How community-based solutions help drive brand awareness and retain loyal customers
I had a call with a client recently that really opened my eyes to a trend that many businesses still have not taken advantage of, online communities or subscription-based websites.
This particular client wanted to become an industry leader by providing the valuable information and enticing design of a traditional online solution, combined with a community-based component to engage its customers.
What amazed me about this idea was that no one else in the industry was doing it. There is still a real opportunity for them to be a leader using a community-based solution.
Before we go into detail about how community-based websites can increase awareness and customer retention, let's define what a community-based website is.
A community-based website is an online community of people who share interests and activities, or who are interested in exploring the interests and activities of others. Other terms that are often used to describe community-based websites are social communities, social networks, and subscription-based communities.
The best examples of social networking communities that have become more traditional are MySpace, Facebook, Twitter, LinkedIn, and of course, Social Media Today.
With the dynamic growth and popularity of these communities, businesses are becoming increasingly involved in them. Many businesses are beginning to understand how online communities can drive brand awareness and retain customers through engagement and interaction.
Engagement simply measures the extent to which a consumer has a meaningful brand experience.
Interaction is the act of communicating with consumers.
So, how do engagement and interaction help to build brand awareness?
Interaction compliments engagement and community-based solutions are built on the foundation of interaction. This interaction gives businesses a direct line of communication with and between its customers and prospective customers. Interaction over time allows customers and prospects to build trust with the brand, engaging them through shared ideas and messages. This engagement promotes the brand experience, increases consumer confidence, and will increase sales and revenue over time.
Online communities also play a vital role in customer retention by connecting company or product followers or fans, i.e. Facebook fan pages. Allowing the interaction of your biggest fans, promotes ongoing engagement, leading to continuous support from your best customers (80-20).
Although the number of online communities is growing, there are still many opportunities to be a leader in your industry by developing a community-based solution. You may need to build your brand to increase sales and revenue. You may need to strengthen your customer retention to keep a loyal customer base. Either way, the opportunity to use community-based solutions will allow you to grow your business now.
