According to Harvard Business Review, acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.
I’m willing to bet that the coworking industry is on the mid-to-high side of that range, given the recurring revenue model.
And according to a Bain & Company study, with a professor from Harvard Business School, increasing customer retention rates by as little as 5% can increase profits by 25% to 95%.
Those are no small figures. And they go up from there.
It’s easy to forget that marketing continues long after the sale is made. It doesn’t end the minute someone signs up. It just changes gears.
Instead, marketing continues for the lifecycle of your member—and even beyond (think alumni programs).
Do you have a member marketing strategy? I’d love to know what you do to keep them around.
Tomorrow, I’ll cover one of the best ways to begin “marketing” to your current members to help increase your retention rates.
I’ll give you a small hint, it involves communicating with them, and there are several ways to do that.
And who knows—maybe it will be the start of profitable boost for your workspace this year. I’ve seen stranger things!