Community, that real sense of community, where people feel like they’re connected for some warm reason or another, is much more valuable than cash. You can find cash. You can’t find warm bodies who want to help, who genuinely want you to succeed. Those, you have to earn.” - Chris Brogan
What is a community? How does it benefit your business or cause?
I’ve just received an invitation to upgrade a free newsletter subscription to a paid monthly version. I value the information the author provides so am considering the offer. Their initiative was a good example of a marketing strategy to leverage existing customers like myself who have purchased previously, and to capture new ones.
As a customer though, I feel more than just a name on their database. Rather – I’m a member of their community – or as Seth Godin calls it, a tribe. In this community, like all communities, each member is connected by a shared interest, passion and importantly a means by which to communicate with each other.
Researchers Susan Fourier and Lara Lee describe communities as “a group of ardent consumers organised around the lifestyle, activities and ethos of the brand’. Recognising individuals’ need for connection, organisations now seek to build communities as part of their business strategy realizing key benefits such as forging customer loyalty and achieving marketing efficiencies.
Business benefits of stong brand communities
Following are two ways this occurs:
i) Customer Retention
In 2003, Fred Reichheld of Bain and Company, showed that it is significantly cheaper to retain a customer than acquire a new one.
The marketing fundamental of understanding and meeting your customers’ needs, and nurturing their place in your brand community help garner customer loyalty and retention.
By looking after existing customers to maximise retention, less marketing investment is then required to find new customers to replace those who have left.
ii) Brand Advocacy
A strong community can become a brand’s marketing army. As Chris says in the quote above, members who love your product, or are passionate about your cause, genuinely want you to succeed. And they’ll tell others about it.
Ed Keller, CEO of word of mouth researchers and consultants – Keller Fay Group, says word of mouth, which is not a new phenomenon, is now a key communications channel heralding a shift in control from the marketer to the consumer. Keller also cites research (Reichheld and the London School of Economics) that shows strong customer advocacy on behalf of a brand or company is one of the best predictors of top line growth.
A brand marketing army marching on your organisation’s behalf lowers marketing costs – as they spread the word – resulting once again in greater marketing efficiencies.
These are themes which we’ll explore in greater depth in coming months.
Have you established a community for your brand? How do you nurture its development?
Related Posts
Intentionally Building Communities. (More Hallway) by Seth Godin
Fred Reichheld is visiting Australia in March: Fred Reichheld – The Loyalty Effect
Seth Godin on ‘The tribes we lead”: (TED, 2009)
