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Aligning Your Community to Meet Your Business Goals

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CMX presents the SPACE model, a framework for defining your community's business value so you can measure its success. We partnered with Vanilla Forums to distill these insights.

Published in: Business

Aligning Your Community to Meet Your Business Goals

  1. 1. VanillaForums.com Aligning Your Community to Meet Your Business Goals Presented by CMX and Vanilla Forums
  2. 2. David Spinks CMX Founder Community Expert VanillaForums.com
  3. 3. Mélanie Attia VP Marketing at Vanilla Community Advocate VanillaForums.com
  4. 4. Agenda • Redefining the role of community in business • Defining your objectives • Mapping your objectives to the SPACE model • Use cases • Defining community health • Questions VanillaForums.com
  5. 5. Redefining the role of community management in business VanillaForums.com
  6. 6. Customer Community Customer Experience VanillaForums.com
  7. 7. Investing in community leads to ROI VanillaForums.com
  8. 8. What is the value of community? VanillaForums.com
  9. 9. The SPACE Model for Community Value S upport P roduct A cquisition C ontent E ngagement VanillaForums.com
  10. 10. Support: the community helps other customers with their questions and needs. VanillaForums.com
  11. 11. Goals: • Reduce support costs • Get customers the answers more quickly • Defend your brand when needed Metrics: • Time to get answers • Number of questions answered • Customer happiness (NPS) VanillaForums.com
  12. 12. Product: the community helps you improve your product by sharing feedback and ideas. VanillaForums.com
  13. 13. Goals: • Surface important product feedback and ideas • Improve customer/seller success • Increase customer retention Metrics: • Number of feedback items or ideas shared • Number of items applied to product • Lifetime value VanillaForums.com
  14. 14. Acquisition: the community helps your business achieve marketing and growth goals. VanillaForums.com
  15. 15. VanillaForums.com
  16. 16. Goals: • Create evangelists • Distribution of content • Curate stories to use in press Metrics: • Traffic and signups • Conversion to Sales • Number of evangelists and events VanillaForums.com
  17. 17. Content: the community is contributing the content that makes up the product. VanillaForums.com
  18. 18. VanillaForums.com
  19. 19. VanillaForums.com
  20. 20. Goals: • Motivate people to contribute • Scale content creation and development • Reduce costs of content creation Metrics: • Number of contributions • Quality of content • Content / Code shipped VanillaForums.com
  21. 21. Engagement: members come together around a common interest related to your brand or product. VanillaForums.com
  22. 22. VanillaForums.com
  23. 23. Goals: • Retention and loyalty • Create contributors for other community types (ambassadors, product feedback, etc) Metrics: • Return customers • Increased ambassadors • Reduced complaints VanillaForums.com
  24. 24. The SPACE Model for Community Value S upport P roduct A cquisition C ontent E ngagement VanillaForums.com
  25. 25. Community Measurement Strategy Community Health Business Objectives Revenue VanillaForums.com
  26. 26. Community Health = Growth + Repeat Activity VanillaForums.com
  27. 27. Measuring Community Health 1. Track the growth/churn of your community 2. Track how often members are coming back and taking repeat actions 3. Optimize content to create a quality experience that rewards members, driving growth and repeat activity VanillaForums.com
  28. 28. # members at end of period - # of members at start of period # of members at start of period Growth = VanillaForums.com
  29. 29. •IE: If you had 500 members at start of month, and ended with 450, your churn rate would be (450-500)/500 = -10% (aka 10% churn) •IE: If you had 550 members at the end, then (550-500)/500 = 10% (aka 10% growth) VanillaForums.com
  30. 30. Tracking Repeat Activity # or % of members who have taken X actions in the last 30 days VanillaForums.com
  31. 31. Only Metric That Matters (OMTM): A metric that you’re confident will improve the quality of your members’ experience. VanillaForums.com
  32. 32. →Medium: total time reading (TTR) →Facebook: 7 friends within 10 days of signing up →Twitter: visiting at least 7 times a month →Linkedin: profile views →CMX: posts with at least 3 responses Only Metric That Matters VanillaForums.com
  33. 33. Track to Optimize Time Frame Content and Experience Changes Made Growth/ Churn Repeat Activity (posted 3+ times in last 30 days) OMTM (7 friends within 10 days) Month 1 Added auto welcome email 10% 5% 7% Month 2 Personally emailed new members -3% 14% 12% Month 3 Recommended friends to follow 7% 16% 14% VanillaForums.com
  34. 34. Community Measurement Strategy Community Health Business Objectives Revenue VanillaForums.com
  35. 35. Measuring Community Impact on Business Objectives 1. Identify the action that’s driving value (“the valuable action”) 2. Measure frequency and quality of that action 3. Optimize to drive quality action VanillaForums.com
  36. 36. Identify the Valuable Action Using the SPACE Model S upport Answers to questions P roduct Ideas and feedback shared A cquisition Referrals and signups C ontent Content contributed E ngagement Advocates created VanillaForums.com
  37. 37. Measure Frequency and Quality Action Frequency Measure of Quality Answers to questions Number of answers posted per question Was the problem solved? Ideas and feedback shared Number of ideas posted per month Was the idea actually used in the product? Referrals and signups Number of signups per week Do the signups actually use the product? Content contributed Number of articles submitted per month Are the articles actually approved for publication? Advocates created Number of members who mention brand in community Are the mentions positive? VanillaForums.com
  38. 38. Community Measurement Strategy Community Health Business Objectives Revenue VanillaForums.com
  39. 39. Community Members Create Business Value in Two Ways: 1. Value of Member: the members themselves become more valuable 2. Value of Member Actions: The members take actions that result in driving business value VanillaForums.com
  40. 40. Increased Value of Member + Value of Member Actions - Cost ROI = VanillaForums.com
  41. 41. Measuring the Value of a Member (good for getting buy-in) Compare a segment of engaged community members to a segment of the average customer • Ie. LTV, Repeat purchases, $ spent, % converted to sales VanillaForums.com
  42. 42. “Members of Dell Ideastorm spend about 50% more than the average customer” - Bill Johnston VanillaForums.com
  43. 43. “The average value of an idea on Ideastorm is $10,000, and the total revenue from Dell’s Ideastorm is in the $100’s Millions” - Bill Johnston VanillaForums.com
  44. 44. How Much is the “Valuable Action” Worth? Action Revenue Answers to question $ saved per answered question Ideas and feedback shared $ value of an idea Referrals and signups $ value of a signup Content contributed $ value of an article Advocates created $ value of an advocate VanillaForums.com
  45. 45. Increased Value of Member + Value of Member Actions - Cost ROI = VanillaForums.com
  46. 46. Community Measurement Strategy Community Health Business Objectives Revenue VanillaForums.com
  47. 47. Keep Learning with CMX →CMX Training: The Fundamentals of Community Strategy →CMX Summit East: May 18-19 david@cmxhub.com CMXHub.com Connect on twitter: @cmx @davidspinks VanillaForums.com
  48. 48. What does Vanilla Forums do? Helping organizations of all sizes: üEngage customers üDrive loyalty üEmpower advocates üReduce support costs üIncrease collaboration VanillaForums.com
  49. 49. Vanilla for business powers over 200 million interactions monthly VanillaForums.com
  50. 50. For thousands of beloved brands VanillaForums.com
  51. 51. Questions? Questions? VanillaForums.com

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