Five compelling arguments for constructing a potent digital social network for businesses
Building an Online Community: A Strategic Approach to Enhancing Customer Experience and Brand Value
In today's digital age, businesses are recognising the importance of creating their own online communities. Tim Vogel, the CEO of BUX, recently highlighted the significance of forums for customer retention.
Online communities play a crucial role in increasing customer engagement, as they provide a platform for customers to feel connected to brands and other customers. These communities serve as spaces where customers share ideas for product enhancement, report issues, and engage in meaningful conversations.
Research shows that companies with online communities that influence 16% or more of their revenue have strong community engagement, with 64% of these companies demonstrating high levels of engagement. This engagement fosters continuous engagement and loyalty among customers.
Moreover, online communities provide a cost-effective way for companies to build real and meaningful relationships with customers and prospects. They make the company more approachable, creating the opportunity to sell without the "sell".
Engaging with customers directly in these communities is essential. Customers are more loyal to brands when they receive a direct response to their concerns or ideas. Quick and public addressing of customer concerns within online communities maintains a positive association with the brand.
Online communities also serve as a source of information and a way to communicate with other customers, improving overall brand impressions. They benefit from the enthusiasm and support of customer advocates, who are typically the most active participants and most loyal to the brand.
The benefits of creating an online community are numerous. They include reducing support costs through peer-to-peer support and self-service, increasing retention and engagement, gathering valuable product feedback, promoting products organically, and improving overall brand impressions.
Examples of successful online communities include Sephora’s “Beauty Insider Community” and Upwork’s global freelancer community. These communities help build loyalty, provide timely support, gather insights, and enable career advancement for both customers and the business.
As of now, 60% of businesses currently have a branded online community, and 15% are planning to add one in the next 12 months. Brian Pontarelli, the CEO of Inversoft, stated that online communities have become an integral part of a sound business strategy.
In conclusion, creating and nurturing an online community is a strategic approach for businesses to enhance customer experience and operational efficiency while strengthening brand value in 2025 and beyond.
In the rapidly evolving business landscape, online communities serve as valuable resources for enhancing customer experience, mixing technology with finance to foster meaningful connections. By implementing technology to manage these communities, businesses can gather crucial product feedback in the realm of finance, ultimately boosting overall brand value.
Amidst organizations planning to add online communities in the future, these digital hubs function as platforms where customers interact with brands and each other, creating opportunities for cost-effective relationship building and customer retention through technology.
