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  • Introduction
  • 📌Getting Started
    • Motivation behind the Guide
    • How to use this Guide?
  • 🏄🏻‍♂️Community Basics
    • Overview
    • What is Community?
    • What is CMGR & the Expectations?
    • CMGR Lingo
    • Traits of Great CMGRs
    • Real CMGR JDs and How to acquire those skills?
  • 🏦BUSINESS OUTCOMES OF COMMUNITY
    • Overview
    • Why communities are necessary for businesses?
    • SPACEI Model
  • đź§ PSYCHOLOGY BEHIND COMMUNITY BUILDING
    • Overview
    • Creating a Sense of Belongingness
    • The Commitment Curve
    • Harnessing The Desire for Exclusivity
  • 🏹Community Strategies
    • Overview
    • Business Need Identification
    • Community Need Identification
    • [WIP] Creating a Launch Plan
    • Defining Measurement Framework
  • 🥇COMMUNITY METRICS
    • Overview
    • KPIs to Consider for Communities
    • [WIP] What is Share Of Voice?
    • Defining ROI Model for Community Programs
    • Measuring Success of Communities
    • [WIP] Creating a Community Dashboard
  • đź‘«ENGAGEMENT
    • Overview
    • Creating a kick-ass Onboarding flow
      • What are different ways of Onboarding?
    • [WIP] Converting Newcomers to Active Members
    • [WIP] Gamification
  • 🚀Launching a new community
    • [WIP] Overview
    • [WIP] Establish Phase
    • [WIP] How to Get Executive Buy In
    • [WIP] Managing Your community
    • [WIP] Engagement Phase
  • SCALING AN EXISTING COMMUNITY
    • [WIP]{P}Overview
    • [WIP] Moderating and Managing Conflict
    • [WIP] Launching Ambassador Programs
  • COMMUNITY CONTENT STRATEGY
    • [WIP] Overview
    • [WIP] Creating a Community Content Calendar
  • Footnotes & Credits
    • Resources and Credits
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  1. 🏦BUSINESS OUTCOMES OF COMMUNITY

Why communities are necessary for businesses?

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Last updated 3 years ago

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Simple answer, so that the different stakeholders of the business (customers, employees etc.) don't feel a disconnect to others and the companies they do business with.

When businesses invest in community management, they transition from a normal brand to a more human brand — one that takes care of the needs of the people who support them, work for them and interact with them.

Some obvious benefits to Businesses from Community Engagement:

  • Enthusiastic members help acquire new members, resulting in lower customer acquisition costs and a tight viral loop.

  • Members are less likely to abandon the community, resulting in increased retention and therefore improved lifetime value.

  • Members support one another, resulting in high ROI from the community due to a lower cost of service.

Community efforts give way for very real network effects: as the engagement grows, the community gets smarter, faster to respond, more globally available, and generates more value.

Companies that leveraged community to their advantage.

  • Salesforce

    • a cloud and CRM tools giant with a behemoth $140 billion valuation.

    • has also created a community of nearly 2 million members who support each other. The company’s annual “Dreamforce” conference, which attracts nearly 200,000 acolytes to

    • The company’s annual “Dreamforce” conference, which attracts nearly 200,000 acolytes to San Francisco each year, represents a mecca for its ecosystem to convene, build relationships, and advance its corporate agenda.

  • Fitbit

    • has a community of more than 25 million members, who share and refine their exercise regimes

    • increased loyalty when their members felt like they’re creating a movement instead of just being a customer to the bike giant.

    • It has created more than 1,400 local chapters around the world for enthusiasts to get together in person and discuss their bikes.

    • Pinterest increased its odds of finding and maintaining product-market fit as it was constantly learning from its community members. This helped Pinterest adapt its product direction with its changing needs.

  • Codecademy

    • Since the company was founded nine years ago, more than 50 million people have taken one of its courses.

    • Users of Codecademy Pro (the company’s paid offering) have access to a Slack group so they can meet, mingle and share best practices with others and gain access to events with industry professionals and peers.

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