Few things can drive profitability more than maximising the lifetime value of an enquiry. For most businesses, an enquiry is expensive to secure. As such maximising the return from that enquiry makes perfect sense. Maximising the return from every enquiry, in turn, involves maximising conversion rates, the average sale per customer, margins, repeat purchase rates and referral.
Repeat business and referrals are especially crucial given that – repeat customers spend 300% more than first-time customers, repeat customers refer 50% more than first-time customers, referred customers spend 25% more than non-referred customers and refer customers are five times easier to convert to a sale than 1st-time customers. Perhaps the most effective and cost-efficient way of driving repeat business and referrals is through a brand community.
It is reported that some 61% of US corporations have established a brand community, generating a range of benefits as illustrated by the following:
A brand community is in essence – a group (drawn from a well-defined target market) with shared values formed based on attachment to a product or marque. Most brand communities are online. Examples of highly successful brand communities include those developed and actively managed by:
The primary characteristics of a successful brand community include:
Facilitating the effectiveness of a thriving brand community requires:
The stages in developing a brand community are most often as follows:
Once the community is established, it needs to be maintained and developed, with:
There is a lot of work in developing and maintaining a brand community, but the rewards are substantial. The brand community established by Manchester United FC has ensured that football only constitutes 19% of total revenue now. The community has facilitated new streams of revenue. In addition to driving revenue through enhanced loyalty, brand communities drive down marketing costs.
There are few tools more powerful in digital marketing than a brand community. Do yourself a favour and look closely at the opportunities they offer to businesses of all shapes and sizes, in all markets and industries.
Most business people I speak with say their business is customer-focused. Alas – more than 80% are kidding themselves. Most of them know little about their customers and potential customers. Rather than getting into the head of their consumers, they...READ MORE