Your SlideShare is downloading. ×
0
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
The Hard Truth About Standalone Communities
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

The Hard Truth About Standalone Communities

2,265

Published on

Social Media is the hottest thing in marketing. Everyone wants to build a community with blogs, wikis, forums. But - can they be successful? can they produce real business results? where are the …

Social Media is the hottest thing in marketing. Everyone wants to build a community with blogs, wikis, forums. But - can they be successful? can they produce real business results? where are the communities that were launched a year or two ago?

Published in: Business, Technology
1 Comment
3 Likes
Statistics
Notes
No Downloads
Views
Total Views
2,265
On Slideshare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
2
Comments
1
Likes
3
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. The hard truth about communities
    Can Standalone, Customer-Facing Communities Succeed?
  • 2. Let’s build a community!
    Social media experts told us we should build a community
    Wikis!
    Blogs!
    Profiles!
    Forums!
    Ideas!
    It will be so engaging!
    We will be the Facebook of our Industry!
    Our competition will be jealous!
  • 3. But then reality strikes
  • 4. Most Community Sites Fail
    Why Most Online Communities Fail
    “60% of the online communities failed to gain traction as measured by the number of members”
    – Wall Street Journal
    Lure of “Bells and Whistles” results in over-spending on technology
    Inexperienced or no community moderationteam
    Challenge of measuring success of an online community
    4
  • 5. Gartner’s Opinion
    “.About 70 percent of the community typically fails to coalesce.”
    “Furthermore, of the 30 percent of the communities that do emerge, many revolve around interactions that planners didn't envision, that don't provide business value and that may even be counterproductive”
    http://www.gartner.com/it/page.jsp?id=758914
  • 6. Community Site Lifecycle Challenge
    Build a community
    Develop critical mass of engaged users
    Develop critical mass of useful content
    Sustainability
    Getting users to come back, increase engagement, keep it going
    Make it valuable
    How to keep the conversation relevant
    How do you make UGC valuable for all your users
    How does your main site benefit your community
    Determine ROI
    Awareness, activity, fans and followers don’t pay the bills
    6
    “Chicken and Egg“ problem
  • 7. Participation and Value
    7
    Traditional 1/9/90 Rule
    90%
    Majority of Customers don’t know community exists, how it works, can’t find it, or don’t have time.
    9%
    Enthusiasts
    will find a forum, read answers and vote
    1%
    Experts
    will blog, answer forum questions, drive community
  • 8. Community Destination Sites
    Instead of “fishing where the fish are”, standalone communities try to be a destination site
    Brands want to own the conversation.
    How many brands can realistically have communities around each topic? How many cooking communities do we need?
    How many profiles online do real users maintain? On how many sites are they active?
    8
  • 9. What about the success stories on the press?
    We have seen lots of community launch press
    Companies don’t do publicity about their failed attempts
    No one has paid attention at the graveyard of communities…
  • 10. Community Graveyard Categories
    1/9/90
    community fails to impact a significant percentage of site visitors
    Stale
    No recent activity, no engagement
    Launch and Crash
    Big launch, then no one comes back
    Dead Communities
    Community dies, no longer exists
    Note: The intention of the next few slides is not to discredit or criticize any particular brand, but to illustrate a point and raise awareness about the difficulties of standalone communities.
  • 11. 1/9/90
    Only 0.33% of Allstate visitors ever visit the community
  • 12. 1/9/90
    • Only 3% of Priority Club visitors ever visit the community
    Data from compete.com
  • 13. 1/9/90
    • fans.wwe.com represent only 10% of total site traffic
    Data from compete.com
  • 14. 1/9/90
    14
    Less than 5% of Sears visitors go to MySears.com
  • 15. Stale Communities
  • 16. Stale communities
    Traffic is very low
    Featured groups have 1 or 2 members
  • 17. Stale Communities
    • Very few forums have recent activity
    • 18. Remember this is one of the world’s leading brands hosting a community for the most popular sport in the world
  • Stale Communities
    No activity on site
    Traffic is irrelevant
    Questions and Discussions with no responses
    Data from compete.com
  • 19. Low Engagement
    MySears.com gets ¼ the Pages/visit of the commerce site
    Data from compete.com
  • 20. Launch and Crash
  • 21. Launch and Crash
  • 22. Launch and Crash
  • 23. Dead communities
    Featured community redirects to homepage (RIP)
  • 24. Dead Communities
    • http://wildspace.wild949.com/ No longer exists
    • 25. http://zzone.z100.com/ No longer exists
    • 26. http://hotspot.hot995.com/ no longer exists
    • 27. http://connect.kdwb.com/ no longer exists
    • 28. http://kissnation.1061kissfm.com/ no longer exists
    • 29. http://wildspace.wild955.com/ no longer exists
  • Can Communities Work?
    YES!
  • 30. Intent-driven Community
    “Communities succeed if they solve a need, share an interest/passion and/or connect me with people I care about.”
    http://www.bazaarvoice.com/blog/2009/05/31/ghost-town-brand-community/
  • 31. Where can Communities Succeed?
    Connects me with people I care about
    Facebook works because most of your and my friends are there — it solves the need to connect and stay up to date, thus carrying more weight as a “social resume.”
    Facebook, LinkedIn, Google won – you can’t compete with them
    Solves a real problem
    Intent-based community
    Post-Sales peer-support communities – forums mainly
    “Dell support forums work because they allow asynchronous conversations to solve a technical problem for a frustrated computer user.”
  • 32. Keys to Intent-Driven Community
    Contextually relevant community
    • Embedded into website experience
    • 33. Relevant to visitor’s intent
    Create paths of continuous participation
    • Engagement drives value
    Everyone benefits from community
    • From experts to casual visitors
    Community must drive results
    • Strategy, Measurement and Analytics
  • Contextually Relevant Social Media
    Customers go to your site to get something done.
    Social media should help them achieve their goals.
    29
    Right on the visitor’s path
    Without having to visit a community site
  • 34. People go to your site to make decisions about your products and services
    Sharing other customer’s Opinions, Knowledge and Experiences to help them buy from you
    Experiences
    Opinions
    “I would highly recommend this mortgage company – superb process, excellent responsiveness, a pleasant experience.”
    “When I think of Julia Childs, I always smile and giggle a little…she inspired an entire generation of young chefs.”
    Knowledge
    Q: “What lamp can I use to replace the 9004 for street glow appicatioos?”
    A: “The ZX483922u Xenon Bulb can replace it”
  • 35. Create Paths of Continuous Participation
    31
    Approval e-mail invites customer to answer questions
    2
    5
    1
    3
    Site offers additional opportunities to participate like sharing photos
    Customer writes a review
    Customer writes a story that references products
    More customers attracted to the participation chain
    4
    Contextually relevant interactions foster engagement
  • 36. Emotional engagement (helping others, sharing, affinity, badges)
    Deeper and more meaningful value exchange
    83% of online shoppers would make more purchases if sites offer more interactive content
    Participation creates a sense of community, fosters loyalty and advocacy
    People who participate visit sites 9x more often and purchase 2x more often
    Customers helping customers also result in fewer returns and fewer support calls
    Create Paths of Continuous Participation
    32
  • 37. Participation and Value for Every Customer
    33
    EVERY CUSTOMER BENEFITS MORE ENTHUSIASTS MORE EXPERTS
    Majority of Users benefit from expertise and enthusiasm
    Read reviews, opinions, stories and answers
    Enthusiasts participate in the community
    Comment on stories, rate content, share with friends
    More people are enabled to share expertise
    Answer questions, share stories, write reviews
    MORE KNOWLEDGE AND MORE PASSION
    INCREASE PARTICIPATION AND ENGAGEMENT
  • 38. Community that Drives Results
    On Your Site
    Increases Engagement
    Can Help Every Single Customer
    Proven Business Value
    It’s called Social Commerce
  • 39. It works.
    Proven increase in awareness, traffic and engagement but also conversions, SEO, revenue and average order value, reductions in returns, etc.
    Shoppers who browsed "Top Rated Products" had a 59% higher conversion rate than the site average and spent 16% more per order than other browsers of products.
    - Bass Pro Shops, June 2008
    Consumers were willing to pay between 20 to 99% more for a 5-star rated product than for a 4-star rated product, depending on the product category.
    -comScore/Kelsey, October 2007
    Giving shoppers the ability to sort products within a category by customer rating led to a sales increase of 41%per unique visitor. - PETCO, June 2007
    Customer Stories campaign drove13,000 new prospects for La-Z-Boy. -2009
    With the use of customer Q&A, JC Whitney experienced a 23% decrease in product return rateson average. - JC Whitney, 2008
    25% of search results for the world's 20 largest brands are links to user-generated content.
    -Socialnomics, August 2009
    Consumers who recalled seeing customer reviews on a Web site reported 9% higher customer satisfaction levels, were 9% more likely to make a purchase and 8% more likely to purchase the next time they came to that site. - ForeSee Results, January 2008
    27% of users report a spending increase of 5-10%; almost 7% report a spending increase of 20%+ with reviews
    - Razorfish "Digital Consumer Behavior Study," October 2007
    Products with 50+ reviews have a
    65%lower return rate
    - Bazaarvoice PETCO Case Study, 2007
    35
  • 40. Tested, Proven, Real
    The Proof Points
    Case Studies
    Industry Statistics
    Lear more about Social Commerce

×