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The Business Value of
Online Community
A user-friendly compendium of the current research...
Jan. 2017
Now with
100% more
data!
What’s an online community?
For purposes of this presentation--
It’s an owned, interactive online hub where customers, fans, partners, employees,
and/or members can communicate and share.
It may have ties to content and interaction from social media accounts as well.
IDC predicts...
Customer communities will
become a strategic
component of an experience
strategy. By 2020, 80% of the
Fortune 5000 (F5000) will have
an active customer
community (up from 30%
today).
IDC 50th Anniversary: Transformation Everywhere
Brian Solis shows how...
X: The Experience When Business Meets Design
“Communities play a key
part in providing content
and instilling confidence
in buyers.”
Enable more effective
marketing
Drive customer lifetime value
Improve customer targeting
and segmentation
Accelerate buying decisions
Increase purchase satisfaction
Collect valuable user-generated
content
SAP-commissioned Forrester Research “Supporting the online
customer journey through communities,” October 2016
A good online community contributes to all of these priorities.
“human-style
conversations lead to
better reputations.”
Provide a space for your
brand’s conversational
human voice
Corporate reputation leads to
business outcomes
Social media & community
contribute to positive
perception
Foster true dialogue
w/customers
Dijkmans, C., Kerkhof, P., Buyukcan-Tetik, A. and Beukeboom, C. J.
(2015), Online Conversation and Corporate Reputation: A Two-Wave
Longitudinal Study on the Effects of Exposure to the Social Media
Activities of a Highly Interactive Company. J Comput-Mediat Comm,
20: 632–648. doi:10.1111/jcc4.12132
“We find that 19% of the post-launch revenue from
community customers can be attributed to their
joining the community. ...The analysis of community
data reveals that social connections – the number and
importance of friend ties – and interactions – personal
page displays – are positively linked to social dollars.”
Social Dollars: The Economic Impact of Customer Participation in a Firm-sponsored Online
Community. Manchanda, et al., February 6, 2015
“Community and purpose
are the new sources of
advantage in the Social
Era.”
Provide space for ideation, be
open to input from outside
sources, customers
Collaboration is a crucial part
of economic production
When community invests in an
idea, it co-owns its success
Kastelle, T., Merchant, N., Verreynne, M., (2016), What Creates
Advantage in the “Social Era”? MIT Press Journals, Vol 10, number
3/4
“We found that as consumers engage more actively
and in ways that involve relevant interaction with the
brand, there is a strong correlation to increasing
levels of customer lifetime value.”
The Consumer Engagement Engine, http://spiegel.medill.northwestern.edu January 2016
Crowdsourcing innovation
through community
White paper from The Community Roundtable and Techstra Solutions,
“Crowdsourcing Innovation to Create Business Value”
Create a strategic asset that
accelerates the development of
new ideas.
Make the organization more nimble
to better serve customer or
employee needs.
Positive experience of interacting
can be linked to increased
retention and a greater sense of
overall satisfaction for customers
& employees.
Idea factory for
innovation
Mission control for
influencers
Instant focus groups
Extend learning &
education
Break down internal
silos
Strengthen customer
relationships
Reduce support
costs
Connect experts &
resources
Privacy & control
SEO juice from
dynamic content
What will your
community do for
YOU?
Gather user-
generated content Reward and fire up
fans
Want to add your research findings?
Contact: Rosemary O’Neill
rosemary@socialstrata.com
www.hoop.la

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The Business Value of Online Community (what the research says)

  • 1. The Business Value of Online Community A user-friendly compendium of the current research... Jan. 2017 Now with 100% more data!
  • 2. What’s an online community? For purposes of this presentation-- It’s an owned, interactive online hub where customers, fans, partners, employees, and/or members can communicate and share. It may have ties to content and interaction from social media accounts as well.
  • 3. IDC predicts... Customer communities will become a strategic component of an experience strategy. By 2020, 80% of the Fortune 5000 (F5000) will have an active customer community (up from 30% today). IDC 50th Anniversary: Transformation Everywhere Brian Solis shows how... X: The Experience When Business Meets Design
  • 4. “Communities play a key part in providing content and instilling confidence in buyers.” Enable more effective marketing Drive customer lifetime value Improve customer targeting and segmentation Accelerate buying decisions Increase purchase satisfaction Collect valuable user-generated content SAP-commissioned Forrester Research “Supporting the online customer journey through communities,” October 2016
  • 5. A good online community contributes to all of these priorities.
  • 6. “human-style conversations lead to better reputations.” Provide a space for your brand’s conversational human voice Corporate reputation leads to business outcomes Social media & community contribute to positive perception Foster true dialogue w/customers Dijkmans, C., Kerkhof, P., Buyukcan-Tetik, A. and Beukeboom, C. J. (2015), Online Conversation and Corporate Reputation: A Two-Wave Longitudinal Study on the Effects of Exposure to the Social Media Activities of a Highly Interactive Company. J Comput-Mediat Comm, 20: 632–648. doi:10.1111/jcc4.12132
  • 7. “We find that 19% of the post-launch revenue from community customers can be attributed to their joining the community. ...The analysis of community data reveals that social connections – the number and importance of friend ties – and interactions – personal page displays – are positively linked to social dollars.” Social Dollars: The Economic Impact of Customer Participation in a Firm-sponsored Online Community. Manchanda, et al., February 6, 2015
  • 8. “Community and purpose are the new sources of advantage in the Social Era.” Provide space for ideation, be open to input from outside sources, customers Collaboration is a crucial part of economic production When community invests in an idea, it co-owns its success Kastelle, T., Merchant, N., Verreynne, M., (2016), What Creates Advantage in the “Social Era”? MIT Press Journals, Vol 10, number 3/4
  • 9. “We found that as consumers engage more actively and in ways that involve relevant interaction with the brand, there is a strong correlation to increasing levels of customer lifetime value.” The Consumer Engagement Engine, http://spiegel.medill.northwestern.edu January 2016
  • 10. Crowdsourcing innovation through community White paper from The Community Roundtable and Techstra Solutions, “Crowdsourcing Innovation to Create Business Value” Create a strategic asset that accelerates the development of new ideas. Make the organization more nimble to better serve customer or employee needs. Positive experience of interacting can be linked to increased retention and a greater sense of overall satisfaction for customers & employees.
  • 11. Idea factory for innovation Mission control for influencers Instant focus groups Extend learning & education Break down internal silos Strengthen customer relationships Reduce support costs Connect experts & resources Privacy & control SEO juice from dynamic content What will your community do for YOU? Gather user- generated content Reward and fire up fans
  • 12. Want to add your research findings? Contact: Rosemary O’Neill rosemary@socialstrata.com www.hoop.la