Community Strength: Your Lever to Business Growth

So what’s the value of a community for a (coliving) business?

Introducing community-led growth

What does this mean for coliving?

The five growth levers that come with a strong community

  • Improved quality of the experience — Being close to your community and truly understanding their wants and needs will help you improve the quality and value of the experience you are creating, this in turn reinforcing the flywheel that you are building.
  • Increased engagement — A strong community will also lead to higher engagement of your individual members, which again reinforces the strength of your community and helps newcomers connect and integrate easily. This results in closer relationships among your residents which ultimately increases the loyalty and commitment of members to your brand.
  • Higher satisfaction — As a coliving operator, you are promising current and future members a community experience. By fulfilling your promise you increase the satisfaction of your members, helping them to become brand ambassadors.
  • Growing social proof — Providing an experience that exceeds your residents expectation will turn them into raving fans of your coliving concept, which increases the likelihood and their willingness to talk positively about you — leading to more social proof like word of mouth, referrals, and reviews.
  • Increased reach — Being able to tap into the networks of your current members will give you an increased reach of prequalified and vetted candidates who are typically already further down in the funnel compared to other candidates that you acquire through traditional sales channels.

The four business outcomes that a strong community drives

  • Reduced acquisition costs — A well-functioning community will be able to self-sustain as it is able to retain existing members and pull in new ones. And the good news is that those potential new members are already highly qualified leads and much further down the funnel before they’ve even started talking with you.
  • Increased length of stay — Being a member of a strong community also increases loyalty and therefore functions as a powerful moat to keep your current members with you. Research shows that if you empower your new members to make a new friend within their first 2 weeks of their stay the probability to renew already increases by 40%. And that’s only 1 new friend within the first 2 weeks — imagine how much more stickiness you can create if your community is alive and buzzing.
  • Reduced costs to operate — An engaged community also comes with the benefit of reduced costs to operate as your residents are first of all taking better care of their own environment reducing the maintenance, and secondly also more engaged in taking over community tasks, thus further reducing the costs to operate.
  • Higher profitability — All this ultimately translates into higher profitability for your business, as you are tapping into the very core of your product offering to leverage it. Of course, a strongly engaged community is also a great audience to sell additional services or experiences to, but for this exercise, we will not even consider this.

What’s next?

  • About Michael: Michael is co-founder and CEO at Obeyo. Passionate about connecting people, he loves to explore ideas at the intersection between community, shared-living, and technology. Feel free to connect with him on LinkedIn.
  • About Obeyo: Obeyo is the first all-in-one residential living platform built around the learnings from 100+ shared living operators.

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Co-Founder and CEO at Obeyo | Passionate about creating and scaling start-ups/scale-ups in the prop-tech and ed-tech space.

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Michael Steinmann

Michael Steinmann

Co-Founder and CEO at Obeyo | Passionate about creating and scaling start-ups/scale-ups in the prop-tech and ed-tech space.

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