Challenge

A local coworking space in Berlin struggled to generate revenue despite adopting a business model that mirrored the city’s most successful coworking hub. Despite their efforts, they faced significant challenges in attracting and retaining members, prompting them to seek our expertise in business problem solving.

Approach

To understand the core issues, we conducted extensive surveys with coworking space users across various parts of Berlin. Our research identified two primary obstacles: nearly nonexistent brand awareness and an unappealing pricing model. These insights highlighted that while the business model was sound in theory, it failed to meet the specific needs and preferences of potential customers in its execution.

Solution

Addressing these critical issues, we first tackled the pricing model. We redesigned it to offer more inclusive packages at slightly higher prices, allowing members to enjoy additional conveniences without the need to commit to a higher tier with unnecessary features. This new pricing strategy was tailored to meet the demands for flexibility and value identified in our surveys. Concurrently, we launched a robust marketing campaign across multiple channels, aiming to build brand awareness and highlight the unique benefits of the new offerings.

Results

The strategic changes led to a remarkable turnaround. Within a year, the coworking space saw its monthly revenue increase by over 160%. The new pricing model and enhanced marketing efforts successfully attracted a broader membership base and improved retention rates, establishing the space as a key player in Berlin’s competitive coworking market.

Conclusion

This case illustrates the power of tailored business optimization strategies in reviving a struggling enterprise. By closely aligning the service offerings with customer expectations and executing targeted promotional activities, businesses can overcome initial setbacks and achieve substantial growth. Our approach ensures that businesses not only recover but thrive by transforming perceived disadvantages into competitive advantages.