Contrary to popular belief, the average tenure of a virtual office client at a mature flexible office space (30.9 months) is longer than the average tenure of his full-time office counterpart (25.1 months) at the same location.
This remarkable data was shared with us by a CloudVO partner with multiple locations in the West Coast and close to 2,000 virtual office and 800 full time clients.
They define “client” as an individual company, which in some cases may have several users. The “mature” centers here are defined as more than 3 years old. Data from mature centers is more relevant since terminations from newly opened centers can only be for short term tenants, since none of the clients had a chance to experience long occupancy in recently opened centers.
When analyzing the breakdown of Virtual Office clients we found a slightly shorter average tenure for richer VO Plans, e.g. those that include bundle of meeting rooms or phone answering, and a slightly longer average tenure for Mail Only Plan Clients, but not in any statistically significant way.
Also worth noting, a significant percentage of Full Time clients who terminated their contract downsized to a VO contract, and some VO clients upgraded to Full Time tenancy. The data considered both cases as termination, even though the tenure of these clients continued, just under a different classification. Also not considered here are our partner’s clients who terminated their contract in one location to move to another location in the portfolio. So the true average life of our partners’ clients is longer than shown.
This VO client tenure data is a bit higher but consistent with CloudVO’s own internal data, particularly after eliminating the “Dead on Arrival” clients, i.e. VO clients who may have purchased a plan online but whom CloudVO filters out due to failed CRMA compliance or credit quality issues. A higher upfront denial of service ratio is expected with online sales. The CloudVO partner does not currently have e-commerce capabilities for VO sales.
This means that a center with 100 VO clients should expect a turnover of ~3 VO clients per month.
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CloudVO is the umbrella brand of Cloud Officing Corp., headquartered in San Francisco, California. CloudVO’s mission is to provide comprehensive virtual office, coworking and meeting room solutions to professionals under a Workplace-as-a-Service™ model. CloudVO operates the CloudTouchdown network that grants preferential access to day offices and meeting rooms at nearly 1,000 locations worldwide.