For businesses and brands, community has become an increasingly hot topic over the past 30 years. It is naturally significant for membership organisations, which are involved in many of the activities that breed real community.
There are, however, some misunderstandings about what the term means. Social media has contributed to its misuse and seen ‘community’ used to describe any scenario in which people congregate.
Social psychologists David McMillan and David Chavis describe it as: “A feeling that members have of belonging, a feeling that members matter to one another and to the group, and a shared faith that members’ needs will be met through their commitment to be together.”
This sense of belonging is a significant aspect of community and membership alike. But while we may sense we have a following, how do we evaluate it?
Tony Seel, Founder and CEO of Irresistible Influence Marketing, proposes a new post-purchase journey through which it’s valuable to look at community:
- Phase 1: Adoption – where we seek to onboard our new member
- Phase 2: Retention – where we seek to drive satisfaction
- Phase 3: Expansion – where we seek to up- or cross-sell
- Phase 4: Advocacy – where we seek to drive loyalty and evangelism
Arguably, it’s the consumers in the latter phases that provide the real value for us. According to Bain and Company, increasing customer retention rates by just 5% can increase profits by between 25% and 95%.
The work of Pat Barker in his book Superfans cements this idea. He reveals that active audience members or subscribers will be 30% of your total audience, who have taken an action to indicate they like your products, services or what you have to say. These people should be actively paying attention to what you do.
A connected community will be 15% to 20% of your total audience and should be talking in the space you provide and (significantly) to each other. They’ll be feeling a sense of belonging and purpose, so building group opportunities and connections is vital.
Superfan status is only 5% of the total audience. However, these are the people creating the highest engagement. They are your best repeat customers and are spending the most time and money with you.
This segmentation should help us in terms of understanding Customer Lifetime Value and subsequently help us plan marketing, ROI and conduct business modelling.
According to Dialogue’s Brand Communities report, 40% of consumers would be likely to spend more money with a brand if they were a member of a group or a community it had created.
Brands such as Patagonia are reaping the rewards of the few seriously engaged; its online platform, Patagonia Action Works, connects people with grassroots organisations fighting to save the planet and has awarded over $70 million in cash and in-kind donations.
But to put just a monetary value on your community is a disservice. Patagonia’s European Marketing Director Alex Weller says: “You can’t reverse into a mission and values through marketing. The organisations that are struggling with this are probably the ones that are thinking about marketing first.”
Brand communities’ two core purposes are in product research and development, as well as marketing purposes via advocacy and word of mouth.
According to Dialogue’s Brand Communities report, what’s encouraging is that brand communities are no longer a buzzword. Consumers and particularly Gen Z are seeking to engage more deeply with the businesses they value: 52% of consumers (of all ages) say they could be encouraged to join a brand community, with 22% wanting first access to sales, offers and promotions; 17% exclusive experiences; and 16% valuing an early look at new products and services.
While any community-building has to be a long-term, always-on strategy for those taking it seriously, it’s invaluable.
Dialogue Content Marketing is a full-service content marketing agency with a passion for connecting brands with consumers and nurturing brand communities by creating engaging visual and written content across all channels. Contact us to find out more!
Leave A Comment