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IF YOU ARE ALREADY TOO DEEP

I finished yesterday's post with "Or more importantly, get your model right before you get too deep." Unfortunately, most of us are already too deep, so let's dive a little further into it.

I'm going to have a go explaining on behalf of a space operator because it is most recently what I knew plus I've been asked to help space operators increase occupancy through more customised and targeted approaches.


Let’s say you are a space operator that’s too deep i.e you've spent huge cash on a 'slick' fit-out and made a 10-year commitment -


Here’s how i’d think about differentiating/ adding value/being clever in your approaches in the first instance (clearly beyond core cost exercises);

  • Spend extra time with your core or oldest clients - no I mean actual time, like time taking them out to lunch or doing activities. You'd be extremely surprised the things you will find out when you aren't asking people questions directly in a work or extracting scenario. Look for things such as their journey pre-and-post your space etc.

  • Truly understand CAC - not all customer acquisition can be done simply through forms and tours. Companies such as HealthIQ in the US use unique tactics for CAC such as - collecting interest in health insurance by asking people to commit to running an 8-minute mile (because you are less likely to have a heart-attack etc. if you can run it at that pace) and on-sell the client. Of-course it depends on the clientele, however I can guarantee trying things such as going for a beer to discuss joining the community (post-qualification-of-course) will increase your conversion twice over. Yes you can build that into your CAC model.

  • Look at the clients of your competition - get some cahoonas and commit to having looking after one customer, in one geography with one product instead of lying to yourself and saying that your product is great for plenty of people. That's just a deferred lie. (and yes even in small cities there will be enough customers for your 3000sqm space if you do it right)

  • Understand permission based marketing - Look up Seth Godin please

  • Look for other industry things that could be implemented - Look laterally at loyalty programs, stop treating referals as a business opportunity for customers and partners

  • Try left-field partnerships - to provide joint offerings that are things that really drive home for your clients. I know I'd love some Audeara headphones for co-working

  • Change your story and delivery from the top down - if you build your company by just selling product than you will never have loyalty to a brand. Use this as your first step to change the conversation from cost to value delivery. There are ways to pitch value to pragmatic and emotional buyers.

  • Look for staff super skills to 'exploit' - some of your staff likely have skills that you do or don't know they have that are outside their 'core' job but could add huge value to your clients (or future clients). Things I know 100% for sure that professional service operators are looking for are certain media rooms.

  • Do unscalable things - commit to becoming an experimental organisation that is 100% client driven, rather than industry driven. Experiment, over and above, improve every day.

  • Last but not least, try to understand the Pure Metric of your client decision makers. If the people in your space are project workers, what do their bosses want? Productivity? Happiness? I'm not sure - but that's what I'd be concentrating on.

If you set core assumptions based on company-wide goals and you ran sets of experiments with each core item to be explored split into further experiments driven by quantitative results - you would certainly improve dramatically (worst case your clients see you are listening and putting in effort).


Here’s how I'd set up the experiments :

Example of an experiment map derived from core company goals

*P.s all of my posts are first drafts, my researcher will buff them out — so make sure to write in and ask for extensions or explanations if you are interested.


Thanks.

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