How Branded Customer Communities Can Drive More Revenue From Social Than Facebook Ads

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Social networks such as Facebook have been hailed by enthusiastic social media marketers as the holy grail of customer acquisition, retention, and revenue growth. The truth is, there is a gap between how consumers want to engage with companies on social media, and how those companies are using social networks. Consumers need more than just a platform where they passively “like” or “follow” brands. Instead, many seek a more trusted, deeper customer experience—one that encourages greater interaction and makes information relatively easy to find. Enter the branded community built exclusively for customers. Why is it so appealing, and why should brands all want one? Because branded customer communities are owned and managed directly by a company, they take the idea of the social consumer one step further. On the same site where customers make purchases, they can also speak to other shoppers about their experiences and proactively—and easily—seek answers to their questions. SURE, FACEBOOK AND TWITTER ARE WHERE CONSUMERS GO TO MAKE SOCIAL CONNECTIONS . . . BUT THEY PREFER TO BUILD RELATIONSHIPS WITH BRANDS IN CUSTOMER COMMUNITIES ON COMPANY WEBSITES “Consumers are clearly saying that a primary value proposition of a customer community is that it allows them to quickly access information that is relevant and accurate—and they prefer it when that information is provided by other people like them.” —Dale Sakai, partner, The Incyte Group TOP 3 REASONS CONSUMERS PARTICIPATE IN BRANDED COMMUNITIES There are more consumers willing to be free advocates for the products and services of the companies whose branded communities they join than those who will advocate only if they are given incentives or rewards. SPREADING THE WORD WITHOUT THE LURE OF A CARROT STICK HOW TO CREATE A BRANDED CUSTOMER COMMUNITY THAT WORKS What consumers do to learn more about a product or service LOOK AT ITS FACEBOOK PAGE GETTING INFORMATION MORE QUICKLY GETTING ANSWERS FROM CONSUMERS “LIKE ME” GETTING THE MOST ACCURATE INFORMATION FREELY ADVOCATE ADVOCATE, BUT WITH INCENTIVES WOULD NOT ADVOCATE ACCORDING TO INCYTE GROUP RESEARCH, CUSTOMERS PREFER THAT THEIR BRANDED COMMUNITIES: HERE’S HOW TO SATISFY THOSE CUSTOMER NEEDS WHEN IT COMES TO BRANDED COMMUNITIES: 1 2 3 TIGHTLY INTEGRATE WITH COMPANY’S WEBSITE. LINK WITH SOCIAL NETWORKS. HAVE THE COMMUNITY MANAGED PROACTIVELY BY COMPANIES. Integrate your community with open social networks. By creating strong ties to sites such as Facebook, Twitter, and Pinterest, people can share the content more easily with their friends and colleagues. Make everything easily searchable. Categorize the content so users can quickly and efficiently browse for what they need. Create several entry points to the community throughout the website, from the product page to the help page. Provide self-serve or peer-guided service and support. 4 Turn loyal customers into brand evangelists by listening to their needs, giving them a better- quality product or service than they ask for, and creating a forum for them to tell their peers about their good experience. INFORMATION 32.1% 42.1% 40.5% 17.4% 21.3% 18% 1 2 SEARCH 3 ENTER 5 What social networks are primarily used for Willingness to be advocates for products and services on branded customer communities that consumers join 81.1% 19.9% LOOK AT A COMPANY'S WEBSITE SOCIAL NETWORKING SPORTS/ENTERTAINMENT EDUCATION/TRAINING HOBBY/INTEREST HOW BRANDED CUSTOMER COMMUNITIES CAN DRIVE MORE REVENUE FROM SOCIAL THAN FACEBOOK ADS WORK COMPANY/BRAND/PRODUCT PERSONAL CAUSES 5 1 3 70.2% 17.2% 16.8% 12.8% 45.4% 23.2% 21.2% 1

Transcript of How Branded Customer Communities Can Drive More Revenue From Social Than Facebook Ads

Social networks such as Facebook have been hailed by enthusiastic social media marketers as the holy grail of customer acquisition, retention, and revenue growth. The truth is, there is a gap between how consumers want to engage with companies on social media, and how those companies are using social networks. Consumers need more than just a platform where they passively “like” or “follow” brands. Instead, many seek a more trusted, deeper customer experience—one that encourages greater interaction and makes information relatively easy to find.

Enter the branded community built exclusively for customers. Why is it so appealing, and why should brands all want one?

Because branded customer communities are owned and managed directly by a company, they take the idea of the social consumer one step further. On the same site where customers make purchases, they can also speak to other shoppers about their experiences and proactively—and easily—seek answers to their questions.

SURE, FACEBOOK AND TWITTER ARE WHERE CONSUMERS GO TO MAKE SOCIAL CONNECTIONS . . .

BUT THEY PREFER TO BUILD RELATIONSHIPS WITH BRANDS IN CUSTOMER COMMUNITIES ON COMPANY WEBSITES

“Consumers are clearly saying that a primary value proposition of a customer community is that it allows them to quickly access information that is relevant and accurate—and they prefer it when that information is provided by other people like them.” —Dale Sakai, partner, The Incyte Group

TOP 3 REASONS CONSUMERS PARTICIPATE IN BRANDED COMMUNITIES

There are more consumers willing to be free advocates for the products and services of the companies whose branded communities they join than those who will advocate only if they are given incentives or rewards.

SPREADING THE WORD WITHOUT THE LURE OF A CARROT STICK

HOW TO CREATE A BRANDED CUSTOMER COMMUNITY THAT WORKS

What consumers do to learn more about a product or service

LOOK AT ITS FACEBOOK PAGE

GETTING INFORMATION MORE QUICKLY

GETTING ANSWERS FROM CONSUMERS “LIKE ME”

GETTING THE MOST ACCURATE INFORMATION

FREELY ADVOCATE ADVOCATE, BUT WITH INCENTIVES

WOULD NOT ADVOCATE

ACCORDING TO INCYTE GROUP RESEARCH, CUSTOMERS PREFER THAT THEIR BRANDED COMMUNITIES:

HERE’S HOW TO SATISFY THOSE CUSTOMER NEEDS WHEN IT COMES TO BRANDED COMMUNITIES:

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TIGHTLY INTEGRATE WITH COMPANY’S WEBSITE.

LINK WITH SOCIAL NETWORKS.

HAVE THE COMMUNITY MANAGED PROACTIVELY BY COMPANIES.

Integrate your community with open social networks. By creating strong ties to sites such as Facebook, Twitter, and Pinterest, people can share the content more easily with their friends and colleagues.

Make everything easily searchable. Categorize the content so users can quickly and e�ciently browse for what they need.

Create several entry points to the community throughout the website, from the product page to the help page.

Provide self-serve or peer-guided service and support.

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Turn loyal customers into brand evangelists by listening to their needs, giving them a better-quality product or service than they ask for, and creating a forum for them to tell their peers about their good experience.

INFORMATION

32.1%

42.1% 40.5% 17.4%

21.3% 18%

1 2SEARCH

3

ENTER5

What social networks are primarily used for

Willingness to be advocates for products and services on branded customer communities that consumers join

81.1%19.9%

LOOK AT A

COMPANY'S WEBSITE

SOCIAL NETWORKING SPORTS/ENTERTAINMENTEDUCATION/TRAININGHOBBY/INTEREST

HOW BRANDED CUSTOMER COMMUNITIES CAN DRIVE MORE REVENUE FROM SOCIAL THAN FACEBOOK ADS

WORK COMPANY/BRAND/PRODUCTPERSONAL CAUSES

51 370.2%

17.2% 16.8% 12.8%

45.4% 23.2% 21.2%

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