Why Client Service is the Secret to Coworking Profitability

• Creating predictable recurring revenue starts and ends with consistent, high quality service.
• It's a proven way to increase retention, reduce churn and increase lifetime value.
• Happy clients stay longer and say yes to upsells, becoming powerful brand advocates in the process. 

The best performing centers don’t just attract clients – they retain them and maximize lifetime value. 

The true differentiator is quality of service. 

At Alliance, we see it firsthand: centers that consistently deliver excellent service to clients achieve lower churn and higher recurring revenue.  

For example, one of our partners in Chicago, IL, that prioritizes client service and satisfaction has 1,370 Alliance clients with a retention rate of just over 93%. 

Another partner in Washington, DC, has 507 clients with a retention rate of 97%. 

That’s impressive – but how does that translate into real profit? 

Let’s take a closer look. 

What Centers Gain from Prioritizing Quality 

Centers that deliver the highest standards of client service keep clients for longer, leading to higher profit and long-term growth. That’s because they: 

• Create predictable recurring revenue, driving sustainable profit.
• Increase lifetime value by keeping clients longer.
• Grow revenue through upselling, add-ons, and stronger client loyalty (happier clients are more likely to say ‘yes’).
• Enhance brand reputation, attracting higher-value clients and reinforcing trust.
• Lower acquisition costs by reducing client churn (although with Alliance, your acquisition costs are zero). 

Retention is More Profitable Than Acquisition 

Studies show that acquiring a new client can cost five to seven times more than retaining an existing one. 

What’s more, existing clients spend on average 67% more than first-time buyers. 

When the service is seamless – such as quick mail handling and smooth meeting room access – clients are far more likely to keep buying and keep renewing. 

If their experience is poor, they can easily move to another provider. 

Quality Builds Trust and Revenue 

Studies show that 84% of companies that invest in improving customer experience see revenue increase. 

That’s because trust translates into predictable recurring revenue. When clients feel supported, they stay, and they buy more. 

Exceptional Service Creates Brand Advocates

The opposite is also true: poor service damages relationships and reputations quickly. Studies show 13% of unhappy customers will tell 20 or more people about their negative experience. 

On the other hand, happy clients become your most effective marketers. They recommend your center, leave positive reviews, and spread word-of-mouth trust.  

That kind of loyalty is priceless – and it only comes from consistently high service standards. 

Happy Clients Buy More 

Once clients feel secure, they’re far more open to additional purchases. That means upselling becomes natural, not forced. 

From meeting room bookings to revenue-generating upgrades, happy clients are the first to say yes.

Cross-sales and add-ons deepen loyalty and increase average revenue per client, helping your center grow profit without the constant cost of chasing new business. 

Structured Support Improves Operations 

Investing in quality of service not only pleases clients, but it also benefits your operations. 

Studies show organizations with strong customer success programs see: 

• 12% higher revenue growth
• 19% higher gross margins
• 15% better retention
• 25% greater lifetime value 

By reducing complaints, handling issues efficiently, and creating smoother processes, high-quality centers actually save staff time and lower operational costs.  

In short, better service means better efficiency. 

At Alliance, we partner with centers that share this vision. Together, we can deliver an outstanding experience to virtual office and workspace clients and build long-term profitability for your business.