{"id":3000004218,"date":"2019-02-21T15:56:36","date_gmt":"2019-02-21T20:56:36","guid":{"rendered":"\/newsroom\/?p=3000004218"},"modified":"2020-03-30T18:01:11","modified_gmt":"2020-03-30T22:01:11","slug":"this-team-makes-pricing-a-desk-as-easy-as-clicking-a-button","status":"publish","type":"post","link":"https:\/\/www.wework.com\/ideas\/community-stories\/employee-spotlight\/this-team-makes-pricing-a-desk-as-easy-as-clicking-a-button","title":{"rendered":"This team makes pricing a desk as easy as clicking a button"},"content":{"rendered":"\n

When WeWork opened our first location in 2010, our members were mostly small businesses that needed a desk or an office. Pricing was straightforward, using the same approach as the rest of the real estate industry.<\/p>\n\n\n\n

Nine years later, our members include some of the largest companies in the world, and they\u2019re often looking for offices in several different cities or access to WeWork locations for their workforce. Suddenly the price isn\u2019t so easy to calculate.<\/p>\n\n\n\n

That\u2019s where Jiwon Seo and her team come in. The six-person revenue-optimization analytics team has been tasked with using the knowledge WeWork has built up as a tech company to innovate our pricing model. Her team is using real-time data to make pricing as easy as clicking a button.<\/p>\n\n\n\n

When Seo started at WeWork two years ago, pricing involved weeks poring over data, talking with local experts, and making some educated guesses.<\/p>\n\n\n\n

\u201cBut it was super-manual,\u201d she says. \u201cIt wasn\u2019t data-driven. And it wasn\u2019t scalable. We knew we could make this into a platform that can grow along with us.\u201d<\/p>\n\n\n\n

\"\"
\u201cOne of the things that makes WeWork different from other companies is community,\u201d says Jiwon Seo. \u201cHow you quantify that?\u201d<\/figcaption><\/figure>\n\n\n\n

And with WeWork regularly opening more than a dozen locations every month, scalability has become more and more important.<\/p>\n\n\n\n

\u201cBeing a tech company, our challenge was thinking about how to upgrade our model,\u201d Seo says. \u201cDid that mean enriching the current system with more sophisticated data or coming up with a more data-driven approach?\u201d<\/p>\n\n\n\n

They opted for the latter, building software from the ground up that completely automates the process. It uses sophisticated modeling and data from a variety of outside sources.<\/p>\n\n\n\n

WeWork\u2019s traditional pricing model didn\u2019t take into account things like demand. If one building in a city is nearly full and another less so, the new software recognizes that and gives members a lower price. It can also look at changes in a neighborhood\u2014say, a Starbucks opening nearby\u2014and potentially factor that into the pricing.<\/p>\n\n\n\n

Another aspect is being able to reward members who make longer-term commitments.<\/p>\n\n\n\n

\u201cEssentially, we were offering everyone the same month-to-month contract,\u201d Seo says. \u201cBut now we\u2019re able to offer different pricing to enterprise members who want the security of committing to longer leases.\u201d<\/p>\n\n\n\n

Besides pricing for traditional WeWork locations, Seo\u2019s team has tackled pricing for WeWork\u2019s newer offerings, like space for enterprise companies. The new software can calculate the price if a major corporation wants to take an entire floor of a building.<\/p>\n\n\n\n

Seo has lots of experience with dynamic pricing: She worked for three years at Starwood, now part of the hotel group Marriott International. In the travel industry, dynamic pricing raises rates for airline seats and hotel rooms<\/a> when there\u2019s higher demand.<\/p>\n\n\n\n

\u201cWe think of it a little differently,\u201d she says. \u201cOur mission is to provide the right price to the right member at the right time\u2014with a focus on building community.\u201d Seo says that means providing them with the space and services that they need for a reasonable price.<\/p>\n\n\n\n

Seo\u2014who received her bachelor\u2019s from Seoul\u2019s Yonsei University and a master\u2019s from Washington University in St. Louis\u2014initially came to the U.S. to pursue a doctorate in economics.<\/p>\n\n\n\n

\u201cI decided I wanted to work instead of staying in academia so that I could apply the modeling techniques I learned to solve business problems,\u201d she says.<\/p>\n\n\n\n

The next challenge she wants to undertake? Putting a numerical value on WeWork\u2019s less tangible offerings.<\/p>\n\n\n\n

\u201cOne of the things that makes WeWork different from other companies is community,\u201d she says. \u201cHow you quantify that? How do you come with metrics for that? It\u2019s something we\u2019re just starting to think about.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Jiwon Seo\u2019s revenue-optimization analytics team automates what used to be a manual process<\/p>\n","protected":false},"author":1715,"featured_media":3000004222,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[43903,43912],"tags":[],"class_list":["post-3000004218","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-community-stories","category-employee-spotlight"],"acf":[],"yoast_head":"\nThis team makes pricing a desk as easy as clicking a button<\/title>\n<meta name=\"description\" content=\"Jiwon Seo\u2019s revenue-optimization analytics team automates what used to be a manual process Jiwon Seo\u2019s revenue-optimization analytics team automates what used to be a manual process.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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