Coworking spaces have become increasingly popular in recent years as businesses and individuals look for more flexible and affordable office options. And they are not only growing in number but also in variety as people and organizations driven by different goals are discovering the benefits of shared office space.
Peggy Sue Loroz, Professor of Marketing at Gonzaga University School of Business, suggests a practical approach when thinking about the needs of coworking space users. “In general, the difference between individuals and companies when considering coworking spaces revolves around the fact that an individual is often thinking about their own needs and preferences, while a company is thinking about the cost structure and productivity of the entire business, while recognizing that employees and their well-being are important to the success of the business.”
As Indranil Goswami, Assistant Professor of Marketing at the University at Buffalo, says, “individual motivations and preferences may differ from corporate motivations and preferences in attitudes toward coworking space choices, depending on the type of work or industry. For creative work, corporate and individual attitudes may align and both may recognize that flexible options are better,” Goswami says.
“If you extend this to organisations that are primarily customer facing, such as call centres – we might again see less conflict in attitudes and companies and individuals might agree that being open to co-working is important, for example to avoid dropped calls etc,” he added.
With so many potential user types to differentiate, it seems logical to divide them into two main groups: individuals and businesses. More so because you won’t be marketing your services to individual customers (B2C) in the same way as you would to representatives of larger organizations (B2B), who make decisions based on different criteria.
Overview:
| Freelancer and small team | Large group or business | ||
|---|---|---|---|
| Type | Utilities | Type | Utilities |
| Freelancer |
|
Business Tenants |
|
| Remote employee |
|
Startup |
|
| Working together |
|
Small Business |
|
| Digital Nomads |
|
Non-profit organization / NGO |
|
Group 1 – Individual and small group workers
This is the most obvious target audience, especially in this post-pandemic landscape. With home offices becoming the norm for many companies, not to mention the thriving gig economy, office workers and independent contractors are driving a significant portion of the demand for flexible workspaces.
Whether their motivation is more social interaction, regular access to a well-equipped office or meeting room, or just a regular change of scenery, coworking spaces are an obvious choice for solopreneurs, dynamic duos, and small teams alike.
Scott Lathrop, Professor of the Practice of Marketing at Syracuse University, said it is reasonable to expect that the search parameters used by individuals will differ from those used by organizations when searching for flexible office space. “In fact, both the decision attributes (i.e., the features considered) and the weights assigned to those attributes will differ,” Lathrop said. “While cost is an important consideration for everyone, individuals may be more likely to search and decide based on what we might call “comfort” factors — things like the ambiance of the workspace, the friendly social atmosphere, amenities (coffee, snacks), and proximity to home,” he added.
Loroz says that work-life balance isn’t the only major motivation for solo clients. “An individual may also be looking for a flexible office because they want a professional workspace outside of their home, to support or create a more conducive environment for client meetings. They may also be interested in the networking and social opportunities that a coworking space can provide,” she says. “The motivation for these individuals can be internally focused — ‘I feel more professional/productive/creative/connected in this workspace’ or externally focused — ‘Others will see me as more professional if I use this type of workspace’ — or — the business opportunities that may come to me by working in this space,” the Gonzaga University professor points out.
To set yourself up for success with the following types of individual customers, it’s best to use B2C strategies, such as opening up marketing channels within your budget while still maintaining a seamless customer experience. To really resonate with individual customers, make sure your messaging is as clear, consistent, and on-brand as possible, and try to strike some chords with your content.
Freelancer
Coworking spaces tick all the boxes when it comes to the flexibility needs of the typical freelancer. After all, the main appeal of the freelance lifestyle is that it allows you to work from anywhere, anytime. It’s easy to see why they’re not interested in committing to a long-term lease, so a flexible plan is a must when targeting freelancers.
However, the freedom of independent living also comes with its own burdens. Most freelancers work alone, and their craving for a sense of community makes the kitchen and living room areas popular spots. A game room is even better. But at the same time, it is imperative that they have distraction-free work areas where they can focus their full attention on their projects.
Features freelancers look for in a coworking space:
- 24/7 Access
- A healthy mix of quiet space and communal area
- Opportunity to connect
Remote employee
More and more people are working remotely, and not just as a result of the pandemic. Employees can find their dream jobs online, and companies are always just a click away from recruiting the best talent. Plus, even if they’re in the same city, it’s often cheaper for companies to pay for a coworking subscription than it is to rent and maintain an office building, so working remotely really is a win-win.
But regardless of whether their employer is a few corners or several time zones away, remote workers need a stable internet connection. Dual ISP connections are often music to their ears, and they love docking stations because they allow for a more stable wired connection – in addition to the obvious benefit of multiple large screens and convenient peripherals.
Similar to the freelancer lifestyle, remote working also creates a fairly isolated existence, so this demographic also appreciates the social element of coworking spaces.
Features remote workers look for in coworking spaces:
- Stable internet connection
- Coworking space
- Bottomless Coffee
Hybrid worker
A coworking space in an accessible part of town can also be a hybrid between an office and home office for hybrid workers. While their living room is often the only alternative to a shared office for fully remote workers, hybrid workers have two options to start with. However, it’s not hard for a coworking space to compete with either.
There’s a good reason why hybrid workers are frequent customers at coworking spaces, despite the plethora of options available. When companies adopt hybrid work policies, the office atmosphere changes. People who thrive in high-energy environments simply need more social stimulation than they would get from their slow, traditional office days.
Features hybrid workers look for in coworking spaces:
- Location, location, location
- Unique environment
- Social interaction
Digital Nomad
This customer base is very diverse. A digital nomad is most likely a freelancer or a traveling/commissioned employee, but they can also be people who work at a “workplace”.
For example, a remote employee who wants to explore a new city every month after their work hours, or someone who is building a side hustle while taking vacations or longer vacations between jobs.
With their diverse backgrounds, they are a difficult audience to reach. Not because they are harder to please than other customers (quite the opposite), but because there is no one-size-fits-all approach that will appeal to all digital nomads. The only common thread is that they may be new to your city.
So anything that helps them find their way around town or makes them feel at home will make their experience memorable – small gestures can have a big impact and help kickstart word of mouth within the community.
Features that digital nomads look for when using a coworking space:
- Accessibility via public transport
- Receptionist
- Restaurants, gym, dry cleaners, etc. nearby
Group 2 – Large teams or groups
The emergence of corporate coworking is one of the key trends transforming the flexible office sector. Companies have been moving towards decentralizing work and diversifying their office spaces since the early days of the pandemic. Using coworking spaces not only allows them to reach employees who prefer to work remotely, but also allows them to enter new markets more easily, experiment with new working models and, most importantly, reduce capital costs.
A CBRE survey conducted in 2021 highlighted that companies with 10,000 or more employees are leading the way in adopting shared office rental solution. One in five major employers predict that at least half of their portfolios will be made up of flexible office space by 2023, and one in three coworking hubs are expected to account for between 11% and 50% of their total office space. Early evidence of this shift is that in early 2021, more than half of WeWork members were employees of large organizations – Amazon, Airbnb, GE, HSBC, IBM, Microsoft and Salesforce are some of the coworking operator’s most notable corporate clients.
While the same survey conducted in 2022 did not break down forecasts by company size, the next round confirms that, as a general trend, optimism about flexible offices persists and continues to grow.
Peggy Sue Loroz agrees that companies are attracted to the idea of a more cost-effective option for office space. “The main motivation for companies is to balance the costs of different office space options with the goal of finding ways to maximize productivity while allowing the business to attract and retain talented employees,” she says. “Coworking can provide a flexible and scalable solution for a company that is growing, downsizing, or experimenting with hybrid work arrangements. Additionally, coworking spaces can create collaborative and dynamic environments for employees, which can be good for morale and creativity.”
Scott Lathrop found that companies placed a higher priority and emphasis on “efficiency” factors – things like opening hours, internet speed, copying facilities and Zoom meeting capabilities. “If security is an issue or the work involves proprietary information, the ability for company employees to work in a segregated space separate from others using the facility can also be an important factor,” he pointed out.
In contrast to more transactional marketing that works well with solo workers, organizations and corporate clients require a more personal touch. Location-specific targeting is preferred over a holistic approach, and branding efforts are better focused on market positioning rather than the actual message.
However, making room for open, two-way communication is just as important, and speaking the same language in terms of the terminology used and the processes employed is just as important. At the end of the day, the goal is to build lasting relationships.
Business Tenant
Businesses increasingly prefer flexible workspaces over conventional offices for a variety of reasons, including better access to premium workspaces in desirable office locations and the need to keep interoffice maintenance off their to-do list. Again, it’s a win-win, as in addition to the immediate increase in occupancy upon signing a contract, long-term commitments provide coworking operators with a steady stream of revenue, enabling rapid growth.
Large businesses prefer spacious private offices with personalized branding, so the goal is to design modern, well-equipped offices for them. Advanced technology is also important, such as conference space booking systems, cloud printing, access control, etc. You will need coworking space software that integrates all of this into easy-to-use member mobile apps.
Why do business tenants choose to rent coworking space?
- Improve worker health and productivity
- Better control over capital and operating costs
- Flexibility in hiring and restructuring
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Starting a business
While the general sentiment around startups tends to be optimistic at first glance, today’s entrepreneurs are acutely aware of the other side of the coin. The pandemic has served not only as a springboard for new business initiatives, but also as a stark reminder of the consequences of overspending and the importance of maintaining a short response time. The same upheavals that fuel hopes of overnight success can also spell disaster, especially for a small business where a one-month lease can mean the difference between survival and bankruptcy in a time of crisis.
Flexibility is therefore not only a nice-to-have but a necessity for any early-stage company. The same is true for networking opportunities. Therefore, affordable office space with short-term leases, as well as access to like-minded entrepreneurs and resources to help fuel growth, make coworking spaces an easy playground for startups.
Why do startups choose coworking spaces?
- Attractive upfront costs
- Professional image from the start
- Safety in flexibility
Small Business
This category, while similar to startups in some ways, deserves its own discussion. Surprisingly, since these small teams are often local businesses, they can negotiate more personal space in a coworking space than some multinationals. And while most of them are established businesses, they can struggle to find affordable office space that meets their needs, especially in a major city.
The gap between what most small business office workers need to operate and what most coworking spaces provide has all but disappeared. At the very least, it has narrowed to the point where maintaining a traditional office and keeping the technology infrastructure up to date is no longer viable. So in terms of targeting small businesses, they are more like corporations when it comes to their weaknesses.
Why do small businesses choose to rent coworking space?
- Hands-free asset management
- Reasonable operating costs
- Future Technology
Non-profit organizations, NGOs, etc.
While not the most common tenants of flexible offices – depending on the particular setup – such organizations can be viable targets for coworking spaces. With budgets and staff numbers constantly fluctuating, the flexibility of the coworking concept can appeal to nonprofits and other non-profit organizations for their day-to-day operations. The duality of having limited resources but addressing large communities also means that charitable groups often need short-term access to large conference rooms for their meetings, training sessions, and community events.
However, it’s not just waiting rooms and meeting rooms that are appealing to nonprofits. Coworking spaces can be a great platform for them to collaborate with other organizations and make the most of their limited human resources. As a temporary expansion, coworking spaces can also serve as their second home when working on projects that involve more people than their own space can handle at normal capacity.
Why do non-profits and NGOs choose to rent coworking spaces?
- Easy event booking
- Maximum flexibility
- Very convenient for the institute to expand and add representative offices in different geographical areas.
Conclude:
Using a coworking space is a great option for any group of customers. Whether you are an individual customer or a corporate group.
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