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It Takes a Community

What do Star Wars fans, MacIntosh user groups, and Harley-Davidson owner clubs have in common? They represent loyal users and future purchasers of specific brands. Recent research into how companies like these successfully operate brand communities has pointed up some key points for marketers to keep in mind:

Brand community programs are more useful for retaining customers than for acquiring new ones. Apparently, customers are most interested in joining brand affinity groups if they already have an existing relationship with you.

Brand community members can be evangelists about your brand, and boost its profitability. "Consumers' high level of participation in a brand community raises their level of involvement, so they not only purchase more products and services from the company, but they encourage others to do so as well," the researchers report.

The brand community is most influential with members who know a great deal about the product. Therefore, the authors claim, "If influencing customers is the goal, it's important for firms to recruit seasoned customers instead of novices into brand communities."

The customer is king here. Once the marketing department establishes a brand community, it is best to let the customers take it from there: company involvement should be kept to a minimum.

The Po!nt: A well-orchestrated brand community can help boost your bottom line. The key? Finding loyal customers, bringing them together, then stepping back. Let the community raise your brand.

Source: "The Social Influence of Brand Community: Evidence from European Car Clubs", by Rene Algesheimer, Utpal M. Dholakia, and Andreas Hermann. Journal of Marketing 2005.

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Vol. 1, No. 24    June 18, 2008

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