a suburban area, or a small city, will have an effect on the metrics.
For instance, Coworking in NYC could prove to be much more expensive for the member as well as the operator, but there are countless more competitors there than in, lets say, Wichita, Kansas. So you could see your average member lifespan decrease, while seeing your overall new members per month increase.
Factor in location and account for it when determining what you’d consider a successful month or year based on these KPI’s.
How to measure KPIs
To best measure these statistics we recommend using a workspace management platform that can best assess this data. Once you are understand these metrics, you can find exactly what you can adjust to keep your members longer.
For instance, measuring daily and average peak utilizations on an excel spreadsheet could prove inaccurate and time consuming. The right Coworking software could generate it in seconds.
Furthermore, if you can segment usage per business, you could have a clearer vision of member demand within your workspace.
When looking for the best KPIs for Coworking space management, you always have to keep in mind the agility of the workspace as well as when to deviate from using measurements specific to traditional offices.
What you must look for includes deeper insights into your occupancy in terms of usage, the engagement of your services within a shared or communal workspace, as well as methods for decreasing the churn rate of members.
For more information on how KUBE can transform your workspace for greater productivity, please click below.
WUN Systems is a provider of a Workspace Management Platform delivering you all the tools needed to grow a smart and connected workspace. The WUN Platform enables your technology to work intellligently together from managing leads and monthly billing to on-demand Internet and Voice services. With all the hardware, software, and essentials for building a thriving workspace, WUN’s platform helps you increase revenue, maximize productivity, and build community. WUN’s mission is to provide the blueprint for growth and efficiency in your workspace.